Module 1 - Overview of Strategic Management

23/01/23 Overview of Strategic Management 1

 Overview of Strategic Management
 Environmental Analysis
 Establishing Organizational Direction
 Generic Competitive Strategies
 Strategy Implementation

 Origin of Strategy
 Strategy v/s Structure
 Elements of Business Strategies
 Strategic Management Process

στρατηγός

 A catalyst
 Friend and foe
 The charioteer of Arjuna in the war
 Helps the Pandavas win the war despite the Pandavas

having less resources as compared to the Kauravas

 A high ranking military general, strategist and
tactician
 Has influenced eastern and western military thinking,

business tactics, legal strategy and beyond
 He considered war as a necessary evil that must be

avoided whenever possible

If you know the enemy and
know yourself you need not
fear the results of a hundred
battles

It is a principle of war not to
assume that the enemy will not
come, but instead prepare for
his coming

Keep your friends close and your
enemies closer

 By the age of 30, had created one of the largest
empire of the ancient world
 He was undefeated in battle and is considered one of

history’s most successful commanders
o Strategy
o Negotiations
o Speed
o Loyalty of his troops
o Tactics
o Kindness

 Indian teacher, philosopher, and royal advisor
 Professor of economics and political science at the
Takshashila University
 Managed the rise of the first Maurya emperor –
Chandragupta Maurya
 The first empire to rule most of the Indian
subcontinent
 Envisioned a united India
 Author of the ancient Indian political treatise –
Arthashastra
 Discusses monetary and fiscal policies, welfare,
international relations, and strategy in detail

Even if a snake is not poisonous,
it should pretend to be
venomous

 Italian historian, politician, diplomat, philosopher,
humanist, and writer
 The founder of modern political science, and more

specifically political ethics
 “The Prince” is a manual to acquiring and keeping

political power
 Machiavelli has become infamous for his political

advice, ensuring that he would be remembered in
history through the adjective, "Machiavellian."

There is no avoiding war; it can
only be postponed to the
advantage of others

Entrepreneurs are simply those
who understand that there is
no difference between
obstacle and opportunity and
are able to turn both to their
advantage

 War and strategy are inseparable
 Business strategy adopted by companies can be

traced back to war strategies that were crafted earlier
o Attacking the enemy’s strength

o Attacking the enemy’s weakness
o Concentration of forces
o Forging a strategic alliance
o Containment

 Russian American applied mathematician and
business manager
 The father of Strategic Management
 Known worldwide for his work on:
o The concept of environmental turbulence
o The contingent strategic success paradigm
o Real-time strategic management
o Strategic Readiness Diagnosis
o Corporate Strategy
o Gap Analysis
o Synergy
o Ansoff Product/Market Grid

 Of the four strategies, diversification is the most risky
 The 3 types of diversification strategies:
o Concentric
o Horizontal
o Conglomerate

 Canadian born Professor of Management Studies at
McGill University, Montreal
 Coined the term “crafting strategy”
 Proponent of a concept called “Emergent Strategy”
 Opposes “Deliberate Strategy”
 Organizational Configurations Framework
 Strategy formulation is a deliberate, delicate and

dangerous process
 Austrian-born American management consultant
 Introduced the concept of “Management by

Objectives” - MBO

 Professor of Management at Harvard Business School
 An authority on competitive strategy, competitive

advantage, and the competitiveness & economic
development of nations, states and regions
 Important contributions to management include:
o Five Forces Model

o Value Chain
o Generic Strategies
o Porter’s Diamond

 Introduced by C.K. Prahalad and Gary Hamel
 “The collective learning in the organization, especially
how to coordinate diverse production skills and
integrate multiple streams of technology”
 It is also about the organization of work and the
delivery of value
 A core competence must:
o Have the potential to provide access to a variety of
markets
o Make a contribution to preconceived consumer
benefits of the end product
o Be difficult for a competitor to copy

SBU
Core Competence
Knowledge
Skills
Resources

 Professor of business history at Harvard Business
School and John Hopkins University
 Wrote extensively about the scale and management

structures of modern corporations
 His works redefined business and economic history of

industrialization
 Received the Pulitzer Prize for History for his work

“The Visible Hand: The Managerial Revolution in
American Business” in 1977

“Modern business enterprise
became a viable institution only
after the visible hand of
management proved to be more
effective than the invisible hand
of market forces”

 Alfred Chandler, proposed the “Structure follows
Strategy” thesis
 Based on his detailed study of four American

conglomerates:
o Du Pont
o General Motors
o Standard Oil of New Jersey
o Sears Roebuck
 All 4 companies adopted the revolutionary multi-

division form of structure or M-Form

 An experiment in the writing of comparative business
history
 How different enterprises carried out the same

activity
 Du Pont, General Motors, Standard Oil of New Jersey

and Sears Roebuck were the pioneers in
implementing a decentralized multidivisional
structure

 Strategic decisions are concerned with the long-term
health of the enterprise
 Tactical decisions deal more with the day-to-day activities

necessary for efficient and smooth operations
 But decisions, either tactical or strategic, usually require

implementation by an allocation or reallocation of
resources – funds, equipment, or personnel
 Who makes strategic and tactical decisions? – the top

management or the junior staff?

 The thesis that different organizational forms result from
different types of growth can be stated more precisely if
the planning and carrying out such growth is considered a
strategy, and the organization devised to administer
these enlarged activities and resources, a structure
 “Strategy is the determination of the basic long-term

goals and objectives of an enterprise, and the adoption of
courses of action and the allocation of resources
necessary for carrying out these goals”
 “Structure is the design of the organization through which

the enterprise is administered”

Structure follows strategy and
the most complex type of
structure is the result of the
concatenation of several basic
strategies

 Expansion of volume led to the creation of an
administrative office to handle one function in one local
area
 Growth through geographical dispersion brought the
need for a departmental structure and headquarters to
administer several local field units
 The decision to expand into new types of functions
called for the building of a central office and a multi-
departmental structure
 The development of new lines of products or continued
growth on a national or international scale brought the
formation of the multidivisional structure with a
general office to administer the different divisions
 Strategic growth resulted from an awareness of the
opportunities and needs – created by changing
population, income and technology – to employ
existing or expanding resources more profitably
 A new strategy required a new or at least refashioned

structure if the enlarged enterprise was to be
operated efficiently
 Corollary – Growth without structural adjustment can

lead only to economic inefficiency

 Industrial enterprises were small
 They were usually family affairs
 The family members handled all the basic activities –
economic and administrative, operational and
entrepreneurial
 Business administration as a distinct activity did not
exist yet
 The largest firms were directed by a general
superintendent and a president or treasurer
 Merchants did most of their buying and selling and
sometimes through agents
 Only occasionally were the merchants obliged to
consider long-term plans
John Jacob Astor’s
American Fur Company
Nicholas Biddle’s
Second Bank of the United States

 Virtual monopoly in the fur trapping and trading
business
 West of the Mississippi River and the Great Lakes area
 Western and Northern Departments
 A number of outfits, each headed by a trader who
supervised the works of the clerks at the trading poss
and the engages who did the actual trapping
 The Western and Northern Department heads, both
veteran fur traders, were partners in the company
 Besides supervising the work, they did most of their
own buying of supplies and marketing of furs and, in
correspondence with Astor, decided on over-all
policies
 Had branches throughout the Union
 Each branch office had a cashier appointed by the
headquarters in Philadelphia and a President elected
by the local board of directors
 The Presidents were usually local leaders with
extensive outside businesses of their own
 Biddle had put in place an elaborate and detailed
system of reports supplemented by inspection trips
from Philadelphia
 Two officers at the HQ – one to supervise the
transactions between the branch offices and the
other to look after real estate and bad debts

 With the completion of the great east-west trunk
lines in the 1850s, administration became a full-time
task in American business
 Their operation demanded wholly new methods of

management
 Daniel C. McCallum – General Superintendent of The

Erie, is credited with creating the very first
organizational chart in American business history

 The first private enterprises in the United States with
modern administrative structure
 Provided industrialists with useful precedents for
organization building when the industrial enterprises
grew to be of comparable size and complexity
 The building of the railroads made possible the
growth of the great industrial enterprise in the United
States
 By speedily enlarging the market for American
manufacturing, mining, and marketing firms, the
railroads permitted and, in fact, often required that
the industrial enterprises expand and subdivide their
activities
 Mid 1800s – growth through geographical dispersion
and vertical integration
 The depression of the 1870s
 The birth of the great corporate enterprises during
1880s and early 1890s
 The depression of the 1890s
 Early 1900s – the first great wave of industrial empire
building in the United States
 Challenge – how to fashion the structure essential for
the efficient administration of the industrial empires
 Far too large to be managed by small family groups
 Administration by full-time professional managers

 The 1800s and 1890s saw the coming of the first great
integrated enterprises in the United States
 The new problems of industrial management led to

the building of the first sizeable administrative
structures in American industry
 Two growth strategies:

o Expansion and integration through creation of its own
marketing organization
o Joining together of a number of manufacturing
companies to consolidate their manufacturing
activities and then achieving either forward or
23/01/23
backward integration
Overview of Strategic Management 87
 Reaped the demand for fresh meat in the great
eastern cities during the late 1800s
 Exploited the new technology of refrigeration by
shipping fresh meat from the western plains to the
eastern cities
 Built a nationwide marketing and distribution
organization
 Had to overcome stiff resistance from local butchers
and railroad companies
 Complemented beef with other products such as
lamb, veal, pork, poultry, eggs, dairy products,
leather, soap, fertilizer, and glues

 Meat-packing establishments in Omaha, St. Louis, St.
Joseph, St. Paul and Fort Worth
 Systematized buying of cattle and other products at

the stockyards
 Expanded marketing facilities abroad as well as in the

United States
 By end of 1890s, Swift had created a huge vertically

integrated industrial empire

 Systematization of the administration functions
 Devising techniques to coordinate the flow of

products through the different departments
 Introduction of subsidiaries and divisions

 Threat of excess capacity
 Short-lived
 Production or price schedules were hard to enforce
 Failed to employ fully and effectively the existing
resources of their members
 The truly consolidated enterprise operations on a national
scale required both new legal and new administrative
forms
 Administratively, it demanded a structure to provide for
centralized coordination, appraisal, and planning for its
extended plant and personnel
 A consolidated organization with a centralized
headquarters made possible economies of scale through
standardization of processes and procurement of
materials
 Most of the combinations quickly consolidated their
constituent companies into single operating
organizations
 Manufacturing facilities were unified and

systematized
 Overall accounting procedures instituted
 National and often world-wide distributing

organizations formed

 The dominant centralized structure had one basic
weakness
 A very few men were still entrusted with a great number

of complex decisions
 As long as an enterprise belonged in an industry whose

markets, sources of raw materials, and production
processes remained relatively unchanged, few
entrepreneurial decisions had to be reached
 But where technology, markets, and sources of supply

were changing rapidly, the defects of such a structure
become more obvious
 Born in Boston, Massachusetts
 Started as a cigar salesman
 Co-founded General Motors with Frederick L. Smith and

Chevrolet with Louis Chevrolet
 Founded Durant Motors in 1921, but was not able to

replicate the success he achieved at General Motors
 Was a bankrupt at the age of 75
 Lived on a pension of US$ 10,000 provided by General

Motors
 Born in Inkster, Massachusetts
 Started as a partner in a hardware business
 Ended his partnership with Durant in 1913
 Founded the Dort Motor Car Company in 1925

 Founded in 1885, Flint – Michigan
 Initially outsourced manufacturing to third parties

and focused on setting up a nationwide dealer and
distribution network
 Later on set up their own assembly plant, with parts

and accessories being sourced from outside
 Helped build an eco-system in Michigan for the

manufacture of carriage systems

 Durant buys the defunct Buick Motor Company in
1904
 Follows the Durant-Dort Carriage company model
 By 1908, Buick becomes Americas leading automobile

manufacturer with a production of 8487 cars
 Durant leaves the administration of the company to

Charles W. Nash and Walter P. Chrysler
 Both set up a fairly standard centralized structure

 A holding company owning stocks in Buick, Olds, W. F.
Stewart & Co, Cadillac, Oakland and other companies
 Volume production and vertical integration
 Inorganic growth through acquisitions
 No focus on analyzing future trends or understanding

the equation between supply and demand
 Not interested in building an organizational structure

either

 Business recession in 1910
 Declining sales, No cash and obsolete inventory
 Durant obtains US$ 15 million from Lee, Higginson &

Co, J&W Selligan & Co and Central Trust Co
 In return, Durant concedes management of the

company to the consortium of bankers, for a period
of 5 years

 Consolidation of subsidiaries
o General Motors Truck Company
o Northway Motor & Manufacturing Company
o General Motors Export Company
 Setting up of a General Office for administration
o Moves General Offices from New York to Detroit
o Brings in Charles W. Nash as President
o Setting up of the Board of Managers
o Purchasing Office, Accounting Office, Production Office
o Interdivisional committees
 Stiff resistance from the subsidiaries
 A failed attempt at reorganizing the fast growing and
complexly managed General Motors
 Durant takes over as President in 1916
 Pierre S. Du Pont is the new Chairman of the Board
 Structure takes a back seat
 Goes on an acquisition spree during 1916-20
 Undoes whatever Storrow & Nash had done earlier
 Sets up United Motors Corporation, a holding company,
with Alfred P. Sloan as President
 Gets into manufacture of tractors and refrigerators during
the war
 The Du Ponts and the Du Pont Company invest more than
US$ 50 million in General Motors
 Expansion spree after the war
 General Motors Acceptance Corporation
 A loosely knit federation of many operating enterprises
 Executive Committee
o Full authority and responsibility for over-all operating
policies and performance
 Finance Committee
o Formulation of financial policies
o Approval of capital expenditure budgets
 Appointment of two General Officers
 Despite good intentions, the Du Ponts failed to make

General Motors into more than an expanding
agglomeration of different companies making
automobiles, parts, accessories, trucks, tractors, and
even refrigerators
No one knew just how the
money had been appropriated,
and there was no control of
how much money was being
spent

 Uncontrolled expansion, Excess inventory
 Falling demand
 Collapse of the automobile market
 Fall in General Motors stock prices
 Durant’s attempt to sustain the stock prices by buying
General Motors stock on credit backfires leading to
his financial difficulties
 Durant resigns as President of General Motors on
November 20, 1920
 Pierre du Pont takes over as President of General
Motors
 Approves Alfred Sloan’s plan to establish an
organizational structure at General Motors
 Born in New Haven, Connecticut
 Studied electrical engineering from MIT
 Was the President and Owner of the Hyatt Roller

Bearing Company
 In 1916, merged with other companies into United

Motors Corporation, which later on became part of
the General Motors Corporation
 Was the President, Chairman and CEO of General

Motors Corporation
 The Sloan structure transformed General Motors
from an agglomeration of many business units, largely
automotive, into a single, coordinated enterprise
 A general office to coordinate, appraise, and set

broad goals and policies for the numerous operating
divisions
 Sloan drew upon his experience at Hyatt Roller

Bearing Company and United Motors Corporation to
put in place a structure for General Motors

 Regrouping the operating divisions
 Include in the general office executives to administer

the activities of different groups of divisions
 Expand the staff functions in the general office and

unite the offices carrying out these functions into a
single “Advisory Staff”
 Enlarge the activities of the financial and accounting

units

 No changes to the Finance and Executive Committees
 Each operating division to have a representation in
the Executive Committee
o Major operations (car & truck) by a single
representative
o Smaller operations being grouped together, one
executive representing several such minor operations
 Autonomy to the operating divisions, with the
managers of the divisions retaining full authority and
responsibility
 Each operating division assigned to one of four groups
– Car, Accessory, Parts, and Miscellaneous
 Introduction of the “Group Executive”
 Definition of divisional activities
o Marketing strategy
o Market Positioning – Cadillac, Buick, Oakland & Olds,
Pontiac, Chevrolet
o A car for every purse and purpose
o Discontinuation of Durant’s vertical integration
strategy
o Policy on interdivisional billing
 The development of accurate and effective

information flow through the new structure
 The building of further communication channels

 Impressive profits of US$ 276 million in 1928

 Strategy refers to either the plans made, or the
actions taken, in an effort to help an organization
fulfill its intended purposes
o Intended Strategy
o Realized Strategy

MEANS ENDS
Strategic Intent
Vision
PLANS Mission
POLICIES Goals
Objectives
Intended Strategy
ACTIONS TAKEN Results Observed
Realized Strategy
 Strategy comprises the most fundamental ends and
means of an organization
 The hierarchy of strategic intent:

o Vision
o Mission
o Goals
o Objectives
 The above are the beginning points for any formal

planning process

 Refers to the category of intentions that are broad,
all-inclusive, and forward thinking
 A vision describes aspirations for the future, without
specifying the means that will be used to achieve
those desired ends
 The most effective visions are those that inspire, and
this inspiration often takes the form of asking for the
best, the most, or the greatest
 For vision to have impact, it must be communicated
o In the form of a mission statement
o Through personal selling on the part of the visionary

 At the new General Motors, we are passionate about
designing, building and selling the world’s best
vehicles. This vision unites us as a team each and
every day and is the hallmark of our customer-driven
culture

 A vision becomes more tangible when it is expressed in the
form of a mission statement
 A mission statement attempts to answer several of the
following questions:
o What is the reason for our being? What is our basic purpose?
o What is unique or distinctive about our organization?
o What is likely to be different about our business 3-5 years in
the future?
o Who are, or who should be, our principal customers, clients,
or key market segments?
o What are our principal goods and services, present and
future?
o What are, or what should be, our principal economic
concerns?
o What are the basic beliefs, values, aspirations, and
philosophical priorities of the firm?
VIEW OF THE FUTURE
The anticipated regulatory, competitive, and economic
environment in which the company must compete
FUNDAMENTAL
INTENTIONS
COMPETITIVE ARENAS A statement of the role

The business and geographic business arenas where the the company will seek to
company will compete
adopt; a description of
what the company hopes
to accomplish; a means to
gauge future success
SOURCES OF COMPETITIVE ADVANTAGE
The skills that the company will develop/leverage to
achieve its vision: a description of how the company
intends to succeed

 Ford Motor Company is a worldwide leader in
automotive and automotive-related products and
services as well as in newer industries, such as
aerospace, communications, and financial services.
Our mission is to improve continually our products
and services to meet our customer’s needs, allowing
us to prosper as a business and to provide a
reasonable return for our stockholders, the owners of
our business

 They establish boundaries to guide strategy
formulation
 They acknowledge responsibilities to various

stakeholders and establish standards for
organizational performance along corresponding
dimensions
 They suggest standards of individual behavior

PUBLIC RESPONSIBILITY PHYSICAL & FINANCIAL
Company’s responsibilities RESOURCES
to its customers and Capital and equipment
society required to meet other
strategic goals
MARKET STANDING INNOVATION

Desired market share and Efforts toward development
competitive niche of new methods and new
products
WORKER PERFORMANCE MANAGERIAL PERFORMANCE

AND ATTITUDE & DEVELOPMENT
Expected rates of worker’s Rates and levels of managerial
productivity and positive productivity and growth
attitudes
PRODUCTIVITY PROFITABILITY
Aiming at specific levels of Level of profits and other
production efficiency indicators of financial performance

 Just as a mission statement tries to make a vision
more specific, goals are attempts to make a mission
statement more concrete
o They address both financial and nonfinancial issues
o They facilitate reasoned trade-off
o They can be reached, with a stretch
o They cut across functional areas

 Profitability as measured against our ability to achieve
and then maintain a 20 percent average annual return
on stockholder’s equity
 Integrity, in the broadest sense, must pervade our

actions in all relationships, including those with our
customers, suppliers, and each other. This is a
commitment to uncompromising values and conduct.
It includes compliance with all laws and regulations

 Objectives are the operational definitions of goals
 Objectives explain, in more precise terms, what will

be accomplished in order to reach the goals
o They can be measured
o They incorporate the dimension of time
o They reduce conflict

 Strategy refers to either the plans made, or the
actions taken, in an effort to help an organization
fulfill its intended purposes
o Intended Strategy
o Realized Strategy

MEANS ENDS
Strategic Intent
Vision
PLANS Mission
POLICIES Goals
Objectives
Intended Strategy
ACTIONS TAKEN Results Observed
Realized Strategy
 Intended strategies provide:
o Information regarding what an organization hopes to

accomplish
o Guidelines for the means by which the organization

will work towards the ends it pursues

 Plans:
o Deal more with what actions should be taken
o Are linked to the intentions they are supposed to help
an organization reach
o Plans are usually time bound
o “To maintain our desired rate of growth, we will open
four new stores in the next two years”
 Policies:
o General guidelines that indicate limits or constraints
on what is to be attempted
o Are either explicitly stated or implicitly understood to
be part of the intended strategy
o “We will fund future growth through retained
earnings”
 A realized strategy entails reference to the past and
to what has actually developed
 The realized strategy is usually both more and less

than the strategy that was originally intended
Intended Strategy Realized Strategy
Unrealized Emergent
Strategy Strategy
 Most successful strategies contain elements that
were originally intended, as well as unintended
elements that emerged over time
 Organizational success does not depend on blind

devotion to implementing intended strategies
 Rather, it requires skillfully adjusting intentions, plans,

and policies as events unfold

 Three complementary perspectives that describe a
continuum of what strategic management entails:
o Rational Planning
o Organizational Learning
o Incrementalism
 Rational Planning and Incrementalism correspond

roughly to the concepts of intended and realized
strategies
 Organizational Learning combines elements of

Rational Planning and Incrementalism
RATIONAL ORGANIZATIONAL INCREMENTALISM
PLANNING LEARNING
Attempts to move an Typically move to new Organizational drift, from one

organization to a new strategic strategic positions and strategy to the next,
Description position and maintain that maintain those positions by depending on the unfolding of
position as efficiently and making continuous events beyond manager’s
directly as possible adjustments control
Emphasizes broad-based
Has led to the development of involvement in management Encourages flexibility and
Benefits many useful planning tools of the firm and encourage risk concern of strategy
and techniques taking by “legitimizing” implementation
mistakes
May be stressful for

Plans may be quickly outdated Does not encourage proactive
individuals not used to
Limitations by unexpected developments; efforts to control the
unlearning the status quo and
formal planning often breaks organization’s future or
learning new ways of
down in implementation stage destiny
managing
Mnemonic Devise the shortest path Search for what works Wander about
Icon
 Also referred to as formal planning
 A process or system for logically approaching the task
of identifying the ends an organization pursues and
the means by which those ends will be reached
 Involves:
o Identifying and understanding gaps between
previously established goals and past performance
o Identifying resources needed to close the gap
between current performance and goals for the future
o Distributing those resources
o Monitoring their use in moving the organization closer
to reaching its goals

Phases of Process
Identifying
Understanding
Strategic Resources Distributing Monitoring
Level & Adjusting to
Context Needed to Resources Progress
Gaps
Close Gaps
Hierarchy or
Strategic Goals:
Corporate
Vision 4 8 12
Mission
Goals
Objectives
Competitive
Business
Environment: 2 5 7 9 11
Opportunities
Threats
Internal
Function
Situation: 3 6 10
Strengths
Weaknesses

 Facilitates communication about strategic issues and
achieves integration across organizational levels and
functional specialties
 Properly done, rational planning provides the entire

organization with a road map that greatly facilitates
personal individual initiative
 The rational planning process requires cooperation

between managers working at the corporate,
business, and operations levels

 Historically, formal strategic planning has been the
responsibility of top management
 Today’s flat organizations have empowered people

lower down the order to take decisions
 However, without the provisions of executive

leadership and direction from an overall strategic
plan, decentralization and self-direction result in
organizational mayhem
 In complex and unpredictable situations, is rational

planning effective?
 The need for incrementalism:
o Uncertainties of the future
o Inability to force an entire organization to comply with
a particular plan
 The principles of incrementalism:

o Businesses constantly readjust their strategies when
overtaken by developments that are outside the
management’s ability to predict or control
o Businesses react to unpredictable opportunities and
accidents and muddle through without a defined and
sustained sense of direction
o Future developments will be more or less random,
making learning from the past experiences difficult
 Attempts to capitalize on the strengths and offset the
weaknesses of rational planning and incrementalism
 Making incremental adjustments to rational plans

with the hope of moving an organization toward their
goals by way of numerous small steps of progress
rather than a few major strides
 “Logical Incrementalism” – James Brian Quinn

 Strategic management integrates various functions
 Strategic management is oriented towards achieving

organization wide goals
 Strategic management considers a broad range of

stakeholders
 Strategic management entails multiple time horizons
 Strategic management is concerned with both

efficiency and effectiveness
o “doing things right” and “doing the right things”
Strategic management is not a task, limited
to elite ‘strategists’ or a single staff group
of ‘strategic planners’; rather, it is a set of
managerial skills that can and should be
used throughout the organization, in a
wide variety of functions

Feedback
Perform External
Audit
Develop Vision Generate, Implementation Implementation Measure and

Establish Goals
and Mission Evaluate, and Management Functional Evaluate
and Objectives
Statements Select Strategy Issues Issues Performance
Perform Internal
Audit


Module 1 - Overview of Strategic Management

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Module 1 - Overview of Strategic Management

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23/01/23 Overview of Strategic Management 1

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 Establishing Organizational Direction

 Generic Competitive Strategies

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 Strategy v/s Structure

 Elements of Business Strategies

 Strategic Management Process

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 Friend and foe

 The charioteer of Arjuna in the war

 Helps the Pandavas win the war despite the Pandavas

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 Has influenced eastern and western military thinking,

 He considered war as a necessary evil that must be

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 He was undefeated in battle and is considered one of

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 The founder of modern political science, and more

 “The Prince” is a manual to acquiring and keeping

 Machiavelli has become infamous for his political

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 Business strategy adopted by companies can be

o Attacking the enemy’s strength

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 The 3 types of diversification strategies:

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 Coined the term “crafting strategy”

 Proponent of a concept called “Emergent Strategy”

 Opposes “Deliberate Strategy”

 Organizational Configurations Framework

 Strategy formulation is a deliberate, delicate and

 Introduced the concept of “Management by

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 An authority on competitive strategy, competitive

 Important contributions to management include:

o Five Forces Model

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 Wrote extensively about the scale and management

 His works redefined business and economic history of

 Received the Pulitzer Prize for History for his work

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 Based on his detailed study of four American

 All 4 companies adopted the revolutionary multi-

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 How different enterprises carried out the same

 Du Pont, General Motors, Standard Oil of New Jersey

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 Tactical decisions deal more with the day-to-day activities

 But decisions, either tactical or strategic, usually require

 Who makes strategic and tactical decisions? – the top