Competitive Strategy
3 Dimensions of Planning
1. Strategic – To achieve overall organizational
goals by effective allocation of resources over
...
Strategy
• A course of action that defines and achieves
organization’s objectives and implements its
missions
• Large scal...
Features of Strategy
• Long run in nature
• Effectiveness can not be known in near future
• Specific
• Single use plan
• F...
Styles of Making Strategy
• Entrepreneurial mode
– Applies to risk taking organizations
– Top level executives frame strat...
Importance of Strategic Planning
• Financial benefits
• Acts as a guide
• Competitive advantage
• Minimizes risk
• Optimum...
Limitations of Strategic Planning
• Lack of knowledge
• Interdependence of units
• Managerial perception
• High costs
Process of Strategic Planning
• Objective formulation
• Identify current objectives and strategies
• Analyze available inf...
Levels of Strategy
• Corporate level strategy – for corporate as a
whole
• Business level strategy – for single line of
bu...
Implementation of Strategy
• Communication of strategies
• Communication of planning premises
• Reflection of overall obje...
Evaluation of Strategy
• Consistency (with the environment)
• Company Profile (SWOT Analysis)
• Risk (within acceptable li...
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Competitive strategy

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Competitive strategy

  1. 1. Competitive Strategy
  2. 2. 3 Dimensions of Planning 1. Strategic – To achieve overall organizational goals by effective allocation of resources over different functional areas 2. Tactical – To support and implement strategic plans. Related to departmental goals 3. Operational – Related to short term (less than one year) achievement of objectives
  3. 3. Strategy • A course of action that defines and achieves organization’s objectives and implements its missions • Large scale future oriented plans for competing in designated products and markets to achieve organization’s objectives • Creates a unified direction for the organization in terms of its many objectives, and it guides the deployment of the resources used to move the organization towards those objectives
  4. 4. Features of Strategy • Long run in nature • Effectiveness can not be known in near future • Specific • Single use plan • Formulated by top level management • Coordinates an organization’s internal & external environment • Allocates resources • Gives the firm a competitive adge • Pervasive
  5. 5. Styles of Making Strategy • Entrepreneurial mode – Applies to risk taking organizations – Top level executives frame strategies based on their experience & judgment – Growth oriented – Based on estimates of future • Adaptive mode – Defensive in nature – Adaptive to the changes in environment • Planning mode – Forecasts changes in environment & prepares organization to face these changes – Estimates of future based on structured, systematic and rational analysis of environmental threats & opportunities
  6. 6. Importance of Strategic Planning • Financial benefits • Acts as a guide • Competitive advantage • Minimizes risk • Optimum utilization of resources • Motivates
  7. 7. Limitations of Strategic Planning • Lack of knowledge • Interdependence of units • Managerial perception • High costs
  8. 8. Process of Strategic Planning • Objective formulation • Identify current objectives and strategies • Analyze available information • Analyze the impact of environment • Analyze resource position of the firm • Establish alternative strategies • Evaluate alternative strategies • Choice of a strategy • Implementation of strategy • Measurement and control of strategy
  9. 9. Levels of Strategy • Corporate level strategy – for corporate as a whole • Business level strategy – for single line of business • Functional level strategy – made for functional areas
  10. 10. Implementation of Strategy • Communication of strategies • Communication of planning premises • Reflection of overall objectives • Review • Develop contingency strategies • Development of organization structure • Need to spread the importance of strategies • Climate
  11. 11. Evaluation of Strategy • Consistency (with the environment) • Company Profile (SWOT Analysis) • Risk (within acceptable limits) • Time (should be made for balanced time periods) • Feasibility

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