SM

STRATEGIC MANAGEMENT :

Concepts Principles Characteristics STRATEGIC MANAGEMENT

WHAT IS STRATEGY ? :

WHAT IS STRATEGY ? “ It is the determination of long term goals and objectives of the organization and the adoption of the course of action with appropriate allocation of resources for achieving targets”. TYPES OF STRATEGIES 1. Intended Strategies ----- Generic Strategies. 2. Emergent Strategies----- Value- Chain Focus. 3. Competitive Strategies--- Competitive- Advantage Position. Guiding Principles Based on facts & Reality Accept “Change” as Essential element for sustenance Strategic Thinking Acceptability, Feasibility & Flexibility (Point of Action Orientation )

CHARACTERISTICS OF STRATEGIC MANGEMENT :

CHARACTERISTICS OF STRATEGIC MANGEMENT A well organized and a systematic management approach. WHY ? WHAT? WHEN? HOW MUCH? HOW? DRIVERS OPTIONS PRIORITY OBJECTIVES PROCESS- IMPlmt 2. Strategic Plans (vision, mission, objectives) Organizational plan (BPR) Operational Plan (Budget, Control) Functional Plan (DFMEA, PFMEA) 3 . System ‘ sApproach (Closed Loop) Configure------ Direct----- Process----- Coordinate & Integrate ----- Evaluate & Control--- Obj. Achievement

CHARACTERISTICS OF STRATEGIC MANGEMENT:

CHARACTERISTICS OF STRATEGIC MANGEMENT 4.Futuristic Approach Long Term Sustenance. Proactive Interventions. Continuous Review : SM is ever ‘Dynamic’ on all aspects. ( Environment----- Product----- Process----- People) 6. Time Bound Activities and Objectives: PragmaticApproach , Accuracy of plans, & processes for quality, cost and time.

GUIDELINES FOR SUCCESSFUL BUSINESS STRATEGIES :

GUIDELINES FOR SUCCESSFUL BUSINESS STRATEGIES Consolidation-----Retain Competitive Advantage status Growth------------- Organic and Inorganic growth strategies. Survival------------- Cost, Quality, Technology. Retrenchment-----Withdrawal (Wait and Watch)Down size Liquidation--------- Winding Up( NPAs) Choices of a particular strategy Acceptability (Cultural and strategic fit and alignment) Feasibility -- Resource Availability -- Critical Success Factor Flexibility :Organizational resilience & Strength Reframe Strategic Approach Respond Vs React Tactical Capability

CHARATERISTICS OF LONG TERM STRATEGIES :

CHARATERISTICS OF LONG TERM STRATEGIES Product /process strategies (Manufacturing Strategy) Product and process updating Market development strategies Distribution Channels Market survey Promotional campaigns Global perspective Competitive Advantage Business/ Competitive Intelligence Growth:- Organic growth Expansion SBUs location Diversification Inorganic growth Business Integration Mergers and acquisition Hybridization (techno commercial)

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Sustenance Competitive Advantage Business parameters of performance Profitability Brand Image Competitive intelligence. CHARATERISTICS OF LONG TERM STRATEGIES

WHICH IS THE “BEST STRATEGY”? :

WHICH IS THE “BEST STRATEGY”? Does it have appropriate alignment with organisational culture and business capability Factors (CSFS)? Will it help build a competitive advantage status for the company? Will it help improve overall company performance? Does it ensure sustenance and growth of the organization over a long term perspective? Does it permit accommodation of ‘unknown’ and ‘unpredictable(Discontinuous) changes’ in the business& environmental factors

BUSINESS COMPETANCIES :

BUSINESS COMPETANCIES

MAJOR PHASES IN STRATEGIC MANAGEMENT :

MAJOR PHASES IN STRATEGIC MANAGEMENT

STRATEGY FORMULATION THROUGH STRATEGIC ANALYSIS :

STRATEGY FORMULATION THROUGH STRATEGIC ANALYSIS Business Environment Business Policies/principles (vision, mission, objective) Business Competencies and capabilities Building Blocks Core strengths and weaknesses

BUSINESS ENVIRONMENT :

BUSINESS ENVIRONMENT Macro Environment Economical Local & Global Political Local & Global Technical Local & Global Societal Local & Global Micro Environment Technology and finance product and Process Employees Suppliers Customers Competitors Stake Holders.

BUSINESS POLICIES AND PRINCIPLES :

BUSINESS POLICIES AND PRINCIPLES Vision: Business purpose Dream Status Ultimate Essence of the organization Mission: Directional focus on Vision Area and Scope (Mile Stones) Objectives: Achievements targeted on way to Mission and vision realization

STRATEGIC OPTIONS & CHOICE:

STRATEGIC OPTIONS & CHOICE OPTIONS: Alternative strategies available for the organization Consolidation Strategy (Defensive) Growth Strategy (Offensive) Divestment Strategy (Downsize) Hive off/ Wind up Strategy Choice Situation Analysis Problem Analysis Decision Analysis Best case/ worst case Scenario planning Strategic Planning Posturing for competitive advantage sustenance analysis

STRATEGY DEPLOYMENT/EXECUTION EVAULATION & CONTROL:

STRATEGY DEPLOYMENT/EXECUTION EVAULATION & CONTROL Deployment (STRATEGY DEPLOYMENT) Corporate Level Business Level DEPLOYEMENT MATRIX Functional Level ( X-MATRIX) Execution Corporate Level Business Level Functional Level

ORGANIZATIONAL RESTRUCTURING&RESOURSE ALLOCATION:- :

ORGANIZATIONAL RESTRUCTURING&RESOURSE ALLOCATION:- Resource Allocation Cost of Financial resources- Priorities Budgeting & Control Long Term Infrastructural investments Flexibility Product, Process, People Manage Complexity Integration Cost ------Quality------ Delivery BPR LEAN LEARNING ORGANISATI-ON. Talent management , Distinctive Competence Creation

FUNCTIONAL ISSUES IN STRATEGY EXECUTION:

FUNCTIONAL ISSUES IN STRATEGY EXECUTION Product Customer/market/MFG. Process Cost-Quality-Speed to Market People Recruit-Train-Build-Manage-Retain Involve- Commit-Perform -Result Orientation Tradition vs. Modern(E-Business)--- value-chain concept Hierarchy vs. Flatter Structure, Team Work, Empowerment at point of action Envision-Enable-Enact

FUNCTIONAL ISSUES IN STRATEGY EXECUTION:

FUNCTIONAL ISSUES IN STRATEGY EXECUTION Compensation Competition and Retention Intellectual Property Security Concern

CULTURAL ISSUES IN STRATEGY MANAGEMENT:

CULTURAL ISSUES IN STRATEGY MANAGEMENT Culture- Set of belief and values (personal,societal,national,global) Extremely important aspect of performance umbrella An organizational culture predominates and transcends traditional and modern methods in business management Every strategy has to in the long run ‘align’ with prevailing organization culture Western- European –Latin American-- Gulf- Eastern – Far eastern- down under culture cultural difference between developed and underdeveloped economies Respect and tolerance of ‘alien culture’ Cultural Integration Cultural ‘Fit'