Fundamentals of a Strategy by Asst Prof. Jonlen DeSa

JONLEN J.R.DESA

1. Meaning & Definition of Strategy2. Elements of a Strategy3. Meaning of Strategic Management4. Distinction b/w Strategic Management

& Operational Management

Greek word- Strategia- Art & Science of directing Military forces.

(Relate to sports) Strategy- either defend oneself or attack

rivals.

Strategy is a plan or course of action which is vital, pervasive or continuing importance to the organization as a whole.

Strategies need not be planned, they can be emerged.

"Strategy is the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals."

Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.

Putting the Strategy into action.

Long Term Planning Future Orientation Achievement of

long term goals & objectives

Top Level Mgmt Orgn wide activity Long Term Process Non-Routinized

Tasks Complex Process &

Good Skills Influences Survival

Short & Medium Term Planning

Focused on Present Day to day activities Middle & Lower

Level Mgmt Only Prodn & Opern

Short term Process Routinized Tasks Simple Process &

Avg Skills Does Not Influence

Survival

ELEMENTS OF A STRATEGY

*A vision is an over-riding idea of what the organization should be in future.

*Often it reflects the dream of the founder or leader.

*A vision must be sufficiently clear and concise that everyone in the organization understands it and can buy into it with passion.

•A statement showing the purpose of an organization.

•Distinguishes between organizations.

Focuses on the present

Tactics are the specific actions, sequences of actions, and schedules you will use to fulfill your strategy.

They are the detailed programs formulated to put the strategies into action.

OBJECTIVE

• The term objective is often used interchangeably with goal but usually refers to specific targets for which measurable results can be obtained.

• Organizational objectives are the end points of an organization's mission.

• Objectives refer to the specific kinds of results the organizations seek to achieve through its existence and operations (William F. Glueck, and Lawrence R. Jauch)

GOALS

SCOPE

A Strategy defines the scope of the firmthat is the kinds of products the firm will offer, the markets it will pursue and the broad areas of activities that it will undertake

LOGIC

Most important element of Strategy

“ WHY”- is the logic of a Strategy

Eg: Detergent Firms.

*Doing things differently from others

*Being district from rivals

*Concentrate on Strengths and build on them.

*Gaining an edge over rivals by attracting more customers.

*Single Factor

KINDS OF STRATEGIES

GROWTHFINANCEORGANIZATIONPERSONNELMARKETING

FEATURES OF STRATEGY

• Strategy is Significant because it is not possible to foresee the future. Without a perfect foresight, the firms must be ready to deal with the uncertain events which constitute the business environment.

• Strategy deals with long term developments rather than routine

operations, i.e. it deals with probability of innovations or new products, new methods of productions, or new markets.

• Strategy is created to take into account the probable behavior of customers and competitors.

• Strategy is a well defined roadmap of an organization. • It defines the overall mission, vision and direction of an

organization. • The objective of a strategy is to maximize an organization’s

strengths and to minimize the strengths of the competitors.• Strategy, in short, bridges the gap between “where we are” and

“where we want to be”.