Lecture Session

1&2
Introduction to Strategic Management
Dr K. Sankaran Director Justice KS Hegde Management Institute Nitte, Karnataka

What is Strategy?

What is Strategy?
A long term direction which seeks to meet the expectations and create value for stakeholders (SAE workbook)
How to achieve What to achieve Stakeholders Expectations Direction

Long vs. Short term Context

Competitors
Internal resources

Strategic decisions
Are about Values Values and expectations of stakeholders Gaining advantage over competitors Addressing changes in the business environment Building on resources and competencies The long-term direction of an organisation The scope of an organisations activities Are likely to be Be complex in nature and made in situations of uncertainty Affect operational decisions Require an integrated approach Involve considerable change

A Framework for Strategic Management at JKSHIM

Stages of Strategy Making
Formulation Context

Strategic Position
Expectations and Purpose Macro Business Level Transactional Internal Functional Level

Planning & Conceptualization Process

Implementation The process of doing

Corporate Level

Strategic Choices (What and How)

Enabling

Strategy into Action

Controlling Managing Change Leading Measurements

Organizing

Where would the following topics largely fall within the schema above: Structuring of organizations, Goals, Leadership, Competitive Strategy Models, New Revenue Models, Corporate support in raising Resources, Process interventions

Levels of Strategy
Corporate level about the overall purpose and scope of an organisation and how value will be added to the different business units of the organisation Business level about how to compete successfully in specific markets Operational level about delivering the corporate and business strategies by harnessing resources, processes and people usually at functional levels

The 5 Ps of Strategy
Plan: Intended Course of Action Ploy: Tactical moves to outwit the competitors/ adversary Pattern: In retrospect, some inherent logic Position: Market position and share Perspective: Some ingrained way to perceive the world

Mintzberg, 1992

Patterns of Strategic Development

Source: J&S&W

How do you relate the diagram above with the following: Political vs. planned change in organizations Placid vs. turbulent environment Strategy as plans vs. perspective vs. ploy

Strategy
This course is concerned with understanding the strategies of
organisations, the forces that work upon organisations which influence their strategy, how managers can set about thinking about such forces and how they can react to such forces as they attempt to design SUSTAINABLE COMPETITIVE ADVANTAGE.

End of Session