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4583424
4583424
4583424
Strategic management,nature,scope.
Process of strategic management.
Business policy , its characteristics,importance and
types.
Norms of strategy making
Corporate objectives, its characteristics,role and
types.
Strategy making
Strategic advantage, factors of common concern.
Internal analysis.
Derived from greek word strategos (means
generalship)
Plan or action designed to achieve a long
term objective or overall aim.
It bridge the gap from “ where we are” to
“where we want to”
A method or plan chosen to bring
about a desired future, such as
achievement of a goal or solution
to a problem.
(businessdictionary.com)
Corporate
Headquarters
Corporate - General Electric
Division A Division B Division C
HR HR HR
4
Strategic making is the multistage process of
decision making identifying broad areas of
path to be taken first and applying additional
criteria to decide the final strategy.
Insights coming from external and internal
analysis helps in decision making in addition
to the mission and vision
A strategy should leverage existing assets and
capabilities
Difficult for competitors to imitate
Based more on intangible assets of firm
Strategy should be the one that generate or use safe
substitutes of natural resource
Must be aligned with mission, vision, and strategic
objectives
Should ensure that risk are manageable and should not
threaten the survival of the firm
Must engage society or customer segments in positive
way
A strategy should result in enough cash surplus to
cushion unexpected shocks and give desired ROI
In 1911 ,harvard business school introduced
an integrative course in management aim at
creation of general management capability.
The course was based on case studies.
In 1969,american assembly of collegiate
school of business ,a regulatory body for
business schools made business policy a
manadatory course.
Later on different terms were used for the
course including strategic
management,corporate strategy etc.
Strategic Management: a set of managerial decisions
and actions that determines the long-run performance
of a corporation.
Includes:
Internal and external environment scanning
Strategy formulation
Strategy implementation
Evaluation and control
9
Benefits of Strategic Management:
Clearer sense of strategic vision for the firm
Sharper focus on what is strategically important
Improved understanding of a rapidly changing
environment.
Improved organizational performance
Achieves a match between the organization’s
environment and its strategy, structure and
processes
Important in unstable environments
1-
Prentice Hall, 2012 4/12/2019 10
•Vision, mission, business defination, adopting business model, setting
objective
Establishing
strategic intent
•Project, procedural,functional,behavioural
Strategy
implementation
plans
programs
projects
budgets
Operations HRM
service
Valuable : Organizational capabilities that help it to generate
revenues by utilising opportunities and neutralising threats.
Financial
Internal business perspective
Customer perspective
Innovation /learning