NATURE

of

STRATEGIC MANAGEMENT

Strategy
A comprehensive plan for accomplishing
an Organizations goals

Strategic Management
A way of approaching business
opportunities and threats and make best
use of strength and overcome
weaknesses.

 Distinctive Competence
Scope
Resource Deployment

 Something the organization does

exceptionally well.
An organizational strength possessed

by only a small number of competing

firms.
Technical expertise, cost,
unique distribution system any thing could be.

 The part of a strategy that specifies the range of markets

in which an organization will compete.

TOYOTA doing business in automobile industry.

Canon doing business in different industries.

Market Segmentation
Mercedes ,Rolex, CASIO all have different market to
serve.

 Scope has to be distinct and match the

Distinctive competencies.
Scope should be evaluated and can be

redefined. --- Fair & Lovely

Scope should match the capabilities.

 Organizations having numerous scopes.

Compete in dozens or even hundreds of

Markets.

BEXIMCO, SQUARE

 The way the organization distributes its resources

across the areas in which it competes.

Example:

Walt Disney allocate some of the profits from movies

and theme parks to fund new business in book
publishing and music recording.

 Corporate level strategy- decide which business to be

in, diversification, acquisition etc.

Business level strategy-decide how to serve the
market; low cost, product differentiation etc.
Functional level strategy -Seeks to have each
department add value to a good or service. TQM,
Inventory Management etc.

Strategic Planning Questions

What is the organizations position
in the marketplace?
What does the organization want its
position to be?
What trends and changes are occurring
in the marketplace?

What are the best alternatives to help the

organization achieve its goals?

Strategy as an Emergent Process

Strategy making in an Unpredictable
World
Strategy making by Lower Level
Managers
Intended and Emergent Strategies

Strategic Management Process

Intended Strategies
Missions
and Goals

External
Analysis

Strategic
Choice

INTENDED STRATEGY

Organizing for
Implementation

Internal
Analysis

Strategic Management
Emergent Strategies
External
Analysis

Missions
and Goals

Strategic Choice
Does It Fit?

EMERGENT STRATEGY

Organizational
Grassroots

Internal
Analysis

Characteristics of
Successful Strategic Managers
1. Well informed.
2. Skill at focusing their time and
energy.
3. Good at building consensus.
4. Good at creating contingency
plans.
5. Accomplished at simplifying the
process.

6.
7.

Commitment
Willingness to Delegate and Empower

Bye.