Strategic management

1. Program: MBA, Trimester-3
301: Strategic Management
Dr. Vandana Bharti
Prof.& Dean, School of Management
Unit No.2
Strategic Management/ Industry Analysis
Lecture No.1
MBA-301 1

2. Outlines
• Introduction of topic
• Concept
• Benefits
• Strategic management process
• Learning outcomes
• References
MBA-301
2

3. • Environmental scanning is a process of gathering, analyzing, and
dispensing information for tactical or strategic purposes.
• Careful monitoring of an organization's internal and external
environments for detecting early signs of opportunities and threats that
may influence its current and future plans. In comparison, surveillance is
confined to a specific objective or a narrow sector.
• It is monitoring and interpreting sweep of social, political, economic,
ecological, and technological events to spot budding trends that could
eventually impact industry

4. PURPOSE OF ENVIRONMENTAL SCANNING
• Effective utilization of resources
• Constant monitoring of resources
• Strategy formulation
• Identification of threats and opportunities
• Useful for the managers
• Prediction of future

5. FACTORS TO BE CONSIDERED FOR ENVIRONMENTAL SCANNING
External
environment
of business
Events
Expectati
ons of
people
Issues
Trends

6. APPROACHES TO ENVIRONMENTAL SCANNING
• SYSTEMATIC APPROACH
➢ information for environmental scanning collected systematically
➢ Information pertaining to business and industry could be collected continuously
to monitor changes
➢ Continuous updating necessary not only for strategic management but also for
operational activities
➢ In this approach information is collected relating to mkt customers, changes in
legislation govt. policy have a direct impact on organization.
▪ ADHOC APPROACH
➢ Organizations conduct special surveys and studies to undertake special
projects, evaluate existing strategies or devise new strategies
➢ Changes and unforeseen developments may also be investigated
▪ PROCESSED FORM APPROACH
➢ Information used is supplied by govt agencies or private institutions
➢ Secondary data available from external and internal sources may also be used

7. FACTORS AFFECTING ENVIRONMENTAL APPRAISAL
➢ Factors relating to nature of
environment
• Complexity
• Flexibility
• Hostility
• Diversity
➢ Factors relating to the
organization
• Nature of the business
• Age of the organization
• Size of the organization
• Nature of the markets
• Nature of the products
➢ Factors relating to the
Strategies
• This is master level strategy:- corporate
level strategy to achieve corporate
objective.
• Sub level strategy:-for specific purpose
and to help master strategy.
• Functional level strategy:-how the
strategy is translated into functions like
marketing, finance, production and R
AND D.
➢ Factors relating to strategists:
• Age , education and experience
• Motivational level
• Ability to withstand pressure and strain
• Interpersonal relations

8. STRUCTURING THE ENVIRONMENTAL APPRAISAL
• Two most important techniques of
environmental appraisal are:
➢ETOP(environmental threats and
opportunities) Analysis
➢SWOT(strengths, weaknesses,
opportunities and threats) analysis

9. Learning Outcomes
• To understand the Industry analysis
MBA-301 9

10. References
• Hill W.L. Charles & Jones R. Gareth, Strategic Management: An
Integrated approach, Educational Publishers, 4th Edition
• Fred R. David, Strategic Management, Pearson Education.
• Lawrence R. Jaunch, Rajiv Gupta, William F. Glueck, Business
Policy and Strategic Management, Frank Bros. & Co.
MBA-301 10

11. MBA-301 11