5 nature of stra mgt ev 10 22 oct 15

NATUREof

STRATEGIC MANAGEMENT

Strategy

A comprehensive plan for accomplishing

an Organization’s goals

Strategic Management

A way of approaching business

opportunities and threats and make best

use of strength and overcome

weaknesses.

Distinctive Competence

Scope

Resource Deployment

Something the organization does

exceptionally well.

An organizational strength possessed by only a small number of competing firms.

Technical expertise, cost,

unique distribution system any thing could be.

The part of a strategy that specifies the range of markets in which an organization will compete.

“TOYOTA” doing business in automobile industry.“Canon” doing business in different industries.

Market Segmentation

“Mercedes” ,“Rolex”, “CASIO” all have different market to serve.

Scope has to be distinct and match the

Distinctive competencies.

Scope should be evaluated and can be

redefined. --- “Fair & Lovely”

Scope should match the capabilities.

Organizations having numerous scopes.

Compete in dozens or even hundreds of

Markets.

“BEXIMCO”, “SQUARE”

The way the organization distributes its’ resources across the areas in which it competes.

Example:

“Walt Disney” allocate some of the profits from movies and theme parks to fund new business in book publishing and music recording.

Corporate level strategy- decide which business to be in, diversification, acquisition etc.

Business level strategy-decide how to serve the market; low cost, product differentiation etc.

Functional level strategy -Seeks to have each department add value to a good or service. TQM, Inventory Management etc.

Strategic Planning Questions

• What is the organization’s position

in the marketplace?

• What does the organization want its

position to be?

• What trends and changes are occurring

in the marketplace?

• What are the best alternatives to help the

organization achieve its goals?

Strategy as an Emergent Process

• Strategy making in an Unpredictable

World

• Strategy making by Lower Level

Managers

• Intended and Emergent Strategies

Strategic Management Process

Intended Strategies

Missions

and Goals

Strategic

Choice

Organizing for

Implementation

Internal

AnalysisExternal

Analysis

INTENDED STRATEGY

Strategic Management

Emergent Strategies

Missions

and Goals

Internal

Analysis

External

Analysis

EMERGENT STRATEGY

Strategic Choice

Does It Fit?

Organizational

Grassroots

Characteristics of

Successful Strategic Managers

1. Well informed.

2. Skill at focusing their time and

energy.

3. Good at building consensus.

4. Good at creating contingency

plans.

5. Accomplished at simplifying the

process.

6. Commitment

7. Willingness to Delegate and Empower

Bye…………….