This document provides an overview of strategic management. It begins by discussing why some firms succeed while others fail, and defines strategy as the actions a company takes to achieve superior performance through resource allocation. The strategic management process is described as how managers choose strategies to pursue the company's vision. Several frameworks for strategic analysis and assessment are then outlined, including the SWOT analysis, examining internal strengths and weaknesses as well as external opportunities and threats. The document emphasizes that strategic planning is important for performance improvement and communicating priorities. Key aspects of strategic planning like mission, vision, goals and objectives are defined. The document concludes by discussing different levels of corporate strategy including cost leadership, differentiation, and focus strategies as well as various strategic options.

1. STRATEGIC MANAGEMENT
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Prof. Harsimran Kaur
(harsimrankaur318744@gmail.com)

2. • Why do s o m e firms succeed while others fail?
– A central objective of strategic m a n a g e m e n t is to learn
why this happe n s .
• What is strategy?
➢ An action a company takes to attain superior
performance.
➢ In this context it m e a n s allocations of resources.
Resources may b e s a m e but if they are c o m b i n e d i n
different ways s o m e get superior performance; s o m e
get ordinary performance.
➢ Strategic Management studies the ways to m a k e superior
performance.
• What is the strategic m a n a g e m e n t process?
➢ The process by which managers choose a set of
strategies for the enterprise to pursue its vision.
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3. 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.
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4. However beautiful the strategy, you
should occasionally look at the results.
Do not repeat the tactics which have
gained you one victory, but let your
methods be regulated by the infinite
variety of circumstances.
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5. Fundamental questions:
• Where are we now? (Assessment)
• Where do we need to be? (Gap / Future End State)
• How will we close the gap (Strategic Plan)
• How will we monitor our progress
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6. DESIGN
THINKING
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7. DESIGN THINKING
• Design thinking has emerged over the last 60 years as a method for
collecting and analyzing market and customer-level data.
• Design, it seems, is now everywhere—it is no longer only the purview of
just the designers.
• The non-design world has come a long way since the work of Professor
John E. Arnold over 60 years ago to bring the disciplines of mechanical
engineering and business administration more closely together around the
ideas of design thinking.
• Examples now abound of corporate managers and engineers making
design thinking central to their business operations, from conservative
organizations hiring chief design officers to “suits” talking about personas
and point-of-view statements.
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8. • However, hiring design studies graduates, sending employees to
design thinking courses, and setting up cross-functional teams is not
enough for an organization to become “designerly”.
• To make a difference to the kinds of products and services that get
routinely implemented in market, design thinking needs to be
integrated into the organization’s strategy.
• This is the only way that design can move from thinking to action,
from lab formulation to strategic implementation across marketing,
sales, and operations.
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DESIGN THINKING

9. We call the integration of design thinking into
organizational strategy ‘Design-led Strategy’.
• Design thinking needs to be integrated with strategy
because firms struggle with the problem of product-
market fit.
• This problem relates to how organizations construct
products that are relevant to their customers.
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10. Designing Strategy: Using Design Thinking for Business
Strategy
• The lifespan of multinational corporations has never been
shorter.
• Half of today’s top leading firms will be replaced over the
next 10 years in what will be the most turbulent decade
in modern history.
• The caricature of senior executives isolating themselves at a
strategy retreat, building a vanity deck and expecting it to
land when they return feels antiquated.
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11. Designing is more than creating products and services; it
can be applied to systems, procedures, protocols, and
customer experiences.
➢ Design is transforming the way leading companies create
value.
➢ The focus of innovation has shifted from being
engineering-driven to design-driven, from product-
centric to customer-centric, and from marketing-focused
to user-experience-focused.
➢ For an increasing number of CEOs, design thinking is at the
core of effective strategy development and organisational
change.
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12. Distinctions Between Design and Design
Thinking
Steve Jobs famously said, “Most people make the mistake of
thinking design is what it looks like. People think it’s this
veneer – that the designers are handed this box and told,
‘Make it look good!’ That’s not what we think design is. It’s not
just what it looks like and feels like. Design is how it works.”
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13. ➢ Thinking like a designer brings together what is desirable from
a human point of view with what is technologically feasible
and economically viable.
➢ It also allows people who aren’t trained as designers to use
creative tools to address a vast range of challenges.
➢ Design thinking draws on logic, imagination, intuition and
systemic reasoning to explore the possibilities of what could
be and to create desired outcomes that benefit the end user
(the customer).
➢ A design mindset is not problem-focused, it’s solution-
focused and action-oriented. It involves both analysis and
imagination.
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DESIGN THINKING

14. IMPLEMENTING DESIGN THINKING
Design Thinking is a journey of learning and discovery. It’s also a way of being. If you are
strategising, you are designing.
•Start at the beginning. Learn how to be a design thinker/doer from a seasoned
practitioner.Look for ways to add quality/value to your offerings.
•Build your creative confidence by conducting low-risk experiments, such as designing
a meeting with your team. Ask questions which you don’t have answers for.
•Learn how to coach and facilitate for creativity, co-creation and collaboration. This is
crucial for creating a safe space for conceptual risk-taking.
•Stay focused on the users’ experience.
•Help teams unlock provocative insights, reframe existing problems, and generate
ideas in response to your research.
•Encourage multiple perspectives. Reframe constraints into opportunities and check
assumptions.
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15. Strategic Management
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16. Strategic Management
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17. PHASES OF DESIGN THINKING
The five phases of Design Thinking, are as follows:
•Empathise – with your users
•Define – your users’ needs, their problem, and your insights
•Ideate – by challenging assumptions and creating ideas for
innovative solutions
•Prototype – to start creating solutions
•Test – solutions
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18. Strategic Planning
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19. What is Strategic Planning?
• Process to establish priorities on what you will accomplish in the
future
• Forces you to make choices on what you will do and what you will
not do
• Pulls the entire organization together around a single game plan
for execution
• Broad outline on where resources will get allocated
• It is used by community, groups, government departments,
organizations and businesses to develop blueprint for action and
change
• The process should be community based, inclusive and
participatory to allow for maximum stakeholder involvement and
input.
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20. Why do Strategic Planning?
If you fail to plan, then you plan to fail – be
about the future
proactive
• Strategic planning improves performance
• Counters excessive inward and short-term thinking
• Solves major issues at a macro level
• Communicates to everyone what is most important
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21. Benefits of Strategic Planning
• Defines mission, vision & •
values
• Establishes realistic
goals, objectives &
strategies
• Ensures effective use of
resources
Provides base to measure
progress
• Develops consensus on
future direction
• Builds strong teams
• Solves major problems
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22. Major Components of the
Strategic Plan / Down to Action
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators and
Monitors ofsuccess
Desired level ofperformance
and timelines
Planned Actions to
AchieveObjectives
O1 O2
AI1 AI2 AI3
M1 M2 M3
T1 T1 T1
Specific outcomes expressed in
measurable terms (NOT activities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
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23. Mission Statement
Compone
nts
• Captures the essence of why the organization
exists – Who we are, what we do
• Explains the basic needs that you fulfill
• Expresses the core values of the organization
• Should be brief and to the point
• Easy to understand
•If possible, try to convey the unique nature of your
organization and the role it plays that differentiates it
from others
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24. Examples –Good and Bad Mission
Statements
Compone
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To Make People
Happy
To Explore the
Universe and
Search for Life
and to Inspire
the Next
Generation of
Explorers
NASA
Walt Disney
Does a good job of expressing
the core values of the
organization. Also conveys
unique qualities about the
organization.
Too vague and and unclear. Need
more descriptive information
about what makes the
organization special.
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25. Vision
Compone
nts
• How the organization wants to be perceived in the
future – what success looks like
• An expression of the desired end state
• Challenges everyone to reach for something
significant – inspires a compelling future
• Provides a long-term focus for the entire
organization
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26. Strategic Analysis/assessment
– External assessment (Environmental Scan)
• gathering of information that concernsthe organization’s
environments
– Internal assessment
gathering of information that concerns the organization’s
internal operational issues
• analysis and interpretation of thisinformation
• application of this analyzed information in decisionmaking
– Summarize this analysis/assessment with the SWOT model
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27. S W O T
ExternalAssessment:
Marketplace,competitor’s,social
trends, technology, regulatory
environment, economic
cycles .
Internal Assessment: Organizational
assets, resources, people, culture,
system s, partnerships, suppliers, . . .
Good Points
• Easy to Understand
• Apply at any
organizational level
Possible
Pitfalls
• Needs to be
Analytical and
Specific
• Be honest about your
weaknesses
SWOT SWOT
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28. Strengths
• What are some internal positive things about your organization?
• What does the community see as your strengths?
•Strength’s– Those things that you do well, the high value or
performance points
•Strengths can be tangible: Loyal customers, efficient distribution
channels, very high quality products, excellent financial condition
•Strengths can be intangible: Good leadership, strategic insights,
customer intelligence, solid reputation, high skilled workforce
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29. Weaknesses
•Weaknesses – Those things that prevent you from doing what you
really need to do
• Since weaknesses are internal, they are within your control
•Weaknesses include: Bad leadership, unskilled workforce,
insufficient resources, poor product quality, slow distribution and
delivery channels, outdated technologies, lack of planning, . . .
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30. Opportunities
• What are some opportunities in your community or region?
• What are some emerging trends?
•Opportunities – Potential areas for growth and higher
performance
•External in
competitor’s,
policies, . .
nature – marketplace, unhappy customers with
better economic conditions, more open trading
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31. Threats
•Threats – Challenges confronting the organization, external in
nature
•Threats can take a wide range – bad press coverage, shifts in
consumer behavior, substitute products, new regulations, . . .
• May be useful to classify or assign probabilities to threats
•The more accurate you are in identifying threats, the better
position you are for dealing with the “sudden ripples” of change
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32. Strategy formulation is 10%
and implementation is 90%
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33. Strategic Management
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34. Strategic Management
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35. • Cost leadership
– Attaining, then using the lowest totalcost basis as a
competitive advantage; Example of Intel
• Differentiation
– Using product features or services to distinguish
the firm’s offerings from its competitors;Apple
Computers
• Market niche focus
– Concentrating competitively on a specific
market segment
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36. Focus is on improving the effectiveness of
operations within a company.
◦ Manufacturing
◦ Marketing
◦ Materials m a n a ge m e n t
◦ Research and
development
◦ H u m a n resources
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37. Vertical integration
Diversification
Strategic alliances
Acquisitions
New ventures
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38. • Designing organizational structure
• Designing control systems
– Market and output controls
– Bureaucratic controls
– Control through organizational culture
– Rewards and incentives
• Matching strategy, structure, and controls
– Congruence (fit)a m o n g strategy,
structure, and controls
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39. The only constant is change.
Success requires adapting strategy and
structure toa changing world.
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40. Five P’s of Strategy
1. Plan
2. Ploy
3. Pattern
4. Position
5. Prespective
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41. Strategic Management
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DESIGN
THINKING
EXAMPLES
(CASE STUDIES )

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UBER
➢ Uber is another famous design thinking example. With the help of design
thinking and a user-focused approach, it eliminated simple problems that
had been plaguing customers in the past.
➢ It introduced features such as cashless payments, another great design
thinking process example, to make transactions straightforward and
reduce the chances of fraudulent activities.
➢ By providing the power to give ratings for both drivers and users, it
increased the incentive for good behavior. Simple design tweaks, aided by
a substantial user understanding, helped Uber pivot itself to the behemoth
it has become today.

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IBM
➢ When people think of IBM, the first thing that comes into their mind is
technology, business, and computers.
➢ As their former CEO Thomas Watson Jr. declared, “Good design is good
business”, IBM has invested heavily in design thinking.
➢ They started holding empathy map sessions and kept users in mind while
designing processes and products.
➢ Consequently, they have witnessed significant ROIs with this change in
approach. They have also made it openly available.

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DESIGN THINKING
IN
AGRICULTURE

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