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Strategic Management
Introduction
Module I

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Strategic Management
The set of managerial decisions and
actions that determines the long run
performance of a corporation.

Basic Model of StrategicName of Institution

Management
Four Basic Elements

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Evolution of Strategic
Management

Development of Strategic Management

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In 1950s & 1960s: Alfred Chandler recognized the importance of coordinating

various aspects of management. Thus gave the concept of structure follows
strategy.
In 1957, Philip Selznick matched Internal / External factors thus came the concept
of SWOT analysis given by Andrews at Harvard Business School.
Igor Ansoff, built Product/mission matrix.
In 1970s: Portfolio theory started at GE
BCG analysis- early 1970
Later GE 9 cell
In 1980s:
Michael Porter- 5 Force Analysis, Generic Strategies, Value Chain Analysis
Realized vast knowledge pool in military and then took guidance from Art of War
(Military Strategy Books) learned the tactical sides of military perspectives.
In 1990s:
Mintzberg s Deliberate, Emergent & Realized Strategies
Charles Handy identify two strategic change: Strategic Drift & Transformational change

Strategy

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intended strategy-- plan for action

emergent strategy-- process
realized strategy--- outcome
- source- Henry Mintzberg, 1987

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Different Kinds of Strategy

Deliberate
Intended Strategy

Unrealized
Strategy

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Different Kinds of Strategy

Deliberate
Intended Strategy

Unrealized
Strategy

Emergent
Strategy

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Different Kinds of Strategy

Deliberate
Realized
Strategy

Intended Strategy

Unrealized
Strategy

Emergent
Strategy

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Levels of Strategy

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LEVELS OF STRATEGY

Corporate level
Determine overall scope of the organisation
Add value to the different business units

Meet expectations of stakeholders

Business level (SBU)
How to compete successfully in particular markets
Operational/ Functional Level
How different parts of organisation deliver strategy

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Definition of strategic business units

The SBUs are the natural grouping of part of a corporation.

The SBU has a range of related products/services which

has similar technologies and production processes.

The products/services are sold in similar or related market

segments.

The production/services are sold against a well-defined

set of competitors.

An SBU is managed by an SBU manager, largely as an

independent unit.

The SBU has its own set of goals and strategies.

Each SBU in a particular organization should be able to

operate independently of any other SBU.

Three levels of the strategyName of Institution

1. level: The corporate level
At this level the fundamental task is to develop a
balanced portfolio of businesses which will achieve the
goals of the corporation and satisfy its stakeholders.
2. level: The strategic business unit level (SBU)
At this level the business, or set of activities is given
and the major task for strategic planner at this level is
for business to succeed against competitors and also
satisfy corporate success criteria.
3. level: The functional level:
At this level the major task is to provide an appropriate
functional strategies ( finance and accounting,
marketing, R+D, production, personnel) for SBU or
corporate level strategy.

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THANK YOU !

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