Basic Concepts of Strategic

Management

Prof. V.S. Bhakre

Hon. Prof. Industry-Institute
Interaction

Basic Concepts of Strategic Management

Strategic Organisational Planning

Situation
Assessment

Organizational
Mission

Organizational
Objectives

Situation
Assessment

The Situation Assessment

Organizational
Mission

Organizational
Mission

Analyze the organizations

resources and capabilities
to identify strengths,
weaknesses, and distinctive
competencies

Organizational
Objectives

Monitor the environment to

identify threats
And opportunities face the organization.

Approaches to Strategic Planning

Environment Scanning

What R the key

facilitators
R.O.I?

Where R we? How did we

reach here?

Who R our
competitors? & their
Strategic

Analysis of Firms Strengths

& Weaknesses SWOT

Or

Objective Setting

Sales Turnover?
Development & Evaluate
Strategy options

Strategic Decision making

Implementation

Hindrances in our
Situation
Market Share?

SWOT ANALYSIS- TO ASSESS SITUATION

SWOT- Can be used to develop alternate strategies.
SWOT illustrates how external opportunities & threats- can be matched with
internal strengths & opportunities
Used for corporate & Business Strategies

Strengths

Opportunities

(Internal)

(External)

Weaknesses

Threats

(Internal)

(External)

Opportunities: External available in the Companys current & future environment

Threats: Now & Future
Strengths: Specific areas of current & future
Weaknesses; Areas of Current & future

Factors to be considered (Internal) (vary from case to case)

WEAKNESSES

STRENGTHS
- Quality

Financial position

- Top Management

Distribution channel

- Employee Relation

Manufacturing facility

- Product Mix

R&D
Evaluate on A Scale 1-5
5- Excellent

1-Poor

EXTERNAL FACTOR ANALYSIS

Opportunities & Threats (Evaluate on Scale 57)
Government Policy
Competition
Demographic
Culture & Social Acceptance
Technological Development by country & world at large
Ecology
SWOT Matrix- on of many ways to generate alternative strategies.

A Few Vision Statements

1. We do it for You McDonald
2. We Make it Simple Honda
3. 3M hears you 3M
4. IBM Means Service IBM
5. U comes before I U.B.I
6. To fly is to Serve British Airways
7. R.I.L An Institution that contributes to India on Sustainable basis.
8. GE Imagination
9. ADAG Think Bigger, Think Better
10. A global giant in Power Solutions Crompton Greaves
11. Quality Education through innovative Methodologies VPM