Professional Documents
Culture Documents
2011
M P Pusalkar
What is strategy ?
Long term direction of an organisation Scope of an organisations activities Gaining advantage over competition Addressing changes in business environment Building on resources/competencies
Affected by Values/ Expectations of Stakeholders
VOCABULARY OF STRATEGY
MISSION
MISSION STATEMENT
MISSION
Organisation....... Why it exists ? / What is our business / What will it be / What should it be
MISSION
Role an organisation plays in society Based on set of tasks organisations perform in light of priorities
MISSION Good Mission Statement ......... Feasible Precise Clear Motivating Distinctive Incorporates strategy Indicates how objectives are to achieved
MISSION STATEMENTS
HCL
To Be A World Class Competitor
Marico
The 3 Ps Of Marico..People/Products/Profits
Ranbaxy
To become a Research based international Pharma Company
MISSION STATEMENTS
CANARA BANK
MISSION STATEMENT
FORD MOTOR COMPANY We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world
MISSION STATEMENTS
NIKE Inc
To Bring Inspiration & Innovation To Every Athlete In The World
P&G
We will provide branded products & services of superior quality & value that improve the lives of the worlds consumers now & for generations to come.
VISION
(STRATEGIC INTENT)
Desired Future State Aspiration Of The Organisation Leads To An End What The Firm Would Ultimately Like To Become Encapsulates Basic Strategic Intent
VISION STATEMENTS
BA
VISION STATEMENTS
GCPL
We are dedicated to Deliver Superior Stakeholder Value by providing solutions to existing & emerging consumer needs in the Household & Personal Care business
We will achieve this through Enduring Trust & Relentless Innovation Delivered with Passion & Entreprenurial Spirit
Impairing & Exhilarating Shared sense of purpose Foster long term thinking Competitive, original & unique
BUSINESS
POLICY
Study of the function and responsibility of senior management, the crucial problems that affect success in the total enterprise, and the decisions that determine the direction of the organisation and shape its future.
BUSINESS POLICY Integrates the knowledge and experience gained in various functional areas of management Deals with the constraints and complexities of real life businesses Cuts across narrow functional boundaries Makes study and practice of management more meaningful
Quantification of a Goal
An organisation has to translate its purpose into long term goals and short term objectives for realising its mission and vision
Example... Canara Bank..... GOAL: Focus on Growth/ Inovativeness/ High Profits Highly involved employees Objective: 10% growth YOY/ 5 New initiatives/year/ etc
Core Competence
Not core capability & technology but .... Which transcends products & markets Helps organisation to harmonise multiple technologies, learnings & relationship across levels & functions Feeds into core products which can become BUs Provides access to a variety of markets Makes significant contribution to customers perceived benefit Difficult for competition to imitate
SONY : miniaturisation Black & Decker: Small electric engines
learn from internal/external environments, establish strategic direction, create strategies intended to help achieve established goals in an effort to satisfy key stakeholders
The process through which organisations analyze &
Emphasis on general management responsibilities essential to relate organisation to environment and achieve objectives
SBU A
SBU B
SBU C
Finance
Marketing
Operations
HR
IT/Systems
Strategic Architecture Framework or map for leveraging corporate resources towards the strategic intent. Draws upon a wide variety of information to present a view of the evolution of an industry Identifies the core competencies to build and their constituent technologies Provides a framework within which innovation can be planned and managed
C K Prahalad
Strategic Control
Monitoring the extent to which the strategy is achieving the objectives & suggesting corrective action Lies between two extremes of strategic planning & financial control Relationship between Centre (strategic shaper) & Business Units
Strategic Control Centre adds value by .... Defining & Shaping overall strategy Deciding balance of activities & role of each BU Defining & Controlling organisation policies Fostering organisation learnings between BUs Defining standards & assessing performance of separate BUs
Strategic Control
Premise control
Identify key assumptions Keep track of change ( e.g Govt policy/ R&D breakthrough) Assess impact on strategy
Implementation control
Whether plans, programmes and projects are guiding organisation towards its objectives
Strategic surveillance
Designed to monitor broad range of events inside & outside the company that are likely to affect strategy
Strategic Control
Formulation Of Strategies
Performing environment appraisal Doing organisational appraisal Considering corporate level strategies Considering business level strategies Undertaking strategic analysis Exercising strategic choice Formulating strategies Preparing a strategic plan
Implementation Of strategies
Activating
strategies Designing structures and systems Managing behavioural implementation Managing functional implementation Operationalising strategies
Reformulating
Strategic Control
Environment
Strategic Choices
Enabling
Managing change