The document discusses strategic planning and management. It defines strategic management as formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It notes that strategic management helps organizations succeed by guiding them to achieve strategic goals in light of internal and external factors. The strategic management process consists of three stages: strategy formulation, implementation, and evaluation.

1. STRATEGIC PLANNING & MANAGEMENT

4. MODEL FOR STRATEGY FORMULATION Scenario’s Visions, Missions,Values External Analysis Internal Analysis Functional Level Strategies Business Level Strategies Structure Match Structure & Controls Controls Manage Strategic Change Strategy Implementation

5. INTERPRETATION 0

13. Strategic Management Process Implement Strategy via Changes in: Leadership culture, Structure, HR, Information & control systems SWOT Formulate Strategy – Corporate, Business, Functional Define new Mission Goals, Grand Strategy Identify Strategic Factors – Strengths, Weaknesses Identify Strategic Factors – Opportunities, Threats Scan Internal Environment – Core Competence, Synergy, Value Creation Evaluate Current Mission, Goals, Strategies Scan External Environment – National, Global 0

27. STRATEGIC MANAGEMENT 0

29. COMPARISON On control On co-ordination Focus on planning & forecasting Day to day working Integration of departments Broad objectives Lower Middle Top mgt One yr 2-3 yrs 3 or more yrs Short range Intermediate Long range OPERATIONAL TACTICAL STRATEGIC

33. Various types of strategies MASTER STRATEGIES PROGRAMME STRATEGIES SUB-STRATEGIES TACTICS

38. Strategy Vs Policy Once formulated can be delegated to lower levels Deals with crucial decisions, requires top mgt involvement. General course of action Putting a policy into effect Guidelines Strategic decisions POLICY STRATEGY

68. Environmental Scanning & Monitoring Environmental scanning is a concept from business management by which businesses gather information from the environment, to better achieve a sustainable competitive advantage . To sustain competitive advantage the company must also respond to the information gathered from environmental scanning by altering its strategies and plans when the need arises.

69. Environmental Scanning & Monitoring- Techniques SWOT Industry Analysis Techniques Competitor Analysis PEST QUEST

71. What is “PEST”?

85. Porter's Generic Value Chain Procurement Technology Development HR Management Firm Infrastructure N A R G I > Service > Marketing & Sales > Outbound Logistics > Operations > Inbound Logistics M Porter's Generic Value Chain

111. Operating Profitability Ratios

125. Vision & Strategy Learning & growth Internal Business process Financial perspective Customer’s Perspective BALANCED SCORECARD FRAMEWORK

126. Translate Strategy to Operational terms The Strategy Financial Perspective “ If we succeed, how will we look to our shareholders A Strategy Is A Set of of Hypotheses About Cause & Effect Customer Perspective “ To achieve my vision, how must we look to our customers? Internal Perspective “ To satisfy my customer, at which processes must I excel?” Organization Learning “ To achieve my vision, how must my organization learn and improve?’’

127. 60% of organizations don’t link strategy & budgets 85% of management teams spend less than one hour per month on strategy issues STRATEGY Strategic Learning Loop BALANCED SCORECARD

128. A good Balanced scorecard describes the Organizational Strategy Strategy Balanced Scorecard

134. Financial perspective Increase EVA to +2% Productivity Strategy Revenue Growth Strategy New Products High end products Cost Productivity Financial Perspective “ If we succeed, how will we look to our shareholders

137. Internal –Business-process perspective Critical internal process in which organization must excel Internal – Process Identify entirely new process at which organization must excel to meet customer & financial objectives Internal Perspective “ To satisfy my customer, at which processes must I excel?” Deliver value proposition Satisfy shareholders expectations

138. Internal –Business-process perspective Achieve Operational excellence Internal Perspective “ To satisfy my customer, at which processes must I excel?” Customer Value Proposition lowest cost producer

141. ROCE Customer Loyalty On-line delivery Process Cycle Time Process Quality Employee Competency Cause and Effect Relationship

143. The Balanced Scorecard Effectively Communicates How Well the MSO Is Achieving Their Mission Massachusetts Special Olympics Mission Statement Positive Image  # of new programs / # athletes Community  Volunteer retention / recruitment Involvement  New donors Athlete Outreach /  Donor feedback Program Expansion  # athletes in outreach program Financial Donor Training & Competition  # athletes not able to find a team Controlled Cost  Cities with no registered athletes Quality Programs  Fee increase Community For  Family feedback Athletes  # of activities outside of competition Customer / Athlete Objectives Measures Organization and Administration  % Plans distributed team Public Relations meetings  # area management team  $ raised Training  # training classes offered outreach  # first time athletes Internal Operations Objectives Measures Objectives Measures Objectives Measures Knowledge of MSO  Volunteers trained in MSO and sports Management  Registration forms in one time  Program guide distribution Database Management  Volunteers in database Recognition  Advanced coaches’ training/ coaches’/ meetings Internal Operations

145. A successful Balanced Scorecard program starts with a recognition that it is not a metrics” project, it’s a “change” process.

150. Describing Strategy : Strategy Is a Step in a Continuum MISSION Why we exist VALUES What we believe In VISION What we want to be STRATEGY Our game plan BALANCED SOCRECARD Implementation & Focus STRATEGIC INITIATIVES What we need to do PERSONAL OBJECTIVES What I need to do STRATEGIC OUTCOMES Satisfied SHAREHOLDERS Delighted CUSTOMERS Satisfied PROCESSES Motivated & Prepared WORKFORCE

151. What Is A Good Balanced Scorecard? #1. Executive Involvement Strategic decision makers must validate the strategy and related measures #2 Cause-and-Effect Relationships Every objective selected should be part of a chain of cause and effect that represents the strategy #3 Performance Drivers A balance of outcome measures and leading measures facilitates anticipatory management #4 Linked to Budget/Financials Every measure selected can ultimately be supported/enabled by Budgetary Funds #5 Change Initiatives Aligned Strategic Initiatives that change the behavior of the organization

175. Portfolio Analysis And BCG Matrix

181. The BCG Matrix Source: Perspectives, No. 66, “The Product Portfolio,” Adapted by permission from The Boston Consulting Group, Inc., 1970. Relative market share Cash cows Dogs High Low Question marks Stars Market growth rate Cash cows Dogs High High Low Question marks Stars High Low Low

182. BCG Matrix $ ? Stars Cash Cows Dogs Problem Child R elative market share M arket growth rate M arket growth rate R elative market share M arket growth rate

183. BCG Matrix Stars Cash Cows Dogs Problem Child R elative market share M arket growth rate M arket growth rate R elative market share M arket growth rate Revenue ++++ Expenses _ _ _ Net + Revenue + Expenses _ _ _ _ Net _ _ _ Revenue + + + + + Expenses _ Net + + + + Revenue + + Expenses _ _ _ _ Net _ _ _

191. Portfolio Strategies Four Portfolio Strategies BUILD Does the SBU have the potential to be a star? HOLD Can you maintain and preserve market share? DIVEST Is it appropriate to dump SBU’s with low-growth potential? . HARVEST Increase the short-term return without impacting long-run prospects.

197. Each factor is assigned a weighting that is appropriate for the industry. The industry attractiveness then is calculated as follows:

202. Resource allocation recommendations can be made to grow, hold, or harvest a strategic business unit based on its position on the matrix as follows:  Grow strong business units in attractive industries, average business units in attractive industries, and strong business units in average industries.  Hold average businesses in average industries, strong businesses in weak industries, and weak business in attractive industries. Strategic Implications

205. GE Mckinsey Matrix HOLD Low AVERAGE High WEAK AVERAGE STR - ONG Bus Str Ind at GROW HOLD HARVEST

209. Stages of Product-market evolution

225. PRODUCT DEPARTMENTATION

227. GEOGRAPHIC DEPARTMENTATION

251. Factors of leadership

262. The Activities of Successful & Effective leaders Type of Activity Description categories Derived from free Observation Interacting with outsiders Traditional Management Networking Human Resource Management Exchange Information Handling paperwork Planning Decision Making Controlling Routine Communication Socializing /Politicking Motivating/Reinforcing Disciplining/Punishing Managing conflict staffing Training/Developing

268. Strategic Evaluation and Control