PPT ON STRATEGIC MANAGEMENT

1. Introduction to Strategic
Management & Strategic
choice
By: Krishangi Pandey

2. What is Strategy?
Strategy is the overall plan for
deploying resources to establish a
favorable position.
Tactic is a scheme for a specific
maneuver.

3. Strategic management
 Strategic management involves the formulation and
implementation of the major goals and initiatives taken by a
company's top management on behalf of owners, based on
consideration of resources and an assessment of the internal
and external environments in which the organization competes.
 Strategic management provides overall direction to the
enterprise and involves specifying the organization's objectives,
developing policies and plans designed to achieve these
objectives, and then allocating resources to implement the
plans. Academics and practicing managers have developed
numerous models and frameworks to assist in strategic
decision making in the context of complex environments and
competitive dynamics.

4. Basic Framework
The firm
Goals & Values
Resources &
Capabilities
Structures &
Systems
External
Environment
Competitors
Customers
Suppliers
etc
Strategy

5. Definitions
Strategic Management Process
The full set of commitments, decisions, and
actions required for a firm to create value and
earn above-average returns
Value Creation
What is achieved when a firm successfully
formulates and implements a strategy that
other companies are unable to duplicate or
find too costly to imitate.

6. Definitions
Returns that are in excess of what an investor
expects to earn from other investments with a similar
amount of risk
Above-Average Returns
Returns that are equal to those an investor
expects to earn from other investments with a
similar amount of risk
Average Returns

7. Definitions
Risk
An investor’s uncertainty about the economic
gains or losses that will result from a
particular investment

8. Strategic Intent & Mission
 Strategic Intent
 Winning competitive battles by leveraging the firm’s
resources, capabilities, and core competencies
 Strategic Mission
 An application of strategic intent in terms of products to be
offered and markets to be served

9. Strategic Management Process for Intended
Strategies
Missions
and Goals
Missions
and Goals
Strategic
Choice
Strategic
Choice
Organizing for
Implementation
Organizing for
Implementation
Internal
Analysis
Internal
Analysis
External
Analysis
External
Analysis
INTENDED STRATEGY

10. Functional
Business
Corporate
Global
Levels of StrategyLevels of Strategy

11. Strategic choice
 Strategic choice is selection of the best strategic
option that helps achieve organization's
objectives.Relevant strategic options are evaluated
their suitability,acceptability and feasibility.The
evaluated strategic options are ranked in order of
their potential to achieve objective.Such options
should allow businesses to maintain or create
sustainable strategic advantage.The strategic choice
is made from among the ranked alternative.

12. Approaches of Strategic Choice
 Planned Approach :
This approach involves formal appraisal of the relevant strategic options for
suitability,acceptability and feasibility.The appraised options are ranked in terms
of their potential for objective achievement.The choice of the best options is
made.
 Enforced Approach :
An organization has various stakeholder.The dominate stakeholders play an
important role in strategic choice.Their expectations considered.
 Experienced based Approach :
Managers possess anexperience curve.Past experience of managers in strategy
implementation serves as a guideline for strategic choice.
 Command Approach :
The strategic choice is based on the command of top management.It is top down

13. THANK
YOU