Course Code: 19MBA509A

Course Title: Strategic Management

Module Leaders :
Mr. Rajeev Prasad
rajeev.ms.mc@msruas.ac.in

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Introduction to Formal Planning and Strategic
Intent

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 Session Objectives

At the end of this session, student will be able

to:

– Explain the concepts of Formal Planning and Strategic

Intent
– Discuss the relevance of ethical practices in business

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 Session Content

– Formal Planning and Strategic Intent

– Strategic Planning Process

– Strategic Management Vs. Operational Management

– Ethics in Strategic Management

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Strategic Planning

• Strategic planning determines where an organization is going over

and how it's going to get there
• The process is organization-wide, or focused on a
division, department
• Planning includes several major activities or steps in the process

• Different people often have different names for these

major activities

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 Strategic Planning Contd..

• They might even conduct them in a different order.

Strategic planning often includes use of several key terms

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 One Way to Look at Strategic Planning

• One interpretation of the major activities in strategic planning:

– Strategic Analysis:

– This activity can include conducting some sort of scan, or review, of the
organization's environment
– Carefully consider various driving forces in the environment

– Planners look at the strengths, weaknesses,

opportunities and threats (SWOT)

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 One Way to Look at Strategic Planning
– Setting Strategic Direction

– Conclusions about what the organization must do as a result of the major

issues and opportunities
– Conclusions include what overall accomplishments the organization should
achieve
– Goals should be designed and worded as much as possible to be specific,
measurable, acceptable, realistic, timely, extending the capabilities of those
working to achieve the goals, and rewarding to them, as well

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 One Way to Look at Strategic Planning

– Action Planning
– Action planning is laying out how the strategic goals will
be accomplished
– It often includes specifying objectives, or specific results, with
each strategic goal
– Reaching a strategic goal involves accomplishing a set
of
objectives
– Each objective is associated with a tactic 9
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 One Way to Look at Strategic Planning
– Implementing a strategy involves implementing a set of tactics

– Action planning
includes specifying responsibilities and timelines with each
objective, or who needs to do what and by when
– It also includes methods to monitor and evaluate the plan,
which includes knowing how the organization will know who has
done what and by when

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 Formal Planning

A retirementplan outlined in writing. Under this legally

plan, enforceable rights are passed on to the eligible
employees
According to Daft ,planning is the

“act of determining the organization’s goals and the means for

achieving them”

By implementing formal planning, achievements of an

organization’s goals are outlined, with allocations of necessary
resources, tasks, schedules and other actions being specified

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 Strategic Intent
A readily grasped declaration** of the course that the management
of a business plans on taking the company in over some future time
frame. The strategic intent of a business needs to be easily
understood by every member of the firm so that all staff can be
working toward a consistent overall goal.
** A legal term for a written declaration, made under oath, of what

**A legal term for a written declaration, made under oath, of what the
individual knows to be factual information. In liability or property insurance, a
declaration is the part of the contract that contains basic information, for
example, the insured's contact information or the address of the property

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 Strategic Planning
“A systematic, formally documented process for deciding what is
the handful of key decisions that an organisation, viewed as a
corporate whole must get right in order to thrive over the next
few years. The process results in the production of a corporate
strategic plan ”

Strategic Plan

“A set of statements describing the purpose and ethical conduct

for an organisation together with the specific strategies
designed to achieve the targets set for each of these”

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 The Strategic Management Process
– The strategic management process is a six-step process that
encompasses strategic planning, implementation, and
evaluation

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 The Strategic Management Process
• Identifying the Organization’s Current Mission,
1 Objectives, and Strategies

• External Analysis
2

• Internal Analysis
3

• Formulating Strategies
4

• Implementing Strategies
5

• Evaluating Results
6

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 Step 1- Identifying the Organization’s Current Mission,
Objectives, and Strategies
a) Every organization needs a mission, which is a statement of the
purpose of an organization. The mission statement addresses the
question:

“What is the organization’s reason for being in business?”

b) The organization must identify its current objectives and

strategies, as well

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 Step 2: External Analysis
a) Influential factors such as competition and labor supply are
included in the external environment

b) Opportunities and threats must be assessed. Opportunities are

positive trends, threats are negative trends in environmental
factors

c) The same external environment can present opportunities to

one organization and pose threats to another

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 Step 3: Internal Analysis
a) Clear assessment of the organization’s resources and capabilities

b) Any activities the organization does well or any unique resources

that it has are called strengths

c) Weaknesses are activities the organization does not do well or

resources it needs but does not possess

d) The organization’s major value-creating skills and capabilities

that determine its competitive weapons are the organization’s
core competencies

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 Step 3: Internal Analysis
a) Organizational culture is important in internal analysis

b) SWOT analysis is an analysis of the organization’s strengths,

weaknesses, opportunities, and threats

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 Step 4: Formulating Strategies

a) After the SWOT, managers develop and evaluate

strategic
alternatives and select strategies that are appropriate

b) Strategies need to be established for corporate, business, and

functional levels

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 Step 5: Implementing Strategies

a) A strategy is only as good as its implementation

Step 6: Evaluating Results

a) How effective have the strategies been? Are adjustments
necessary?

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 Strategic Management Model
Company Mission

External Internal
Environment
Analysis

Strategic Analysis and Choice

Long Term Generic and

Grand Strategies
Objectives
Short-term Functional Policies that
Tactics empower action
Objectives
Restructuring, Reengineering and
Refocusing the Organization
Strategic Control and continuous
Improvement
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Strategic Management vs. Operational Management
Strategic Management
Strategic management is a long term
planning
Strategic management as long term
planning requires a vision:
In other words, a company needs to
define where it wants to be in a
decade or two and how they want to
get there
Strategic Managers see 'blue ocean'
currents:
Strategic management is focusing to
empower company's resources for its
competitive advantage in facing the
competition
Faculty of Management and Commerce
Operational Management
Operational management looks at
short to medium range planning
Operational Management
will translates the long term plans
into smaller scale plans to
operationalize the move toward vision
Operational Managers only see 'red
ocean' currents
Operational management is getting
things done through team efforts
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 Strategic Management vs. Operational Management
Con d..
Strategic Management Operational Management

A strategic perspective or capability tis an

analytical, synthetic and rational decision
making process combined with innovative, Operational view is being pragmatic
out of the box thinking and most important of and committed towards realizing the strategy.
all whilst being a visionary

Strategic management is a holistic view of

things as way of coming up with actions that Operational Management may be
will improve organizational performance and viewing things from a single side (internally)
conformance in order to achieve the set goals

Strategic Management" is concerned with

establishing "where" the organization Operational Management, on the other
competes and "how" it chooses to compete hand, is concerned with "how do we run the
and capture value in each market business?"

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 Strategic Management vs. Operational
Management

Operational Management, is concerned with "how do we run the

business?" including

1) Determining the role of the corporate center, individual

business units, divisions, and the employees

2) Establishing standards and procedures

used to make decisions

3) Defining and developing the employee capabilities and

behaviors that are required to execute
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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Strategic Management vs. Operational
Management

4) Establishing and monitoring KPIs that will be used to

manage
business and individual employee performance

- The purpose of strategic management is to thrive business in the

long term, and the goal of operational management is to make

business survive at the moment, both are crucial and
interdependent management practices in running a truly
successful business

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 Ethical Strategic Management
• Ethical Management-

Ethical management means:

 With a positive and subjective attitude

 Observation of corporate ethics

 Carrying on all economical, responsibilities of the

legal corporation
 Recognizing personal responsibilities as corporation obligations

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 Need for ethical management in Business

Long-term
Minimizing
survival and
business risks
success

Achieving
sustainable
development

Strengthening of Increases public

organizational value and
structure market share

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 Ethics in Strategic Management
Strategic Management Ethical Management
Strategy can be framed by due intelligence of Ethics can be framed by fixing moral values
a person and standards

Strategic management will not help in fixing

Ethical management helps in fixing
the standards rather it helps in achieving the
the standards
standards

Strategies differ from organization Ethical practices are universal, it considers

to organization the universally accepted code of ethics

Ethical practices are questionable when they

Strategic practices are not questionable
are not followed

Strategic management is short term Ethical management is long term oriented

–
seeking long term success.
oriented and achieves short term objective
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 Ethics in Strategic Management
Strategic Management Ethical Management

Ethicists find answers to questions whether

Strategists find answers to questions
the chosen path is right or not

Ethical management is healthy

Strategic management is a winning strategy
winning strategy

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 Need And Importance For Ethical Incorporation In
Strategic Management

• Good ethics is good business

• Business organizations to frame and implement

new
need strategies to win
• In the process of winning the strategists may forget the
ethical issues
• There is need to incorporate ethics in strategic
management
process and decision making

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 Need And Importance For Ethical Incorporation In
Strategic Management

• Ethical management will be a tool for corporate success. And ethical

management will be ever chanting mantra for healthy corporate
success
 No Management?- No Organization

 No Strategic management?-No Management success

 No Ethical management?- No Long term success and survival

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 Conclusion

- Therefore there is a need to incorporate ethics and strategy with

management to enhance the business life cycle. It’s an integrative
approach for long term success of business.

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 Summary

• Strategic management model will serve as the structure for

understanding and integrating all the major phases of strategy
formulation and implementation
• The strategic management process is a six-step process that
encompasses strategic planning, implementation, and evaluation
• Ethics are moral principles that govern the action of an individual or
a group. Ethical management will be a tool for corporate success

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences
 Summary

• Strategic planning determines where an organization is going over

the next year or more and how it's going to get there
• One interpretation of the major activities in strategic planning
activities is that it includes, Strategic Analysis, Setting Strategic
Direction and Action Plans

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Faculty of Management and Commerce © Ramaiah University of Applied Sciences