A presentation on 1st chapter of Strategic Management/Corporate Strategy Course

1. Strategic Management
Shikha Sota

2. Syllabus
• Strategic management:
Introduction, nature & scope, need, strategic
decision making
• Mission & objectives
Need for explicit mission, components of
mission statement, formulation of mission &
objectives and their specificity
Shikha Sota

3. Syllabus
• Scanning the environment
Environment scanning, socio economic,
technological, political, techniques for
environmental analysis
• Industry analysis
Porter’s approach, Environmental threat &
opportunity profile
Shikha Sota

4. Syllabus
• Internal analysis:
Value chain analysis,
Internal factors; marketing & distribution,
R&D, engineering, production & operations,
finance & accounting, corporate resources &
personal factors
Analyzing strengths & weaknesses
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5. Syllabus
• Strategy formulation & choice:
Generic strategy alternatives; stability,
expansion, retrenchment, combination,
strategy variations
BCG matrix, GE 9 cell matrix, Hofer’s model
• Behavioural aspects
• Implementation & control
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6. After this course, you’ll be able to
• Understand about the nature and value of
strategic management, emphasizes the practical
value of a strategic management approach for a
business organization.
• Understand various strategic management
activities undertaken at three levels in the
organization
• Understand how to assess the company’s
external & internal environment
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7. Introduction to Strategic
Management
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8. Retail industry’s two largest competitors
Wal-Mart & Kmart
• Battled for market dominance since 1962
• Two chains have striking similarities: store
atmosphere, names, markets served
• Yet Wal-Mart’s performance far surpassed that of
Kmart. Why?
Because organisations vary in how well they
perform; differences in their strategies &
differences in competitive abilities
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9. Introduction
• Derived from Greek word ‘Strategos’, which
means generalship
• A unified, comprehensive and integrated plan
designed to assure that the basic objectives of
the enterprise are achieved. Glueck
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10. Introduction
• A plan or course of action or a set of decision
rules forming a pattern or creating a common
thread,
• The pattern or common thread related to the
organization’s activities which are derived
from its policies, objectives and goals,
• Related to pursuing those activities, which
move an organization from its current position
to a desired future state.
Shikha Sota

11. Strategic Management
• Strategic management is the process of
systematically analyzing various opportunities
and threats vis-à-vis organizational strengths
and weaknesses, formulating, and arriving at
strategic choices through critical evaluation of
alternatives and implementing them to meet
the set objectives of the organization.
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12. Levels at which Strategy
operates
• Consider the following companies
 Hindustan Unilever
 TATA group of companies
 ITC Ltd.
Do you think single strategy is adequate &
appropriate for these companies?
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13. Strategic Management
“Strategic Management is not a box of tricks or
a bundle of techniques. It is analytical thinking
and commitment of resources into action.”
Peter Drucker
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14. Shikha Sota
Corporate
Level
Business
Level
Functional
Level

15. Decision Making
Conventional Decision making
1.Objectives are determined
2.Alternatives ways are identified
3.Each alternative evaluated
4.The best alternative is chosen
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16. Strategic Decision making
• Fundamental strategic decision relates to
choice of mission.
• The main concerns are
 What is our business?
 What it will be?
 What it should be?
• To make strategic choice that could allocate
resources to the chosen alternative
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17. Issues in
Strategic Decision Making
1. Criteria for decision making
 Maximisation
 Satisficing
 Incrementalism
2. Rationality in decision making
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18. Issues in
Strategic Decision Making
3. Creativity in decision making
4. Variability in decision making
5. Person related factors in decision making
6. Individual versus group decision making
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19. Strategic Management
Process
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20. Shikha Sota

21. Phases of Strategic Management
Shikha Sota
Strategic
Control
Establish
Strategic
Intent
Formulation
of
Strategies
Implement-
ation of
Strategies
Strategic
Control

22. Establishment of Strategic Intent
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• Creating & Communicating a Vision
• Designing a mission statement
• Defining the business
• Setting objectives

23. Formulation of strategies
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• Performing environmental appraisal
• Doing organizational appraisal
• Corporate level strategies
• Business level strategies
• Undertaking strategic analysis
• Exercising strategic choice
• Formulating strategies
• Preparing a strategic plan

24. Implementation of strategies
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• Activating strategies
• Designing structure & systems
• Managing behavioural implementation
• Managing functional implementation
• Operationalising strategies

25. Strategic Evaluation & Control
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• Performing strategic evaluation
• Exercising strategic control
• Reforming strategies

26. Activity 1
• Step1. Choose any company that is listed on the stock
exchange and whose information is freely available e.g.
Reliance industries.
• Step 2. Identify what you consider to be threats, strengths,
weaknesses & opportunities for the company identified.
• Step 3. Through discussion, compare your number of factors
to those developed by other teammates. Further add some
factors to your list from the discussion. Keep this information
for use in later activities.
Shikha Sota