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Module 1 CLASSIFICATION Hierarchy in Organisations.pptx

  1. Amity Business School Strategic Management
  2. WHAT IS STRATEGY ? “Everything in strategy is very simple, but Nothing in strategy is very easy”
  3. What is Strategy? Where are we going And how will we get there? Strategy sets out the route a business intends to take to achieve its goals
  4. What is Strategy? The purpose of strategy is to help organizations achieve a sustainable competitive advantage. The difference b/w you and your competitors are the basis of your advantage. It allows to use org.’s resources & capabilities to exploit opportunities and limit threats in external environment.
  5. Strategy Definition • It is all about choices • Competitive strategy is about being different • It means deliberately choosing a different set of activities to deliver a unique mix of value • The match b/w org’s internal capabilities and its external relationships
  6. Strategy Definition • It is about the firm using analytical techniques to help it to understand and influence its position in the market • A strategic position represents a company’s answers to following questions- -Who should the company target as customers? -What products/ services should be offered ? -How can company do this efficiently ?
  7. Strategic Management • Strategic management is the study of why some firms outperform others. • How to create a competitive advantage in the market place that is unique, valuable, and difficult to copy • “Total organization” perspective, integrating across functional areas. • Strategies put together an understanding of the external environment with an understanding of internal strengths and weaknesses.
  8. Definition of Strategic Management Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages
  9. Definition of Strategic Management Analysis Strategic goals (vision, mission, strategic objectives) Internal and external environment of the firm Decisions What industries should we compete in? How should we compete in those industries? Actions Allocate necessary resources Design the organization to bring intended strategies to reality
  10. What went wrong?
  11. Amity Business School Classification of Corporate and Business Strategy with Hierarchy
  12. Amity Business School Strategy at Corporate/Business/SBU Level
  13. Amity Business School Hierarchy of Strategy
  14. Amity Business School Corporate Objectives
  15. Amity Business School
  16. Amity Business School Key Terms in Strategic Management • Vision statement – answers the question “What do we want to become?” – often considered the first step in strategic planning
  17. Amity Business School Key Terms in Strategic Management • Mission statements – enduring statements of purpose that distinguish one business from other similar firms – identifies the scope of a firm’s operations in product and market terms – addresses the basic question that faces all strategists: “What is our business?”
  18. Amity Business School Key Terms in Strategic Management • External opportunities and external threats – refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future
  19. Amity Business School Key Terms in Strategic Management • Internal strengths and internal weaknesses – an organization’s controllable activities that are performed especially well or poorly – determined relative to competitors
  20. Amity Business School Key Terms in Strategic Management • Objectives – specific results that an organization seeks to achieve in pursuing its basic mission – long-term means more than one year – should be challenging, measurable, consistent, reasonable, and clear