Strategy sets out the route a business intends to take to achieve its goals. It allows an organization to use its resources and capabilities to exploit opportunities and limit threats in the external environment. Strategic management consists of analyzing the internal and external environment, making decisions about what industries to compete in and how to compete, and taking actions to allocate resources and design the organization to implement intended strategies. Key terms in strategic management include vision and mission statements, identifying external opportunities and threats as well as internal strengths and weaknesses, and setting objectives.

1. Amity Business School
Strategic Management

2. WHAT IS
STRATEGY ?
“Everything in strategy is very simple,
but
Nothing in strategy is very easy”

3. What is Strategy?
Where are we going
And
how will we get there?
Strategy sets out the route
a business intends to take
to achieve its goals

4. What is Strategy?
The purpose of strategy is to help organizations
achieve a sustainable competitive advantage.
The difference b/w you and your competitors are
the basis of your advantage.
It allows to use org.’s resources & capabilities to
exploit opportunities and limit threats in external
environment.

5. Strategy Definition
• It is all about choices
• Competitive strategy is about being different
• It means deliberately choosing a different set of activities to deliver a
unique mix of value
• The match b/w org’s internal capabilities and its external relationships

6. Strategy Definition
• It is about the firm using analytical techniques to
help it to understand and influence its position in
the market
• A strategic position represents a company’s
answers to following questions-
-Who should the company target as customers?
-What products/ services should be offered ?
-How can company do this efficiently ?

7. Strategic Management
• Strategic management is the study of why some
firms outperform others.
• How to create a competitive advantage in the
market place that is unique, valuable, and
difficult to copy
• “Total organization” perspective, integrating across
functional areas.
• Strategies put together an understanding of the
external environment with an understanding of
internal strengths and weaknesses.

8. Definition of Strategic
Management
Strategic management consists of the analysis, decisions, and
actions an organization undertakes in order to create and
sustain competitive advantages

9. Definition of Strategic Management
Analysis
Strategic goals (vision, mission, strategic
objectives)
Internal and external environment of the firm
Decisions
What industries should we compete in?
How should we compete in those industries?
Actions
Allocate necessary resources
Design the organization to bring intended
strategies to reality

10. What went wrong?

11. Amity Business School
Classification of Corporate and Business Strategy
with Hierarchy

12. Amity Business School
Strategy at
Corporate/Business/SBU Level

13. Amity Business School
Hierarchy of Strategy

14. Amity Business School
Corporate Objectives

15. Amity Business School

16. Amity Business School
Key Terms in Strategic
Management
• Vision statement
– answers the question “What do we want to
become?”
– often considered the first step in strategic
planning

17. Amity Business School
Key Terms in Strategic
Management
• Mission statements
– enduring statements of purpose that
distinguish one business from other similar
firms
– identifies the scope of a firm’s operations in
product and market terms
– addresses the basic question that faces all
strategists: “What is our business?”

18. Amity Business School
Key Terms in Strategic
Management
• External opportunities and external
threats
– refer to economic, social, cultural,
demographic, environmental, political, legal,
governmental, technological, and competitive
trends and events that could significantly
benefit or harm an organization in the future

19. Amity Business School
Key Terms in Strategic
Management
• Internal strengths and internal
weaknesses
– an organization’s controllable activities that
are performed especially well or poorly
– determined relative to competitors

20. Amity Business School
Key Terms in Strategic
Management
• Objectives
– specific results that an organization seeks to
achieve in pursuing its basic mission
– long-term means more than one year
– should be challenging, measurable,
consistent, reasonable, and clear