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Strategic Management Introduction

Module I

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Strategic Management
The set of managerial decisions and actions that determines the long run performance of a corporation.

Basic Model of StrategicName of Institution Management

Four Basic Elements

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Evolution of Strategic Management

Development of Strategic Management

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In 1950s & 1960s: Alfred Chandler recognized the importance of coordinating various aspects of management. Thus gave the concept of structure follows strategy. In 1957, Philip Selznick matched Internal / External factors thus came the concept of SWOT analysis given by Andrews at Harvard Business School. Igor Ansoff, built Product/mission matrix. In 1970s: Portfolio theory started at GE BCG analysis- early 1970 Later GE 9 cell In 1980s: Michael Porter- 5 Force Analysis, Generic Strategies, Value Chain Analysis Realized vast knowledge pool in military and then took guidance from Art of War (Military Strategy Books) learned the tactical sides of military perspectives. In 1990s: Mintzberg s Deliberate, Emergent & Realized Strategies Charles Handy identify two strategic change: Strategic Drift & Transformational change

Strategy

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intended strategy-- plan for action emergent strategy-- process realized strategy--- outcome
- source- Henry Mintzberg, 1987

Different Kinds of Strategy

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Deliberate

Intended Strategy

Unrealized Strategy

Different Kinds of Strategy

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Deliberate Intended Strategy Emergent Strategy Unrealized Strategy

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Different Kinds of Strategy

Deliberate Realized Strategy

Intended Strategy

Unrealized Strategy

Emergent Strategy

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Levels of Strategy

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LEVELS OF STRATEGY

Corporate level Determine overall scope of the organisation Add value to the different business units Meet expectations of stakeholders Business level (SBU) How to compete successfully in particular markets Operational/ Functional Level How different parts of organisation deliver strategy

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Definition of strategic business units

The SBUs are the natural grouping of part of a corporation. The SBU has a range of related products/services which has similar technologies and production processes. The products/services are sold in similar or related market segments. The production/services are sold against a well-defined set of competitors. An SBU is managed by an SBU manager, largely as an independent unit. The SBU has its own set of goals and strategies. Each SBU in a particular organization should be able to operate independently of any other SBU.

Three levels of the strategy Name of Institution

1. level: The corporate level At this level the fundamental task is to develop a balanced portfolio of businesses which will achieve the goals of the corporation and satisfy its stakeholders. 2. level: The strategic business unit level (SBU) At this level the business, or set of activities is given and the major task for strategic planner at this level is for business to succeed against competitors and also satisfy corporate success criteria. 3. level: The functional level: At this level the major task is to provide an appropriate functional strategies ( finance and accounting, marketing, R+D, production, personnel) for SBU or corporate level strategy.

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THANK YOU !

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