Strategic Management-Lec 3

Difference in Long Range Planning,

Strategic Planning, & Strategic
Management
Strategy or Strategic?
 Planning Vs Strategy
• P claimed S subset of P
• S replied “It was referring to Master Strategy
"Strategy as a perspective
• Strategic
“Strategy,Plan,Vision,Mission,obj,Swot etc.”
• Strategic meaning “Perspective rakhna”
“Imp for Quiz”(to the point)
 Long Range Planning
• Simple financial controls
• Why do some companies succeed/Fail?
 Strategic Planning
• Introduced in the 1960’s
• Businesses must make a formal mission as well as vision statement
• More formalized approach
• SWOT, Objectives should be thought through
• Real Time “F.i.e.”- 1 time fit (Formulation, Implementation, Evaluation) (S-
E)
• Greatest focus was on Formulation
• All thinking was done by people/person at the top (5-7 people)
• Downward Communication- little Cognitive thought required)-(Manual
Labour-Sheep)
• Environment was relatively stable(No need to change the strategy ,few
people at the top is enough)
• One Time Fit between strategy & environment
• Centralized Cognition
• Intended= realized
 Strategic Management
• Introduced in the 1980’s
• Post Second World War
• Competitive & Dynamic Environment
• New Ideologies and Frameworks
• Dominant mindset was disrupted
• Iterative Approach for Mission, Vision, SWOT etc.
• Equal emphasis in F.I.E.
• Fit between Strategy and Environment had to be
continuously achieved and re-achieved
• Distributive Cognition
• Two-Way Communication
• Continual Orchestration of Strategy, Structure & Systems
 late1970’s& early 80’s
• Japanese came into the market
• Changed the rules of engagement
• Environment unstable
• S-E on life support, Variation
• Changes in Environment, Changes in Strategy
• Not one Big Brain, little brains spread across the
organization
• Ideas bubbled up
• Two way movement of ideas
• Cognition distributive
• S-E fit has to be continuously Tailored “Adapt or Perish”
• F.I.E