2.
Strategy is derived from the greek word
strategos.
Strategy refers to the „plan or course of
action‟ framed or formulated to achieve a
specified objective or goal.
A comprehensive way to try to pursue
certain ends.
3. The
famous Chinese Philosopher Sun Tzu‟s
“The Art of War” written in the 6th century
B.C.
The
famous Indian Guru Chanakya‟s
“Arthasastra” written in the 4th century
B.C.
The notorious Italian Niccolo
Machiavelli‟s “The Prince” “The
Discourses” & “The Art of War” written
in the 16th century A.D.
4.
To meet the objectives of organization.
Blend of internal and external factors.
Solve certain problems.
Future oriented.
Efficient adoption in organization.
Guide enterprise thinking and action.
6.
Levels of operation-corporate level, business
level, functional level.
2 categories of companies-different
directions or product groups known as profit
centres or sbu‟s, single product companies.
SBU was introduced by general electric
company. Best example is relaince company.
7.
Strategies are formulated according to organizations.
Value oriented, conceptual and less concrete.
These are characterized by greater risk, cost and profit potential
as well as flexibility.
Occupy highest level of strategic decision making and cover the
actions dealing with the objectives of the organization.
Decisions are made by top management.
Examples: acquisitions decisions, diversification, structural
diversifications etc.
Directors and chief executive officer are the primary members.
8.
Make use of business resources.
Allocation of resources among functional areas
and coordination between them for achievement
of corporate level objectives.
Operate within overall organization.
Has impact on business strategy.
9.
Relates to single functional operation.
Decisions taken are described as tactical.
The strategies are concerned with how different
functions of the enterprise like marketing, finance
manufacturing etc.
Sometimes a 4th level exists known as the operating
level which comes from the functional level strategy.
Example marketing function which is spilt into
market research, sales promotion etc.
10.
To take decisions.
Deal with new trend.
Financial benefits in the form of increased profits.
Clarity in direction for achieving objective.
Organizational effectiveness.
Satisfaction to the personnel.
Habit of thinking and proactive.
Achievement of goals.
Improves corporate communication. Coordination and
allocation of resources.
11.
There are two dimensions of every action. They are substantive and
procedural.
The process of strategy is cyclical in nature.
Elements interact among themselves.
There are 4 phases-identification phase, development phase,
implementation phase and monitoring phase.(initially)
C.k.prahalad-strategic intent, environmental analysis, evaluation of
strategic alternatives and choices, strategy implementation, strategy
evaluation and control.
12. Defining mission and vision and business
Environmental analysis
Organizational analysis
Setting objectives and goals
Identifying alternative strategies
Choice of strategy
Implementation of strategy
Strategy evaluation and control
Feedback
13.
Purpose of the organization.
It could be in the form of vision and mission.
An obsession of having ambitions that may be
even out of proportion to their resources and
capabilities.
14.
Articulates the position of the firm.
A vision should be
◦ An organisation charter of core values and principles.
◦ The ultimate source of our priorities, plans and goals.
◦ A puller into the future.
◦ A determination and publication of what makes us unique.
◦ A declaration of independence.
16.
Mission is what an organization is and why it exists.
Characteristics of mission
◦ It should be feasible.
◦ It should be precise.
◦ It should be clear.
◦ It should be motivating.
◦ It should be distinctive.
◦ It should indicate the major components of strategy.
◦ It should indicate how objectives are accomplishments.
17.
Values of a company state how managers and
employees should conduct themselves.
How they should do business.
What kind of organization they should build a
company.
They depend on organizational culture.
18.
A goal is a precise and measurable desired future
state that a company attempts to realize.
Goal is to attain mission and vision.
It should address crucial issue.
They should be challenging but realistic.
It should be achieved within a limited time period.
19.
Analysis of the organization‟s external operating
environment.
Identify strategic opportunities and threats.
It should consider national environment, wider
socioeconomic or macro environment.
Impact of globalization on competition within industry.
Examination of macroeconomic, social, government, legal,
international and technological factors is essential.
20. Focuses
on reviewing the resources,
capabilities and competencies of company.
Goal
is to identify strength and weakness of
the company.
23.
After implementation, monitoring is essential.
To what extent the objectives and goals fixed
is effective has to be analyzed.
It is too optimistic then conservative goal has
to be fixed.
