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Strategic Management

BY NIMISH DESHMUKH MMS-12-12

Definition
Strategia

Campaigning Trip
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. As the definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success.

Factors that affect/alter Strategic Decisions

General External Competitive Environments Resources Internal Leadership

How Strategy is Managed?


Strategic Analysis- Tools like PEST, Scenario Planning, 5 Forces Analysis, Directional Policy Matrix, SWOT etc.

Strategy rests on Unique Activities


Southwest Airlines

IKEA
Trade Offs- Imitation and Benchmarking Eg- Continental Lite and Neutragena

Types of Strategy
Corporate Strategy

Business Strategy- Porters Generic Strategies- Cost

leadership, Differentiation and Focus or cooperative strategy. Functional Strategy GRAND strategy-Growth, Stability, Retrenchment Global Strategy- Globalization, Multi Domestic strategy, Transnational Strategy

Purpose of Strategy
Core Competence Synergy Value Creation STRATEGY vs. TACTICS Strategists
Finance Marketing
Corporate Office SBU A SBU B

Operations

Personnel

IT

Components of a Strategy
Understanding Strategic Intent MISSION STATEMENT VISION STATEMENT GOALS AND OBJECTIVES UNDERTAKE A SWOT ANALYSIS RESOURCE DEPLOYMENT KEY STRATEGIES STRATEGIC ACTION PROGRAM SCORECARD & FINANCIAL ASSESSMENT

Strategic Management Process

Establishing Strategic Intent Creating and communicating a Vision Designing a Mission Statement Defining the Business Setting Objectives Formulating of Strategies Performing Environmental Scan Doing organisational scan Considering Corporate level Strategies Considering Business level Strategies Undertaking Strategic Analysis Exercising Strategic Choice Formulating Strategies Preparing a Strategic Plan Implementation of Strategies Activating Strategies Designing structures and systems Managing behavioural implementation Managing functional implementation Operationalizing Strategies Performing Strategic Evaluation and control Setting Standards Measuring Performance Comparing Performances Finding out deviation Analysing Deviation Exercising strategic control Reforming strategies

1. Establishing Strategic Intent

5. Strategic Control

2. Formulation of Strategies

4. Strategic Evaluation

3. Implementation of Strategies

Advantages and Disadvantages of Strategic Managment


Advantages- Financial and Non-financial benefits,

discharges board responsibility, forces an objective assessment, Provides a Framework For DecisionMaking, Supports Understanding & Buy-In, Enables Measurement of Progress, Provides an Organizational Perspective Disadvantages- The Future Doesn't Unfold As Anticipated, It Can Be Expensive, Long Term Benefit vs. Immediate Results, Impedes Flexibility

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