Strategic Management

P Sivakumar

Strategic Planning

…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.

Changing EnvironmentStrategic FitObjectives Resources

The Role of Strategy

Corporate

Mission &

Objectives

Strategy:

•Corporate

•Business

•Functional

Operating

Plans

Introduction

• It is a set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives

• It includes an analysis of the environment(int& ext),formulation of strategy, implementation, evaluation and control

• Study of external opportunities & threats to company’s strength and weakness

CRITICAL TASKS

• Formulate firm’s mission,purpose,goals

• Internal analysis – conditions & capabilities

• Assess the external environment –competitive & contextual factors

• Firm’s resources Vs External Environment

• Identify most desirable option in light of firm’s mission

CRITICAL TASKS

• Select a set of long term objectives & grand strategies that will achieve the most desirable options

• Develop annual objectives & short term strategies

• Implementation of short term strategies

• Evaluate the success of the strategic process as an input for future decision making

Dimensions of strategic decisions

• It require top management decisions

• It require large amount of the company’s resources

• It often affect the company’s long term prosperity

• Strategic issues are future oriented

• It have multifunctional or multibusiness consequences

• It require to consider the external environment

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SWOT Analysis

Framework for focusing attention on the fact that an organizational

growth opportunity results from…

a good fit between an organization’s INTERNAL CAPABILITIES

(Strengths & Weaknesses)

and

its EXTERNAL ENVIRONMENT (Opportunities & Threats)

FEEDBACK

FEEDBACK

The Company’s Vision

• Vision is the bold view of what the company can become.

• Vision binds the company together with a common purpose and focuses on the future.

• Vision is what sets the company apart and differentiates it from its competitors.

• It answers the question: “What business are we in and why?”

• It is a reflection of the purpose, core values, and unique ideology of the firm.

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STRATEGIC VISION & MISSION

MISSION STATEMENTS

ENDURING STATEMENTS OF PURPOSE THAT DISTINGUISH ONE ORGANIZATION FROM OTHER SIMILAR FIRMS.

IDENTIFY THE SCOPE OF A FIRM’S OPERATIONS IN PRODUCT AND MARKETTERMS

“MISSION” tends to be concerned with the present…

“WHAT IS OUR BUSINESS?”

“VISION” focuses on our future…

“WHAT KIND OF BUSINESS ARE WE TRYING TO BECOME?”

“WHAT SHOULD OUR BUSINESS BE IN THE FUTURE?”

Questions to Address:

1—WHAT NEEDS ARE WE TRYING TO SATISFY?

2—WHO DO WE INTEND TO SERVE?

3—HOW WILL WE MEET THESE NEEDS?

appendix

• contextual factors: top management characteristics, the decision-specific characteristics, the environmental determinism and the firm characteristics, as well as the key research efforts gathered together under each perspective.