Session 1 : Introduction to Strategic Management Concepts,

Vision, Mission, Goal and Objectives

Date : 13-November-2019
 Course Evaluation

• Class Participation + Submissions : 30%

• Quizzes : 30%

– In-class Surprise Quizzes

– At least #2 Quizzes
– No make-up quizzes!

• End term written exam : 40%

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 Other Details!

• For Class Participation:

– Objective Evaluation
– Please sit according to the sitting arrangement
– Always Keep your Name tag in front of you!

• Academic Associate: Ms. Tejaswi

• CRs – Swathi Yarabolu (Section C)

– Shivani Anil Sharma (Section D)

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Introduction to Strategic Management

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 Prologue (1/2)

Neo Classical theories of Economics

Objective Firms are input combiner.

A production function that transformed inputs into

outputs
Usefulness Study of prices and output

Limitation Less useful for understanding the modern

corporation.

Does not tell thing about the inner working of

real firms

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 Prologue (1/2)

• What is the reason for these limitations?

- Rational human Behaviour

- Information symmetry

- No market frictions

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Welcome to the World of Strategic Management

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 Introduction to Strategic Management (1/3)

• Strategic Management is one of the applied discipline and it draws from :

– Economics (Organizational Economics)

– Sociology
– Cognitive psychology
– aspects of the law, especially contract law
– Financial Management
– And Strategic Management theories, frameworks and concepts

• In a nutshell, SM is highly interdisciplinary

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 Introduction to Strategic Management (2/3)

• Strategic Management deals with 2 BASIC nodes?

– Firm
– Environment

• What do we study in Strategic Management?

Sustainable
competitive
• How and Why some Firms “Outperform” others (Returns) Advantage
• How do they Sustain such Performance (Time)

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Process of Strategic Management?

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 External Environment
Analysis
(I) Vision
Strategic Analysis Mission
Internal Environment
Analysis

Corporate
Business Level Strategy
strategy
Organic Growth
Inorganic Growth Divestment
strategy
(II) Generic Strategies
Strategic
Formulation

M&A Strategy Strategic Alliance Globalization

Organizational
(III) Corporate Governance
Architecture
Strategic
Implementation Sustainable
Competitive
Strategic
Strategic Leadership Advantage
Entrepreneurship
 Frameworks in Strategic Management

• Why Frameworks?

• to analyze situation in a systematic way

• to divide all areas and to see clear picture

• to rate and prioritize issues

• to look at things from different angles and come up with a new idea.

• to understand the competition and our own position

• to understand the company's competitive advantage

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The Competitive Landscape (CL)

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 The Competitive Landscape (CL)

• Hyper-competition
• Extremely intense rivalry among competing firms, characterized by
– Escalating and increasingly aggressive competitive moves.
– Assumptions of market stability replaced with notion of Instability and change.

• Primary drivers of the competitive landscape?

– The global economy

– Technology

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Vision and Mission

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 Vision and Mission

• We all have some Aspirations, Right?

• Likewise Organizations have Aspirations

• Aspirations are articulated by one or more of the following

• Vision:
• What future we want to create.

• Mission :
• What we should do to achieve Vision

• Values:
• What is important to us.

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 Organizational Aspirations

• What are the benefits of crafting Organizational Aspirations?

• They establish boundary conditions for strategy decisions.

• They motivate.

• They provide a stable purpose to guide the organization through changing times.

• They help with coordination.

• They communicate to stakeholders.

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 Vision

Core Values

Core Ideology

Core Purpose

Vision

“BHAG”

Envisioned
Future
Vivid

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Examples!

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Examples of Vision

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Vision and Mission (NTPC)

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 Examples

• IIM Indore seeks to be a contextually-relevant business school with world-class

academic standards that develops socially-conscious managers, leaders and
entrepreneurs. IIM Indore is committed to:

• Excellence in management education, research, and training

• Use of contemporary participant-centric pedagogies and teaching methods

• A presence in emerging segments of management education

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Lets Close the Loop

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 Let’s close the Loop

• What business are we in and why? (Vision, Mission, and values)

• Where are we going? (strategic goals)

• What are the key issues that our strategy must address? (strategic analysis)

• How can we best compete? (strategy formulation)

• How do we do it ? (Strategic implementation)

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Thanks!

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