CHAPTER 1:

STRATEGIC MANAGEMENT

Delivered by Prof. Pratyush Banerjee

Session objectives
 To set the context and scope of discussion
 Expectations from the course
 Evaluation parameters
What is Strategy?
 Strategy is the formulation of organizational
objectives, scopes, and action plans for gaining
sustainable competitive advantage – Belcourt et al.,
2019
 Reality of strategic process

To enter into third-

To open a new party contract for
hypermarket in space
a new location

To operate the
To stop pushing for
hypermarket
independent lease due to
through leased
soaring real estate price
space
 Types of strategies

CORPORATE Turnaround BUSINESS

STRATEGIES STRATEGIES
Divestiture

Restructuring Liquidation Competitive

strategies (Porter,
Barney)
Bankruptcy

Incremental
Growth
International

Stability
 Strategic Planning Process
Who are we? Where do we want to be? How should we measure
success?
Step 1: Establish Step 7: Evaluate the
Step 2: Develop
mission, vision and performance
objectives
values

What may change? What should we

do?

Step 3: Analyze the Step 6: Implement the

environment strategy

An Exercise:
What is our How can we
Suppose you are a major
advantage? compete?
Oil and Gas Tycoon in
India. Design your
strategic plan for 2030 Step 4: Identify Step 5: Determine the
competitive advantage competitive position
Mission and Vision Statements
Sources of Competitive Advantage
 Tangible assets

 Intangible assets

 Capabilities (Eg: Data literacy)

Sustaining competitive advantage – Barney’s
VRIO Framework (resource-based view of firm)
Question 1: Is the resource / capability…. Question 2: Is the organization well….

Source: Barney, J. (1991). Firm resources and sustained competitive

advantage. Journal of management, 17(1), 99-120.
Porter’s Strategies
 Cost leadership
Eg: Jio
 Differentiation

Eg: Tata
 Best cost provider

Eg: Amazon prime

 Focus / Niche strategy (low cost/ differentiation)

Eg: Lefty’s, Plus Size stores, Rolls Royce, Ducati

CAN YOU LINK PORTER’S GENERIC STRATEGIES
TO HUMAN RESOURCE PLANNING?
Other Strategic tools Useful for
HRP
 SWOT Analysis
 PESTEL Analysis
 BCG Matrix
 Competency Mapping
 Scenario planning
 Forecasting
 Balanced / HR Scorecard
THANK YOU