Strategic Management

1. Strategicmanagement - introduction
DR. M. JULIASCEASAR
Asst. Professor / Commerce
School of Management Studies
St Joseph’s College (Autonomous)
Tiruchirappalli – 620 002.
julius.sxc@gmail.com 9443110877
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2. Topics covered
1. Meaning of Strategy
2. Corporate strategy – why?
3. Levels of strategy
4. Crafting a strategy
5. Strategy: an ongoing process
6. Strategy of a diversified company
7. Strategic Management Process
8. Role of a Strategist
9. Mintzberg’s Model of Strategic Decision
10. Strategic management in India

3. Strategy
• Comprehensive master plan
• How organisation achieve its mission and
objectives
• Plan – how do I get there
• Pattern in consistent action over time
• Vision and direction

4. Corporate Strategy - Why?
• Meaning – need of every organisation leads to several
benefits.
1. Universal –
• complex web of thoughts, ideas, insights, experience,
goals, expertise, memories, perceptions, and
expectations.
• Provides general guidelines for specific action.
2. Keeping pace with general environment –
• present day environment is dynamic, fast changing.
• Uncertainties, threats, constraints great pressure –
trying to find ways for healthy survival.

5. Corporate Strategy - Why?
• CS help the corporate management to explore opportunities
and minimize threats.
• Achieve optimum level efficiency
3. Minimises Competitive advantage:
• repositioning and reengineering products and brands.
4. Clear sense of strategic vision and sharper focus on goals and
objectives:
• what we want to achieve and chart our course in the market
place, basis for establishment of business firm,
• Basic requirement for a firm to survive and sustain.

6. Corporate Strategy - Why?
5. Motivating employees
• labour efficiency loyalty towards management
• Plan objectives as to what, when and how to do???
• Make them to feel confident to perform without hesitation
• Labour efficiency and loyalty will result ends up in industrial
peace and good results.
6. Strengthening decision making:
• Identify the objectives of the business concern
• Smooth sailing and effective decision making
7. Efficient and effective way of implementing actions for results:
• Strategy provides clear understanding of purpose, objectives and
standards of performance of employees at all levels and in all
functional areas.
• Implementation is easy and smooth.. Efficient and economic results

7. Levels of Strategy
Three types of strategies:
1. Business strategy – business and product emphasises
the improvement of competitive position
2. Functional strategy – develop and nurture distinctive
competence to provide competitive advantage
3. Operating strategy – deliver effectively the corporate,
business and functional level strategies in terms of
resources, process and people.

8. Crafting a strategy
Four approaches to crafting strategy:
1. Architect approach:Owner and CEO assumes the role
of chief strategist –single hand decision – need to have
brainstorming with subordinates.
2. Delegation approach: delegate to trusted
subordinates, talented, knowledgeable etc.,
3. Collaborative / Team approach: consults, discusses,
seek assistance and advice of key peers
4. Corporate entrepreneur approach: encourage team
and individual to develop and champion proposals for
new product line or new business ventures. Executives
are judges for proposals.

9. Strategy: On going process
1. CS continuous and ongoing
2. Explore and determine vision
3. Develop mission statement
4. Define company – internal analysis – culture, strength
and capability
5. External environmental analysis
6. Match company profile with environment
7. Decide the most desirable course of action
8. Select a set of long term objectives
9. Evolve short term annual objectives
10. Implement the strategy in a planned way based on
budget and resources
11. Review for continuous improvement

10. Strategy of a diversified company
1. Corporate strategy
1. Efforts to capture cross culture business
2. Move to build position in new industries
3. Plan for diversification
4. Domestic or overseas venture
1. Capital allocation
2. Diversification related or unrelated
3. Strengthen position through new ideas or acquisition
4. Move to invest in weak or unarrtactive business

11. Strategic management process
Four basic elements:
1. Environmental scanning
2. Strategy formulation -
3. Strategy implementation
4. Evaluation and control
Monitor, evaluate and discrimination of information from internal
and external environment, Identify strategic factors.
SWOT Analysis

12. Role of strategist
1. Consultant
2. Entrepreneur
3. Board of director
4. CEO
5. Senior management
6. Corporate planning staff
7. Strategic business unit executive
8. Middle level managers
9. Executive assistant

13. Mintzberg’s model of strategic decision making
Three typical approach of strategic decision making
1. Entrepreneurial mode – strategy by powerful individual
who has entrepreneurial competencies – innovative and
risk taking. Focus on opportunities
2. Adaptive mode – reactive solution to existing problems,
don’t search new opportunities
3. Planning mode – planning mode systematic gathering of
required information includes proactive search and
reactive solutions
4. Logical incrementalism – change in environment, need
to build consensus, develop the required resources

14. Strategic management in India
1991 – after major thrust in India after WTO in 2005,
change in business environment, increased the relevance of
strategic management.
New initiatives
1. Abolition of public sector monopoly, high tech and
heavy investment sectors – needed strategic
management.
2. Relicensing – removed restriction of import barriers,
changed consumption pattern. Limited availability of
goods
3. Liberalisation towards foreign technology and capital
leading to foreign markets
4. More autonomy to public enterprises