THE THREE MUSKETEERS

SECETION:C

MINAL SETHIA 13BSP0411

AKHASH PATEL 13BSP1345

M.V.SAIMAHESH 13BSP1569

AGENDA

Overview of strategic planning process

History of the word strategy

Meaning of strategic

Hierarchy of strategy

Difference between training and strategic training

Questions to ask to develop strategic training and

development initiatives

Training needs in different strategies

OVERVIEW OF STRATEGIC PLANNING PROCESS

HISTORY OF STRATEGY

The word 'strategy', deriving from the Greek noun

strategus, meaning 'commander in chief', was first used in

the English language in 1656. which was used in army.

In a management context, the word 'strategy' has now

replaced the more traditional term - 'long-term planning' -

to denote a specific pattern of decisions and actions

undertaken by the upper echelon of the organization in

order to accomplish performance goals.

MEANING OF STRATEGIC

Wheelen and Hunger (1995) define strategic management.

as 'that set of managerial decisions and actions that

determines the long-run performance of a corporation'.

Hill and Jones (2001) take a similar view when they

define strategy as 'an action a company takes to attain

superior performance'

Hierarchy of strategy:

Another aspect of strategic management in the

multidivisional business organization concerns the level to

which strategic issues apply. Conventional wisdom

identifies different levels of strategy - a hierarchy of

strategy. 

Corporate  

Business

Functional.

Corporate level strategy Corporate-level strategy describes a corporation's overall

direction in terms of its general philosophy towards the

growth and the management of its various business units.

Such strategies determine the types of business a

corporation wants to be involved in and what business

units should be acquired, modified or sold. This strategy

addresses the question, 'What business are we in'?'

Business level strategy

Business-level strategy deals with decisions and actions

pertaining to each business unit, the main objective of a

business-level strategy being to make the unit more

competitive in its marketplace.

This level of strategy addresses the question, 'How do we

compete'?' Although business-level strategy is guided by

'upstream', corporate-level strategy, business unit management

must craft a strategy that is appropriate for its own operating

situation.

Functional-level strategy Functional-level strategy pertains to the major functional

operations within the business unit, including research and

development, marketing, manufacturing, finance and HR.

This strategy level is typically primarily concerned with

maximizing resource productivity and addresses the question,

'How do we support the business-level competitive

strategy?' Consistent with this, at the functional level, HRM

policies and practices support the business strategy goals.

TRAINING

Training represents a significant expenditure for most

employers. But it is too often viewed tactically rather than

strategically, which means that training is seen as a short

term activity rather than one that has longer-term effects

on organizational success

STRATEGIC TRAINING

Training is used strategically to help the organization

accomplish its goals.

Strategic training can have numerous organizational

benefits. It requires HR and training professionals to get

intimately involved with the business and to partner with

operating managers to help solve their problems, thus

making significant contributions to organizational results.

Questions to ask to develop strategic training and development initiatives

1. What is the vision and mission of the organization?

Identify the strategic drivers of the business strategy.

2. What capabilities does the organization need as result of

the business strategy and business environment challenges?

3. What types of training and development will best attract,

retain and develop the talent needed for success?

4. Which competencies are critical for organization success

and the business strategy?

5. Does the organization have a plan for making the link

between training and development and the business

strategy understood by executives, managers and

employees or customers?

6. Will the senior management team publicly support and

champion training and development?

7. Does the organization provide opportunities for training

and developing not only individuals but also teams?

TRAINING NEEDS IN DIFFERENT STRATEGIES

There are four business strategies

1) concentration

2) internal growth

3) external growth and

4) disinvestment

Concentration strategy A concentration strategy focuses on increasing market share,

reducing costs or creating and maintaining a market niche for

products and services.

EXAMPLE:

Tiger Airways in Australia has a concentration strategy. It

focuses on providing short-haul, low-fare, high-frequency air

transport. It has a limited aircraft fleet and serves a restricted

range of food and drinks.

Internal growth strategy An internal growth strategy focuses on new market and

product development, innovation and joint ventures.

For example,

the merger between two publishing organizations, McGraw-

Hill and Richard D Irwin, created one organization with

strengths in the US and the international university textbook

markets. Medical technology company Massimo, in its global

operations (which include Australia), also follows an internal

growth strategy

External growth strategy An external growth strategy emphasizes acquiring

vendors and suppliers, or buying businesses that allow the

organization to expand into new markets.

Example of organizations using this strategy include the

Smorgon Steel Group and BHP Billiton.

Disinvestment strategy A disinvestment strategy emphasizes liquidation and

divestiture of businesses.

For example, Ansell Healthcare was born out of the failure

of Pacific Dunlop, which was once an Australian icon but

gradually declined until its business units were worth

more than the conglomerate as a whole.