Strategic Management Class I and II

7/23/2019 Strategic Management Class I and II

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Strategic management

BBA IV yr VII SEM


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What type of course?

It is capstone type of course

It is summative, and multidisciplinary

It has less theories more application


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Strategic management

BBA IV yr VII SEM


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Student EvaluationBreak Down of teacher evaluation:

Full Mark 50

Class attendance !

"iscipline #conduct$$$ %&ome assignment '(

Mid term)*ov+

Sent up )-an end+ '(

Class participation %

.ui/#unit test

0roup 1or2 %

$$$*ote 3 Score can 4e negative if the studentconduct is highly disruptive


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Students participation in the class ishighly encouraged

5articipation 1ill contri4ute to thescore

6se of mo4ile in the class is strictlyprohi4ited

It 1ill immediately carry the negativescore

7he con8scated mo4iles 1ill 4ereturned onl after the semester95ls


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:4;ective of course?

After completing the course you 1ill 4ea4le to3

Analy/e the environment


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:4;ective of today=ssession?

After completing the session you 1ill4e a4le to3

6nderstand the 1ord strategy and itsdepth

6nderstand and e>plain dierence4et1een strategy and plan

6nderstand and e>plain the termsstrategy and strategic management


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What is a strategy?


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What is strategy ?

We all are familiar 1ith a 5@A*

5lan has o4;ective , and plan hascourse of action, plan is for future

Strategy is also 4asically a plan 4utdierent from the conventionalmeaning of plan

If 1e say strategy is another name ofplan 1e are underscoring themeaning of strategy


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Strategy is for 1inning the4attle

7he 1ord strategy has come tomanagement from the 4attle 8eld

Strategy is the deployment of forces4y understanding the strength and1ea2nesses of the enemy theo4;ective is to 1in the 4attle

In the mar2et competitors are also inthe 4attle


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Strategy is for 1inning the4attle

7he 1ord strategy has come tomanagement from the 4attle 8eld

Strategy is the deployment of forces4y understanding the strength and1ea2nesses of the enemy theo4;ective is to 1in the 4attle

In the mar2et competitors are also inthe 4attle


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7he de8nition of strategy inmanagement lays stress on follo1ing3

It considers the environment

It tries to achieve a long termo4;ective


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Strategy is plan of action to achievethe organi/ational goal 1ith perfectunderstanding of environment

Michael 5orter has added ne1dimension in de8nition of strategy

Strategy is for creating a uniueposition in the mar2et


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Essential components instrategy

Strategy is plan

Strategy has o4;ective setting

Strategy 1ill create a uniueposition

Strategy considers the environment


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E>panding hori/on ofstrategy99

Strategy is plan

Strategies guide the entireorgani/ation

Stratgic management evolving as aphilosophy of management

Strtegies are not static dynamic


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What is strategicmanagement

It is set of the managerial decisions4ased on the formulated strategies


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A strategicstatement)e>ample+

An organi/ation has set the goal ofachieving average % D gro1th inne>t 8ve years 4y e>panding the

mar2et of its current product line,and capitali/ing on its lo1 costproduction technology and s2illed

1or2ers9 Strategic plans can 4e lengthy


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Basic model of strategicmanagement


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Bene8ts of strategicmanagement

Clear sense of the vision of the org

Sharp focus on 1hat is the priority

Better understanding of theenvironment

&elp to 4uild the core competencies


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Environmental scanning

Environmental scanning is analysis ofinternal and external environmental

E>ternal Environment environment

outside the organi/ation provideopportunities and#or pose threat

E>ternal environment can 4e furtherclassi8ed into taskand societalenvironment


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E>ternal c contd99

Environment are of t1o types3

7as2 environment 3 having directeect to 4usiness

Societal environment 3indirectlyaecting the 4usiness


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Internal environment

Internal environment :rgani/ationalanalysis Strength and 1ea2ness ofthe organi/ation itself


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7otal environmental analysis

Analaysis of internal environment 3Strength and Wea2neses

Analysis of e>ternal env3:pportunities and7hreats

In single phrase 1e also call it SW:7analysis


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Strategy formulation

Strategies are formulated afteranaly/ing the num4er of alternates

Strategy formulation reuiresunderstanding or rede8ning thevision ,mission and o4;ectives


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@evels of strategy

Corporate )top management+

Business)Business 6nits+


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&o1 the strategies areimplemented?

Strategies are implemented throughprograms, policies, tactics, procedures,and rules

5rograms Set of activities

5ro;ects a speci8c activity 1ithde8nite time frame

5olicies guidelines to managerialdecision ma2ingE>ample3 7he company has a policy of recogni/ing

and giving preference to regular customers


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5rocedures3 7he seuence of activitiesto 4e follo1ed in any particular tas2

E>ample 3

Before launching the product into themar2et, a consumer survey has to 4econducted

After the survey a small range of sampleproducts have to 4e introduced

Based on the mar2et feed 4ac2 the product1ill 4e modi8ed and 8nally launched in thefull scale


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Evaluation and control

Strategy are implemented for adesired result


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Fis2s in Strategicmanagement

Fis2s3

a9"iGculty in prediction

49Very dynamic environmentc9Fis2 of accounta4ility


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Feponsi4ility in :rgani/ation

Fesponsi4le parties of a corporation

ShareholderBoard of "irectors

Management


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Corporate 0overnance

7he fair and accounta4lemanagement 1ith transparency andconcern to1ards all the three

sta2eholders is governance


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Felation 4et1een strategyand 0overnance

Strategies give direction to theorgani/ation

Strategies 4uild the future


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Fesponsi4ility of Board

0etting involved in corporate and4usiness strategy

5rovide overall direction

Control over the top management

Fevie1ing and approving theprocurement and use of resources

Caring of shareholders interest


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Who can 4e the directors

Inside directors


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Why outside director

Adding outside directors to a privatecompanyHs 4oard can generate si>2ey advantages 3

independent perspective, strategicthin2ing and planning, e>perience

and o4;ectivity, contacts, capitalinfusion and deals


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Who can 4e the director

Inside directors

erience and o4 ectivit ,

l f 4 d i i


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Fole of 4oard in strategicmanagement

Monitor the strategy formulation andimplementation process

Evaluate and inJuence3 inJuence thedecision

Initiate and determine3 Fede8ne thevision, mission

l f i


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Fole of top management instrategic mgmt

5rovides e>ecutive leadership

CE: articulates vision

CE: presents a role model CE: communicates high

performance std

S i l i4ili f


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Social responsi4ility ofstrategic decision ma2er

7he reuirement of CSF is 4ased onthree principles 3 legitimacy,publicresponsibility, and managerial

discretion


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7he principle of legitimacy refers tosocietyHs granting of legitimacy andpo1er to 4usiness9

7he principle ofpublic responsibilitymeans that 4usiness is responsi4lefor outcomes related to its areas of

involvement 1ith society9


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7he principle of managerialdiscretion refers to managers asmoral actors 1ho are accounta4le for

socially responsi4le outcomes9


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Kno1ledge a4out SF is important instrategic mgmt 4ecause

7he decisions are going to 4e longterm

7he 4usiness has to remain thesociety

Society can 4e a strategic partner


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B i d l f t t i


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Strategic Management Class I and II

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