Professional Documents
Culture Documents
D7360module I
D7360module I
Ramesh Bagla
Strategy
Strategy is a plan of action, which is of vital, pervasive
and continuing importance to an organisation as a
whole.
A strategy is a unified, comprehensive and integrated
plan that relates the strategic advantages of the firm to
the challenges of environment. It is designed to ensure
that the basic objectives of the enterprise are achieved
through proper execution by the organisation.
- Glueck & Jausch
Strategy
Strategy is the direction and scope of an
organisation over the long term which
achieves advantage for the organisation
through its configuration of resources
within a challenging environment, to meet
the needs of markets and to fulfill
stakeholder expectations.
- Johnson & Scholes
Strategy
The term strategy has its origin in the Greek word
Strategos which means the art of war as a noun and
to command an army as a verb.
The battleship concept of strategy refers to:
Future oriented preparation & readiness
A winning mindset motivated to seize every opportunity for
expansion/growth
Deterrence capability that prevents loss to rivals
Developing special expertise in areas where rivals are weak
Looking beyond the specific set of objectives, deadlines,
activities, functions, markets and organizational units, to
develop an overall picture of time and space
Purpose of Strategy
Strategies focus on:
Organisational goals
Core competencies
Developing synergy
Creating value for customers
Competitive advantage
Strategic Management
Strategic management is that set of
managerial decisions and actions that
determines the long run performance of a
corporation. It includes environmental
scanning(both internal & external),strategy
formulation(strategic planning), strategy
implementation and evaluation and control.
Strategic Management
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MAIN
ISSUES
KEY
CONCEPTS
&
TOOLS
MANAGEMENT
IMPLICATIONS
1950s
1960s-early 70s
Mid-70s-mid-80s
2000s
Budgetary
planning &
control
Corporate
planning
Positioning
Competitive
advantage
Strategic
innovation
Financial
control
Planning
growth &diversification
Selecting
sectors/markets.
Positioning for
leadership
Focusing on
sources of
competitive
advantage
Reconciling
size with
flexibility &
agility
Capital
budgeting.
Financial
planning
Forecasting.
Corporate
planning.
Synergy
Industry analysis
Segmentation
Experience curve
Portfolio analysis
Resources &
Cooperative
capabilities.
strategy.
Shareholder
Complexity.
value.
Owning
E-commerce.
standards.
Knowledge Management
Coordination
& control by
Budgeting
systems
Corporate
planning depts.
created. Rise of
corporate
planning
Diversification.
Restructuring.
Global strategies. Reengineering.
Matrix structures Refocusing.
Outsourcing.
Alliances &
networks
Self-organiz
ation & virtual
organization
Business Environment
Business Environment
Corporation
Business-Level Strategy:
How do we compete?
Textiles
Cement
Telecom
Functional-Level Strategy:
How do we support the business-level
strategy?
Finance
R&D
Manufacturing
Marketing
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An example.
Business Level Stgy
Become the low cost
producer
Functional Level Stgy
(Mfg.): Reduce
manufacturing costs
by 10%
Operational (Plant #1):
Increase worker
productivity by 15%
Vision
Broad category of long-term intentions that
the organisation wishes to pursue
It is broad all inclusive and futuristic
A dream how the organisation sees itself
in future
It clearly and crisply illuminates the
direction in which the organisaion is
headed
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Vision
Vision statements specify the intentions
that are:
Broad, all inclusive, forward thinking
Aspirations for future - ends rather than
the means
Mental image of the future state
A dream that is shared across the entire
organisaion
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NASDAQ
To build the worlds first truly global securities
market . . . A worldwide market of markets built on
a worldwide network of networks . . . linking pools
of liquidity and connecting investors from all over
the world . . . assuring the best possible price for
securities at the lowest possible cost.
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ITC
Sustain ITC's position as one of India's most
valuable corporations through world class
performance, creating growing value for the
Indian economy and the Companys
stakeholders
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Mission
Mission statement makes the vision
statement more tangible and
comprehensible
A mission statement clearly specifies:
Why the organisation exists or Purpose
What differentiates the org from others or
the Identity
The basic beliefs, values and philosophy
of the organisation
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Mission
At the top of goal hierarchy
The organizations reason for existence and often
reveals corporate philosophy and purpose
Mission describes organizational values,
aspirations and is the basis for development for
subsequent goals and plans
A formal mission statement is a broadly stated
definition of basic business scope and operations
that distinguishes the organization from similar
others
Mission statement often focuses on customers,
market and businesses
Our Values
Integrity
Commitment
Passion
Seamlessness
Speed
VISION OF ITC
Sustain ITC's position as one of India's
most valuable corporations through world
class performance, creating growing value
for the Indian economy and the
Companys stakeholders
MISSION OF ITC
To enhance the wealth generating
capability of the enterprise in a globalising
environment, delivering superior and
sustainable stakeholder value