STRATEGIC MANAGEMENT

EVOLUTION OF STRATEGIC PLANNING DEFINITION : STRATEGIC MANAGEMENT CAN BE DEFINED AS A MANAGEMENT ACTIVITY THAT INVOLVES MAKING DECISIONS BASED ON VARIOUS ANALYSES AND TAKING RELEVANT ACTION AIMED AT ACHIEVING LONGTERM COMPETITIVE ADVANTAGES.

CHARACTERISTICS OF STRATEGIC DECISIONS

CONCERNED WITH SCOPE OF THE ORG IN

LONG TERM. AIMED AT ACHIEVING EDGE OVER COMPETITION. ATTEMPT TO ENSURE THAT ORG RESOURCES AND ACTIVITIES ARE IN HARMONY WITH THE ENV. CALL FOR OPTIMUM UTIL OF RES AND CREATION OF OPPORTUNITIES. RESULT IN RES CHANGE AND ARE COMPLICATED IN NATURE. OFTEN MADE IN UNCERTAIN SIT. INVOLVE UNIFIED APPCH TO MANAGING THE ORG.

DIFFERENCE BETWEEN OP EFFICIENCY AND STRATEGY

OP EFF CONCERNED WITH PRESENT AND

STRATEGY IS CONCERNED WITH THE FUTURE.

ANSOFFS STRATEGIC SUCCESS PARADIGM

NO UNIVERSAL FORMULA FOR SUCCCESS

DEPENDING ON THE TURBULANCE, ORG CAN

DECIDE ON THE DEGREE OF AGGRESSIVENESS OF THE STRATEGY SUCCESS STRATEGIES OF DIFF FIRMS DEPENDS ON THE LEVELS OF CHANGES, INSTABILITY OR AGITATION IN THE ENV. THE SUCCESS OF A FIRM DEPENDS ON THE POL, PSY, COGNITIVE, ANTHROPOLOGICAL AS WELL AS SOCIAL VARIABLES.

HENRY MINTZBERG: STRATEGY AS A CRAFT

IDEAL ORG STRUCTURE
A SIMPLE ORG STRUCTURE MACHINE AND PROFESSIONAL BUREAUCRACY ADHOCRACY DIVISIONALIZED FORM

MICHAEL PORTER: FIVE FORCES MODEL

THE THREAT POSED BY NEW ENTRANTS

SUPPLIERS BARGAINING POWER

THE THREAT POSED BY SUBSTITUTE

PRODUCTS THE EXISTING RIVALRY BETWEEN CURRENT PLAYERS BUYERS OR CUSTOMERS BARGAING POWER

DIMENSIONS OF STRATEGIC DECISIONS

REQUIRE DECISIONS TO BE MADE BY

TOP MGT INVOLVE THE ALLOCATION OF A LARGE AMT OF RESOURCES OF THE COY HAVE A SIGNIFICANT IMPACT ON THE PROSPERITY OF A FIRM IN THE LONG RUN ARE FUTURE ORIENTED HAVE MULTIFUNCTIONAL OR MULTIBUSINESS CONSEQUENCES

LEVELS OF STRATEGIC DECISIONS

CORPORATE LEVEL

BUSINESS LEVEL
FUNCTIONAL LEVEL