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INTRODUCTION TO STRATEGIC MANAGEMENT
Develop awareness about the historical development of strategic management in India and around the world
Grasp the concept of strategy and its limitations Learn how the process of strategic decision-
making works Develop awareness about the various schools of
thought on strategy formation Gain command of how the strategic management
process operates
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Learning Objectives
The genesis of strategic management and business policy
Evolution based on managerial practices Historical perspective of evolution of strategic
management Pointers to the future
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Evolution of Strategic Management and Business Policy
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Vision andMission
Goals andObjectives
Strategy:Arenas
VehiclesDifferentiators
StagingEconomic logic
Implementation Levers and Strategic Leadership
Internal and External Strategic Analysis
Hambrick and Fredrickson Model of Strategic Management
D. C. Hambrick & J. W. Fredrickson: “Are you sure you have a strategy?” (2001). Academy of Management Executive Vol. 15, No. 4, pp. 48-59
Role of IIMs and ASCI Role of AICTE Role of AIMS Role of AIMA India-focused international studies Strategic Management Forum of India Publications
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The Indian Scenario
The term strategic is often misunderstood, misinterpreted and misused.
The literature and texts in strategic management assign a definite meaning to the term ‘strategic’.
Marketing strategy, advertising strategy or purchasing strategy and strategic procurement or strategic recruitment are commonly used terms.
Strategic means when things are done keeping in view the objectives and strategies of the organisation and is seen as something having a long-term and vital significance to the future of the organisation.
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A word of caution for the term “Strategy”
A strategy could be: a plan or course of action or a set of decision rules making a pattern
or creating a common thread; the pattern or common thread related to the organisation's activities
which are derived from the policies, objectives and goals; related to pursuing those activities which move an organisation from
its current position to a desired future state; concerned with the resources necessary for implementing a plan or
following a course of action; and connected to the strategic positioning of a firm, making trade-offs
between its different activities, and creating a fit among these activities.
the planned or actual coordination of the firm's major goals and actions, in time and space that continuously co-align the firm with its environment.
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The Concept of Strategy
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Levels at which Strategy Operates
Corporate Office
SBUA
SBUB
Finance Marketing Operations HRM Information
LEVELS OF MANAGEMENT LEVELS OF STRATEGY
CORPORATE CORPORATE-LEVEL
SBU BUSINESS-LEVEL
FUNCTIONAL
SBUC
Objectives to be achieved are determined; Alternative ways of achieving the objectives are
identified; Each alternative is evaluated in terms of its
objective-achieving ability; and The best alternative is chosen.
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Strategic Decision-Making
Problem related to objective-setting. The identification of alternatives. The objective-achieving ability of each
alternative. Choosing the best alternative is a
formidable task.
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Problems in Strategic Decision Making
Criteria for decision-making Rationality in decision-making Creativity in decision-making Variability in decision-making Person-related factors in decision-
making Individual versus group decision-
making.
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Issues in Strategic Decision-Making
The prescriptive schools The descriptive schools The integrative school
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Schools of Thought on Strategy Formation
Design school where strategy formation is a process of conception
Planning school where strategy formation is a formal process
Positioning school where strategy formation is an analytical process
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The Perspective School
Entrepreneurial school where strategy formation is a visionary process
Cognitive school where strategy formation is a mental process
Learning school where the strategy formation is an emergent process
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The Descriptive School
Power school where the strategy formation is a negotiation process
Cultural school where the strategy formation is a collective process
Environmental school process where the strategy formation is a reactive process
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The Descriptive School
Configuration school where the strategy formation is a process of transformation.
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The Integrative School
Strategic management is defined as the dynamic process of formulation, implementation, evaluation and control of strategies to realise the organization’s strategic intent.
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Strategic Management Defined
Dynamic process. Continual, evolving, iterative process. Evolving mosaic of relevant activities.
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Strategic Management is characterized as…
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Four phases in Strategic Management
Formulation of strategies
Implementation of strategies
Strategic evaluation
Strategic control
Establishment of strategic intent
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Comprehensive Model of Strategic Management
Strategy Formulation
Environmental Organisational Appraisal Appraisal
SWOT AnalysisCorporate-level StrategiesBusiness-level Strategies
Strategic analysis and choiceStrategic plan
Strategic Intent
VisionMission
Business definitionBusiness model
Objectives
Strategy Implementation
ProjectProcedural
Resource allocationStructural
BehaviouralFunctional & Operational
Implementation
Strategic control
Strategic Evaluation
Strategic evaluation and control