This document provides an overview of strategic management. It discusses key concepts like business policy, the nature and importance of business policy, limitations of business policy, and the process of formulating business policy. It also describes strategic management in terms of its beginning with a mission statement, preparation of a business portfolio, and periodic re-evaluation. The basic model of strategic management involves environmental scanning, strategy formulation and implementation, evaluation and control, and feedback. Vision, mission, objectives, strategic decision making, global strategic management, the impacts and barriers of globalization are also summarized.

1. STRATEGIC MANAGEMENT
Presented by
Simran Kaur
MBA 2ND Year

2. BUSINESS POLICY
 Statement dealing with acquisition of resources
with which organizational goals can be achieved
 Study of roles and responsibilities of top level
management
 Man made or pre-determined course of action
 Long range planning

3. NATURE OF BUSINESS POLICY
 Futuristic decisions
 Defines goals
 Overall guide
 Focuses on allocation of scarce resources
 Long life
 Taken at top level

4. IMPORTANCE OF BUSINESS POLICY
 Coordination
 Quick decisions
 Effective control
 Minimize costs
 Build a learning culture

5. LIMITATIONS OF BUSINESS POLICY
 Inadequate coverage
 Limited area
 Static
 Consistency in policies
 Provides set rules

6. PROCESS OF FORMULATING
BUSINESS POLICY
1. Definition of policy area
2. Identify policy alternatives
3. Evaluation of alternatives
4. Selection of alternative business policy
5. Implementation of business policy
6. monitor

7. STRATEGIC MANAGEMENT
 Begins with formulation of mission statement
 Then portfolio of business model is prepared
 Ends at conducting functional activities
 Not a one-time process but re-evaluated and
implemented periodically

8. CHARACTERISTICS OF
STRATEGIC MANAGEMENT
 Long term issues
 Competitive advantage
 Impact on operations
 Complex
 Uncertain and future-oriented

9. BASIC MODEL OF STRATEGIC
MANAGEMENT

10. BASIC MODEL OF STRATEGIC
MANAGEMENT(CONTD.)
1. Environmental Scanning (study of internal and
external environment of the organization)
2. Strategy formulation (developing corporate
vision, identifying corporate mission, setting
realistic objectives, formulating strategies and
establishing policy guidelines)
3. Strategy implementation (successful execution of
selected strategy)

11. BASIC MODEL OF STRATEGIC
MANAGEMENT(CONTD.)
4. Evaluation and control (analyzing market
response)
5. Feedback (suitable and prompt feedback)

12. IMPORTANCE OF STRATEGIC
MANAGEMENT
 Fulfilling responsibilities of Board members
 Measuring progress
 Assessing objectives
 Identifies SWOT
 Decision-making framework

13. LIMITATIONS OF STRATEGIC
MANAGEMENT
 Time consuming
 Challenging process
 Absence of short term benefits
 Limited to set of rules
 Poor adaptability

14. VISION
 Declaration of company’s goals for mid-term or
long-term future
 Provide a concentrated view of organization
 Provides employees with common goal and
stimulating them for conducting their routine
operations efficiently

15. FEATURES OF VISION
 Mental exercise
 Select target market
 Realistic
 Attractive
 Dynamic and flexible
 Reflects future plan

16. PROCESS OF DEVELOPING
STRATEGIC VISION
1. Understanding the organization
2. Conduct a vision audit
3. Target the vision
4. Set vision context
5. Develop future scenarios
6. Generate alternative visions
7. Choose the final vision

17. SIGNIFICANCE OF VISION
 Establishing standard of excellence
 Bridging gap between present and future
 Outlining future
 Helping employees in goal setting
 Helps in strategy framing
 Creating effectiveness

18. LIMITATIONS OF VISION
 Incomplete
 Not forward looking
 Too broad
 Not distinctive
 Too reliant on superlatives

19. MISSION
 Describes reason for existence of the organization
 Specifies organizational culture and values
 Specifies what qualities the organization will
uphold and impart to society or community

20. CHARACTERISTICS OF MISSION
 Target consumers
 Target region
 Values
 Technology
 Financial objectives
 Image

21. COMPONENTS OF MISSION
 Customers
 Products or services
 Markets
 Technology
 Concern for survival, growth and profitability
 Philosophy
 Self-concept
 Concern for public image
 Concern for employees

22. DEVELOPING A MISSION
1. Key decision-maker’s policy – philosophy
2. Visionary long-term concept
3. Organizational mission

23. BENEFITS OF MISSION
 Inspiring employees
 Improving performance
 Defines basic goal
 Guiding corporate decision making
 Business plans
 Company direction

24. OBJECTIVES
 Organization’s articulated aims or responses to
address major change or improvement,
competitiveness or social issues, and business
advantages
 Represent a managerial commitment to achieve
specified results in a specified period or time

25. CLASSIFICATION OF
OBJECTIVES
1. Primary objective
2. Secondary objective
3. Short-term objective
4. Medium-term objective
5. Long-term objective
6. Financial objective
7. Non-financial objective

26. SETTING OF OBJECTIVES
1. Classifying objectives
2. Reasonableness and consistency
3. Areas of objectives
4. Realistic and practical
5. Balancing of short-range and long-range
objectives
6. Change of adjustments

27. IMPORTANCE OF OBJECTIVES
 Direction
 Legitimacy
 Coordination
 Form standards
 Motivators

28. STRATEGIC DECISION MAKING
 A decision is the act of choosing among two or
more options
 Process of selecting alternatives among the
existing situation to make decisions that have
long-term implication for organization performance

29. NATURE OF STRATEGIC
DECISION MAKING
 Long-term direction
 Scope of organization’s activities
 Operational decisions
 Complex
 High degree of uncertainty
 Demand an integrated approach

30. MODES OF STRATEGIC DECISION
MAKING
 Entrepreneurial mode
 Adaptive mode
 Planning mode
 Logical incrementalism mode

31. STRATEGIC DECISION MAKING
PROCESS
1. Planning process
2. Programming system
3. Performing modalities
4. Profitability factor
5. Developmental growth

32. ISSUES IN STRATEGIC DECISION
MAKING
 Contextual issues
 Personality/style
 Effect of biases
 Role of values
 Role of consensus
 Nature of strategic decisions

33. GLOBAL STRATEGIC
MANAGEMENT
 Involves analysis of internal capabilities and
external environment of a firm
 Field of study effectively addressed by
interdisciplinary issues of marketing, organization
theory, business strategy and international
management and concentrates on maximizing firm
performance

34. FEATURES OF GLOBAL
STRATEGIC MANAGEMENT
 Planning process
 Ongoing process
 Based on global environment
 Part of overall corporate policy
 Integrated management

35. POSITIVE IMPACT OF
GLOBALIZATION
 Boost in economy
 Increased rate of employment
 Availability of advanced technology
 Balanced development of world economies
 Adaptation of foreign taste and trend

36. NEGATIVE IMPACT OF
GLOBALIZATION
 Reduced job and incomes
 Cut-throat competition
 Inequality
 Inflation
 Loss of culture

37. BARRIERS IN GLOBAL
STRATEGIC MANAGEMENT
 Orientation for globalization
 Emerging e-commerce and internet culture
 Cut-throat competition
 Diversification
 Motive for CSR and ethics

38. THANK YOU!!!