Strategic Management

LEVELS STRATEGY

Corporate Corporate Corporate Level

Office

Business Level
SBU SBU SBU SBU
A B C

Functional level
Functional

Prod Fin PER Mktg Mat

Societal Level Strategies

 Phases in the Strategic Management Process

Establishment Implementation
Of Formulation of Strategic
Of
strategic intent Strategies Evaluation
Strategies

Strategic
Control
Comprehensive Model of Strategic Process
Establishing Strategic Intent
Vision, Mission, Business Definition
& Objectives

Formulation of Strategies

Environmental Organisational
Appraisal
Strategic Control

Appraisal SWOT
Analysis

Strategy Implementation
Project, Procedural, Resource Allocation, Structure
Behavioral and Operational

Strategic Evaluation
 Working Model of Strategic Management Process

Strategic
Strategic SWOT Strategic Analysis Strategy
Intent Analysis Alternatives & Implementation
Choice

Strategic
Evaluation

Strategic Control
 CORPORATE LEVEL STRATEGIES

Stability Expansion Retrenchment Combination

No Change Simultaneous
TURN AROUND Sequential
Profit DIVESTMENT Simultaneous &
LIQUIDATION Sequential
Pause/
proceed with
caution

Concentration Integration Diversification Cooperation Internationalization

Merger International
Vertical Horizontal
Friendly
Takeover Multidomestic
Hostile
Joint Venture Global

Strategic Alliance Transnational

Concentric Conglomerate

Pro-competitive Non-competitive Competitive Pre-competitive

 STRATEGIC PROCESS

Determination Evaluation &

Of Mission Control

Establishment of Implementation
Objectives

Choice of
SWOT
Strategy
Analysis

Consideration
Of strategic
alternatives
 Strategic Evaluation & Control
Strategic & Operational Control
Sr.Numb Attributes Strategic Control Operational
er
Control
Basic Question Are we moving in right How are we
1 direction? performing?
2 Aim Proactive in attitude meticulous allocation
of resources

3 Main Concern Future of organisation Activities control

4 Focus External Environment Internal Environment

5 Time Horizon Long Term Short Term

6 Exercise of Control Top Management Operational Managers

7 Main Techniques Environment scanning, Budgets, Schedules &

Information collection, MBO
Review etc.
 Business – Level Strategies
Porter’s generic business strategies
COMPETITIVE SCOPE

TARGET
BROAD

COST
LEADERSHIP DIFFERENTIATION

FOCUSED
NARROW

FOCUSED
TARGET

COST DIFFERENTIATION
LEADERSHIP

LOW-COST DIFFERENTIATED
PRODUCT/SERVICES PRODUCT/SERVICES

COMPETITIVE ADVANTAGE
 Strategic Analysis and Choice
BCG Matrix
High
Industry Growth Rate

QUESTION
STARS MARKS

CASH COWS DOGS

Low
High
Relative Market Share
 Strategic Analysis and Choice
Life Cycle Analysis
High

th Stability

Maturity
ow

en al
Growth

em ic
Gr

t
ov og

De
pr ol

Tim
Im chn

cl
in e
et
Te

oq
uit
n
tio
en
I nv
w
Ne

Low Time Period