Unit One of Strategic Management

8/9/2019 Unit One of Strategic Management

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STRATEGY

It is an action that managers take to

attain one or more of the

organizations goals.

An overriding goal is to achievesuperior performance relative to

rivals


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Strategic management process

Superior performance

Competitive advantage

Business model

Industry structure and profitability

Performance in non profit enterprises


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STRATEGIC MANAGERS

CORPORATE LEVEL MANAGERS

BUSINESS LEVEL MANAGERS

FUNCTIONAL LEVEL MANAGERS


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CORPORATE-LEVEL MANAGERS

CEO Jeffrey Immelt, other senior executives ,

board of directors and corporate staff

Roles of corporate level managers Concern is with building and managing the

corporate portfolio of business to maximize

the corporate profitability

Guardians of shareholder welfare


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BUSINESS-LEVEL MANAGERS

Head of the business unit

Roles


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FUNCTIONAL-LEVEL MANAGERS

They r responsible for specific business

functions or operations

Roles Aerospace in GE


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A MODEL OF STRATEGIC PLANNING

PROCESS

Select the corporate mission and major corporategoals

Analyze the organizations external competitive

environment to identify opportunities and threats Analyze the org internal operating environment to

identify the organizations strengths and weaknesses

Select strategies that build on the organizationsstrengths and correct its weaknesses in order to take

advantage of external opportunities and counterexternal threats

Implement the strategy


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MISSION STATEMENT

reason for existence which is normally

referred as MISSION or VISION of the

company

statement of the key VALUES OR GUIDING

STANDARDS

major GOALS or OBJECTIVES


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Mission or vision

Formal declaration of what the company is tryingto achieve

Vision statement help set the context within

which strategies are formulated. Boeing company PEOPLE WORKING TOGTHER

AS GLOBAL ENTERPRISE FOR AROSPACELEADERSHIP

Microsoft vision TO EMPOWER PEOPLETHROUGH GREAT SOFTRWARE, ANY TIME, ANYPLACE ON ANY DEVICE


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Mission statement

What is our business?

What customer needs?

What customer groups?

By what skills ,distinctive competencies?

Not product oriented

Eg IBM


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VALUES

The values of a company state how managers

and employees should conduct themselves,

how they should do business, and what kind

of organization they should build to help a

company achieve its mission

Eg: nucor


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Major goals and objectives

Goal is a desired future state or objective that

a company attempts to realize.

Precise and measurable Address crucial issues

Challenging but realistic

Specify a time period


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PROFITABILITY

Central goal of most corporations is to

maximize shareholder returns

Increase long run profitability


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EXTERNAL ANALYSIS

INDUSTRY ENVIRNOMENT

NATIONAL ENVIRONMENT

SOCIOECONOMIC

INTERNAL ANALYSIS


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SWOT ANALYSIS

Central purpose is to identify the strategies

that will create a firm- specific business model

that will best align, fit or match a companies

resources and capabilities

FUNCTIONAL - LEVEL STRATEGY

BUSINESS - LEVEL STRATEGY

GLOBAL STRATEGY

CORPORATE - LEVEL STRATEGY


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STARTEGY IMPLEMENTATION

Corporate performance, governance and

ethics

Implementing strategy in single industry Implementing strategy across industries and

across countries

THEF

EEDBACK LOOP


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STRATEGY AS AN EMERGENT PROCESS

Strategy making in an unpredictable world

MICROSOFT

Strategy making by lower-level managers INTEL (DRAM memory chip market to RISC based

microprocessors)

Serendipity and strategy

Fluorocarbons to save fabric so scotch guard was

found


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INTENDED AND EMERGENT

STRATEGIES

Comparing each emergent strategy with

organizational goal

The objective is to assess whether theemergent strategy fits the org needs and

capacity

They must be able to think strategically

E.g. hero Honda 50 c


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STRATEGIC PLANNING IN

PRACTICE

SCENARIO PLANNING

INVOLVING FUNCTIONAL MANAGERS

STRATEGIC INTENT


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STRATEGIC INTENT

Underlying concept of strategic intent is the

notion that strategic planning should be based

on setting ambitious goals that stretch a

company and then finding ways to build the

resources and capabilities necessary to attain

those goals


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Strategic intent is more internally focused and

is concerned with building new resources and

capabilities.

Strategic fit focused more on matching

existing resources and capabilities to the

external environment


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UNIT II -

INTERNAL

ANALYSIS


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Unit One of Strategic Management

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