This document discusses key concepts related to strategic management including strategic intent, vision and mission statements, goals and objectives, values, and strategy implementation. It provides examples of famous vision and mission statements from companies like IKEA, Microsoft, and Southwest Airlines. It also discusses strategic intent examples from companies like Canon and Komatsu in their efforts to surpass competitors like Xerox and Caterpillar. The document outlines various aspects of strategy implementation including project implementation, procedural implementation, structural implementation, and behavioral implementation. It emphasizes that organizational structure should support the implementation of business strategy.

1. Introduction to Strategic
Management
Vinod Joseph
Associate Professor
KJC

4. Examples of Policies
• Customer Quality
Policy
• Credit Policy
• Ethics & Conduct Policy
• Employment Policies
• Non-discrimination
Policies
• Compensation and
Benefits Policies
• Internet, Email, &
Cyber-security Policy
• Misconduct Policy
• Purchasing Policy
• Workplace Safety
Policy

5. Features of Business Policy
1. Specific- Policy should be specific/definite. If it is
uncertain, then the implementation will become
difficult.
2. Clear- Policy must be unambiguous. It should
avoid use of jargons and connotations. There
should be no misunderstandings in following the
policy.
3. Reliable/Uniform- Policy must be uniform
enough so that it can be efficiently followed by the
subordinates.
4. Appropriate- Policy should be appropriate to
the present organizational goal.

6. Cont..
5. Simple- A policy should be simple and easily
understood by all in the organization.
6. Inclusive/Comprehensive- In order to have a
wide scope, a policy must be comprehensive.
7. Flexible- Policy should be flexible in
operation/application. This does not imply that a
policy should be altered always, but it should be
wide in scope so as to ensure that the line
managers use them in repetitive/routine scenarios.
8. Stable- Policy should be stable else it will lead
to indecisiveness and uncertainty in minds of those
who look into it for guidance.

7. Purpose of Business Policy
Policies communicate an organization’s culture,
values, and philosophy. They cover what
employees can expect from the organization
(employee benefits, vacation leave), what the
company expects from employees (code of
conduct, confidentiality agreements), and what
customers and the community can expect from
the organization (customer service).

8. Importance of Business Policy
• Set clear expectations
• Create consistency throughout the organization
• Reduce risk
• Improves employee performance
• Set high standards for all employees

9. Set clear expectations
• While policies offer a variety of benefits, the
primary goal they accomplish is to put in writing
what the company expects from employees in
terms of the behaviour, actions, and processes
they take in specific scenarios.
• This clarity allows employees to know and
understand how they should respond according to
the mission, vision, values the company
establishes. In a nutshell, policies take the
guesswork out of what employees should do.

10. Create consistency throughout the
organization
• Clarity in the company’s guidelines leads to
everyone operating according to the same
principles and guidelines. In turn, this creates
consistent experiences and processes, both
internally among employees and externally
regarding interactions with customers, vendors,
and the general public.
• This is especially true for new employees as clear
policies help them learn quickly the expectations.

11. Reduce risk
• Establishing the expectations and consistency outlined
above allows leadership to ensure the
company communicates all laws and regulations to
employees. Plus, it ensures employees both understand
the policies and know how these policies apply to their
day-to-day jobs.
• The result? When an organization clearly establishes
expectations in writing and incorporates them into the
fabric of the corporate culture, this reduces the number of
fines and other legal risks for the company.
• Building this culture of organizational
accountability requires a concerted effort on the part of
leadership, but it mitigates risk and drives compliance,
which is every employee’s responsibility.

12. Improves employee performance
• Clear policies allow leadership to institute and
solidify best practices throughout the organization.
This can be accomplished through both big-picture
efforts – such as mission statements, which should
be included in the policy manual – as well as through
more detailed and specific policies and procedures.
• Beyond mere documents, policies set forth the
company’s mission, vision, values, and culture,
codified into a written format for employees at every
level to access and follow. As living documents that
change to reflect current needs and risks, policies
are truly the heartbeat of an organization.

13. Cont..
• Developing that accountability mindset empowers
both individuals and teams to be more
collaborative and productive, allowing them to
more effectively contribute to the organization’s
overarching goals. Thus, fostering this culture of
workplace accountability through the guidance of
clear policies helps yield a high-performing
company.

14. Set high standards for all employees
• It sets the bar high for the standards the
company expects employees to live up to. For
example, a solid foundation of company policies
should address areas such as code of conduct
and ethics and anti-harassment
• Such policies should clearly delineate the
consequences and actions the company will take
if an employee violates these rules and policies.
• Again, this circles back to all the goals mentioned
above, with all of these elements feeding into
and off of each other.

15. Objectives of Business Policy
• Provide support to the achievement of business
objectives
• Provide linkage between the physical factors and
personnel
• Provide framework for establishing rules and
regulations
• Provide a framework for communication
between all levels of management and between
departments

16. Cont.
• Helps in preparing and defining job
responsibilities
• Support in quick decision making

17. Definition

19. Need for strategic Management
1. Sets direction and priorities
2. Gets all the activities and functions co- ordinated
3. Makes operational decisions simpler
4. Drives proper allocation and alignment of
resources
5. Creates a pro- active rather than a reactive
climate in the organization

20. Cont..
6. Better able to adopt and utilize environmental
changes
7. Meaningful communication and understanding
among employees and stake holders
8. Higher motivation of employees
9. Strategic decision making
10. Optimization of Profits

21. Process of Strategic Management

22. Strategic Management Process
I. Strategic Intent
• Mission
• Vision
• Key Values
• Statement of major goals
• Message (Tagline)
• Purpose (Why)
• Objectives
II. Formulation of strategies
• Environmental appraisal
[SWOC analysis]
– Internal analysis
– External analysis
• Functional level strategies
• Business level strategies
• Global strategies
• Corporate level strategies

23. Strategic Management Process
Implementation of strategies
• Project implementation
• Procedural implementation
• Structural implementation
• Behavioral implementation
• Functional & Operational
implementation
Strategy evaluation and Control
• Analysis and assessment
• Corrective action

24. Strategic Intent
When Gary Hamel, then a lecturer at London
Business School, and C.K. Prahalad, a University of
Michigan professor, wrote “Strategic Intent,” the
article signaled that a major new force had
arrived in management.
This strategic intent usually incorporates stretch
targets, which force companies to compete in
innovative ways.

25. Origin
Hamel and Prahalad argue that Western companies
focus on trimming their ambitions to match
resources and, as a result, search only for
advantages they can sustain.
By contrast, Japanese corporations leverage
resources by accelerating the pace of organizational
learning and try to attain seemingly impossible
goals. These firms foster the desire to succeed
among their employees and maintain it by
spreading the vision of global leadership.

26. Examples
This is how Canon sought to “beat Xerox” and
Komatsu set out to “encircle Caterpillar.”
NEC’s strategic intent, set in the early 1970s, was
to acquire the technologies that would put it in
the best position to exploit the convergence of
computing and telecommunications.
For Coca-Cola, strategic intent has been to put a
Coke within “arm’s reach” of every consumer in
the world.

27. Cont…
The Apollo program—landing a man on the
moon ahead of the Soviets.

28. Strategic Intent
Xerox & Canon and Caterpillar &
Komatsu
• For smart competitors, the goal is not
competitive imitation but competitive innovation,
the art of containing competitive risks within
manageable proportions.
• The strategist's goal is not to find a niche within
the existing industry space but to create new
space that is uniquely suited to the company's
own strengths - space that is off the map

29. Xerox and Canon
During the 1970s, both Kodak and IBM tried to
match Xerox’s business system in terms of
segmentation, products, distribution, service,
and pricing. As a result, Xerox had no trouble
decoding the new entrants’ intentions and
developing countermoves. IBM eventually
withdrew from the copier business, while Kodak
remains a distant second in the large copier
market that Xerox still dominates.

30. Cont…
Canon, on the other hand, changed the terms of
competitive engagement. While Xerox built a
wide range of copiers, Canon standardized
machines and components to reduce costs. It
chose to distribute through office product
dealers rather than try to match Xerox’s huge
direct sales force. It also avoided the need to
create a national service network by designing
reliability and serviceability into its product and
then delegating service responsibility to the
dealers.

31. Cont…
Canon copiers were sold rather than leased,
freeing Canon from the burden of financing the
lease base. Finally, instead of selling to the heads
of corporate duplicating departments, Canon
appealed to secretaries and department managers
who wanted distributed copying. At each stage,
Canon neatly sidestepped a potential barrier to
entry.

32. Caterpillar and Komatsu
• Komatsu set out to encircle caterpillar
• Komatsu responded by first improving quality,
then driving down costs, then cultivating
export markets, and then underwriting new
product development.

33. Building Competitive Advantage at Komatsu
Corporate Challenge
Programs
Protect Komatsu's Home Market Against Caterpillar
early 1960s Licensing deals with Cummins Engine, International
Harvester, and Bucyrus-Erie to acquire technology and establish
benchmarks
1961 Project A (for Ace) to advance the product quality of Komatsu's
small and midsize bulldozers above Caterpillar's
1962 Quality circles companywide to provide training for all employees
Reduce Costs While Maintaining Quailty
1965 Cost Down (CD) program
1966 Total CD program

35. Vision
The vision of a company lays out some desired
future state, it articulates often in bold terms
what the company would like to achieve
The vision is the dream towards which the
organization is moving. A good vision statement
is an inspirational picture of the future that can
be created. It brings in unity of purpose and
offers clarity amidst confusion and hope amidst
despair

36. Mission
The mission describes what the company does.
The mission statement is the reason for the
existence of the organization. The ultimate
purpose which the organization serves in the
society and the boundaries within which it
operates. It therefore sets the direction and
defines the boundaries of the organizational
activities

37. Goals and Objectives
• A goal is a precise and measurable desired
future state that the company attempts to
realise.
• A well constructed goal has four main
characteristics
• Precise and measurable
• Address crucial issues
• Challenging but realistic
• Specify time period

38. Cont…
Each goal is understood and strived to be
achieved through a group of objectives
Business objectives refer to specific end-
points which the business wants to achieve
at specific periods of time. Achieving a
group of objectives leads to the
achievement of a business goal.

39. Values
Values of a company state how managers and
employees should conduct themselves, how
they should do business and what type of
organization they should create to achieve the
mission.
They shape the behavior within the company,
and is the basis for the organizational culture

42. Famous Vision Statements
• IKEA- Our vision is to create a better every-
day life for many people.
• To be a nerd for all your needs- Nerdster
• A world without Alzheimer's disease-
• To become the worlds most loved, most
flown, and most profitable airline- South west
airlines

43. Cont..
• To be the best quick service restaurant
experience. To be the best means providing
outstanding quality, service, cleanliness and
value, so that we make every customer in
every restaurant smile- Mc Donalds

44. Famous mission statements
• Our mission is to empower every person and
every organization on the planet to achieve
more- Microsoft
• The mission of Southwest airlines is
dedication to the highest quality of Customer
service delivered with a sense of warmth,
friendliness, individual pride and company
spirit”.
• To build the webs most convenient, secure,
and cost effective payment solution- Paypal

45. Cont..
• To organise the worlds information and make it
universally accessible and useful.
• “Uber is evolving the way the world moves. By
seamlessly connecting riders to drivers through
apps, we make cities more accessible opening up
more possibilities for riders and more business
for drivers.
• To refresh the world, to inspire moments of
optimism and happiness. To create value and
make a difference.- Coca- cola

48. Strategy Implementation
The formulated strategies need to be implemented
to achieve the competitive advantage and the goals
of the organization
Strategy implementation is the coming alive of the
strategies to achieve the strategic objectives.
The strategy is fundamentally activated through
the organization and its structure. Therefore the
organization is the fundamental tool or mechanism
through which the strategies are implemented

49. Definition
Strategy implementation is the term used to
describe the activities within an organization
to manage an execution of a strategic plan.
Therefore it is a translation of a chosen
strategy into organizational action, so as to
achieve strategic goals and objectives

51. Project implementation
• A project is a combination of human and non-
human resources pulled together in a
temporary organization to achieve a specified
purpose
------Cleland and Kerzner------
• Very often the business of companies itself are
projects like Microsoft, L&T, Infosys etc..
• Even otherwise projects play a very crucial role
in the working of the organisations, such as

52. Examples
• New products
development
• Mergers and
acquisitions
• Organisational change
• New branch
• International expansion
• Training program
• Advertisement
campaign
• Recruitment drive
• New technology
absorption etc

53. Procedural implementation
• Procedure is a fixed step- by- step sequence of
activities or course of action, with definite start
and end points, that must be followed, in the
same order to correctly perform a task.
• Examples of procedures in organisations are,
• Raising an indent or requirement
• Addressing customer complaint
• Capturing innovations etc

54. The importance of Procedure in Strategy
Implementation are
• For maintaining quality of work
• For ensuring effectiveness of strategy
• Removal of redundant procedures with changes
in strategy
• Review of SOP [Standard Operating Procedures]
with changes in strategy
• Ensure proper co- ordination of activities
• Designed to ensure proper co- ordination of
inter- departmental activities
• For getting feedback of implemented strategies

55. Structural implementation
• The organizational structure should be designed
to implement and support the strategy of the
organisation.
• Therefore the right organizational structure
depends on the strategic initiatives and the
challenges the organisation encounters.
• The following are some of the popular
organizational structures.

56. Popular organizational structures of
implementing strategy
• Functional structure
• Product structure
• Market/ Customer
structure
• Geographic structure
• Matrix structure
• Product team structure
• Multi- divisional
strucure
• SBU structure

57. Behavioral implementation
• Behavioral implementation deals with the
behavioral aspects of employees.
• It is very crucial as the strategy is fundamentally
implemented by individuals, teams and groups.
• It is complex as it deals with many intangible
aspects like values, ethics, leadership styles,
politics, culture etc.
• We deal with three aspects;
• Leadership,
• Corporate culture and
• Corporate politics & use of power.

58. Functional & Operational
implementation
• These are the strategies directed at improving
the effectiveness of the various business
functions & operations within a company such
as manufacturing, marketing, materials
management, product development, customer
service etc.
• It is the functions and operations of the
company and the manner in which they are
performed that distinctive competencies of the
company are built ------ Hill & Jones-----

59. Cont…
• Functional plans concentrate more on
business functions like HR, Finance,
Marketing, Production etc..
• Operational plans concentrate more on
areas like productivity, process, people, and
pace of implementation etc..

63. Meaning od Decision making
• “the act of reaching a conclusion or making up
one’s mind”
• a position or opinion or judgment reached
after consideration

64. Classic Decision Making Process
• Assess the Situation
• Gather Facts and Assess
Unknowns
• Identify Alternatives
• Establish Decision Criteria
• Weigh Alternatives
• Select Best Alternative
• Review the Decision
The “classic” decision
making process is traceable
to John Dewey’s formulation
of the problem solving
process. With minor
variation it can be found in
many places. It is the
archetype of the rational-
analytic approach to
problem solving and
decision-making, the kind
that featured prominently in
Charles Kepner and
Benjamin Tregoe’s book, The
Rational Manager.

65. Classical decision making
PROS
• Simple, easily
understood
• Appeals to the
belief in rationality
• Widely known
• Managers are
comfortable with it
CONS
• Doesn’t reflect the reality of strategic
decision making situations; it assumes
causal linkages are knowable and
known
• Doesn’t reflect the iterative nature of
developing clarity, formulating a viable
course of action and developing
commitment to that course of action
• Doesn’t reflect the political aspects of
strategic decision making; it ignores
intuition or gut instinct

66. Strategic Decision Making
Strategic decision-making is the process of
charting a course based on long-term goals and
a longer term vision. By clarifying your
company's big picture aims, you'll have the
opportunity to align your shorter term plans
with this deeper, broader mission – giving your
operations clarity and consistency.

68. The Nature of Strategic Decisions
• Strategic decisions are often marked by fluidity,
ambiguity, uncertainty and complex.
• Direction- Strategic decisions alter or confirm the
organization’s direction.
• Finance- Strategic decisions typically have
significant financial implications; in some involves
betting the entire company

69. Cont..
• People- Strategic decisions often have
profound implications for people in key
organizational roles and can affect their
morale, motivation and commitment to the
company.
• Risk- Finally, strategic decisions are typically
marked by considerable risk. Not only is it a
high-stakes game but the outcomes are far
from certain.

70. Strategic Decision Model
• MILITARY MODEL
• The military model is a variation on the classic model. The
model that appears below is from the U. S. Army War College.
• It has both Pros and Cons
• Different models are appropriate for different situations of
SDM.

72. Cont..
• Pros:
• Hints at the iterative nature of decision making by way of
feedback loops
• Positions organizational goals and objectives as a major factor in
decision making
• Points to the importance of execution or following through to
make the decision happen
• Cons:
• Suffers from the same shortcomings as the classic model;
basically, it’s not a good fit with fluid, ambiguous situations where
clarity must emerge and the ability to spot patterns is more critical
than the ability to simply process and analyze data

74. Weaknesses/ Reasons or failure of
Strategic Management
1. Neglect of operation responsibilities
2. Lack of involvement in implementation
3. Lack of confidence in subordinates
4. Lack of comprehensiveness
5. Blinders of potential dangers
6. Lack of openness to other possibilities
7. Lack of understanding and appreciation of the
complexity of the system

75. Cont…
8. Lack of creativity
9. Inertia in the Company towards change and
decision making
10. Prior strategic commitments
11. The Icarus paradox

76. Steps to avoid failure
1. Focus on the building blocks of competitive
advantage: Efficiency; Quality; Innovation;
Responsiveness to Customers
2. Institute continuous Improvement and
Learning
3. Track best practices and use benchmarking
4. Overcome Inertia

78. Mckinsey Analysis of Strategists
• The Architect
• The Mobilizer
• The Visionary
• The Surveyor
• The Fund Manager

85. Thank you