Alfred Chandler

It is concerned with the determination of the basic long term goals and objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals

William Glueck

It is a stream of decisions and actions, which lead to the deployment of an effective strategies to help achieve corporate objectives, decisions and actions. Which determine whether an enterprise survives or dies

It provides the road map for the firm, it shows the way for achieving targets. It helps the firm utilize the resources in best possible manner. It allows more effective allocation of time and resources for identifying opportunities. The firm can respond to environmental changes in a better way by exploiting opportunities to its advantage and avoiding costly mistakes in investment decisions. It minimizes the chances of mistakes and unpleasant surprises. It seeks to prepare the firm to confront future challenges through certain proactive steps and shapes the future to its advantage. It creates a framework for internal communication among personnel. It helps to integrate the behavior of individuals into a total effort. It provides basic clarification of individual towards changes.

Strategic planning is laborious and time consuming. Very few shortcuts. Immediate results are rarely obtained. Establishing and maintaining a formal system involves many expense. Many executives enthralled by strategic planning, tend to overdue the fact gathering job. Much time and efforts is wasted thus in collecting all sorts of data that is not fully put to fruitful use. It restricts the organization and executives to the more rational and risk free options.

It is not a box of tricks, a bundle of techniques. it is analytical thinks and commitment of resources to action. It is not forecasting. Forecasting merely points to a range of probabilities. Whereas planning helps in tracking the opportunities and developing strategies to achieve them. It does not deal with future decisions. The Q as to what the organization should do tomorrow is not as important as to what it has to do today to be ready for an uncertain tomorrow. It is not am attempt to eliminate and minimize risk. It only helps in choosing rationally among risk taking courses of action rather than moving into uncertainty on basis on hunch, hear say or experience.

Corporate level strategic planning Business level strategic planning Functional level strategic planning

Where have we been?

Where are we now?

KEY Questions

Where do we want to go?

Where should we go?

Where shall we go?

Top management involvement

Allocation of large doses of resources

Effect on long term prosperity of the firm

Future oriented

Multi functional or multi business consequences

Focus on external groups

It is an overall plan of a firm deploying its resources to establish a favorable position and compete successfully against its rivals. It describes a frame work for charting a course of action. It explicates an approach for the company that bills on its strength and is a good fit with a firms external environment. It helps the firm to achieve competitive advantage.

A Chandler The determination of long term goals of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals M Porter According to Porter the threat to a firms profit come not only from its competitors but also from its buyers, suppliers, positional new entrants etc. so to earn above average returns, a firm should invariably try to establish a superior competitive position as compare to its rivals through its strategies. T Ansoff Strategic decisions are primarily concerned with external rather than internal problems of the firms and specifically with the selection of the product mix the firm will produce and the markets to which it will sells.

Goals

logic

Scope

Competitive advantage

Master strategies

Program strategies

Sub strategies

Tactics

The design approach The analytical approach The positioning approach

Schellen Berger & Boseman It is a continuous

process of effectively relating the organization's objectives and resources to the opportunities in the environment.

F R David It is a process of formulating,

implementing and evaluating cross functional decisions that enable an organisation to achieve its objectives

Period

1950

1960

1970

Late1970s to early 1980s Analysis of Industry & competition Choice of industries, markets & segments & positioning with them Analysis of industry structure, Competitor analysis

Late 1980s to early 1990s The quest for Competitive Advantage Sources of Competitive advantage within the firm

Mid to late 1990s Strategic Innovation

Dominant theme

Budgetary planning and control Financial control thru ops budgets

Corporate planning

Corporate strategy

Main Issues

Planning Growth

Portfolio Planning

Strategic & Organisational advantage

Principal Concepts & Techniques

Financial budgeting , Investment planning, Project Appraisal

Forecasting Investment Planning Models

Synergy SBUs Portfolio planning matrices Experience curves, Returns to market Share Diversification, Multidivisional structures, Quest for Global Market share

Resource Analysis, Analysis of Core Competencies

Dynamic sources of competitive advantage, Control of standards, Knowledge & Learning The virtual organisation, the Knowledge based firm, Alliances 7 networks, The quest for critical mass

Organisational Implications

Financial management the key

Rise of corporate planning departments & 5 year formal plans

Greater Industry & market selectivity, Industry restructuring, Active asset management

Corporate restructuring & Business process reengineering, Refocusing & outsourcing

Strategic Analysis

Strategic Implementation

Strategic choices

Strategic Evaluation

The strategy is developed by a CEO who searches for new opportunities and is ready to make bold decisions or shift strategies where ever necessary. This Entrepreneurial mode is successful in organizations that are young and small.
Mode

Adaptive Mode

This approach emphasis on taking small incremental steps rather than seeking opportunities.

This is an approach that involves systematic, comprehensive analysis along with the integration of various decisions and strategies.
Planning Mode

Outcomes

Goal Pattern
Solutions

Problems

Problem Pattern

Solution Pattern

Changes

Forced Actions

Natural Response

Change Pattern