11-10-2019

UPR 2019

Strategy
• Strategy means art of the general
• Word evolved from Greek: Strategos/strategia
Before developing strategy, ask qns like
• WHAT: business r we in; pdts n services will we offer
• WHOM: target segments? Price? On wat terms?
• WHO: r competitors
Defn:
• Is a unified, comprehensive & integrated plan that relates to
strategic advantages of the firm to the challenges of
environment.
• is a plan or course of action
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A strategy could be
• a plan or course of action or a set of decision rules
making a pattern or creating a common thread;
• the pattern or common thread related to the
organisation's activities which are derived from the
policies, objectives and goals;
• related to pursuing those activities which move an
organisation from its current position to a desired
future state.

UPR 2019

A strategy could be

• concerned with the resources necessary for

implementing a plan or following a course of
action; and
• connected to the strategic positioning of a firm,
making trade-offs between its different activities,
and creating a fit among these activities.
• the planned or actual coordination of the firm's
major goals and actions, in time and space that
continuously co-align the firm with its
environment.
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Strategy vs Tactics
Sl No Aspects Strategy Tactics

Scale of
1 Grand Limited
objective

2 Scope of Action Broad & General Narrowly Focussed

Guidance
3 General & ongoing Specific & Situational
Provided
Degree of
4 Adaptable, but not hastily changed Fluid, quick to adjust & adapt
Flexibility
Timing in
5 Relation to Before Action During action
Action
Focus of
6 Resource Deployment Employment
Utilization UPR 2019

Elements of Strategic Decision

•Affect long-term direction of the org.
•Tries to achieve some advantage for the org.
•Concerned with scope of company's activities.
•Matching of activities of an org 2d environment
in which it operates.
•Decision has major financial or other resource
implications.

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Elements of Strategic Decision

•Building on or stretching an orgs resources &
competencies.
•Major impact outside the org
•Entails significant risks to the business.
•Affects operational decisions
•Affected by values & expectations of persons
with power.
UPR 2019

4 Key Requirements to Strategic Thinking

•Definite PURPOSE
•Understanding of firms ENVIRONMENT
•Understanding of firms
ORGANIZATION,STRUCTURE, RESOURCES
REQUIRED
•CREATIVITY in developing effective response to
all above forces.
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Relevance of Strategic Thinking

•An ability to see the whole picture & Systems

Thinking
•Creativity (out of box)
•Scenario Generation & Evaluation (plan a,b,c eg. Indo-
pak war)
•Ability to deal with ambiguity & uncertainty

UPR 2019

Criteria for Effective Strategy

•Clear, decisive objectives
•Maintaining the initiative
•Concentration
•Flexibility
•Co-ordinated & committed leadership
•Surprise
•Security
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Important changes affecting SM

• Shift in Mindset
• Change in national boundaries
• Hyper competition
• Enlarged opportunities
• Pdt design, quality & service
• Heavy risks of globalization
• Impact of technology

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