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    External analysis

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    14 views13 pages

    External Analysis

    Uploaded by

    lakshay chawla

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 13
    WHAT IS “STRATEGY”? Consists of competitive moves & business approaches management employs in running a company - Management's “game plan” for -Running the business Strengthening firm's competitive position Satisfying customers Achieving performance target. “Without a Strategy the organisation is like a ship without a rudder around in the circles" — Joe! Ross & Michael Kami THINKING STRATEGICALLY- THREE BIG STRATEGIC QUESTIONS 1. WHERE ARE WE NOW? 2. WHERE DO WE WANT TO GO? Business positions management wants to stake out FINANCIAL outcomes to achieve STRATEGIC outcomes to achieve 3. HOW WILL WE GET THERE? FIVE TASKS OF STRATEGIC MANAGEMENT: 1. Defining business, stating a mission, & forming a strategic vision 2. Setting measurable objectives 3. Crafting a strategy to achieve objectives 4. Implementing & executing strategy 5, Evaluating performance, reviewing new developments, & initiating corrective adjustments WHAT IS STRATEGIC MANAGEMENT? Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its Objectives. Introduction to Strategic Management Shailesh Dudani it jic planning. «The term strategic management is used synonymously with strategic pl 9. Stages of Strategic Management: «The strategic-management process consists of 3 stages. i it isi ission, identifying an +Strategy formulation includes developing a vision and mission, i organization's external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative Strategies, and choosing particular strategies to pursue. +Strategy implementation requires a firm to establish annual objectives, devise Policies, motivate employees, and allocate resources so that formulated Strategies can be executed; strategy implementation includes developing a Strategy-supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information systems, and linking employee compensation to organizational performance. spirategy evaluation is the final stage in strategic management. Managers desperately need to know when particular strategies are not working wel. Strategy evaluation is the primary means for obtaining this information. Three fundamental strategy evaluation activities are provided below: ‘Reviewing external and internal factors that are the bases for current strategies, «Measuring performance, : Taking corrective action. BENEFITS OF STRATEGIC MANAGEMENT Communication is the key to success. The major aim of the communication process is to achieve understanding and commitment throughout the organization. It results in the great benefit of empowerment, Financial Benefits +Research indicates that organizations using strategic-management Concepts are ‘more profitable and successful than those that do not. +High-performing firms tend to do systematic planning to prepare for future fluctuations in the external and internal environments. Firms with planning a systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry. DEVELOPING A VISION & MISSION *VISION eA Strategic Vision i ; ‘Direction ses ne * roadmap of Company's Future +Business Position it intends to stake out Capabilities it plans to develop Customers it needs to serve eln short a Strategic Vision concerns a Firm's FUTURE” business activities i.e. + +The kind of company it is trying to become Customer needs to be satisfied in future DEVELOPING A VISION & MISSION MISSION -An Business Mission Statement focuses on “CURRENT” business activities. ‘Business Company is in now .Customer needs currently being served Thus a Strategic Vision and a Business Mission points the organisation ina particular direction and charts a strategic path for it to follow SPECIFIC QUESTIONS THAT HELP FORM STRATEGIC VISIONS -What business are we in now? -What business do we want to be in? .What will our customers want in future? -What are expectations of our stakeholders? ‘Who will be our future competitors? suppliers? partners? ‘What should our competitive scope be? . -How will technology impact our industry? -What environmental scenarios are possible? WHY A SHARED VISION MATTERS

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