Levels of strategy, strategic management process

1. THIPPESWAMI H
RESEARCH SCHOLAR
DEPT OF STUDIES IN COMMERCE
VSK UNIVERSITY
BALLARI
Mob no 8746022011
STRATEGIC MANAGEMENT

2. Nature of SM
1. Serves as a road map for the corporation
2. Enables long term decisions concerning the firm
3. Ensure optimum utilisation of resources
4. Prepares the firms to face the future
5. Helps acquiring competitive advantage
STRATEGIC MANAGEMENT

3. Importance/role/ of SM
1. Improvement in sales
2. Improvement in profitability
3. Improvement in productivity
4. Enhanced problem prevention capability
5. Provides a framework for decision making
STRATEGIC MANAGEMENT

4. 4
Strategists & their role SM
Strategists are individual or group who are primarily involved
in the formulation, implementation and evaluation of the
strategies.
1. Role of Board of Directors
2. Role of CEO
3. Role of Entrepreneur
4. Role of Senior level management
5. Role of Middle level management
6. Role of Assistant Executives
STRATEGIC MANAGEMENT

5. Issues/aspects/factors in strategic decision making
1. Criteria for decision making(objectives)
2. Rationality in decision making
3. Creativity in decision making (new things)
4. Person related factors in decision making
5. Individual v/s Group in decision making(both are needed)
STRATEGIC MANAGEMENT

6. STRATEGIC MANAGEMENT process

7. 5
STRATEGIC MANAGEMENT process

8. “Process of formulation, implementation, evaluation and
control of strategies to realize the organization's strategic
intent.” The strategic management process encompasses
three phases, which together involve a number of systematic
steps.
1.Strategy formulation
2.Strategy Implementation
3. Strategy Evaluation & control.
STRATEGIC MANAGEMENT process

9. EVALUATION
AND CONTROL
FORMATION OF
MISSION &
OBJECTIVES
SWOT ANALYSIS
CONSIDERATION
OF STRATEGIC
ALTERNATIVES
IMPLEMENTATION CHOICE OF
STRATEGY

10. Strategic formation involves five important steps which are,
1. Determination of vision, mission ,objectives and goals
2. Analysis of strengths and weakness of the firm
3. Environmental opportunities and threats
4. Generation of alternative strategies and choosing the most
appropriate strategies
5. Define the nature of business
STRATEGIC FORMULATION

11. IMPLEMENTATION
Strategic Implementation involves four important steps which are,
1. Activating strategies
2. Designing structures and system
3. Managing the behavioural strategies
4. Operating strategies

12. EVALUATIONANDCONTROL
Strategic Evaluation & control involves Three important steps which are,
1. Performing Strategic Evaluation
2. Excising Strategic Control
3. Reformulating Strategies

13. Levels of strategy

14. Corporate Level strategy
Corporate level strategy outlines what you want to achieve:
growth, stability, acquisition or retrenchment. It focuses on
what business you are going to enter the market.
It has two main aspects- formulation of strategy(strategic
planning) and strategy implementation.
Major financial policy decisions are taken by the top level
management by involving acquisition, diversification and
structural redesigning belong to this level.

15. BusinessLevel strategy
This level answers the question of how you are going to
compete. It plays a role in those organization which have
smaller units of business and each is considered
as the strategic business unit (SBU).
Business level strategy is more likely related to a unit within
the whole. It is concerned with competition in market.
Decisions at this level include policies involving new product
development, marketing mix, research and development etc.

16. Functional Level strategy
16
This level concentrates on how an organization is going to grow. It
defines daily actions including allocation of resources to deliver
corporate and business level strategies.
Functional/operational strategy involves decision making with respect
to specific functional areas-Production, marketing, Personnel, finance
etc.
While corporate & business level strategies are concerned with
“Doing the right things”, functional strategies stress on “Doing
things right”.
Functional level strategies handling day to day tasks/activities of
purchasing materials, inventory control etc.