Preliminaries in Strategic Management

1. STRATEGIC MANAGEMENT
Dr.Prem Kumar.U
Director(I/C),
GKM Co-Operative College of Management and Technology

2.  Concept of strategy – It a word of military origin,
refers to a plan of action designed to achieve a
particular goal.
 The term strategy is derived from the Greek word
strategos, which means generalship. Literally, the
word ‘strategy’ means the art of the general

3.  It may mean the following,
 A set of goals and objectives and the firm’s policies
and plans for achieving the same correlating with
the defined purpose of the firms.
 A long term planning process.
 A set of decision making rules.
 Concerned with the resources necessary for
implementing a plan or following a course of
action.
 Related to pursing those activities which move an
organisation from its current position to a desired
future state.

4.  Definition of strategy
 According to Chandler, strategy is defined as ‘the
determination of the basic long term goals and
objectives of an enterprise and the adoption of the
courses of action and allocation of resources
necessary for carrying out these goals’.
 According to William D Guth, strategy refers to
that which is the forgoing of a company’s mission,
setting objectives for the organisation in the light
of external and internal forces, formulating
specific policies and strategies to achieve
objectives and ensuring their proper
implementation, so that the basic purposes and
objectives of the organisation will be achieved

5.  Business policy - The origin of the business policy
can be retraced to 1911, when Harvard Business School
commenced a course in Management to improve the
general management capability of students.
 American Assembly of Collegiate Schools of Business,
a regulatory body of business schools in 1969, started
the course of business policy in U.S., as a mandatory
requirement for the purpose of recognition.
 During the last two decades, business policy has
become an integral part of management curriculum.

6.  The term business policy has been traditionally
used, but it came out with new titles and names
when modern era comes, like Strategic
management, Corporate strategy, Policy etc.

7.  STRATEGIC MANAGEMENT
 Strategic decision making is done through the process
of strategic management.
 According to Pearce and Richard Robinson, strategic
management is, ‘a set of decisions and actions
resulting in formulating and implementation of
strategies designed to achieve the objectives of an
organisation’.
 Strategic management is defined as the dynamic
process of formulation, implementation,
evaluation and control of strategies to realise the
organisation’s strategic intent.

8. Levels at which strategy operates

9. THANK YOU