Strategic Management

What is Strategy?
BITS Pilani
Pilani | Dubai | Goa | Hyderabad
OUTLINE
• Course name: Strategic Management & Business Policy
• Number of modules:10
• Number of lectures: -
• Textbook: “Wheelen, Thomas L. and J. David Hunger, Concepts in
Strategic Management and Business Policy, Pearson Education,
13th ed.
• Saloner G, Shepard A & Poldony J, Strategic
Management. Wiley India, Student ed.
• References: Michael E. Porter, “What is Strategy?” Harvard Business
Review
• Pedagogy: Interactive
• Work integration: WILe exercises
• Evaluation components: Assignment / Quiz, Mid-sem (C/B), Compre (O/B)

Strategic Management 2 BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 RL_1.1.1 :
WHAT IS STRATEGY?

Strategic Management 3 BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
STRATEGY

• Strategy is about understanding what you do, looking out over the long-term
future to determine what you want to become, and—most importantly—
focusing on how you plan to get there.
• Dictionary: Strategy is a plan, method, or a series of maneuvers for
obtaining a specific goal or result.

Strategic Management 4 BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 THE ROAD-MAP

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 ENVIRONMENTAL SCANNING
• Environmental scanning is the monitoring, evaluating, and disseminating
of information from the external and internal environments to key people
within the corporation.

• Its purpose is to identify strategic factors—those external and internal

elements that will assist in the analysis of the strategic decisions of the
corporation.

• The simplest way to represent the outcomes of environmental scanning is

through a SWOT approach.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 STRATEGY FORMULATION
• Strategy formulation is the process of investigation, analysis, and decision making that
provides the company with the criteria for attaining a competitive advantage.

• It includes defining the competitive advantages of the business, identifying weaknesses that are
impacting the company’s ability to grow, crafting the corporate mission, specifying achievable
objectives, and setting policy guidelines.

• Mission
• Objectives
• Competitive advantages
• Policies

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 STRATEGY IMPLEMENTATION

• Strategy implementation is a process by which strategies and policies are put into action
through the development of programs, budgets, and procedures.

• This process might involve changes within the overall culture, structure, and/or management
system of the entire organization.

• Except when such drastic corporatewide changes are needed, however, the implementation of
strategy is typically conducted by middle- and lower-level managers, with review by top
management.

• Is strategy implementation an easy task?

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 EVALUATION AND CONTROL
• Evaluation and control is a process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired performance.

• Managers at all levels use the resulting information to take corrective action and resolve
problems.

• Although evaluation and control is the final major element of strategic management, it can also
pinpoint weaknesses in previously implemented strategic plans and thus stimulates the entire
process to begin again.

• For evaluation and control to be effective, managers must obtain clear, prompt, and unbiased
information from the people below them in the corporation’s hierarchy.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 BENEFITS OF STRATEGIC MANAGEMENT

• A cleaner sense of strategic vision for the firm.

• A sharper focus on what is strategically important.

• An improved understanding of a rapidly changing

environment.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 THANK YOU

Strategic Management BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956