Strategic Management

LEVELS
Corporate

STRATEGY Corporate Office
Corporate Level Business Level
Mat

SBU

SBU A

SBU B

SBU C

Prod

Fin

PER

Mktg

Societal Level Strategies

Functional level

Functional

Phases in the Strategic Management Process
Establishment Of strategic intent

Formulation of Strategies

Implementation Of Strategies

Strategic Evaluation

Strategic Control

Comprehensive Model of Strategic Process
Establishing Strategic Intent Vision, Mission, Business Definition & Objectives Formulation of Strategies Environmental Appraisal Organisational Appraisal

Strategic Control

SWOT Analysis

Strategy Implementation Project, Procedural, Resource Allocation, Structure Behavioral and Operational Strategic Evaluation

Working Model of Strategic Management Process
Strategic Intent SWOT Analysis Strategic Analysis & Choice

Strategic Alternatives

Strategy Implementation

Strategic Evaluation

Strategic Control

CORPORATE LEVEL STRATEGIES
Stability No Change Profit Pause/ proceed with caution Concentration Integration Diversification Cooperation Internationalization
Vertical Horizontal Merger Takeover Joint Venture Strategic Alliance Concentric Conglomerate Pro-competitive Non-competitive Competitive Pre-competitive Friendly Hostile International Multidomestic Global Transnational

Expansion

Retrenchment
TURN AROUND DIVESTMENT LIQUIDATION

Combination

Simultaneous Sequential Simultaneous & Sequential

STRATEGIC PROCESS
Determination Of Mission Evaluation & Control

Establishment of Objectives

Implementation

SWOT Analysis

Choice of Strategy

Consideration Of strategic alternatives

Strategic Evaluation & Control
Strategic & Operational Control
Sr.Numb er

Attributes
Basic Question

Strategic Control
Are we moving in right direction? Proactive in attitude

Operational Control
How are we performing? meticulous allocation of resources Activities control Internal Environment Short Term Operational Managers Budgets, Schedules & MBO

1 2 Aim

3 4 5 6 7

Main Concern Focus Time Horizon Exercise of Control Main Techniques

Future of organisation External Environment Long Term Top Management Environment scanning, Information collection, Review etc.

Business – Level Strategies
Porter’s generic business strategies

COMPETITIVE SCOPE

BROAD TARGET

COST LEADERSHIP

DIFFERENTIATION

NARROW TARGET

FOCUSED COST LEADERSHIP
LOW-COST PRODUCT/SERVICES

FOCUSED DIFFERENTIATION

DIFFERENTIATED PRODUCT/SERVICES

COMPETITIVE ADVANTAGE

Strategic Analysis and Choice
BCG Matrix
High

Industry Growth Rate

STARS

QUESTION MARKS

CASH COWS

DOGS Low

High

Relative Market Share

Strategic Analysis and Choice
Life Cycle Analysis
High

Stability
Gr ow th
Te Im chn pr ol ov og em ic en al t

Maturity

Growth

cl De

Tim et oq uit

in e

Low

Ne w

I nv en tio

n

Time Period