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Strategic Management The Un-Corporational Way
Strategic Management The Un-Corporational Way
Manish Awasthi
Defining Strategies:
Threats:
Emergence of competitors
Opportunities:
New opportunities that are
available or emerge in the
environment.
Importance of strategy:
Formulation of Strategies:
Performing environmental appraisals.
Doing Organizational appraisals
Considering corporate level strategies
Considering business level strategies
Undertaking strategic analysis
Exercising strategic choice
Formulating strategies.
Preparing Strategic Plan.
Contd…
Implementation of strategies:
Activating Strategies
Designing structures & systems
Managing Behavior
Implementation
Managing Functional
Implementation
Operationalizing Strategies.
Contd…
Reformulating Strategies.
Comprehensive Model Of
S.M:
S
Establishing strategic Intent
t
Vision, Mission, Business Definition &
r
Objectives. a
Formulation of Strategies t
Environmental appraisals/Organizational e
Appraisals g
i
SWOT Analysis
c
Corporate Level Strategies
Business Level Strategies
Strategic choice C
Strategic Plan o
n
Strategic Implementation: Project, Procedural,
t
Resource Allocation, Structural, Behavioral, r
Functional & Operational o
Strategic Evaluation. l
Strategic Intent:
Vision
Mission
Business Definition keeping in
mind customer function,
Customer Groups & Alternative
Technologies.
Environmental Appraisals:
Stability strategies:
It is adopted when there is an
attempt at an incremental
improvement of its functional
performance by marginally
changing the one or more of its
business in terms of their
respective customer group,
customer function and alternative
technologies.
Contd…
Expansion strategies:
Retrenchment Strategies:
It is followed when an organization
aims at a contraction of its activities
through substantial reduction or
elimination of the scope of one or
more of its businesses in terms of
their respective customer group,
customer function and alternative
technologies.
Contd…
Combination Strategies:
It is followed when an organization
adopts a mixture of stability,
expansion and retrenchment
either at the same time in different
businesses or at different times in
the same businesses with the aim
of improving its performance.
Stability Strategies:
No Change Strategies.
Profit Strategy.
Expansion Through :
Concentration.
Integration.
Diversification.
Cooperation.
Internationalization.
Retrenchment strategies:
It is followed when an
organization substantially
reduces the scope of its
activities.
They are:
Turnaround Strategies
Divestment Strategies
Liquidation Strategies
Strategic Evaluation &
Control:
Nature of Strategy Evaluation:
To evaluate the effectiveness of strategy
in achieving organizational objectives.
S.E & C can be defined as a process
of determining the effectiveness of a
given strategy in achieving the
organizational objectives and taking
corrective actions whenever
required.
Through the process of S.E & C the
strategists attempt to answer two
sets of following questions:
S.E & C:
1. Are the premises made during strategy
formulation proving to be correct? Is the
strategy guiding the organization towards
its intended objectives? Are the
organization & Managers doing things
which ought to be done? Is there a need
to change and reformulate the strategy.
2. How is the organization performing? Are
the time schedules being adhered to?
Are the resources being utilized
properly? What needs to be done to
ensure that resources are utilized
properly and objectives met?
Importance of Strategic
Evaluation:
It helps in segregation of key
managerial tasks which leads to a
situation where individual managers
are required to perform a small
portion each of the overall tasks
required to implement a strategy.
The importance of S.E lies in its
capacity to coordinate the tasks
performed by individual managers
and also groups, divisions or SBUs
through the control of Performance.
Contd…
Conception Phase.
Definition Phase.
Planning & Organizing Phase.
Implementation Phase.
Clean Up Phase.
Resource Allocation:
It deals with the procurement and
commitment of financial, physical
and human resource to strategic
tasks for the achievement of
organizational objectives.
It is both a one time and continuous
process.
When a new project is implemented
it requires resource allocation.
An ongoing concern would also
require a continual infusion of
resources.
Factors affecting Resource
Allocation:
Objectives of the organization.
Preference of dominant
strategists.
Internal Politics.
External influences.
Difficulties in Resource
Allocation:
Scarcity of Resources.
Restrictions on generating
Resources.
Overstatement of needs.
Structural Implementation:
Social Responsibility.
Leadership Implementation:
Organisational Capability
Competencies
Synergistic Effects
1. Internal Analysis
2. Comparative Analysis
3. Comprehensive Analysis
1.Tangible.
2. Intangible.
Resources:
Possessingthe
Possessing theresources
resourcesbut
butnot
notutilising
utilisingdoes
doesnot
notmake
make
anysense.
any sense.The
Theusage
usagedepends
dependson onorganisational
organisational
behaviour.
behaviour.
Organisational Appraisal
1. Valuable
2. Rare
3. Costly to imitate
4. Non-Substitutable
Strength
Strength&&Weakness
Weaknessof ofan
anorganisation
organisationdepends
dependsuponupon
tackling
tacklingabove
abovefactors.
factors.S&W
S&Wdo donot
notexist
existininisolation
isolationbut
but
combine
combinewithin
withinfunctional
functionalarea
areaand
andalso
alsoacross
acrossdifferent
different
functional
functionalarea
areatotocreate
createsynergistic
synergisticeffect.
effect.
Organisational Appraisal
Synergistic Effects:
Synergy is
Synergy is the
the idea
idea that
that the
the whole
whole is is
greater or
greater or lesser
lesser than
than the
the sum
sum of of its
its parts.
parts.
Organisational Appraisal
Competencies:
Manyorganisations
Many organisationsachieve
achievestrategic
strategicsuccess
success
buildingDistinctive
building DistinctiveCompetence
Competencearound
around Core
Core
StrategicFunctions.
Strategic Functions.
Organisational Appraisal
Organisational Capability:
Financial Capability:
It is availability, usage and management of funds. Following
factors are for consideration:
1. Factors related to source of funds.
2. Factors related to usage of funds.
3. Factors related to management of funds.
Marketing Capability:
It rests on and relate to product, its promotion &
distribution and pricing etc.
1. Product related factors.
2. Price related factors.
3. Place related factors.
4. Promotion related factors.
5. Integrative & System factors.
Method and Technique used for
Organisational Appraisal
1. Internal Analysis
i. Value Chain Analyses.
ii. Quantitative Analysis
a. Financial Analysis
b. Non-Financial Analysis.
iii. Qualitative Analysis.
2. Comparative Analysis
i. Historical Analysis
ii. Industry Norms
iii. Benchmarking
3. Comprehensive Analysis
i. Balance Scorecard
ii. Key factor rating
ORGANISATIONAL STRATEGIC ADVANTAGE