This document discusses strategic management. It defines strategic management as the continuous planning, monitoring, analysis and assessment necessary for an organization to meet its goals. There are three main classifications of decisions: corporate, business, and functional. The document also discusses various strategic management frameworks and tools, including Porter's generic strategies, the BCG matrix, SWOT analysis, and the Wheelen and Hunger strategic management model. Finally, it outlines the benefits of strategic management for organizations.

1. Perspective Management
- Jasiya Syed

4. What is Strategic Management ?
• It is the continuous planning, monitoring, analysis
and assessment of all that is necessary for an
organization to meet its goals and objectives.
• The strategic management process involves
analyzing cross-functional business decisions prior
to implementing them.
• There are 3 steps in Strategic Management:
Planning, Execution And Monitoring.

5. Classes of Decision

6. Classes of Decision

7. There are three Main Classifications -
1. Corporate - a corporation’s overall direction and the
management of its businesses.
2. Business - emphasizes improving the competitive
position of a corporation’s products or services in a specific
industry or market segment.
3. Functional - concerned with developing a
distinctive competence to provide a company or business
unit with a competitive advantage.

8. Levels of Strategies

10. What is Strategy ?
• A method or plan chosen to bring about a desired
future, such as achievement of a goal or solution to
a problem.
• The art and science of planning and
marshalling resources for their most efficient
and effective use. The term is derived from the
Greek word for general ship or leading an army.

11. Types of Strategies
1. Growth strategies - seek an increase in size and the
expansion of current operations.
2. Concentration strategies - growth occurs through
expansion in the same business area.
3. Diversification strategies - growth occurs through
acquisition of or investment in new and/or different
business areas.
4. Intensification Strategy - Intensification is the
development of land at a higher density than currently
exists through redevelopment, reuse of former industrial
and commercial sites

12. 5. Restructuring and divestiture strategies
• Liquidation
• Restructuring
• Divestiture
6. Cooperative strategies - strategic alliances of two or more
organizations partner to pursue an area of mutual interest.
7. E-business strategies
8. Stability strategy - It implies continuing the correct
activities of the firm without any significant change in
direction.
• Pause process with certain strategy
• No change strategy
• Profit strategy

13. Porter’s Model
Generic strategies for gaining competitive
advantage:
• Differentiation strategy
• Cost leadership strategy
• Focused differentiation strategy
• Focused cost leadership strategy

14. Role of a Strategist

15. Strategist & Their Role
1. Entrepreneur
The entrepreneur always searches for change,
responds to it and exploits it.
2.Board of Directors
• Directions to managers + Operational matters of
significance,
• Formal and informal functions,
• Vital link between the company and the
environment.

16. 3. CEO’s
• The Role Modelling Approaches
• Chief architect of organizational purpose,
strategist or planner
• Organizational leader, organizer, or organizational
builder
• Chief administrator, implementer, or coordinator
• opportunity.
Communicator of organizational purpose,
motivator, personal leader or mentor.
4. Strategic Business Units (SBU’s)
• The executive head of each SBU is responsible for
the framing of strategies for that SBU and for the
coordination with the other SBUs in the
organization.

18. What is SWOT Analysis ?
• “SWOT Analysis is a strategic planning tool that
separates influences on a business’s future success
into internal and external factors”
• “SWOT analysis (alternatively SWOT Matrix) is a
structured planning method used to evaluate the
Strengths, Weaknesses, Opportunities, and Threats
involved in a project or in a business”

19. SWOT Analysis Matrix

20. How it Works….
1. STRENGHTS
• What advantages does the company have?
• What makes company standout from its competitors?
• What positive aspects does the company enjoy in the
current environment ?
2. WEAKNESSES
• Which areas are causing concerns?
• Which issues can be avoided?
• Company’s reputation among its customers

21. 3. OPPORTUNITIES
• How can the company be more innovative ?
• Which are the new markets or consumers that can be
trapped ?
• Which area has the company not ventured into ?
• What are the upcoming trends that are catching up in the
market ?
4. THREATS
• Are there any new competitors emerging in the industry ?
• What are the issues that threatens the company’s
position ?
• Is there any significant change(s) in the industry of
operation ?

23. How it helps us….
• It is an important techniques which provide quality
information to the managers to take effective decision
for future development of organization.
• It helps understand organization’s Internal and
External Environment at a competitive position.
• It also provides basic and important areas of
organization with information as to What to develop
and What to Overcome ?

24. BCG Matrix
The Boston Consulting group’s product portfolio matrix
(BCG) is designed to help with long-term strategic planning,
to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest,
to discontinue or develop products.
The Matrix is divided into 4 quadrants derived on market
growth and relative market share.
• Dogs
• Question marks / Problem Child
• Stars
• Cash Cows

25. BCG MATRIX

26. Limitations of BCG
• High market share is not the only success factor
• Market growth is not the only indicator for
attractiveness of market.
• Sometimes Dogs can earn even more cash as Cash
Cows.
• The BCG Model is seen as simplistic and it can be
difficult to classify products in smaller businesses
where the relative market share is too small to
quantify.
• It’s also based on the concept that market share can be
achieved by spending more on the marketing budget.

27. Strategic Management
Model

28. Wheelen & Hunger’s Strategic Model

29. How to work on it……
1. Monitoring, evaluating and disseminating information
from the environment to key people within the
corporation.
2. Scan via SWOT analysis:
• Look for opportunities/threats in the external
environment
• Look for strengths/weaknesses in the internal
environment

30. Strategy Formulation
The process of developing long-range plans to
deal effectively with environmental
opportunities and threats in light of corporate
strengths and weaknesses.
Composed of:
• Vision and Mission
• Objectives
• Strategies
• Policies

31. • Vision :
It is a statement about what an organization ultimately
wants to accomplish. It captures the company’s aspiration.
• Mission :
The purpose or reason for the corporation’s existence. It
tells who the company is, what they do as well as what
they’d like to become.
• Objectives :
The end results of planned activity. They state WHAT is to
be accomplished by WHEN. They should be quantified, if
possible. Should be specific, measurable and obtainable.

32. • Policies –
It is a broad guideline for decision making that
links the formulation of a strategy with its
implementation.
E.g. - 3M’s policy requiring researchers to
spend 15% of their time working on something
other than their primary project.

33. Strategies
It states how the corporation will achieve its mission and
objectives.
Types of adaptive strategies
• Prospector strategy - Appropriate in dynamic, high-potential
environments
• Defender strategy - Appropriate in stable or declining
environments
• Reactor strategy - Following competitors as a last
resort regardless of environment

34. Strategy Implementation
The process of putting strategies and policies into action
through the development of:
• Programs - statements of activities or steps needed to
accomplish a single-use plan.
• Budgets - statements of a corporation’s programs in
money terms.
• Procedures - systems of sequential steps or techniques
that describe in detail how to perform particular tasks
or jobs.

35. • Evaluation & Control –
The process of monitoring corporate
activities and performance results so
that actual performance can be
compared with desired performance.

37. Benefits of Strategic Management
“Strategic management allows and
organization to be more proactive than
reactive in shaping its own future.”
• Non-Financial Benefits
• Financial Benefits

38. Non-Financial Benefits
• Improved understanding of
competitor’s strategies.
• Enhanced awareness of threats.
• Reduced resistance to change.
• Enhanced problem-prevention
capabilities.

39. Financial Benefits
• Improvement in sales.
• Improvement in profitability.
• Improvement in productivity

40. Example
Konkan Rail project
• Estimated Cost – Around 3000 Cr.
• Final Approximate Cost -2980 cr.
• Time required to Complete - 7 years
• Time estimated to Complete – 8 years
Mumbai Sea Link
• Estimated cost - Rs300 cr.
• But the bridge was delayed by five years
• Final approximate Cost - Rs1,634 crore.

41. BW Sea-Link Konkan Railway

42. Thank You For Your
Patience!!!