Study Scheme 2018

STRATEGIC LEVEL-2

S6 - STRATEGIC MANAGEMENT
INTRODUCTION  Realize the role of change management in the
This course of Strategic Management has been context of strategy implementation;
designed in a lively and user friendly manner and  Learn strategic planning, management
presents a rich and comprehensive examination of accounting and business strategy;
strategic management concepts and tools.  Recommend appropriate control measures
 Comprehend the game theory;
OBJECTIVE  Learn the art of using the value chain in
This text enables the students to identifying and competitive advantage;
resolves the key issues related to strategic  Differentiate between organic and in-house
management. innovation;
 Distinguish between divestment and
LEARNING OUTCOMES rationalization;
Upon completion of this course, students will be able  Apply decision techniques;
to:  Differentiate between re-engineering and
 Understand the nature and scope of Strategic innovation;
Management  Understand the ways of identifying, measuring
 Learn the planned strategies, levels of and assessing the types of risk facing by an
strategy and transaction cost approach; organization, including the organization's
 Understand and differentiate among mission, ability to bear such risks;
goals and strategy;  Evaluate risk management strategies and the
 Realize the role and responsibilities of directors essential features of internal control systems
in the strategy development process; for identifying, assessing and managing risks;
 Evaluate the impact and influence of the  Comprehend credit/counterparty risk, market
external environment on an organization and risk, operational risk, transaction risk, interest
its strategy; rate and other risks;
 Comprehend the concept of organizational
change and recommend techniques to manage
resistance to change;

INDICATIVE GRID
PART SYLLABUS CONTENT AREA WEIGHTAGE
STRATEGIC MANAGEMENT AND COMPETITIVE ENVIRONMENT
1. Nature and Scope of Strategic Management
A 15%
2. Strategy: Introduction, Levels and Concepts
3. General and Competitive environment
INTERACTING WITH THE COMPETITIVE ENVIRONMENT
B 4 . B u s i n e s s s t r a t e g y a nd s t r a t e g y d e v e l op m e n t 15%
5. Stakeholders and corporate objectives
STRATEGY DEVELOPMENT AND STRATEGIC OPTIONS
6. Strategic decision making
7. Resource audit
8. Generic strategies
9. Directions and methods of growth 45%
C
10. Evaluating strategic options
11. Strategic marketing
12. Information systems and strategy
13. Issues in strategic management
CHANGE MANAGEMENT
1 4 . O r g a ni z a t io na l c h a n g e 10%
D
15. Implementing change
IMPLEMENTING STRATEGIC PLANS
E 5%
16. Strategic control
RISK MANAGEMENT
F 10%
17. Risk Management
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

1
 Study Scheme 2018

DETAILED CONTENTS
PART - A  Business ethics
 Corporate social responsibility and
STRATEGIC MANAGEMENT AND COMPETITIVE sustainability
ENVIRONMENT  Not-for-profit organizations
1. Nature and Scope of Strategic Management
PART - C
 What is Strategic Management?
 The Characteristics of Strategic Decisions
STRATEGY DEVELOPMENT AND STRATEGIC
 Strategic management Stages
OPTIONS
 Benefits of Strategic management

2. Strategy: Introduction, Levels and Concepts 6. Strategic decision making

 What is strategy-background  Relating the organization to its environment
 Planned strategies: the rational model  Environmental information and analysis
 Crafting emergent strategies  Gap analysis
 Other approaches to strategy  Forecasting
 Strategy and structure  Scenario planning
 Levels of strategy  Foresight
a) Corporate Level Strategies  Game theory
b) Business Level Strategies  Strategic intelligence
c) Functional Level Strategies
 Concepts in established and emergent 7. Resource audit
thinking in strategic management  The position audit
 The transaction cost approach  Resources and limiting factors
 Mission  Converting resources: the value chain
 Goals, aims and objectives  The supply chain
 Implementation  Outputs: the product portfolio
 New products and innovation
3. General and Competitive environment  Benchmarking
 Relating the organization to its environment
 The political and legal environment 8. Generic strategies
 The economic environment  Factors affecting strategic options
 The social and cultural environment  Generic competitive strategic
 The technological environment  Using the value chain in competitive
 Stakeholder goals and objectives strategy
 The competitive advantage of a nation's  Pricing and competition
industries: Porter's diamond model
 Competitor analysis 9. Directions and methods of growth
 Accounting for competitors  Product-market strategy: direction of
 Sources, availability and quality of a data for growth
environmental analysis  Methods of growth
 Information for planning and control  Organic growth and in-house innovation
 Environmental information and analysis  Mergers and acquisitions
 The competitive environment: The Five  Joint ventures and strategic alliances
Forces by M.E Porter  Divestment and rationalization
 Competitive strategies  Public and non-for-profit sectors
 Corporate appraisal (SWOT Analysis)
10. Evaluating strategic options
PART – B  Evaluating strategic options
 Strategic management accounting, DCF and
INTERACTING WITH THE COMPETITIVE investment appraisal
ENVIRONMENT  Risk and cost behavior
 Decision techniques
4. Business strategy and strategy development
 Strategic planning 11. Strategic marketing
 Strategic planning: the rational model  Marketing
 Less formal strategic planning  Service Marketing
 Strategy lenses  Marketing: products, customers and
 Environmental complexity and segmentation
organizations  Customer relationship marketing and
 Resource-based strategy loyalty
 Management accounting and business  Reviewing the customer portfolio
strategy  Databases and marketing
 Director's strategic roles and  E-marketing
responsibilities
12. Information systems and strategy
5. Stakeholders and corporate objectives  Strategic information system
 Mission, goals and strategy  Information strategy
 Business goals and objectives  Information sources and management
 The short term and long term  Information for planning and control
 Stakeholder management  Knowledge management
2
 Study Scheme 2018
 Databases and models PART – E
 E-commerce
 Web 2.0 technologies and business strategy IMPLEMENTING STRATEGIC PLANS
 IT department
16. Strategic control
13. Issues in strategic management  Planning and control
 Managing projects  Inflation and NPVs
 Lean systems  Using contribution margin as a measure of
 Re-engineering and innovation performance
 Organisation structure  Divisional performance: return on
investment (ROI)
PART – D  Divisional performance: residual income
(RI)
CHANGE MANAGEMENT  Comparing profit centre performance
 Inter-firm comparisons and performance
14. Organizational change ratios
 Introduction to change management  Achieving success for the shareholder
 Triggers for organsational change  International subsidiaries
 Stage models of change
 Other models of managing change PART - F
 Force field analysis
 Managing resistance to change RISK MANAGEMENT

15. Implementing change 17. Risk Management

 Types of change  Introduction to risk
 The context of change  Methods of measuring, assessing and
 Culture and change controlling risks
 Styles of change management  Evaluation of risk management strategies,
 Why change succeeds or fails assessing and managing risks
 Change and the individual  Risk Management Control and Evaluation
 Leading change  Management of Financial Risks
 Group formation and its impact on change  Credit/Counterparty risk, Market risk,
 Business ethics and change management Operational risk, Transaction risk, interest
 Change in practice rate and other risks
 Change management and strategy  Case Study and Risk Management System of
implementation a Limited Company/Corporation

Recommended Books:
CORE READINGS
TITLE AUTHOR PUBLISHER
Prentice Hall / Pearson /
Strategic Management Concepts & Cases Fred R. David
Financial Times
Financial Risk Management (Chapter 3, 6,9,10, 13) Steven Allen Wiley Finance