STRATIGIC MANAGEMENT

UNIT 1
MEANING NEED

PROCESS OF ST. MANAGEMENT

PHASES IN STRATEGIC MANAGEMENT PROCESS

ESTABLISHMANT OF STRATEGIC INTENT

FORMULATION OF STRATEGIES

IMPLEMENTATION OF STRATEGIES

STRATEGIC EVALUATION

ELEMENTS OF STRATEGICMANAGEMENT PROCESS

Establishing the hierarchy of strategic intent:
Creating and communicating a vision Designing a mission statement Defining the business Setting objectives Performing env. appraisal Doing orgz. appraisal Formulating corporate level strategies Formulating business-level strategies Undertaking strategic analysis Exercising strategic choice Preparing strategic plan

Formulation of strategies

 Implementation of strategies:
Activating strategies Designing the structure, systems and process Managing behavioral implementation Managing functional implementation Operational implementation Operationalising strategies

Performing strategic evaluation and control

Performing strategic evaluation Exercising Strategic control Reformulation of strategies

STRATEGIC MANAGEMENT PROCESS

Strategic control
Strategy Formulation Strategy Implementation

Strategic Intent Vision Mission Business Definition Business Model Objectives

Environmental organizational appraisal appraisal SWOT Analysis

Project Procedural Resource allocation Structural behavioral Functional & operational

Strategic evaluation

UNIT - 3
Environmental Threat and Opportunity Profile (ETOP) Environmental Nature Impact Sector of impact of each sector  Socioeconomic  Market  International  Political  Regulatory  Customer  Supplier  Technology  Competitor

Internal strengths and weaknesses

Marketing and Distribution Factors
includes: market research, identifying market, developing product, testing customer reaction,

R&D & Engineering Factors

1) Can lead to new or improved product 2) Can lead to improved manufacturing or material process

Production and Operation Management Factors Corporate Resource and Personnel factors Financial and Accounting Factors

Strategic Advantage Profile(SAP) Capability Nature of Competitive str.& Factor impact weaknesses 1. Finance 2. Marketing 3. Operation 4. Personnel 5. Information 6. General management

 Finance- source, usages, management Marketing-product related, price related, promotion related, Operation-product, raw material, system, . Personnel Information related General management capabilities

UNIT-4
Grand strategies and their sub strategies

Corporate level strategies

Stability

Expansion

Retrenchment

Combination

Stability strategy

No change /Do nothing

Profit

PAUSE/Proceed with caution

Stability
When stability strategy
Same product Same service Similar sector Incremental improvement Defensive mood Reduce competition Maintain comfort ability

why stability strategy

Perceives itself as successful Less risky No searching for alternative No disruption in routine work Environment is stable Stop performance gap

Expansion strategy

Concentration

Integration

Diversification

Internationalization

Cooperation

Digitalization

Grand strategies

Stability

Expansion

retrenchment

combintion

No change

Profit

concentration

Integration

Diversification

internationalizat ion

cooperation

Digitalization

Turn around

divestment

liquidation

simultaneous

Sequential

both

Pause

Market development

vertical

Concentric / related

Conglomerate/ unrelated

Inter national

Merger and Acquisition

Joint venture

Strategic Alliance

Product development

horizontal

Market related

multidomestic

Horizontal

Pro- competitive

Market penetration

Technology related

global

vertical

Non-competitive

Both

Transnational

Concentric

competitive

Conglomerate

Pre- competitive

Expansion strategy
When
Additional product Additional service Major increase in present definition Redefining business definition

Why
Volatile environment Expansion with effectiveness Social benefit from expansion Financial reward Experience curve Growth yields monopoly Stock holders and securities analysts

Retrenchment strategy
When
Reduction of service Reduction of product Functional improvement through reduction of activity

Why
Not doing well Perceived itself performing poorly Not met objectives Environmental threats Better opportunities are perceived else were

Combination strategy
When
Simultaneous Sequential

Why
Environment Economy