Presented by: Quazi Md. Kamran

Introduction Phases of Strategic Management Process Strategic Intent Vision Mission Goal and Objectives Philosophy Policies of an organization

Definition: Strategic Management can be defined as the dynamic process of formulation, implementation, evaluation and control of strategies to realize the organization's strategic intent. In simple words: It is a set of managerial decisions and actions that determine the long term performance of a company.

Strategic management is dynamic process. It is not a one time, static or mechanistic process. Earlier referred to as business policy, strategic management deals with long range planning and strategy. In 1911 Harvard Business school introduced a course in management.

Establishment of strategic intent Formulation of Strategies Implementation of Strategies Strategic evaluation .

Establishing the hierarchy of strategic intent: Creating and communicating a vision Designing a mission Statement Defining the business Adopting the business model Setting objectives Formulation of Strategies: Performing environmental appraisal Doing organizational appraisal Formulating corporate-level strategies Formulating business-level strategies Undertaking strategic analysis .

Exercising strategic choice Preparing strategic plan Implementation of strategies: Activating strategies: Designing the structure. systems and processes Managing behavioral implementation Managing functional implementation Operationalizing strategies Performing strategic evaluation and control: Performing strategic evaluation Exercising strategic control Reforming strategies .

According to Hamel and Prahalad ³strategic intent is an obsession with an organization.It refers to the purpose the organization strives for. Strategic Intent may be expressed in terms of a vision or mission statement for the organization as a corporate whole. . an obsession of having ambition that may even be out of proportion to their resources and capabilities.

. a business. a corporate culture.Definition: Kotler defines it ³as a description of something(an organization. Good visions help in the creation of a common identity and a shared sense of purpose . an activity) in the future. a technology. The benefits of having a vision: Parikh and Neubauer (1993) points out several benefits Good visions are inspiring and exciting.

Good visions foster risk taking and experimentation.Cont. original and unique. Good Visions foster long term thinking.. . Good visions represent integrity. Good visions are competitive.

A determination and publication of what makes us unique. plans and goals. A Vision shouldn¶t be: A strategy or plan and a view from the top. .What a Vision should and shouldn¶t be A Vision should be: An Organization charter of core values and principles. The ultimate source of our priorities. A puller into the future.

A history of our proud past. .Cont« A high concept statement. motto or literature or an advertising slogan. Passionless.

Vision 2007 (Tata Steel) To seize the opportunities of tomorrow and create a future that will make it an economic value added positive company. Revitalize the core business for sustainable future. . Venture into new businesses that will own a share of our future. To continue to improve the quality of life of our employees and the communities we serve.

For ex the information needs. Mission is a statement which defines the role that organization plays in the society.Mission is what an organization is and why it exists. . Organizations relate their existence to satisfying a particular need of the society. It refers to the particular needs of the society.

A mission statement should possess the following seven characteristics: It should be feasible: A mission should always aim high but it should not be an impossible statement. It should be precise: A mission statement should be precise not be so narrow as to restrict the organization¶s activities. It should be realistic and achievable. nor should be broad to make it meaningless. .

It should be clear: It should be clear enough to lead to an action. Pursuing best global practices for delivering added value to customers in order to .Cont. It should be motivating: A mission should be motivating for members of the organization and of the society and they should feel it worthwhile working for such an organization or being its customers..

It should be distinctive: A mission statement should be indiscriminate is likely to have little impact .For ex-If all the scoter manufacturers defined their mission statement in a similar fashion. achieve its vision of becoming a technology-enabled customercentric financial services organization(Bank of Baroda¶s Vision 2010). their would not be much of a .Cont..

along with the organizational purpose should indicate the major components of the strategy to be adopted. The . It should indicate the major components of strategy: A mission statement .. But if one defines it as providing scoters that would value for money for years.Cont. difference among them. it creates an important distinction in the public mind.

It provides a clear indication of the emphasis in the strategies of the company on providing cutting edge technology and customer-orientation.. mission of HCL Info systems is: ³To provide world class information technology solutions and services to enable our customers to serve their customers better.Cont. It should indicate how objective are to be accomplished: A mission statement should also provide clues regarding the .

that is double the sales volume and profit by year 2010¶ through setting its mid term and long term goal to rank among the top three electronics.Cont. information and telecommunication firms in the world by 2010. For ex-LG Electronics has its mission of becoming µ2 by 10¶. manner in which the objective are to accomplished. ..

A broad category of financial and non financial issues are addressed by the goals that a firms sets. .Goals denote what an organization hopes to achieve over a period of time. They represent the future state or outcome of efforts put in now.

Official goals: Serve the purpose of public relations value and help in legitimizing environment. Operative goals: Provide an indication of what an organization is really the organization in the business .

Operational goals: Refers to those used by supervisory personnel to supervise the performance of subordinates and thereby influence their behavior. Generally. They can help focus attention .attempting to do.reduce uncertainty and provide a choice of organizational design alternatives to choose from. these can be inferred from the actual operating policy. .

Objectives are the ends that state specially how the goals shall be achieved. should be concrete and specific. They are concrete and specific in nature in contrast to goals that are generalized. . Characteristics of objectives: It It should be understandable.

should challenging.Cont« It It It should be related to a time frame. should correlate with each other. should be measurable and controllable. . Different objective It should be set within constraint.

The organization's core philosophy is a basic for constructing and operating organization which come from the deepest thought about function required by the management to come to its vision. . The designed vision and mission(s) will motivate and drive and become a basic of core philosophy formulation.

A company philosophy evolves as a set of laws or guidelines that gradually become established. as expected patterns of behavior. . objectively considered -. thought-through approach to decision making. through trial and error or through leadership. Decisions should be based on facts. Here are five common philosophy which most successful corporations follows: Maintenance of high ethical standards in external and internal relationships is essential to maximum success.what I call the fact-founded.

not on personality. The business should be administered with a sense of competitive urgency. education. People should be judged on the basis of their performance. .Cont The business should be kept in adjustment with the forces at work in its environment. or personal traits and skills.

Policy provides a definition of the common purpose for the organizational components as a whole . . they are guides to action or channels for thinking.Policies can be considered as a guide to action. According to Steiner.It is desirable that persons responsible for implementation of policy use discretion and judgment in appraising and decision making among alternative course of action. Miner and Gray.

GE: General Electric must be the No. INTEL: Cannibalize your product line with better products before a competitor does it to you(supports Intel¶s objective of .2 company whenever it competes(supports the objective of the company to be the No.Some examples of policies of global organization are now given.1 in market capitalization).1 or No.

market leadership). 3M:Researchers should spend 15% of their time on something other their primary projects(supports the company¶s strong product development strategy) .


Strategy is the mean or the tool by which objectives are consciously and systematically pursued and obtained over time.The word strategy derived from the Greek word which has been derived from two words: "stratos" meaning army. "ago" which is the ancient Greek for leading/guiding/moving. .

Planning deals Strategy is wit situations in a controlled environment. however an rt. it is the rt of the conscious mind in action when facing a challenge. not a Science. Strategy is the rt that man invented three thousand years ago.Strate deals wit competiti e sit ation in an uncontrolled environment. when the "voices of the ods" stopped guiding him in the decision ma ing process! It is the greatest "winning tool" that man ever invented! .

When commitment When decisions must be coordinated about control of the flung places and over time. When there is uncertainty about control of the initiative.When the resources are finite. When there is uncertainty about competitive strengths and behavior. of resources is irreversible. .

. Without a strategy decisions becomes increasingly unreliable.Strategy is the key success in a changing business environment unified sense of direction to which all managers Strategy provides a of the organization can relate. Without a strategy an organization is like a ship without a rudder going around in circles.

Operational Planning Process .

Define: Clearly define your capacity gaps (current and potential sources of resources and partners to help fill capacity needs) and most critical resource requirements i. analyzing risks. human resource. financial and other resources.e. Capacity assessment methodology developed by the McKinsey consulting firm (called the 7-S tool) . project¶s lifespan.

Design: In this phase strategies. Analyze/adapt: This phase includes closely monitoring the results and modify the plans if it is not working well or when there are changes in the environment. activities and monitoring plans are designed. For-work plans and budgeting Implement: In this phase you implement those plans. .

. peers and subordinate.Share: In this phase you share the outcome with your seniors.

It gives . get a big purchase view and consider future scenarios.Advantage: The major advantage of Strategic planning is that it provides you the summary of organization¶s developmental process as well as give you an systematic presentation of organization core directions. Strategic planning helps you to pull back the lens.

control. .you the best opportunity to maintain. avoid serious pitfalls and capture opportunities. Another advantage is that strategic planning is not just for big companies and has benefits no matter what your scale or goals.

. increasing efficiencies and reducing time and costs.Advantage: Operational planning focuses tightly on the day to day operations with no more than a 12 month cycle. Operational planning focuses on adjusting and developing controls.

. operational planning can identify areas where you should look at outside professional assistance.Advantage: Operational planning will determine where to focus attention and where you can take a step back. In addition to informing human resource decisions (such as hiring additional help).

Advantage: Operational plans answer key questions such as ³Who is doing what?´. ³What are the day to day activities?´ .

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