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Why Strategy..???
Strategy is a set of key decisions made to meet
objectives. It refers to a complex web of
thoughts , ideas, insights, experiences, goals,
expertise, memories, perception s and
expectations that provide general guidance for
specific actions in pursuit of particular ends.
As per Glueck,
Strategy is unified, comprehensive and integrated plan
relating the strategic advantages of the firm to the
challenges of the environment. It is designed to ensure
that the basic objectives of the enterprise are achieved.
It is a continuous process.
Examples:
Vision: Winning of Battle / War and takeover enemy
Strategy: Winning a battle, in less than a week,
without much loss to human life by December end.
Planning: Planning where to send the troops to win
the war.
Tactics: How soldiers should run in a zig-zag pattern
to decrease the chance of being shot.
Why Strategy??
The ultimate goal of the organizations
is to be successful SUCCESS is:
Survival (long-term success)
Achievement of Goals
Above average returns/Profitability (probably
most important, because it determines the
ability to achieve the above two)
To provide ROI to the investors.
To create a favorable environment for capital
raise
Need of Strategy..!!
Market has become Global
Market has become Dynamic
Ever Changing Technology
Growing Competition in domestic as well as in
global market
Information based Market
Customer dominated markets
Origin of Strategy..!!!
Strategy comes from the Greek word STRATEGOS, which
is formed from stratos, meaning army, and ag, meaning
to lead
Strategy Dfinition
Strategies- Systematically planned course of actions
for achievement of organizational Objectives or
Goals Glueck: An Unified, Comprehensive &
integrated plan,
designed to assure that the basic objectives of the
enterprise are achieved
HOW STRATEGY IS MADE
Emergent strategy
Emergent strategy is the process of identifying
unforeseen outcomes from the execution of
strategy and then learning to incorporate those
unexpected outcomes into future corporate plans.
Intended & Deliberate
Planned strategies start with intentions, mostly
from the chief strategists of the firm. In this
regard intentions define the purpose in
performing strategic actions. Planning, however,
also involves deliberation, which would mean
analyzing the purpose for action and evaluating
systematically different courses of action. In this
sense, intention and deliberation is not the same.
To put it simple: intention is purpose, deliberation
stands for conscious analysis.
Deliberate strategy is a top down approach to strategic
planning that emphasize intention. This is built based on
the vision and mission of the organization and is focused
on achieving the purpose of doing business
Intended strategy
Decisions are determined only by analysis
Realized strategy
Decisions are determined by both analysis and
unforeseen environmental developments,
unanticipated resource constraints, and/or
changes in managerial preferences
The Three Big Strategic Analysis
Questions
1. Where are we now? What is our situation?
2. Where do we want to go?
Business(es) we want to be in and market positions
we want to obtain.
Buyer needs and groups we want to serve
Outcomes we want to achieve
3. How will we get there?
Let us understand some terms
Visions- What Company wants to achieve in future
Mission- The reason for companys existence
Goals- What Company wanted to achieve in general
in constraint to VISION
Objectives- are specific goals to be achieved in future
Vision - big picture idea of what you want to achieve.
Mission - general statement of how you will achieve
your vision
The Strategy Concept
Levels of Analysis
Corporate
Where to Compete? Strategy Grand Strategies
Business
How to Compete? Strategy
Generic Strategies
Functional
How to Contribute? Strategy Functional Strategies
(Mktg. Mix,
Choice of Products Choice Operational, Financial
of Markets Choice of etc.)
Competitors
Bridge decisions at
corporate and functional
levels
Involve action-oriented
Functional- operational issues
level
Are relatively short range
decisions
and low risk
Incur only modest costs
Functional/Operational-Level
Strategy
Functional strategy involves decision-making with respect
to specific functional areas- production, marketing,
personnel, finance etc.
While corporate and business level strategies are
concerned with Doing the right things, functional
strategies stress on Doing things right.
Operating level strategy is concerned with strategic
approaches for managing frontline operating units(like
plants, sales, etc) and for handling day to day tasks of
strategic significance(like advertising campaign,
purchasing materials, inventory control, maintenance,
etc.). Thus, it focuses on how the different functions of
the enterprise contribute to the other levels of strategy.
Thus, functional level strategic management is the
management of relatively narrow areas of activity, which
are of vital, pervasive or continuing importance to the
total organization.
Strategy is how an organization
intends to create value for its
Private Sector Organizations
stakeholders.
The Strategy
Financial Perspective
Customer Perspective
"To achieve our vision,
how must we look to A simple model of
our customers? the value
Internal Perspective "To
creation process
satisfy our customers, at
which processes we
must
excel?
Learning & Growth "To
achieve our vision, how
must our organization
learn and improve
Strategic Management Process
Strategic Evaluation
Business Appraisal entation
Definition, SWOT Analysis Corporate Project &
Objectives & Business Level Strategies Procedural
Strategic Analysis & choice Implemen
tation
Control
Identifying Alternative
Strategies
Reformulate if
Required
Choice of Strategy
Strategy Re-implement if
Implementation Required
Feedback
Dr. Prashant Kalaskar
Strategic Management
Strategic Management is the field that deals with
major intended & emergent initiatives, taken up by
the Top Managers on behalf of company.
It involves utilization of resources to enhance
performance of the firm, in their external competitive
environment.
It involves organizations Vision, Mission & Objectives
& then,
Developing Plans (Strategies) & Policies, so as to
achieve set objectives, then,
Allocation of resources
Dr. Prashant Kalaskar
Strategic Management
Strategic Management provides overall directions to
the organization.
Strategic Management involves not only the Top
Management Team but can also includes Board of
Directors, Stakeholders, depending upon
organizational Structure [size].
Strategic Management is an ongoing process that
evaluates & controls the business.
It allows companies to assess their competitors &
helps to set goals & plan strategies to outwit
existing
& potential competitors.
Dr. Prashant Kalaskar
Strategic Management
Strategic Management also allows reassessing of
implemented strategies on quarterly, half yearly or
annually basis.
This helps to understand, whether implemented
strategies are succeeded according to the plans or
needs the strategies to be modified or replaced.
If needed, new strategies can be implemented so as
to meet the changed circumstances, new
competitors, new PEST factors etc.
Vision To be a globally
respected
corporation that provides best-
of- breed business solutions,
leveraging technology, delivered
by best-in- class people."
VISION
Our Vision is to be the worlds
mobile
communicatio leader enriching
n helping
individuals,
customers businesses communitie
and inlives,
be more connected a mobile s
world.
Mission
Mission is the Statement, typically focused on
its present business scope, Who We Are & What
We Do.
Mission is nothing but the purpose or
reason behind existance of the business
Thus Mission statements broadly describes an
Organizations present capabilities, customer
focused, activities & business makeup
(Undertaken).
and useful.
Diffrence b/w vision and mission
Mission Statement Vision Statement
A Mission statement talks about HOW you A Vision statement outlines WHERE you want to be.
will get to where you want to be. Defines the Communicates both the purpose and values of your
About purpose and primary objectives related to business.
your customer needs and team values.
It answers the question, What do we do? It answers the question, Where do we aim to be?
What makes us different?
Answer
A mission statement talks about the A vision statement talks about your future.
Time present leading to its future.
It lists the broad goals for which the It lists where you see yourself some years from now. It
organization is formed. Its prime function inspires you to give your best. It shapes your
is internal; to define the key measure or understanding of why you are working here.
Function measures of the organization's success
and its prime audience is the leadership,
team and stockholders.
Your mission statement may change, but it As your organization evolves, you might feel tempted to
should still tie back to your core values, change your vision. However, mission or vision
Change customer needs and vision. statements explain your organization's foundation, so
change should be kept to a minimum.
Objectives & Goals
Organizations Translate their Vision & Mission in to
Objectives
Objectives & Goals are Synonymous to each other.
Objectives are Open ended attributes that denotes
future states & outcomes. (Specific)
Goals are Closed ended attributes which are precise
& expressed in specific terms (Generic)
Goals:
-Gaining a Market Share Locally by 20%
-Fresh Food from Farm to Consumers in 24 hrs for 75% Products
-- Sustain a 98% of Customer Satisfaction
-- Expand product range to attract new customers
-- Extend Store space to accommodate new Products & Customers
Strategic Management
Garth Salonee , Andrea Shepard & Joel Podolny
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