Professional Documents
Culture Documents
What is STRATEGY?
Tactical course of action which is designed to achieve long-term objectives
Art and science of planning and marshalling resources for their most efficient and effective use in a
changing environment
What management decides about the future direction and scope
Entails managerial choice among alternative action programs, competitive moves and different business
approaches
Large-scale, future-oriented plan; game plan
Framework for managerial decisions
Levels of Strategy
2. Business Level
a. A unit within the whole
b. Concerned with competition in a market
c. What products or services should be developed and offered to which markets in order to meet
customer needs and organizational objectives
d. Creation of specific policies related to general directions
e. Managers translate general directions and intent to concrete functional objectives
3. Functional/Operational Level
a. Decision-making with respect to specific functional areas
b. “Doing things right”
c. Narrow areas of activity which are vital, pervasive or continuing importance to the total organization
d. How different functions contribute to other levels
e. Strategic approach for managing frontline operating units
What is MANAGEMENT?
Defined as all the activities and tasks undertaken for achieving goals by continuous activities like:
PLANNING, ORGANIZING, LEADING, and CONTROLLING
Levels of Management
Role of CEO:
1. Provides long-term direction
2. Assumes ultimate responsibility for firm’s success
3. Solicits guidance from the BOD
What is STRATEGIC MANAGEMENT?
1.Formulate the company’s mission. 6.Select long-term objectives and grand strategies.
2.Conduct internal analysis. 7.Develop annual objectives and short-term
3.Assess the company’s external environment. strategies.
4.Analyze company’s options. 8.Implement the strategic choices.
5.Identify most desirable options. 9.Evaluate success of the strategic process.
Nature and Value of Strategic Management
2. Formality of Strategic Management – degree to which participants, responsibilities, authority, and discretion in
decision making are specified.
Size of organization
Factors affecting Predominant management styles
degree of Complexity of environment
Formality Production process
Problems
Purpose of planning system
Portfolio management
Geographic scope
Market positioning Mergers,
Measures and
Internal Assessment acquisitions & Review & Evaluation
Scorecards
Value Chain Divestitures
Core Competence
2 school of thoughts of strategic management
Prescriptive Approach
Descriptive Approach
SIZE Large in size, the whole Small chunks, part of the whole
Goals and Objectives have to be: Specific. Measureable. Attainable. Realistic. Time-bound