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2. 3. . 4.Š STRATEGY ² Strategia -General or Military Commander Igor Ansoff·s: Strategic Success Paradigm Mintzberg·s : Strategy as Craft Peter Drucker·s MBO Michael Porter : Strategy & Competitive Advantage 1.

Š Š Š Š Š Š Š Š Š Š Š Š Vision Company Mission Company profile External Environment Strategic Analysis & Choice Annual Objectives Long term Objectives Grand Strategy Functional or Operational Strategy Policies Institutionalizing the strategy Control & Evaluation .

Objectives Action Taken Result Oriented Realised Strategy . Mission. Vision.Means Plan Policies Intended Strategy Ends Strategic Intent. Goals .

·98 Š Functional Level Ex: Canon·s ² ´any product on any lineµ.from $316mn in1997 to $374million. Operating Revenue.Economies of Scale @ Power Transformer Production Centers.Corporate Level Ex: Ford.Integrated companies in Europe Š Business Level Ex: ABB (Asea Brown Boveri). ´stop & fix itµ system Š . PSU-1956.´Profit Centersµ.

8. 9. Developing company profile. Assessing environment Matching resources with environment needs Identifying suitable options ² company·s mission Selecting long-term & Grand Strategies Developing annual & Short term strategies Resource allocation & Strategy implementation Evaluating the Success & feed back as i/p. 7. 2. 6. Formulating mission and goals.1. 5. 3. 4. .

Š Š Š Š Strategic Management integrates Various functions Considers a broad range of stake holders Entails multiple time horizons Concerned with both efficiency and effectiveness .

Ideal description of an organization and gives shape to its intended future. It reflects the firms values and aspirations. It tends to be short and concise making it easily remembered It is the foundation for mission .Š Š Š Š Š What a firm wants to be.

´ To be the World·s Best quick service restaurantµ ² Mc Donald·s .

Š Š Specifies the business in which the firm intends to compete and the customers in intends to serve. It should establish a firm·s individuality and should be inspiring and relevant to all its stakeholders. .

Š Be the best employer for our people in each community around the world and deliver operational excellence to our customers in each of our restaurants -Mc Donald·s .

.Š Individuals and groups who can affect. and are affected by the strategic outcomes achieved and who have enforceable claims on a firm·s performance.

Primary Customers 2. Unions Organizational Stakeholders 1.People who are affected by firm¶s performance and who have claims on its performance Capital Market Stakeholder ‡ Share Holders ‡Major Suppliers of Capital ( Ex: Banks) Product Market Shareholders 1. Managers 3. Suppliers 3. Non Managers . Employees 2. Host Communities 4.Stakeholders.

Inability to locate competitive advantage.Š Š Š Š Š Š Š Lack of awareness with in the top management about the original real operating situations Kidding themselves Syndrome Manager·s personal interest to maintain position & power Excessive involvement in operational problems Top management·s complacent after initial success Change in direction is misinterpreted. .