Вы находитесь на странице: 1из 24

Strategic

Management

Lecture - 1
Learning Objectives

Understanding the strategic


management process
Appreciating the need for
integrating intuition and analysis in
strategic management
Understanding the importance of
adapting to changing scenarios

2
Strategic Management:
Its Nature
Globalization: Survival for
businesses

E-commerce: Now an essential


business tool

Earths environment has


become a major strategic issue
3
Strategic Management:
Route to Success
It integrates:
Marketing

Management

Finance

Research & Development


4
Strategic Management:
Route to Success
It integrates:

Productions/Operations

Information Systems

Other functional areas


5
Terminology
Strategic Management
Same as
Strategic Planning

Strategic management
Used more often in academic circles

Strategic planning
Used more often in the business world
6
Terminology
Strategic management
Refers to:
Strategy formulation
Strategy implementation
Strategy evaluation

Strategic planning
Refers to:
Strategy formulation
7
Brief History
1950s
Term strategic planning originates

1960s 1970s
Strategic planning very popular
Widely viewed as panacea for problems

8
Brief History
1980s
Strategic planning cast aside
Planning models did not yield higher
returns

1990s2000
Revival of strategic planning
Widely practiced in business world
9
Strategic Management:
Its three phases

1. Strategy Formulation

2. Strategy Implementation

3. Strategy Evaluation

10
Strategy Formulation

Vision & Mission

Strengths & Weaknesses

Opportunities & Threats

11
Strategy Formulation

Setting Long-term Goals

Generating Possible
Strategies

Selecting a strategy

12
Strategy Formulation
Considerations:

Allocation of resources
Businesses to enter/retain
Businesses to divest/liquidate

13
Strategy Formulation
Considerations:
Joint ventures/mergers
Whether to expand/diversify
Opening foreign markets
Avoiding takeovers

14
Strategy Implementation

Policies

Annual Objectives

Resource Allocation

Employee Motivation

15
Strategy Implementation
This is the action phase:
Requires consensus to pursue the
goals
Includes developing a supportive
culture
Interpersonal & managerial skills are
critical
Requires high overall motivation
16
Strategy Implementation
Toughest of all phases, it needs:
- Personal discipline
- Commitment
- Sacrifice
Challenge: Inspiring everyone to work
with pride and enthusiasm
Creating effective organizational
structure

17
Strategy Evaluation

Fundamental Activities:
Internal assessment
External assessment
Measuring performance
Remedial measurers/Fine tuning

18
Strategy Evaluation

Last phase of strategic management:


Todays success does not assure success
tomorrow
Continuous Modification of strategies
Success itself leads to new problems
Smugness can bring organizational
disaster
19
Prime Task

Peter Drucker says:


The prime task is to think through
the overall mission of a business.

Ask the question:


What is our Business?

20
Intuition & Analysis
Strategic management tries to bring
together qualitative and qualitative
information

Intuition rests on:


- Past experiences
- Judgment
- Feelings
21
Intuition & Analysis

Helps in decision making where :


Uncertainty prevails
Little or no precedence exists
Highly interrelated variables exist

A choice from various possible


alternatives is needed

22
Intuition & Analysis

Intuition and analytical judgment


requires inputs from all managerial
levels

Analytical thinking and intuitive


thinking complement one another

23
Intuition & Analysis

Imagination is more important than


knowledge, because knowledge is
limited, whereas imagination
embraces the entire world.
. . . . Albert Einstein

24

Вам также может понравиться