Amity Business School

Amity Business School

DELL COMPUTERS Amity Business School ‡ In 1984 Micheal Dell, started business from his DORM room. ‡ ««this is this a Good motivation for all of you

Amity Business School

Strategic Management
Definition ‡ Systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for rethinking the current management practices. Its objective is to achieve better alignment of corporate policies and strategic priorities

such as achievement of a goal or solution to a problem. See also tactics.Amity Business School Strategic Management Definition 1 ‡ Alternative chosen to make happen a desired future. . Definition 2 ‡ Art and science of planning and marshalling resources for their most efficient and effective use. The term is derived from the Greek word for generalship or leading an army.

Amity Business School Strategic Planning process .

Amity Business School Types of strategy Functional strategy ‡Corporate and business unit objective Business Strategy ‡Business and product level Corporate Strategy ‡Stability.growth and retrenchment .

in the form of information gained by scrutinising the internal environment and scanning the external environment. is used to develop the company¶s strategic intent and strategic mission. and is represented by strategies that are formulated or developed and subsequently implemented or put into action. ‡ ‡ ‡ . Strategy Formulation is guided by the company¶s strategic intent and strategic mission.Amity Business School PROCESS ‡ Situation Analysis. Strategy Evaluation & Control links the elements of the strategic management process together and helps companies continuously adjust or revise strategic inputs and strategic actions in order to achieve desired strategic outcomes. Strategy Implementation strategic competitiveness and above-average returns result when a company is able to successfully formulate and implement value-creating strategies that others are unable to duplicate.

Amity Business School .

Strategic formulation Amity Business School ‡ The task of analysing the organisations external and internal environment and selecting the appropriate strategy is called strategic formulation .

4. 3. What is strategy ? As per Ansoff it has four components Product ± market scope Growth Vector Competitive advantage Synergy .Amity Business School Strategic Management ‡ ‡ 1. 2.

‡ Competitive advantage over its rivals . ‡ ROI is defined as profit over the capital invested . ‡ Profitibility is measured by return it makes on capital invested .when its profiribility is greater than the average profitibility of others in the same industry. .Amity Business School ‡ Superior performance is measured as company¶s profitibility with respect other companies in the same or similar business .

Amity Business School Strategy formulation Development of ‡ Mission ‡ Objectives ‡ Strategies ‡ Policies .

Example for vision Amity Business School .

Amity Business School Strategy Formulation .

Some terms Amity Business School .

Amity Business School Objectives and Goals Organisation can set Goals and Objectives in following areas Efficiency Profitibility Growth Wealth for shareholders Resource Utilisation Contribution to employees Brand reputation Societal Contributions Leadership in Market Leadership in Technology .

Strategic implementation Amity Business School ‡ This typically includes designing organisational structures and controls .

Amity Business School Matrix Structure .

Amity Business School 7 s Framework .

Mission statement Amity Business School It generally has 3 components 1. And major goals and objectives . A statement of key values or guiding standards 3. A statement of mission or vision of company ± ³the reason for existance´ 2.

Any place´ ‡ Boeing ± ³wants to become a Global enterprise´ .Examples Amity Business School ‡ Microsoft ± run on any device ³Any time .

Operative goals-what they are really attempting to do 3.Goals Amity Business School 1.for supervisory personnel to supervise subordinates Page 4 Srinivasan .-public relations value and legitimising the business 2. Operational goals. Official goals.

Policies ‡ Guide to action ‡ Channels for thinking Amity Business School .

Amity Business School Stiner¶s proposed Policy pyramid Major policy Secondary policy Functional policy Procedures and standard operating plan RULES .

Procedures ‡ ‡ ‡ ‡ Amity Business School Steps to achieve the goal Standad operating plan Generally not flexible RULES refer to a specific course of action .

they should short. vivid.The Mission Statement How to write? Amity Business School ‡ http://www. inspiring and concise without using jargon. A combination of both a company's mission and a company's vision of the future may be included in a Mission Statement. But they are very difficult to write .samples-help. A Mission Statement is generally included in documents such as Business Plans and Staff Handbooks and can be described as a cross between a company or corporate slogan. or tagline. complicated words or concepts.uk/mission-statements/index. and an executive summary! A highly successful Mission Statement is both memorable and engaging.org. clear. No wonder a Mission Statement is hard to write and there is so much confusion between a Mission Statement and a Vision Statement! .htm ‡ Every company has a Mission Statement.

Formulating the mission Amity Business School ‡ Derek Abell.Product oriented Who is being satisfied? Customer groups Business defination How are customer needs being satisfied ? Distinctive competancies What is being satisfied? Customer needs .

Formulating mission statement Amity Business School ‡ Defining the organisation¶s business ‡ What is our business? ‡ What will we be? ‡ What should it be? .

Vision Amity Business School ‡ A mission or vision is a formal declaration of what the company is trying to achieve in long or medium term ‡ It provides the platform to think strategically .

4.Major goals Amity Business School and objectives ‡ 1. 2. 3. Well constructed goals have four charecterstics Precise and measureable Adress crucial issues Challenging but realistic Specificto a time frame .

in their job descriptions.The company needs to have the right structure (of job positions.A set of standards for each activity in the company needs to be implemented for each value. Everyone must have the skills they need to fulfill their responsibilities for the value. STANDARDS -. JOBS. activities. If necessary.Choose the values that you are interesting in fully implementing in the company. activity. and other employees need to fully commit to those values.The responsibility of each person to implement each value must be clearly defined and understood (e.g.There needs to be a full commitment to implement the chosen values.). additional training should be implemented to upgrade the skills for value implementation. Standard operating procedures and even individual job position tasks need to be linked to these values.The company must have clearly defined job positions. Senior and middle management. departments. etc. commit to improving performance on those values. from their manager. divisions. every system. and streamlined systems to facilitate to implement the values. STRUCTURE -.Values ‡ ‡ ‡ ‡ ‡ ‡ Amity Business School ‡ ‡ To fully implement and thus institutionalize a value in a company the following steps need to all occur: SELECTION -.) to implement the values. SKILLS -. .Everyone must have the skills to achieve high performance on the values. Values need to be incorporated into every job position. COMMITMENT -. EMPLOYEE RESPONSIBILITY -. in their job orientation. etc. ACTIVITIES & SYSTEMS -.

given to different teams of managers ‡ Involve functional managers ‡ Avoid Ivory towers ± in planning Page 25 of book .Some points about strategy Amity Business School ‡ Managers must try to forecast the future environment ‡ SWOT analysis generall deals with present environment ‡ Use the Scenario approach.optimistic and pessimistic .

Strategy for BESA class Amity Business School .

Intended and emergent Amity Business School strategies Planned strategy Delibrate strategy Realized strategy Unrealized strategy Emergent strategies Honda example page 21 .

it is better to practice the scenario approach both optimistic and pessimistic ‡ Generate a range of strategies by Brainstorming or similar methods by involving functional managers ‡ Do not plan in IVORY towers .Strategic planning Amity Business School in practice ‡ The issue of planning is that we plan with the present scenario to get a competitive advantage in the future ‡ SO.

Must be able to push through programs in a piecemeal fashion . Decide when to commit publically 3.The astute use of power Amity Business School Edward Wrapp stated Strategic leaders must make use of their power 1.rather than use authority 2. Build consensus .

‡ Empathy ± understand subordinates ‡ Social skills ± friendliness in purpose .understand moods .passion beyond money.Amity Business School Emotional intelligence By Daniel Goldman ‡ Self awareness.think before acting ‡ Motivation. emotions ‡ Self regulation.

Process for improving decision making Devil¶s Advocacy Expert plan1 Thesis Amity Business School Expert plan1 Antithesis Expert Plan Devil¶s Advocate Critises Debate Synthesis Final plan Final plan .

Environment analysis ‡ Covered earlier Amity Business School ‡ ‡ ‡ 1. Task environment Mega environment Now includes Industry environment National environment Macro environment . 2. 3.

Next ‡ Chapter 2 of your book Amity Business School .

Amity Business School Impact on firm due Mega environment legal Socio cultural The Mega Environment political Technological Economic .

Amity Business School Microenvironment¶s impact on firm Suppliers Financial Institutions Marketing intermediaries Regulatory provisions Markets Micro Environment Industrial Relations Climate Skill level of workforce Compensation E commerce .

net/m ethods_swot_analysis.valuebasedmanagement.SWOT ANALYSIS Amity Business School ‡ http://www.html .

Amity Business School .

Amity Business School .

Amity Business School .

Amity Business School .

External analysis ‡ Michel E Porter¶s Five Forces Model Amity Business School .

senior executives.board of directors and corporate staff Divisional managers and staff Business level strategy Divisions Functional level Functional managers Business functions .Levels of strategy Amity Business School Strategy Corporate level strategy Location Head office Responsibility CEO.

Amity Business School .

opportunities and thrests 3.Model of strategic planning process Amity Business School ‡ FIVE STEPS 1. Analyse internal strength and weakness 4. Select corporate mission goals 2. Select strategies to build on strength and take advantage of environment 5. Implement strategy . Analyse competitive environment .

No presendents ‡ Consequential ± Committing resources ‡ Directive ± Less important decisions .Amity Business School Charecterstics of Strategic decisions ‡ RARE.

Amity Business School Types of Strategies According to Mills and Snow ‡ Defenders ± one product emphasis on effeciency ‡ Prospectors ± production innovation and market opportunities ‡ Analysers ± operate in two markets one stable others innovate ‡ Reactors.No consistent strategy. Interested Guerilla Warfare .

Amity Business School

Porter¶s Model

Amity Business School

Porter¶s Generic strategies

Amity Business School

SWOT Analysis STRENGHTS AND WEAKNESSES OPPORTUNITIES AND THREATS

Amity Business School Bates and Eldredge Approach to Analyse Strength and Weakness ‡ Management ‡ Operations ‡ Finance .

Amity Business School Bates and Eldredge Approach to Analyse Strength and Weakness (continued) Dimensions to evaluate strategic planning ‡ Critical factors ‡ Resources ‡ Objectives ‡ Appraisal ‡ Resource development .

compare with past data Normative ± Power plant at 80 % capacity Competative.Amity Business School Criteria to classify an element as strength or weakness ‡ ‡ ‡ ‡ Historical.Credit 60 days ? Critical factors for sucess .

Amity Business School Format to Analyze Strength and Weakness ‡ ‡ ‡ ‡ ‡ ‡ Marketing Finance and accoumting Production /operational/technical Personnel Organisational/General management Page 75 .

Amity Business School Typical Value Chain Analysis of Manufactured product Raw material Primary manufacturing Fabrication Product producer Distributer Retailer .

Amity Business School Product life Cycle .

Amity Business School Finding a NICHE ‡ A Niche can be referred to as a need in the market place that is currently no satisfied .

Amity Business School TOWS Matrix (SWOT) Generates business and corporate strategy Strength (S) List 5 internal strenghts Opportunities(O) List 5 external opportunities Threats (T) List 5 external threats SO ± Strength take advantage of opportunity ST.strength to avoid threats Weakness (W) List 5 internal weaknesses WO-Advantage of opportunity by overcoming weakness WT Minimise weakness to aviod threats .

Amity Business School BCG Matrix MORE LESS Stars Cash Cow LESS Question Mark Dog MORE .

Amity Business School Eight Dimensions of Quality BY GARWIN ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality .

Amity Business School Porter on Strategy ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Required Abilities Cost Leadership process innovation product design with regard to simple production cost-saving distribution high investment .access to capital Differentiation marketing experience product engineering creativity Concentration reputation of technological leadership and good quality combination of above mentioned abilities .

Amity Business School EVALUATION AND CONTROL FIVE STEP MODEL ‡ Determine what to measure ‡ Establish performance standards ‡ Measurement of actual performance ‡ Compare results with standards\ ‡ Corrective action .

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