1 - STR MGT Process - May 2019

Introduction
to
Strategic
Management
Thompson et.al (19th & 21st Edition)
Grant, R.M. (8th Edition)
Dr. Chowdhury Saima Ferdous

1
Lesson Plan
1. A Brief History of Strategy
2. Define strategy
3. Common Elements of Successful Strategy
4. Define strategic management
5. Identifying Co’s Strategy
6. Differences between plan and Strategy
7. Basic Framework of Strategy Analysis
8. Significance of SM
9. What is a global strategy
10. Strategy as an Emergent Process/ Strategy Proactive and Reactive
11. Risks of SM
12. Strategic Planning
13. Strategic Planning in Practice
14. Strategic Leadership
15. Who is a Strategic Manager? Five major tasks of strategic managers.
16. The five major tasks of a strategic Manager
17. What makes a strategy A Winner?
Dr. Chowdhury Saima Ferdous 2

Let’s See some examples of some companies
Strategy is to be
Be the low What is always the first
cost provider mover
Strategy?
Strategy is
to be global Integrate a set of
Compete
customers regional acquisitions
None of these are strategies…

Rather these statements can be considered as
•Tactics
•Goals
•Objectives
1. A BRIEF HISTORY OF
STRATEGY

A Brief History of Strategy
Many of the theories, concepts of business strategy have their

antecedents in military strategy
Enterprise needs strategy

for much the same reason
that armies need military
strategy
To
• Give direction and purpose

• Deploy resources in the most
effective way
• Coordinate the decisions made
by the different individuals
5
Many of the theories, concepts of business strategy have their

antecedents in military strategy
Enterprise needs strategy

for much the same reason
that armies need military
strategy
• Exploring Alternative To • Clear

• Select the best one • Objective
i. Acquiring or developing • Give direction and purpose

these R& C • Deploy resources in the most
ii. Putting them into place
iii. Upgrade them as needed; &
effective way
iv. Then modifying them as • Coordinate the decisions made
market condition evolved by the different individuals
6
The Term “Strategy” is

derived from the Greek word
“Strategia – Meaning
Generalship
However
Sun Tzu’s Classic “The Art of

War(from about 500BC is
regarded as the first treatise on
strategy
7
8
Sun Tzu was his given name.

His Name was Sun Wu…Sun
Did Tzu means Master of Sun
You
Know
Sun Tzu was a military

Strategist…his strategy
influenced both eastern and
western military philosophy
9
“He will win who knows when to
“Every Battle is won before it fight and when not to fight”
is fought”
“Strategy without tactics is the slowest
route to victory
Tactics without strategy is the noise
before defeat”
“Can you imagine what would
I do if I do all I can”
“Assess the advantage in taking advice, then structure your

forces accordingly, to supplement extraordinary tactics.
Forces are to be structured strategically, based on what is
advantageous”
10
Strategic Decisions, whether in Military or Business

shares some common features:
1. They are important
2. They involve a significant commitment of resources
3. They are not easily reversible
Principles of military strategies used in business are:

1. The relative strength of offensive and defensive
strategies
2. The merit of outflanking over frontal assaults
3. The roles of graduated responses to aggressive
initiatives
4. The benefits of surprise
5. The potential for description, and so on
11
Differences between business competition and military conflict

are:
1. The objective of war usually is to defeat the enemy, The
purpose of business rivalry is seldom so aggressive
2. Military plan to destroy the enemy, in business they believe in
coexistence and limit their ambition from destruction of enemy
12
EVOLUTION OF BUSINESS STRATEGY:
•From Corporate Planning to Strategic Management:

• Emerged from the need of business, not from any theory
• During 1950s and 1960s, executive experienced increasing
difficulty in
1. coordinating business decisions and maintaining control in
companies
2. Firms lacked systematic approach to their long term
development
• Corporate Planning (long-term planning) was developed in
1950s – Concept of macroeconomics forecasts provided the
foundation for Corporate planning
13
•From Corporate Planning to Strategic Management: contd….

• Typically corporate planning format was 5 years plan,
• used to focus on contents like
i. setting goals and objectives,
ii. forecasted key economic trends (mkt demand, mkt share,
revenue, cost etc),
iii. establish priorities for different products and business
areas of the firm
• The idea of Corporate Planning became popular specially for
guiding diversification strategies (in 1960s)
14
• During 1970s and early 80s, confidence in Corporate Planning
was severely shaken
• Not only did diversification fail to deliver the anticipated
synergies but the oil shocks of 1974 and 1979 ushered in a
new era of macroeconomic instability,
• While increased international competition intensified as
Japanese, Korean and Southeast Asian firms stepped onto
the world stage
• This shake meant that forms could no longer plan their
investment and resource requirements 3 to 5 years ahead
• The result was a shift from PLANNING to STRATEGY
MAKING.
15
• Shift from PLANNING to STRATEGY MAKING meant

• Focus less on the detailed management of a co’s growth path
as on market selection and positioning the company relative
to its competitors in order to maximize the potential for
profit.
• Focus on competition as the central characteristics of the
business environment and on performance maximization as
the primary goal of strategy
• During Late 1970s and into the 1980s Michale E Porter –
pioneered the application of industrial org economics to
analyzing the profit potential of different industries and markets.
16
• During 1990s the focus of strategy analysis shifted from the source
of profit in the external environment to the sources of profit within
the firm
• Increasingly Resources and Capabilities of the firm became the
main source of competitive advantage and the primary basis for
formulating strategy – this is called Resource Based View of the
Firm.
17
• During 21st Century – new challenges continued to shape strategy.

• Digital technologies have had a massive impact on the
competitive dynamics of industries – standards of war.
• Disruptive Technology and accelerating rates of change meant
that – strategy has become less and less about plans and more
about
• creating options of the future
• Fostering strategic innovation
• Seeking the “blue oceans” of uncontested market space
• The complexity of these challenges >> less sufficiency being one
firm>> idea for outsourcing, strategic alliance
18
Financial Budgeting
1950 •Operational
•Capital Budgeting
1960
Corporate Planning
•Corporate Plans based on medium-term Economic forecast
1970
Emergence of Strategic Management
•Operational
•Capital Budgeting
1980
The quest for Competitive advantage

1990 • Emphasis on Resources and Capabilities
•Shareholder value maximization
•Refocusing, outsourcing, delayering, cost cutting
2000
Adapting to Turbulence
•Exploiting info and communications technology
•The quest for flexibility and strategic innovation
2012 •Strategic alliances
•Social and environmental responsibility 19
2. What is Strategy?

What is Strategy?
 A co’s strategy is its action plan for outperforming its competitors
& achieving superior profitability.
 It represents a managerial commitment to an integrated array of considered
choices about how to compete.
 For most the overriding goal is to - achieve superior performance
o Thus, more precisely, a strategy is a pattern of decision that managers

take to achieve superior performance.
 Some other definitions:
 A strategy is a specific pattern of decisions and actions that managers take to
achieve an organization’s goal.
 A co’s strategy is management’s game plan for growing the business, staking out a
market position, attracting and pleasing customers and achieving targeted
objective.

What is Strategy?
 A co’s strategy is :
 About Competing differently
 Mimicking others/rivals –either being copy cat or but maneuvers – rarely works.
 Co’s strategy needs to have some Distinctive element – that draws in customers &
provide competitive edge.
 Means doing what rivals don’t do or rivals can’t do.
 Different does not mean 100% different; rather it means – it should differ in at least
some important respects.
 Guides for what co should do; and should not do
 A quest for Competitive Advantage
 A co achieves CA whenever it has some type of edge over rivals in
attracting buyers and coping with competitive forces
 There are many routes of CA; but that all involve
 either giving buyers what they perceive as superior value compared to the rivals; or
 giving buyers the same value as rivals at a lower cost

What is Strategy?
 A quest for Competitive Advantage contd….

 Superior value can mean
 a good product at a lower price;
 a superior product that is worth paying more for,
 or a best-value offering that represents an attractive combinations of price features,
quality, service and other attributes
 For all these firms always need VC activities differently than others – and
building capabilities that are not readily available
 What makes a companies’ CA sustainable, - reasons that competitors are
unable to nullify or overcome despite their best efforts

What is Strategy?contd…
 These include choices about:

 How to attract and please customers
 How to compete against rivals
 How to position the co in the market place
 How best to respond to changing economic and market
conditions
 How to capitalize on attractive opportunities to grow the
business
 How to achieve the co’s performance targets
What is Strategy…..
• A good strategy provides clear answers to FOUR questions

1. Where do we compete?
2. What unique value do we bring?
3. What resources and capabilities do we utilize?
4. How do we sustain our unique value?/ What factors we
need to consider to continue to win over our competitors
in future?

3. COMMON ELEMENTS IN
SUCCESSFUL STRATEGY
From Robert, M. Grant

Common Elements in Successful Strategy
Successful Strategy
Effective Implementation
Profound
Objective
Clear, consistent , understanding of
appraisal of
long Term Goals the competitive
resources
environment

4. WHAT IS STRATEGIC MANAGEMENT

What is Strategic Management (SM)?
 “SM is process by which manages choose a set of
strategies for the enterprise”
- Hill and Jones
 “SM is defined as the set of decisions and actions
that results in the formulation and
implementation of plans designed to achieve a
company’s objective”
◦ Pearce and Robinson
 This process is not simple, rather it needs planning,
organizing, staffing, direction and control – means an
effective management which will ensure success in this
competitive environment.

5. Identifying a Co’s
Strategy

Identifying a Co’s Strategy
• A co’s strategy can be found in three places:
1. In the head of managers
2. In their articulation of strategy in speeches and
written documents
3. In the decisions through which strategy is
enacted
• Strategy has its origin in the thought process

Identifying a Co’s Strategy contd…….
• A strategy is reflected in
 its actions in the market place
 And the statement of senior managers about the co’s
current business approaches,
 Future plans
 Efforts to strengthen its competitiveness and
performance.
• For entrepreneurs – the starting point of

strategy is the idea of new business
• For publicly owned co, the strategy is openly
discussed in annual reports, board minutes.
Strategies Undertaken By Dell Computer
 Selling directly to customers.
 According to M. Dell, by cutting out w/s & retailers he would
obtain the profit of them.
 This also gave them the benefit of low cost.
 Direct selling also provides the scope of Customization.
 Tight Supply chain management.
 Tight Coordination

Strategies Undertaken By Southwest Airlines
• Grow business gradually
• Make friendly service a company trademark
• Maintain an aircraft fleet only Boeing 737s.
• Encourage customers to make reservations online –
• Avoid flying into congested airports
• Economize on the amount of time it takes terminal personnel
to check passengers in and on-load passengers
• Economize on cost:

Strategies Undertaken contd….
• Encourage customers to make reservations and purchase

tickets online – low cost
• Avoid flying into congested airports, stressing routes into
medium sized cities and small airports – low cost
• Economize on the amount of time it takes terminal
personnel to check passengers in and on-load
passengers: Categorizing passengers and calling them by
groups – low cost
• Economize on cost: No meals, no fancy clubs for
frequent flyers to relax on terminals, no baggage transfer
service – low cost

Identifying co’s strategy: What to
look for

6. Major Strategic Approach
Taken to Set Company Apart
from Rivals
Thompson 19th Edition

Strategic approach
1. Striving to be industry’s low cost provider –

– Walmart, Southwest Airlines
2. Outperforming Rivals on the basis of differentiating features
– BMW, Apple, Omega
3. Developing an advantage based on offering more value for
the money
– Best cost provider strategy
– By satisfying buyers’ expectations on key quality/performance
4. Focusing on a narrow market niche within an industry
– Two types of strategy – a. 1st aims to achieve adv through greater
efficiency in serving niche; b. 2nd aims to is greater effectiveness in
meeting niche’s special needs
6. Difference Between Plan &
Strategy

Difference Between Plans and Strategy (S P)
 Plan & Strategy – words are being used interchangeably

 Plan & Strategy both refer to the desire to achieve an end result or goal
 However, strategy refers to
• the overarching method for reaching that goal
• because it is dynamic in nature, it refers to long term effort
• Strategy evolves as time passes
 Plan on the other hand is ,
• Static
• It takes the form outlined steps designed to achieve a single objective
• If a plan fails…it will be recreated in second draft (Plan A, Plan B)
• Plans are most often short termed, part of a longer-term strategy

Difference Between Plans and Strategy (S P) cont…..
 If you put these two words in a continuum, Strategy should typically

come before plan
 A company develops a plan to accomplish a strategy
Another way to explain the difference
• A strategy is a solution to move from where you are now (A) to where you
want to be (B)
– or put another way, it is what you want to happen to achieve an

end. Strategy is a class of solution that deals with uncertainty – the
possibility that opposing forces may inhibit you reaching (B) or
reaching it in acceptably good form.

Difference Between Plans and Strategy (S P) contd..
 A plan is how you will move from (A) to (B). As such it should support
your strategy by providing a way to reach (B) that provides an
acceptable balance of risk and reward.
 So your strategy is what you want to do and your plan is how you will
do it.
 For example, you may decide as a strategy that you need to acquire lots
of patents in an area to help you maintain freedom of operation, and
then your plan is how specifically you will do that…R&D, acquisition,
license, etc.

Difference Between Strategy &
Tactic

Difference Between Strategy and Tactic (S T)
• A strategy is the overall plan for deploying resources
– A Tactic is a scheme for a specific action.
• A strategy is concerned with winning the war
– Tactic is concerned with the maneuvers necessary to win battles

7.
The Basic Framework for Strategy
Analysis
From Robert, M. Grant

“Strategic Fit” for strategy analysis
 Fundamental to this view of strategy as a link between the firm
and its external environment is the notion of Strategic Fit.
 This refers to
 First, with the firm’s external environment
 Second, with its internal environment, especially with it’s
goals & values, resources and capabilities
The Basic Framework for Strategy Analysis

THE FIRM THE INDUSTRY
•Goals and Values ENVIRONMENT
•Res. & Capabilities STRATEGY •Competitors
•Structure and •Customers
Systems •Suppliers

The four elements of Successful
Successful Strategy
Strategy is recast into two
groups: The firm and the
industry environment
Effective Implementation
Clear, Profound
Objective
consistent , understanding of
appraisal of
long Term the competitive
resources
Goals environment

THE INDUSTRY
THE FIRM ENVIRONMENT
•Goals and Values STRATEGY •Competitors
•Res. & Capabilities •Customers
•Structure and Systems •Suppliers

THE INDUSTRY
THE FIRM ENVIRONMENT
•Goals and Values STRATEGY •Competitors
•Res. & Capabilities •Customers
•Structure and Systems •Suppliers
This Framework is Known as

SWOT ANALYSIS

8.
Significance of SM

Why do we need strategy/ significance
 Strategy as decision support

 Guide to take decision
 Simplify decision making process by constraining the range of decision
alternatives
 Strategy as a Coordinating Device
 Strategy as a Target
 It is concerned not only with how the firm will compete now but also with what the
firm will become in future
 Detection of existing problems and risks.
 The opportunity to take the best alternative.
 Improves relationship between managers and subordinates.
 Better job allocation
 Resistance to change is reduced.

9.
Strategy as an Emergent Process?
Is Strategy Proactive or Reactive?
Strategy is a Plan or Action?

Strategy plan or Action
 Three school of thought is there to define strategy

 Strategy as Plan
 A set of concrete plans to help the organizations to accomplish
its goal – Oster 1994.
 The concept is based on the idea of Carl von Clausewitz
(German military strategist on 19th century).
 Example : Matsuhita’s 250 year plan.
 Example: German’s Schlieffen Plan > very meticulous (in
contrast to French Plan 17)

 Another school of thought did not like this idea of

preplanning.
 Liddle Hart, a British Military strategist of the early 20th
century proposed…strategy as action
 Strategy as Action
 The key to strategy is a set of flexible goal-oriented action.
 Strategy is the creation of a unique and valuable position,
involving different set of activities, making trade-offs in
competing, creating fit among a company’s activities.

 Strategy as Theory
 Debate between plan and action is ongoing
 However, many believe, in relaity, strategy is a combination of
both.
 Planned deliberate actions
 Unplanned emergent activities
 Thus leading to a “strategy as integration” (First advocated by

Alfred Chandler, an American business historian).

Intended/Pla Deliberate Strategy Realized
nned Strategy Strategy
Unpredicted
Change Unplanned shift
Unrealized Emergent by top level mgt
Strategy
Strategy
Serendipity Autonomous
action by lower
level managers
Fig: Emergent & Deliberate Strategies

Mission and Goals
External Analysis SWOT

Strategic Choice Internal Analysis
Intended Strategy
Organizing for Implementation
External Analysis Mission and Goals Internal Analysis
Strategic choice; Does it fit?
Emergent Strategy
Organizational Grass Root

10. What is Global Strategy?
Peng, M.W. (2003)

Global Strategy
 Can be defined in two ways:

 GS refers to a particular theory on how to compete , and is
concerned on offering standardized products and
services on a world-wide basis.
 It is applicable for large Triad-based MNEs – active in
many countries
 Smaller firms in developed countries and many firms in
emerging mkt operating in only one or few markets have
little use of this concept.
 Second view: GS refers to any strategy outside one’s home
country (same concept as international)
Wal-Mart in
Maxico >> Wal-
Mart has gone
global
Global Strategy
 In general, for us:

 GS is defined as the strategy of firms around the globe – it is about
how to compete successfully.

11. Risks of SM

Risks of SM
 Possible negative impact on operational

managers’ responsibilities
 Problems with ill-fit strategy.
 Problems with lack of implementation
 Lack of competent managers to deal with
the consequences of SM changes.

12.
Strategic
Planning
Process

Strategic Planning Process
Formal Strategic Planning have five major steps:

 Selecting Mission & Major Corporate Goal
 Analyzing External Environment (O & T)
 Analyzing Internal Environment ( S & W)
 Selecting Strategies that

 Build on Org’s S – to correct W – to take advantages of
external O & - counter external T
 Implementing Strategies

Mission and Goals
External Analysis SWOT

Strategic Choice Internal Analysis
Functional-Level Strategy
Business-Level Strategy
Global Strategy
Strategy Implementation
Designing Matching strategy, Designing Control

Organizational structure and control System
Structure
Managing Strategic
Change
Feedback
Step 1: Mission Statement
 It is the description/declaration of why co is existing.

 In short, the company mission describes the company’s
 product,
 market,
 tech area of emphasis
- in a way that reflects the values and priorities of the strategic
decision maker.

Step 1: Mission Statement……………
 Mission Statement has Three major components:

 Statement of Mission or Vision – its reason for existence.
 Statement of Key Values – to drive & shape actions &
behaviors.
 Statement of Major Goals or Objectives
 Statement of Mission or Vision:
 Formal declaration of What co is trying to achieve - Over Medium &
Long Term
 Purpose – provide platform for thinking strategically.
 Also declares – some desired future / co’s ambition

Formulating Mission:
 First step – is to come up with the definition of org’s

business.
 Definition may include:
 What is our business?
 What it will be?
 What it should be
EXAMPLE:
The mission of Procter&Gamble is to provide products

of superior quality and value that improve the lives of
the consumers all over the world. This mission is one
of the cornerstones of the company’s success.

Step 1: Mission Statement………….
 Square Pharmaceuticals:
Our Mission is to produce and provide quality & innovative
healthcare relief for people, maintain stringently ethical standard
in business operation also ensuring benefit to the shareholders,
stakeholders and the society at large.
 Beximco Pharmaceuticals:
“Taking Bangladesh to the world”.
 ACI Pharmaceuticals:
"We care life, we share love".
ACI's mission is to achieve business excellence through quality
by understanding , accepting, meeting and exceeding customer
expectations;

 Statement of Key Values:

 State how mgrs & employees should conduct themselves.
 How they should do business
 What kind of org they should build to achieve org goal.
 Help to
 drive & shape behavior.
 Create organizational culture.

 Major Goals & Objectives :

 Goal is a desired future state or objectives.
 Purpose – to specify with precision what must be done to attain mission.
 Four characteristics of well structured goals:
 Precise & Measurable
 Address crucial issues
 Challenging but realistic
 Specify a time period – in which they should attain.

Step 2: External Analysis
 Purpose – to identify strategic Opportunities & Threats.
 Three interrelated env should be examined at this stage:
 Immediate Industry env. – assessment of
 competitive structure of org’s industry (its competitive position)
 Nature, stage, dynamics & history of industry
 National Environment – assessment of

 Whether the national context facilitates competitive advantage attainment in
global mkt place.
 International Environment – assessment of

 Macroeconomics, social, govt, legal, international & tech factors that may
affect org
Step 3: Internal Analysis
 Purpose – to pinpoint the Strengths & Weaknesses of org.

 Such as:
 Identifying the quality & quantity of org’s resources &
capabilities
 Ways of building unique skills, distinctive competencies.

Step 4: SWOT and Strategic Choices
 The comparison of these S,W,O,T is called SWOT Analysis

 Purpose of SWOT – is to identify strategies that align, fit,
or match a company’s resources and capabilities to the
demands of the environment in which the company
operates.
 Or we can say – the purpose of the strategic alternatives
generated by SWOT Analysis should be to build co’s S in
order to exploit 0, counter T and correct W.

SWOT ANALYSIS & STRATEGIC CHOICE
• Strategic Choice is a process of selecting strategies among

the alternatives generated by SWOT Analysis.
• Company selects the set of strategies that will create &

sustaining a competitive advantage.
• Strategies chosen can encompass four levels:

– Functional level : Manufacturing, marketing, R&D, HR
– Business level : Cost leadership/differentiation/focusing
– Corporate level: Vertical and horizontal integration
– Global – Multidomestic, international, global ad transnational

Step 5: Strategy Implementation
 After choosing the S, the next step is to put the S in action

to achieve org goal – so the S has to be implemented.
 Four main components for Strategy Implementation:
 1: Deigning org structure.
 2: Designing Control System.
 3: Matching Strategy, Structure and Control.
 4: Managing Strategic Change.

Step 5: Strategy Implementation…………………..
Feedback loop: SP is an ongoing process

Once S is implemented its execution must be monitored to determine
its fitness
Info passes back to the corporate level

13. Strategic Planning in
Practice

Strategic Planning in Practice
• Studies show that

– formal strategic planning has positive impact on company performance.,
– formal planning methodologies and emergent strategies both form part of

good strategy formulation process, particularly in an unstable environment
• For strategic planning to work, it is important that top-level

management plans not just in the context of the current
competitive env, but also in the context of the future competitive
env.
 Scenario Planning
 Decentralized Planning

Strategic Planning in Practice
• Studies show that

– formal strategic planning has positive impact on company performance.,
•Scenario planning involves formulating plans that are based on what
– formal planning –if scenario aboutand
methodologies theemergent
future strategies both form part of
•Team managers are asked to develop specific strategies to cope with
good strategy formulation process, particularly in an unstable environment
each scenario
• For strategic planning to work, it is important that top-level
management plans not just in the context of the current
competitive env, but also in the context of the future competitive
env.
 Scenario Planning Scenario planning involves formulating plans that
are based on what –if scenario about the future
 Decentralized Planning

14. Strategic Leadership

Strategic Leadership –
 refers to a manager’s ability to articulate a strategic vision for

the company & to motivate others to buy into that vision.
 Some major characteristics are:

◦ Vision, Eloquence & Consistency
◦ Commitment
◦ Being Well Informed
◦ Willingness to Delegate
◦ Astute Use of Power
◦ Emotional Intelligence

15. Who is a
Strategic
Manager?

Who is a Strategic Manager?
 Generally there are two main types :

 General Mangers
 Functional Manager
 According to the level of mgt again mgrs can be
classified as:
 Corporate level mgrs
 Business-level mgrs
 Functional Level mgrs.

Who is A Strategic Manager?
Corporate Level: Head

CEO, Other Senior executives, Office
BOD & Corporate Staff
Business Level:
Div A Div B Div C
Divisional Mgrs & Staff
Functional Level: Bus Bus Bus

Functional Mangers Function Function Function
Market A Market B Market C

16. The Five
Tasks of
Strategic
Manager?
Thompson and Strickland (13th Edition)

The Five Tasks of a Strategic Manager?
 The strategy making/implementation process consists of

5 interrelated managerial tasks:
1. Developing a strategic vision
2. Setting Objectives
3. Crafting a Strategy
4. Implementing and Executing the Strategy
5. Evaluating Performance, Monitoring New
Developments and Initiating Corrective Adjustments
Detail is in next
Chapter
17. What makes
a strategy A
Winner?
Thompson and Strickland (19th Edition)

What makes a strategy a winner?
 A winning strategy must pass three tests

1. The Fit Test
– External fitness and internal fitness
– Captures opportunities, protects from threat, built on
strength and covers weaknesses
2. The Competitive Advantage Test
– Can the strategy help the co to achieve a sustainable CA?
3. The Performance Test
 Is the strategy producing good co performance? 1) competitive strength
and mkt standing 2) superior profitability and financial strength

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Introduction

Dr. Chowdhury Saima Ferdous

Dr. Chowdhury Saima Ferdous 2

None of these are strategies…

Dr. Chowdhury Saima Ferdous 4

Many of the theories, concepts of business strategy have their

Enterprise needs strategy

• Give direction and purpose

Many of the theories, concepts of business strategy have their

Enterprise needs strategy

• Exploring Alternative To • Clear

i. Acquiring or developing • Give direction and purpose

The Term “Strategy” is

Sun Tzu’s Classic “The Art of

Sun Tzu was his given name.

Sun Tzu was a military

“Assess the advantage in taking advice, then structure your

Strategic Decisions, whether in Military or Business

Principles of military strategies used in business are:

Differences between business competition and military conflict

EVOLUTION OF BUSINESS STRATEGY:

•From Corporate Planning to Strategic Management:

•From Corporate Planning to Strategic Management: contd….

• Shift from PLANNING to STRATEGY MAKING meant

•From Corporate Planning to Strategic Management: contd….

•From Corporate Planning to Strategic Management: contd….

• During 21st Century – new challenges continued to shape strategy.

The quest for Competitive advantage

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 For most the overriding goal is to - achieve superior performance

o Thus, more precisely, a strategy is a pattern of decision that managers

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 A quest for Competitive Advantage contd….

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 These include choices about:

• A good strategy provides clear answers to FOUR questions

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From Robert, M. Grant

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• Strategy has its origin in the thought process

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• For entrepreneurs – the starting point of

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• Encourage customers to make reservations and purchase

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1. Striving to be industry’s low cost provider –

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 Plan & Strategy – words are being used interchangeably

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 If you put these two words in a continuum, Strategy should typically

 A company develops a plan to accomplish a strategy

Another way to explain the difference

– or put another way, it is what you want to happen to achieve an

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