Syllabus

The objective of the sessions on this subject is to

expose students to business situations, which
encompass ALL FUNCTIONAL areas of
management.
Attempt to provide students with a corporate
overview and general Management decisions,
how business decisions in one functional area
impact on other area.
This is to be achieved by applying management
concepts in situations using case study method.
 Current Syllabus (MMS)

Strategic Management Process-Vision, Mission, Goal,

Philosophy
Policies of an organization
Strategy, Strategy as a planned action, its importance
Process and advantages of Planning
Strategic v/s Operational Planning
Decision Making and problem solving, categories of
problems, problem solving skill, group decision
making, phase indecision making
Communication, commitment and performance
 Current Syllabus (Contd)

Role of the leader, Manager vs Leader, Leadership

styles
Conventional Strategic Management v/s
Unconventional Strategic Management
Growth accelerators: Business web, Market
power, learning based
Management Control, Elements, components of
MIS
McKinseys 7 S Model
Group Project
 functional
area variables
and situational
issues

manager to
take a total integrative in
enterprise Forces Deals nature
perspective operating with

Strategic Is
Management
Weighs the Provides
ins and outs of Judgment on

crafting,
implementing relevant
and executing factors and
company effect
strategies
 Does Strategic Management Meet the
Requirement of Syllabus?

I would like to stress that

as MBAs-even if you would like to concentrate on

your specialisation subjects

the industry expects you.

to possess a certain minimum knowledge of other

specialisations-viz Finance , Marketing and HR.
 Objectives of the Subject

Roles and Tasks of Strategists

What strategy means.
Get into the habit of automatically reviewing
companys situation and assessing need for
strategy revision
Sharpen ability to think strategically, evaluate
situation from strategic perspective, reach
sound strategic decisions with many
determining factors acting at the same time.
Weigh how factors shape companys working
Take actions from a TOTALITY POINT of view
Understanding Strategic Management
MODELS
WHAT IS A MODEL?
 Understanding strategic models

Market Growth-Ansoff

Corporate Planning -Chandler/Ansoff

Emergent Strategy-Mintzberg

Five Forces-Porter

Generic Strategies -Porter BCG/GE

Understanding Strategic Management
Industry Dynamics /Competitor analysis-Porter
Strategic grouping-Porter
Strategy Clock-Bowman
7-S- Pascale/McKenzie
Core competence( also Resource Based)- Prahlad
And Hamel
BLUE OCEAN
Understanding Strategic Management

Value Chain-Porter
Cunning Plan-Blackadder
Scenario-De Geus/Wack
Learning Organisation-Senge
Strategy and dominance-Sun Tzu
Grand strategies
 Without a Strategy the
Organization is Like a Ship Without
a Rudder, Going Around in Circles.

(This is not a clich)

Why Are Strategies Needed ?

To proactively shape how a companys

business will be conducted

To mould the independent actions and

decisions of managers and employees
into a coordinated, company-wide game
plan
WHAT IS STRATEGY ?
 Strategy as Described in General

Strategy as a thought is as old as evolution

and mankind.

The earliest living species not necessarily human

beings, formulated strategies for survival consciously
or unconsciously.

They do so even today.

 Strategy as Described in General

Strategy is thus a well thought out systematic

plan of action to defend oneself or to defeat
rivals.
Strategy is formulated in anticipation of the
possible positions, moves, actions and
reactions of the rivals
 Strategy as Described in General

Strategy is the determination of basic long

term goals and objectives of and enterprise
and the adoption of courses of action and
allocation of resources for carrying and these
goals.
 Viewpoints of Various Authors

Strategy is the direction and scope of an

organisation over long term: which achieves
advantages for the organisation through its
pattern of resources use within changing
environment, to meet the needs of markets
and fulfill shareholder expectation.
Johnson.
 Viewpoints of Various Authors

According to Thomson Strategy of a

company
is a combination of competitive moves and
business approaches that management
employees to please customers, compete
successfully and achieve organisational
objectives.
 Viewpoints of Various Authors

Glueck defines strategy as a unified,

comprehensive and integrated plan relating
the strategic advantages of the firm to the
challenges of the environment. It is designed
to ensure that the basic objectives of the
enterprise are achieved.
A Broader Definition of Strategy

A companys strategy consists of the set of

competitive moves and business
approaches that management is employing
to run the company.
 Conduct
operations
Stake out a
market Compete
position successfully

Strategy a
Game Plan
Attract and Achieve
please organizationa
customers l objectives
Strategy can
be regarded
as game plan
to
 Why Do Strategies Evolve ?

There is always an ongoing need to react to

Shifting market conditions
Fresh moves of competitors
New technologies
Evolving customer preferences
Political and regulatory changes
New windows of opportunity
Crisis situations
What is a Business Model?
 Business Model

A companys business model addresses How do we

make money in this business?

Is the strategy that management is pursuing capable

of delivering good bottom-line results?
 Business Model

Do the revenue-cost-profit economics of the companys

strategy make good business sense?
Consider the revenue streams the strategy is
expected to produce
Consider the associated cost structure and potential
profit margins
Do the resulting earnings streams and ROI indicate
the strategy makes sense and that the company has
a viable business model?
 Strategy v/s Business Model
Strategy Business Model
Deals with a companys Concerns whether the
competitive initiatives revenues and costs
and business flowing from the
approaches strategy demonstrate
that the business can
be amply profitable and
viable
 Strategic Management

Also, confusion prevails in understanding

clearly the difference between Strategy,
Strategic Management and Operational
Management
What is Strategic Management?

Strategic Management is a process intended

to be a rational approach to help
organisations respond to the challenges of
competitive environment.

Strategic Management is different from

other aspects of Management. They are
concerned with effectively managing
resources already sanctioned and working
within an existing strategy.
Authors Define

Strategic Management is defined as that

set of decisions and actions which leads
to the development of an effective
strategy or strategies to help achieve
corporate objectives.
 Strategic Management by Johnson

Strategic Analysis: Here the strategist

1 attempts to understand the position of the
organisation in the environment

Strategic Choice: In this phase strategist

attempts to formulate the possible actions,
2
evaluates each of these actions and decides
on a choice.

Strategy Implementation - In this phase plan

needs to be made on how the strategy can
3
be put into effect and managing the required
changes.
 Strategic v/s Operational Management

STRATEGIC OPERATIONAL
Ambiguous, Complex Mostly Routine
Organisation Wide Operationally Specific
Has Long Team implications Short Term Implications
(Hence Strategic analysis, (Vital for effective
Strategic choice and implementation of strategy)
strategy implementation
becomes essential)
Strategic Management- Process

Five Tasks of Strategic Management

Developing a Strategic Vision and
Mission
Setting Objective
Crafting a Strategy
Implementing and Executing the
Strategy
Evaluating Performance and Initiating
Corrective Adjustments
Strategic Management- Process

Strategic Management Is a Process

Who Performs the Tasks of Strategy?

What are the Benefits of Thinking and

Managing Strategically
 Strategic Management Concept

Competent execution of a well-conceived

strategy is the best test of managerial
excellence and a proven recipe for
organizational success!

Good Strategy + Good Execution= GOOD MANAGEMENT

 Advantage Disadvantage
1) Strategy Sets Main role of strategy is While direction is important,
Direction to chart organisational sometimes it is better to
course move slowly, a little bit at a
time.
 Advantage Disadvantage
2) Strategy Promotes co-ordination Group think may happen
Focuses effort of activity when effort is too carefully
focused
 Advantage Disadvantage
3) Strategy Strategy provides people To define organisation too
defines with a quick way to sharply may mean defining it
organisation understand organisation too simply.
 Advantage Disadvantage
4) Strategy Reduces ambiguity and Like every theory, strategy is a
provides provide order. It is like a simplification which distorts
consistency theory. reality
We function best when we can take things for
granted. Strategy resolves big issues so that
people can get on with details.
5Ps of Strategy

Ten different schools of thoughts about

strategy have been identified by Mintzberg.

On examination of these thoughts Mintzberg et

al have identified five groups identified as
the 5Ps of strategy.
 Strategy as a plan
commonly
understood
definition of
strategy
Strategy as a
Strategy is a ploy-
pattern
it is a specific
consistency of
maneuver to
actions over a
outwit competitors
period of time
5Ps of
Strategy

Strategy as a Strategy as a
perspective position strategy is
perspective clarifies the creation of
issues of, what unique position
business we are in
 Descriptive Vs Prescriptive
The Schools
The Schools

The Design School: Strategy formation as a

process of conception

The Planning School: Strategy formation as

a formal process

The Positioning School: Strategy formation

as an analytical process
The Schools

The Entrepreneurial School: Strategy

formation as a visionary process

The Cognitive School: Strategy formation as

a mental process

The Learning School: Strategy formation as

an emergent process
The Schools

The Power School: Strategy formation as a

process of negotiation
The Cultural School: Strategy formation as a
collective process
The Environmental School: Strategy
formation as a reactive process
The Configuration School: Strategy
formation as a process of transformation
The strategy clock
High
P Focused
Differentiatio
E differentiation
R n
Hybri 5
C 4
E d
I
V
E 3
D

A Low 6
D 2
D
E price
D
7
V
A
1
L Low price/
U
E
Low added 8 Strategies
value destined for
Low ultimate failure
Low PRICE High
The strategy clock: Bowmans competitive strategy options
Needs/ risks
1.Low price/ low added value Likely to be segment specific
2. Low price Risk of price war and low margins/
need to be cost leader

3. Hybrid Low cost base and reinvestment in low

price and differentiation

4. Differentiation Perceived added value by user,

(a) Without price premium yielding market share benefits.
(b) With price premium Perceived added value sufficient to
bear price premium

5.Focused differentiation Perceived added value to a particular

segment, warranting price premium

6. Increased price/ standard Higher margins if competitors do not

follow/ risk value of losing market share

7. Increased price/ low value Only feasible in monopoly situation

8. Low value/ standard price Loss of market share
IDENTIFYING MARGINAL GROUPS

PGDM

E-MBA MMS
CHANGING DIRECTIONS OF STRATEGIC
MOVEMENT

STABILISING INDUSTRY

MMS

PGDM E-MBA
 PGDM
VOLATILE INDUSTRY

E-MBA MMS