The Strategic Management Process Dr.Suneel Sethi firstname.lastname@example.org
A TRIBUTE CHANAKYA C 370-283 BCE 370- MACHIAVELLI 469 BC-399 BC BC-MAY 1469-JUNE 1527 1469- ARISTOTLE 384 BC- 322 BC BC- JAN 1886-OCT 1949 1886- PLATO ALEXANDER 423 BC-348 BC BC- JULY 356 BC-JUNE 323 BC BC-
FOR SUBJECT OUTLINEPlease visit : http://www.senecac.on.ca/subjectoutlines 3
2011 Best Books on Business Strategy Paul Leinwand and Cesare MainardiThe Essential Advantage: How to Win with a Capabilities- Capabilities-Driven StrategyHarvard Business Review Press, 2011 ___ Michael A. CusumanoStaying Power : Six Enduring Principles for Managing Strategy and Innovation in an Uncertain WorldOxford University Press, 2010 ___ Richard P. RumeltGood Strategy, Bad Strategy : The Difference and Why It MattersCrown Business, 2011 4
The Strategic Management Process : An Overview Why do Some Firms Succeed while others Fail?A central objective of strategic management is to learn why this happens What is Strategy?An action a company takes to attain superior performance What is the Strategic Management Process?The process by which managers choose a set of strategies for the enterprise to pursue its vision ASKING THE RIGHT QUESTIONS Why? What? When? Where? Who? How?
The Strategic Management Process : An OverviewSTRATEGY A combination of Greek words (6th century BC) stratos, which meant ‘army’ and agein stratos, meaning ‘to lead’ A strategy is a comprehensive action plan that identifies long term direction and guides resource utilization to accomplish organizational goals with sustainable competitive advantageSTRATEGIC MANAGEMENT Process of formulating, implementing, and evaluating strategies to accomplish long- long- term goals and sustain competitive advantage The Process is more an ‘art’ than ‘science’
Learning Outcomes & Five Facets of Strategic Management1. What is Strategic Management ?2. What are the Essentials of Strategic Analysis ?3. What are the Corporate Level Strategies and how are they formulated ?4. What are the Business Level Strategies and how are they formulated ?5. What are the Foundations of Strategy Implementation ?
1.What is Strategic Management ? The larger vision that guides the activities of managers and other employees in an organization The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals The process of establishing and sustaining competitive advantage
1.What is Strategic Management?Basic Concepts of Strategy Competitive AdvantageOperating with an attribute or set of attributes that allows an organization to outperform its rivals Sustainable Competitive AdvantageOne that is difficult for competitors to imitate 9
1.What is Strategic Management?Types of Competitive Advantage Cost and Quality Knowledge and Speed Barriers to Entry Financial Resources 10
1.What is Strategic Management?Basic Concepts of Strategy StrategyA comprehensive action plan that identifies long- long-term direction for an organization and guides resource utilization to accomplish organizational goals with sustainable competitive advantage Strategic IntentFocusing all organizational energies on a unifying and compelling goal 11
1.What is Strategic Management?Levels of Strategies CORPORATESets long-term direction for the total long- enterprise BUSINESSHow a division or strategic business unit will compete in its product or service domain FUNCTIONALGuides activities within one specific area of operations 12
Three Levels of Strategy in OrganizationsCorporate, Business, Functional Strategies 13
1.What is Strategic Management?Strategic Management Process Strategic ManagementThe process of formulating and implementing strategies to accomplish long-term goals and long- sustain competitive advantage Strategic AnalysisProcess of analyzing the organization, the environment, its competitive position and current strategies 14
1.What is Strategic Management?Strategic Management Process Strategy FormulationThe process of crafting strategies to guide allocation of resources Strategy ImplementationPutting strategies into action 15
1.What is Strategic Management?Strategy Formulation The process of creating strategy Involves assessing existing strategies, organization, and environment to develop new strategies and strategic plans capable of delivering future competitive advantage 16
1.What is Strategic Management?Strategy Implementation The process of allocating resources and putting strategies into action All organizational and management systems must be mobilized to support and reinforce the accomplishment of strategies 17
Strategy Formulation and Implementation in the Strategic Management Process 18
Assignment (Due Next Class)I. Read the article How to Be a Truly GlobalCompany , posted as Assignment # 1 on theBB under ‘Assignments’ section, and sum upin ten points how skilful companies canintegrate three strategies - customization,competencies and arbitrage - into a betterform of organization , as suggested by theauthors.authors.Submit the assignment in the next class ,typed in 1.15 space Calibri or Arial font with acover page mentioning your name andstudent number .II. Read my Blog dated 11th December 2011 ,II.Management Lessons they dont teach at B SchoolsPanacea : www.drsuneelsethi.wordpress.com www.drsuneelsethi.wordpress.