THE THREE MUSKETEERS
MINAL SETHIA 13BSP0411
AKHASH PATEL 13BSP1345
of strategic planning process
of the word strategy
between training and strategic training
to ask to develop strategic training and
needs in different strategies
HISTORY OF STRATEGY
The word 'strategy', deriving from the Greek noun
strategus, meaning 'commander in chief', was first used in
the English language in 1656. which was used in army.
In a management context, the word 'strategy' has now
replaced the more traditional term - 'long-term planning' to denote a specific pattern of decisions and actions
undertaken by the upper echelon of the organization in
order to accomplish performance goals.
MEANING OF STRATEGIC
Wheelen and Hunger (1995) define strategic management.
as 'that set of managerial decisions and actions that
determines the long-run performance of a corporation'.
Hill and Jones (2001) take a similar view when they
define strategy as 'an action a company takes to attain
Hierarchy of strategy:
Another aspect of strategic management in the
multidivisional business organization concerns the level to
which strategic issues apply. Conventional wisdom
identifies different levels of strategy - a hierarchy of
Corporate level strategy
Corporate-level strategy describes a corporation's overall
direction in terms of its general philosophy towards the
growth and the management of its various business units.
Such strategies determine the types of business a
corporation wants to be involved in and what business
units should be acquired, modified or sold. This strategy
addresses the question, 'What business are we in'?'
Business level strategy
Business-level strategy deals with decisions and actions
pertaining to each business unit, the main objective of a
business-level strategy being to make the unit more
competitive in its marketplace.
This level of strategy addresses the question, 'How do we
compete'?' Although business-level strategy is guided by
'upstream', corporate-level strategy, business unit management
must craft a strategy that is appropriate for its own operating
Functional-level strategy pertains to the major functional
operations within the business unit, including research and
development, marketing, manufacturing, finance and HR.
This strategy level is typically primarily concerned with
maximizing resource productivity and addresses the
question, 'How do we support the business-level competitive
strategy?' Consistent with this, at the functional level, HRM
policies and practices support the business strategy goals.
Training represents a significant expenditure for most
employers. But it is too often viewed tactically rather than
strategically, which means that training is seen as a short
term activity rather than one that has longer-term effects
on organizational success
Training is used strategically to help the organization
accomplish its goals.
Strategic training can have numerous organizational
benefits. It requires HR and training professionals to get
intimately involved with the business and to partner with
operating managers to help solve their problems, thus
making significant contributions to organizational results.
Questions to ask to develop strategic
training and development initiatives
1. What is the vision and mission of the organization? Identify
the strategic drivers of the business strategy.
2. What capabilities does the organization need as result of the
business strategy and business environment challenges?
3. What types of training and development will best
attract, retain and develop the talent needed for success?
4. Which competencies are critical for organization success and
the business strategy?
5. Does the organization have a plan for making the link
between training and development and the business
strategy understood by executives, managers and
employees or customers?
6. Will the senior management team publicly support and
champion training and development?
7. Does the organization provide opportunities for training
and developing not only individuals but also teams?
TRAINING NEEDS IN DIFFERENT
There are four business strategies
2) internal growth
3) external growth and
A concentration strategy focuses on increasing market
share, reducing costs or creating and maintaining a market
niche for products and services.
Tiger Airways in Australia has a concentration strategy. It
focuses on providing short-haul, low-fare, high-frequency air
transport. It has a limited aircraft fleet and serves a restricted
range of food and drinks.
Internal growth strategy
An internal growth strategy focuses on new market and
product development, innovation and joint ventures.
the merger between two publishing organizations, McGraw-Hill
and Richard D Irwin, created one organization with strengths in
the US and the international university textbook markets.
Medical technology company Massimo, in its global operations
(which include Australia), also follows an internal growth
External growth strategy
An external growth strategy emphasizes acquiring
vendors and suppliers, or buying businesses that allow the
organization to expand into new markets.
Example of organizations using this strategy include the
Smorgon Steel Group and BHP Billiton.
A disinvestment strategy emphasizes liquidation and
divestiture of businesses.
For example, Ansell Healthcare was born out of the failure
of Pacific Dunlop, which was once an Australian icon but
gradually declined until its business units were worth
more than the conglomerate as a whole.