LOGO

STRATEGIC
MANAGEMENT
UNIT I
Dr. Shikha Pabla
(lu.shikha@gmail.com)

Lingayas University
August, 2014

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STRATEGY
Strategy is a high level plan to achieve one or more goals under
conditions of uncertainty.

Strategy is important because the resources available to achieve
these goals are usually limited.

Steps-:
Setting goals

Determining actions to achieve the goals

Mobilizing resources to execute the actions

Strategy is about shaping the future" and is the human attempt to
get to "desirable ends with available means".
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Mission Vision
HOW you will get to
where you want to be
WHERE you want to
be
A mission statement
talks about the
present leading to its
future
A vision statement
talks about your
future.
Short term Long term
Who creates strategy?
Can we change vision?
Can we change mission?
Strategy is a science or an art?
Expansion Strategy?
Diversification strategy?
All diversification of businesses is expansion of
businesses but all expansions of businesses is not
diversification
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Policy

Policy is art or manner of governing a nation, the line
of conduct which rulers of a nation adopt .


Policies define how the company will deal with
stakeholders, employees, customers, suppliers and
other groups.

Policy gives guidance in decision making.


Strategy is a rule for making decision.
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Strategic management involves 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.


Strategic management provides overall direction to the
enterprise and involves specifying the organization's
objectives, developing policies and plans designed to
achieve these objectives, and then allocating resources to
implement the plans.

Strategic Management
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Ansoffs Matrix
Concentration
Strategy
Concentration
Strategy
Concentration
Strategy
Managements job is not
to see the company as it is . . .
but as it can become.

John W. Teets
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Winning companies
know how to do their
work better
Michael Hammer and J ames Champy
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It is a fundamental skill. They require large amount
commitment.

Strategic decisions are those which affect the long term
performance of the business and which relate directly to its
aims and objectives.

They are usually taken at the highest levels of management
and carry higher levels of risk. However, effective strategic
decisions bring high levels of reward.
Strategic Decision Making
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Corporate
Office
SBU A
(Soaps,
detergents)
SBU B
(F&B)
SBU C
(Industrial &
agriculture)
Finance
Marketing Operations Information
Corporate Level
Strategy
Business Level
Strategy(Products,
market segment,
strategy, resources)
Functional Level
Strategy
Level of Approaches to Strategic Decision Making
MR Sales Distribution
The Strategic Management
Process
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COMPREHENSIVE MODEL OF STRATEGIC
MANAGEMENT
STRATEGIC
INTENT


Vision
Mission
Goals
Objectives

STRATEGY
FORMULATION

Environmental Organizational
Appraisal Appraisal
SWOT Analysis
Corporate strategies
Business level strategies
Functional and Operating
strategies
Strategic Alternatives & Choice

STRATEGY
IMPLEMENTATION

Structural
(designing of
structure)
Behavioral
(corporate culture;
strategic leadership;
ethics & values..)
Functional
Resource allocation,
policies
STRATEGIC
EVALUATION

Set
performance
standards
Measure
performance
Analyze
variance

STRATEGIC CONTROL
(Kazmi)
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The Strategic Management Process
STRATEGY FORMULATION
STRATEGY IMPLEMENTATION
Thompson, Strickland & Gamble (2005)
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