COURSE DESCRIPTION

• The objective of this course is to train students to formulate strategies and

implement them to achieve organisational goals.
• The course covers formulation of vision, mission and objectives, environment
appraisal, strategy formulation, implementation, evaluation and control.
• By the end of this course, students will be able to understand the key
concepts of strategy and its role in providing overall direction to the
organisation.
• This course is designed to serve as a stepping stone for you to build a career in
Management.
• The Fundamentals of Strategy Course contains Five Modules.
Introduction to Strategic Management

Strategic Management is the formulation and implementation of the

major goals and initiatives taken by a company’s top management on

behalf of owners, based on consideration of resources and an

assessment of the internal and external environments in which the

organization competes.
Definition of Strategic Management
Strategic management can be defined as the art and science of
formulating, implementing and evaluating cross-functional decisions that
enable an organization to achieve its objectives.

Strategic management is a continuous process of strategic analysis,

strategy creation, implementation and monitoring, used by organizations
with the purpose to achieve and maintain a competitive advantage.
Definition of Strategy Management

• It is defined as the set of decisions and actions in formulation and

implementation of designed strategy to achieve the goal of the organization –
Pearce & Robbinson.

• Strategic management involves setting objectives, analyzing the competitive

environment, analyzing the internal organization, evaluating strategies, and
ensuring that management rolls out the strategies across the organization.
Strategic Management

• Strategic management is not about predicting the future, but about preparing for it

and knowing what exact steps the company will have to take to implement its

strategic plan and achieve a competitive advantage.

• In essence, it answers the following 3 questions:

• Where the organization is at the moment?
• Where does it want to go?
• How it will get there?
Characteristics or Features of Strategic
Management
• Long-term direction

• Recognizes changes

• Oriented towards the future

• External emphasis (importance – where they wants to stress)

• Concerned with scope of the organization

• Major impact on the organization

Characteristics or Features of Strategic
Management
• Stretching resources & competencies

• Influenced by stakeholders

• Affected operational decision

• Competitive advantage

• International intuition and analysis (not properly understand external environment)

• Matching resources with the environment

Dimension of Strategic Management

• Strategic issues require top-management decisions

• Strategic issues require large amounts of the firms resources

• Strategic issues are future oriented

• Strategic issues likely to have long term impact

• Strategic are defined based on study of environment

Needs/ Importance/ Benefits of Strategic
Management
• Strategic directions are futuristic

• Allocation of resources and improve co-ordination

• Strategic issues usually multi-functional and multi-business effects

• Framework for operational planning

• Clarify in direction of activities

• Increase organizational effectiveness

• Personal satisfaction
Drawbacks/ Pitfalls/ Disadvantage of SM
• Lack of accuracy

• Danger to rigidity

• Internal resistance

• Difficult exercise

• Costly exercise

• Ineffective to overcome

• Complex and dynamic environment

• Inadequate appreciation strategic management

• Limitations in implementation
Challenges to Strategic Management

• Innovation & development of product or service

• Issues concerning

• Social issues

• Technological advancement & innovation

• Global issues
Strategic Vision

Strategic planning links the present to the future, and shows how intend

to move toward the vision.

One process of strategic planning is to first develop goals to helps to

achieve vision, then develop actions that will enable the organization to

reach these goal.

Features/ Characteristics of Strategic
Vision
• Directional
• Focused
• Flexible
• Feasible, reachable, achievable
• Desirable
• Easy
• Understandable
• Motivating
• Clarity
Process of Developing Strategic Vision
Communicating the Strategic Vision
• Formulation of organizational vision statement

• Integrating the vision with the organization mission

• Developing the goals and objectives in accordance with the vision

• Communicating the vision to the middle-level managers

• Finally, communicating the vision to the low-level managers

Strategic Mission
Strategic mission is a statement of a firms unique purpose and scope of
operations. Strategic mission is a type of marketing approach which is
based on the core philosophy of organization. In a long term plan on
which the company operates to act outs mission and vision objectives
and goals.

Developing a Strategic Mission

Visionary Long-term
Philosophy Organization mission
Concept
Characteristics or Features of Strategic
Mission
• Feasible
• Precise (accurate or Exact)
• Clear
• Motivating
• Distinctive
• Indicative
• Accomplished
• Realistic
• Specific
Importance of Mission Statement
• It determines the company’s direction

• It focuses on company futures

• It provides a template for decision making

• It forms the basis for alignment

• It welcome helpful change

• It shapes strategy
Elements for Developing Mission
Statement
• History of the organization

• Unique competencies of the organization

• Organization environment
• Customers
• Products or Services
• Markets
• Technology
• Public image
• Concern for employees
Goals and Objectives

• Objectives define strategies or implementation steps attain the

identified goals. Unlike goals, objectives are specific, measurable and

have a define completion date.

• They are more specific and outline the “Who, What, When, Where, and

How” of reaching the goals.

Importance of Objectives
• Determine strategy

• Provide a guide to action

• Provide a sense of direction and units

• Coordination activities

• Motivate employees

• Provide a basis for decision making

• To control and set business borders

Process of Setting Objectives

• Classification of the objectives

• Reasonableness and consistency

• Area of objectives

• Realistic and practical

• Balancing short and long term objectives

• Change of objectives
Corporate, Business & Functional Strategy

• Corporate Strategy directs the organization as a whole toward sustainable

competitive advantage.

• Business strategy sets the strategic direction for a single business unit or product
line.

• Functional strategy guides the use of resources to implement business strategy.

The Concept of Strategy
Corporate Strategy
• Where to compete?

Business Strategy

• How to compete?

Functional Strategy

• How to contribute? Choice of Products

Choice of Markets
Choice of Competitors
Strategic Management Process
The strategic management process means defining the organization’s
strategy. It is also defined as the process by which managers make a
choice of a set of strategies for the organization that will enable it to
achieve better performance.
Components of Strategic Planning Process

• Initial Assessment

• Situation Analysis

• Strategy Formulation

• Strategy Implementation

• Strategy Monitoring
Business Policy
Business policy is the study of the roles and responsibilities of top level management, the
significant issues affecting organizational success and the decisions affecting organization in
long-run.

Business policy also deals with acquisition of resources with which organizational goals can be
achieved.

Business Policy defines the scope or spheres within which decisions can be taken by the
subordinates in an organization. It permits the lower level management to deal with the
problems and issues.
Features of Business Policy
• Specific
• Clear
• Reliable/Uniform
• Appropriate
• Simple
• Inclusive/Comprehensive
• Flexible
• Stable
Difference between Policy and Strategy
Thank you