1. Business Strategic Management Presented By Rahul Ingle

3. EVOLUTION OF STRATEGIC MANAGEMENT DOMINANT THEME 1950s 1960s-early 70s Mid-70s-mid-80s Late 80s –1990s 2000s Budgetary Corporate Positioning Competitive Strategic planning & planning advantage innovation control Financial Planning Selecting Focusing on Reconciling control growth &- sectors/markets. sources of size with diversification Positioning for competitive flexibility & leadership advantage agility Capital Forecasting. Industry analysis Resources & Cooperative budgeting. Corporate Segmentation capabilities. strategy. Financial planning. Experience curve Shareholder Complexity. planning Synergy Portfolio analysis value. Owning E-commerce. standards. — Knowledge Management— Coordination Corporate Diversification. Restructuring. Alliances & & control by planning depts. Global strategies. Reengineering. networks Budgeting created. Rise of Matrix structures Refocusing. Self-Organiz systems corporate Outsourcing. ation & virtual planning organization MAIN ISSUES KEY CONCEPTS& TOOLS MANAGEMENT IMPLIC- ATIONS

7. Strategic Management Process Define the business and establishing a strategic mission. Setting strategic objectives and performance targets Formulating a strategy to achieve the target objectives and performance Implementing and executing the strategic plan Evaluating performance and reformulating the strategic plan. Redefine as needed Revise as needed Reformulate as needed Rework as needed Recycle to phases 1, 2, 3 as needed Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

18. Growth-share matrix 2 4 6 8 10 12 14 18 20 22 Market Growth Rate (percent) 10.0 5.0 2.0 1.0 0.5 0.1 Relative Market Share Stars Cash Cows Dogs Question Marks

37. Corporate Planning Process Target Setting Gap Analysis Strategic Appraisal Strategic Formation Strategic Implementation

43. The Need to Redesign Organizations THE PAST THE FUTURE Emphasis on control Emphasis on co-ordination Decisions located centrally Decisions located where relevant knowledge exists Simple structures , u nified line of command Multidimensional structures Diffused authority, but clear responsibilities Single performance goal Multiple performance goals Organization by design Self organization

44. Emerging Organizational Forms Process-based Organizing around business processes organizations Organizing around corporate processes - entrepreneurial process - competence building process - renewal process From unitary to parallel Separate coordination structures for structures different processes . E .g. 3M ’s product development structure; separate structures for TQM and change management Project-based organization E.g. engineering cos., consulting firms , also manufacturing cos. e.g. Oticon Network and v irtual E .g. e lectronics in Silicon Valley , c lothing o rganization and packaging equip ment in Italy Organizing for capability Shifting emphasis of organization development design from control to coordination

45. Q&A

46. Thank You