Slide 1 BUSINESS POLICY & STRATEGIC MANAGEMENT

Strategic Management - Introduction

 What is Strategy
 Present coordinates
 Future and differentiating coordinates
 Unified
 Comprehensive
 Integrating internal cross functional processes
 Continual environmental scan
 Recognizing environmental challenges

Prashant Duttagupta CHAPTER 01 09:39 PM

Slide 2 BUSINESS POLICY & STRATEGIC MANAGEMENT

Strategic Management - Introduction

 Strategic Management
 Stream of decisions & actions leading to development
of an effective strategy or strategies
 Achieving corporate objective(s)

 Strategic Management Process

 Set of activities or steps through which strategists
determine objective(s) and make strategic decisions

Prashant Duttagupta CHAPTER 01 09:39 PM

Slide 3 BUSINESS POLICY & STRATEGIC MANAGEMENT

Strategic Management - Introduction

 Strategic Decisions
 Encompasses
 Business definitions
 Products / Services
 Target Markets
 Separate business functions to be performed
 Major policy guidelines for strategy execution
 Business Policy
 Plans & policies to allocate resources to functional managers
 Task execution guidelines
 Strategy communication to functional Managers

Prashant Duttagupta CHAPTER 01 09:39 PM

Slide 4 BUSINESS POLICY & STRATEGIC MANAGEMENT

Strategic Management - Introduction

 Decision Maker Styles

 Rational-Analytical
 Intuitive-Emotional
 Political-Behavioral
 Decision Maker Reality
 Styles Intersect

Prashant Duttagupta CHAPTER 01 09:39 PM

Slide 5 BUSINESS POLICY & STRATEGIC MANAGEMENT

Strategic Management - Introduction

 Decision Maker Styles

 Rational-Analytical
 Intuitive-Emotional
 Political-Behavioral
 Decision Maker Reality
 Styles Intersect

Prashant Duttagupta CHAPTER 01 09:39 PM

Slide 6 BUSINESS POLICY & STRATEGIC MANAGEMENT

Strategic Management - Introduction

 Strategic Gap

te gy Desired Outcome (ideal)

S tr a
New
Time 0 Time 1
GAP

Past Strategy
Cur
re nt S
t rate Expected Outcome
gy

Time 2

Prashant Duttagupta CHAPTER 01 09:39 PM