Strategic Management

Strategic Management
Business these days is very competitive. Strategy is about competition, on how a business behaves against competition.

Strategy is also about products or services that a business offers in the market.

Strategic Management
Strategic Management is an integration of the functional components of management - marketing - operations - finance - human resources into an integrated whole.

 Strategic Management entails 5 distinct tasks as follows:

Mission/Vision Objective Strategy Implementation Evaluation.

 A vision is framed - converted into achievable targets - strategy is crafted with attached timeframe - implemented as per task schedule - evaluated at regular intervals If vision is a destination, strategy is the road to that goal.

 The total work touches every facet of the organization. Hence, teamwork among the different sections of the organization is essential. The term Shared Vision attests to the teamwork.

 Strategy has been defined in many different ways; - plan - stretch - perspective. These aspects of strategy will be reviewed with respect to the traditional planning format.

 Business today is in a constant state of disequilibrium due too many changes happening too fast.

Deregulation, Technological Inventions, Global Warming, Demographic Shifts, Bulging Middle Class these are some of the changes that impact business directly.

 A traditional planning process cannot handle these uncertainties in business environment.

Strategic Management is the most widely used management tool in business today, for survival and possible prosperity.

 Implementation and Evaluation are integral part of this planning process. Good Plan + Weak Implementation = Weak Plan Strategic Management is management by results.

Topic
1. Strategic management: an overview 2. Strategic management: the process 3. Environment of business 3. Industry analysis 4. Company analysis 5. Crafting of strategy 6. Implementing strategy :soft & hard elements 7. Evaluating a strategy : balanced score card 8. Schools of thought 9. Cases : individual and group assignments -

Lectures 2 3 2 2 2 2 2 2 2

Text: 1. Crafting & Executing Strategy by Thompson, Strickland & Gamble 2. Strategic Management Theory by CW Hill & GR Jones Supplementary readings: 1. Competitive Strategy by Michael Porter 2. Strategy by Harvard Business Essentials

Vision Long run imagination Mission Reason for Existence Objective What result to accomplish by when Strategies Plan to achieve the mission and objective Policy Broad guideline for decision making Program Activities needed to accomplish the plan Budget Cost of the Programs Procedure Sequence of steps needed to do the job Performance Actual result

Vision A vision refers to the category of all Intentions that are Broad, all inclusive and forward thinking.A vision describes aspiration for the future. The most effective visions are those that inspire and this inspiration often takes the form of asking for the best, the most and greatest. Three components of the Business vision can be portrayed as follows

Core values

Core Purpose
Business Vision

Visionary Goal

Core Value The Value ( the principles of standard ) that would be carried with it into the new industry are the core value of the firm.
The following are a few examples of value that some firms has chosen to be their core value: Excellent Customer service Pioneering technology Creativity Integrity Social Respovsibility Core Purpose The core purpose is the reason that the firm exists Visionary Goal The vision describes some milestone that the firm will reach in the future and may require a decade or more to achieve.

Vision of Cocacola
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fastmoving organization.