The document discusses strategic management in Indian companies over three periods: pre-liberalization (till 1980s), liberalization (1990s), and post-liberalization (2000 onward). In the pre-liberalization period, strategic management was on the fringes of government and focused on national planning. During liberalization, companies experimented with international consultants and strategic focus. In the post-liberalization era, the agenda is to develop a global mindset, professionalize strategic management, expand through existing businesses, and improve technology capabilities.

1. An agenda for strategic
management in Indian
companies

2. The key patterns in strategic management as
practiced by the Indian companies in the three
periods are as below:-
• Pre-liberalization stage (till the 1980s)
• Liberalization stage (the 1990s)
• Post-liberalization stage (2000 & beyond)

3. Pre-liberalization stage (till the 1980s):-
Strategic management on government’s
fringes
• Subsuming enterprise objectives into the
national planning framework
• Capabilities in generating and grabbing
opportunities
• High diversification, non-competitive
scales and weak technology capabilities
• Secretive and ‘one man’ strategic
management process

4. Liberalization stage (the 1990s):
Transitional fringes and reality-check
• Carried ‘operation de-linked strategy’ mindset to
the early 1990s
• ‘Foreign complex’ governed strategy in order
groups in early 1990s
• Strategy of focus through rationalization and
operations improvement by majority of
companies in the late 1990s
• Strategy of growth through acquisitions,
internationalization and product-market
expansion by some companies in the late 1990s
• Experimentation with international consulting
firms in strategic management process

5. Post-liberalization stage (2000 & beyond):
Issues and agenda
• Acquire a ‘global maverick’ mindset and
actively shed pre-liberalization thinking
• Synergise entrepreneurial flair with
professional skills in strategic management
• Complete portfolio rationalization, but also
expand boundaries through existing
businesses
• Mobilise increased resources and ensure
adequate growth through existing business

6. • De-merge businesses as independent
companies, for focus and improved market
capitalisation
• Actively promote development of
technologies capabilities
• Decentralise organizations and develop
institutionalized control mechanisms

7. Business Policy
• By Christensen and others: ‘the study of the
functions and responsibilities of senior
management, the crucial problem that affect
success in the total enterprise and the decisions
that determine the direction of the organisation
and shape its future. The problem of policy in
business, like those of policy in public affairs,
have to do with the choice of purposes, the
moulding of organisational identity and
character, the continuous definition of what
needs to be done and the mobilisation of
resources for the attainment of goals in the face
of competition or adverse circumstances’.

8. Definition covers many aspects of
business policy:-

9. It deals with the determination
of the future course of action.

10. It is considered as the study of
functions and responsibilities
of the senior management.

11. It involves a choice of purpose
and defining what needs to be
done in order to mould the
character and identity of the
organization.

12. It is also concern with the
mobilization of resources by
the help of which the
organization can achieve its
goals.

13. The concept of strategy
• The term ‘strategy’ is derived from a
Greek word strategos, which means
generalship- the actual direction of military
forces, as distinct from the policy
governing its deployment.
• Literally, therefore the word ‘strategy’
means the art of the general.

14. A strategy could be:-
A plan or course of action or a set of
decision rules making a pattern or
creating a common thread

15. The pattern or common thread
related to the organization's
activities which are derived
from the policies, objectives
and goals;

16. In simplified terms, a strategy is
the means to achieve
objectives.

17. Related to pursuing those
activities which move an
organization from its current
position to a desired future
state

18. Concerned with the resources
necessary for implementing a
plan or following a course of
action

19. Connected to the strategic
positioning of a firm, making
trade-offs between its different
activities and creating a fit
among these activities

20. The planned or actual
coordination of the firm’s
major goals and actions, in
time and space that
continuously co-align the firm
with its environment