MODEL (PROCESS) OF

STRATEGIC MANAGEMENT
Elements of strategic
Management

The process consists of :

1.Strategic Position(Analysis)
2.Strategic Choice
3.Strategy Implementation
Strategic Position(Analysis)

Scanning the Environment

Meeting Culture and stakeholder

expectations

Aligning resources and strategic

capability
Strategic Choice
Identifying the strategic options at
both the corporate and business
level

Evaluating Options

Selecting strategy
Strategy Implementation

Organization structure and design

Planning and allocating resources

Managing strategic change

General Electric

Vision: to be no 1 or no 2 in any market

that they operate.

Strategic Position:
to scout the landscape for any
acquisition, merger, divesture to improve
its competitive positioning in line with its
resources and strategic capability.
Strategic Choice
Having identified the possible acquisition ,
move at break neck speed to pre-empt
competition and acquire the same.
This will enable GE to have a better
competitive advantage.

Strategy Implementation
1. Complete the acquisition.
2. Work for the successful integration of the
merged company and manage the
strategic change
 Levels of strategy planning

In the hierarchy the three levels are-

● Corporate level
● Business level and
● Functional level
Corporate level :
Strategies are devised in an attempt to exploit the
firm’s distinctive competencies, by developing
long-term plans for business operations.

Corporate level strategy deals with-

●the selection of the areas of business in
which the company is going to operate,
●the ways in which business will be
integrated and managed,
●the development of synergies by
coordinating and sharing different resources,
●and investment of financial resources across
units.
Business Level:
Business level strategy involves decisions
about the competitive position of a
single business unit.

The managers at this level translate the

general statements of corporate
strategic planners into exact, concrete
functional objectives and strategies for
individual business divisions.
The goal of business level managers is to
select, enter and grow in the most
profitable market segment with the
highest potential for growth.

This strategy is concerned with using

generic strategies such as cost
leadership, differentiation or focus to
create competitive advantage.
Hindustan Unilever Ltd
Corporate
CEO and BOD
Broad Divisions: HPC and F&B

Business Level:
SBU/ category level :
HPC- Skin care, Hair Care, Beauty care, Oral care,
F&B : Tea, Coffee, Ice creams, Soups
Businesses (Oral care)- Tooth Brush, Tooth Paste, Mouth wash

Functional
Brands (Tooth Paste): Pepsodent, Close Up.
Functional level :
This level consists of managers from
geographic, product and functional areas.
They design short-term strategies and fix
annual objectives in different areas.

Functional level strategies address problems

related to the efficiency and effectiveness of
production, success of particular products and
services in increasing their market share,
quality of customer service, etc.

They are quantifiable and operational in

nature.