MBA Unit 1 Strategic Management & Corporate Governance

1. MODULE 1:
STRATEGY
AND PROCESS
Prepared & presented by:
Ms. Himani

2. Layout
◦ Historical perspective of Strategic management
◦ Conceptual framework for strategic Management
◦ Concept of Strategy and Strategy Formation Process
◦ Stakeholders in business –Vision, Mission and Purpose
◦ Business definition
◦ Objectives and Goals
◦ The SM model
2
Presented by: Ms. Himani

3. What is strategy?
◦ The term first gained currency at the end of the 18th
century, and generally sought to deceive an enemy,
◦ with plans the general made for a campaign, and
◦ with the way the general moved and disposed his forces in
war.
◦ Strategy is a set of key decisions made to meet
objectives.
◦ A strategy of a business organization is a
comprehensive master plan stating how the organization
will achieve its mission and objectives.
3Presented by: Ms. Himani

4. 4
Presented by: Ms. Himani

5. What is strategic management?
◦ Strategic management is the continuous
planning, monitoring, analysis and assessment
of all that is necessary for an organization to
meet its goals & objectives.
5
Presented by: Ms. Himani

6. Video
◦ ......OthersCollegemotivational videosVID-20121113-WA0009.mp4
6Presented by: Ms. Himani

7. 7
Presented by: Ms. Himani

8. 8
Presented by: Ms. Himani

9. 9
Presented by: Ms. Himani

10. 10
Presented by: Ms. Himani

11. 11
Presented by: Ms. Himani

12. 12
Presented by: Ms. Himani

13. 13
Presented by: Ms. Himani

14. 14
Presented by: Ms. Himani

15. Definitions:
◦ Mission: Communicates a sense of intended direction
to the entire organization.
◦ Vision: A description of what an organization would
like to achieve or accomplish in the mid-term or long-
term future. It is intended to serves as a clear guide
for choosing current and future courses of action.
◦ A mission is different from a vision in that the former
is the cause and the latter is the effect; a mission is
something to be accomplished whereas a vision is
something to be pursued for that accomplishment.
◦ Objectives: A specific result that a person or system
aims to achieve within a time frame & with available
resources.
Presented by: Ms. Himani
15

16. 16
Presented by: Ms. Himani

17. ◦ Why do some firms succeed while
others fail?
◦ A central objective of strategic
management is to learn why this
happens.
◦ What is strategy?
◦ An action a company takes to attain
superior performance. In this
context it means allocations of
resources. Strategic Management
studies the ways to make superior
performance.
◦ What is the strategic management
process?
◦ The process by which managers
choose a set of strategies for the
enterprise to pursue its vision. 17
Presented by: Ms. Himani

18. Strategic Management
◦ What's the use of running if you are not on
the right road- German proverb.
◦ If you do not know where you come from,
you do not know where you stand, if you do
not know where you stand, you do not know
where you go- Chinese Proverb.
◦ To run in a right road to reach your
destination is strategy.
18Presented by: Ms. Himani

19. 19Presented by: Ms. Himani

20. Environmental Scanning
◦ Monitoring, evaluating and disseminating
information from the environment to key
people within the corporation.
◦ Scan via SWOT analysis:
◦ Look for opportunities/threats in the external
environment
◦ Look for strengths/weaknesses in the internal
environment
20Presented by: Ms. Himani

21. Strategy Formulation
◦ The process of developing long-range plans to deal effectively with
environmental opportunities and threats in light of corporate
strengths and weaknesses. Composed of: Mission Objectives
Strategies Policies.
◦ Mission: The purpose or reason for the corporation’s existence. It
tells who the company is, what they do as well as what they’d like
to become.
◦ Objectives: The end results of planned activity. They state WHAT is
to be accomplished by WHEN. They should be quantified, if
possible. Should be specific, measurable and obtainable.
◦ Strategies: A strategy is a comprehensive master plan stating
HOW the corporation will achieve its mission and objectives.
◦ Policies: Broad guidelines for making decisions.
21
Presented by: Ms. Himani

22. Strategy Implementation
◦ The process of putting strategies and policies into
action through the development of:
◦ Programs - statements of activities or steps needed to
accomplish a single-use plan.
◦ Budgets - statements of a corporation’s programs in
monetary terms.
◦ Procedures - systems of sequential steps or techniques
that describe in detail how to perform particular tasks or
jobs.
22
Presented by: Ms. Himani

23. Evaluation and Control
◦ The process of monitoring corporate activities and
performance results so that actual performance can
be compared with desired performance.
23
Presented by: Ms. Himani

24. 24Presented by: Ms. Himani