STRATEGIC MANAGEMENT

1. INTRODUCTION TO STRATEGIC MANAGEMENT
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2. Strategy – What is Strategy?
 The term strategy is derived from the Greek
word ‘strategos’ which means ‘art of general’.
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3. Definition
 According to Johnson and Scholes, “strategy
is the direction and scope of an organization
over the long-term: which achieves
advantage for the organization through its
configuration of resources within a
challenging environment, to meet the needs
of markets and to fulfill stakeholder
expectations”.
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4.  Strategic management is the formulation and
implementation of the major goals and
initiatives taken by a company's top
management on behalf of owners, based on
consideration of resources and an
assessment of the internal and external
environments in which the organization
competes
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5.  “The on-going process of formulating,
implementing and controlling broad plans
guide the organization in achieving the
strategic goods given its internal and external
environment”.
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6. Initially business operated in environments which had little or
no competition. Industry was limited to a few firms. The
geographical distribution of most organization was limited &
changes in technology were slow. The need for SM was felt in
1960’s due to changing world conditions that lead to
diversification & spreading out of activities in other countries.
So the need was:
 Due to change
 To provide guide lines
 Research & Development
 Probability for business performance
 Systemized decision
 Improves Communication
 Allocation of Resources
 Improves co-ordination
 Helps Managers to have Holistic Approach
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7. “Process of formulation, implementation,
evaluation and control of strategies to realize
the organization's strategic intent.” The
strategic management process encompasses
three phases, which together involve a number
of systematic steps.
 1.Strategy formulation
 2.Implementation
 3.Evaluation & control.
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11.  Creating a better future
 Identifying strategic directions
 Make Better business decisions
 Business Longevity
 Increasing market share and profitability
 Avoiding competitive convergence
 Financial benefits
 Non-financial benefits
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12.  Complex process
 Time consuming process
 Tough implementation
 Proper planning
 Costly exercise
 It may fail due to resistance to change
 If SWOT analysis is not right, the strategy
based on it will be wrong.
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13.  Corporate Strategy – is concerned with the
overall purpose and scope of the business to
meet stakeholder expectations. This is a crucial
level since it is heavily influenced by investors in
the business and acts to guide strategic
decision-making throughout the business.
Corporate strategy is often stated explicitly in a
“mission statement”.
 For eg. Coco cola, Inc., has followed the growth
strategy by acquisition. It has acquired local
bottling units to emerge as the market leader
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14.  Business Unit Strategy – is concerned with how a
business competes successfully in a particular
market. It concern strategic decisions about
 Choice of products,
 Meeting needs of customers,
 Gaining advantage over competitors,
 Exploiting or creating new opportunities.
For eg. Apple Computers uses a differentiation
competitive strategy that emphasizes innovative
product with creative design.
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15.  Operational Strategy – is concerned with how each part of the
business is organized to deliver the corporate and business unit
level strategic direction. Operational strategy therefore focuses
on issues of
 resources,
 processes,
 people etc.
 Functional Strategy – it is the approach taken by a functional area
to achieve corporate and business unit objectives and strategies
by maximizing resource productivity. It is concerned with
developing and nurturing a distinctive competence to provide
the firm with a competitive advantage.
 For eg. P & G spends huge amounts on advertising to create
customer demand.
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17. Social responsibility contends that management is
responsible to the organization itself and to all the
interest
interest
groups with which it interacts. Other
groups such as workers, customers,
society in
creditors, suppliers, government and
general placed essentially equal with shareholders
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19. The responsibility of business towards the society
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20. 2.Workers
3.Customers
4.creditors,suppliers STAKEHOLDERS
5.Government
6.Society/Environment
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22. 1. Return on their investment
2. Providing relevant information
3. Increasing their assets
4. Request suggestions
5. Improving public image of company
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23. 1. Fair wages and salaries.
2. Good & safe working condition.
3. Opportunities for education training & promotion.
4. Workers participation in decision making
5. Reasonable and proper chance for promotion
6. Proper recognition, appreciation and encouragement of
skills.
7. The installation of efficient grievance handling system.
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24. 1. True and fair information through advertisement.
2. Regular supply of good.
3. Charge reasonable price.
4. Avoid black marketing
5. To understand needs and wants of the customers.
6. To provide required after sale services.
7. To ensure product has no adverse effects on
consumers
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25. 1. Maintaining a healthy and cooperative in-ter
business relationship between different
business.
2. Mgt. Should provide accurate and relevant
information to. creditors and suppliers.
3. Payment of price of materials, interest on
borrowings, other charges should be prompt
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26. 1. To abide the laws of the land.
2. To pay taxes honestly.
3. To avoid corrupting.
4. To encourage fair trade.
5. To avoid monopoly.
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27. 1. to help the weaker and backward sections of the
society
2. to preserve and promote social and cultural values
3. to generate employment
4. to protect the environment to conserve natural
resources and wildlife
5. to promote sports and culture
6. to provide assistance in the field of developmental
research on education, medical science, technology .
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29. CANON
Environmental Project
Canon India has supported an eco-drive – Project
"Vriksha“ .Canon India has also adopted green belts
near its corporate office where thousands of plants
and trees have been planted by the employee
volunteers.
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31.  The term Ethics is derived from
the word ‘Ethos’ which means
‘Character’.
 Ethics is a social science which
deals with concepts such as right
and wrong, moral and immoral,
good and bad etc.
 Behaviour of dealing with one
another.
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32.  Meaning
✓Business Ethics deals with morality in the
business.
✓It is a system of moral principles and values applied
to business activities.
✓This means the business activities should be
conducted according to ethics or moral standards.
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33.  Code of conduct
 Provide protection to social
group
 Provide basic framework
 Need willing acceptance
 Education and guidance
 Not against fair profit making
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34.  Avoid exploitation of consumers
 Avoid unfair trade practices
 Fair treatment to employees
 Regular payment of taxes
 Avoid injustice and discrimination
 Respect consumer rights
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35.  Improving consumer confidence
 Protect consumer rights
 Create good image of business
 Smooth functioning
 Healthy competition
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36.  Having moral values
 Fair prices
 Fair wages
 No values no morals
 Short weights and
measures
 Supply inferior quality
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37.  Advantage to business
 Advantage to consumer and society
 Advantage to employees
 Advantage to government
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