Professional Documents
Culture Documents
Strategies
Strategies
The Un-Corporational
way
Manish Awasthi
Defining Strategies:
Threats:
Emergence of competitors
Opportunities:
New opportunities that are
available or emerge in the
environment.
Importance of strategy:
Formulating strategies.
Implementation of strategies:
ActivatingStrategies
Designing structures & systems
Managing Behavior
Implementation
Managing Functional
Implementation
Operationalizing Strategies.
Contd…
Reformulating Strategies.
Comprehensive Model Of
S.M:
S
Establishing strategic Intent t
Vision, Mission, Business Definition &
r
Objectives. a
Formulation of Strategies t
Environmental appraisals/Organizational e
Appraisals g
i
SWOT Analysis
c
Corporate Level Strategies
Business Level Strategies
Strategic choice C
Strategic Plan o
Strategic Implementation: Project, Procedural,
n
t
Resource Allocation, Structural, Behavioral, r
Functional & Operational o
Strategic Evaluation.
l
Strategic Intent:
Vision
Mission
Business Definition keeping in
mind customer function,
Customer Groups & Alternative
Technologies.
Environmental Appraisals:
Expansion strategies:
Retrenchment Strategies:
Itis followed when an organization
aims at a contraction of its activities
through substantial reduction or
elimination of the scope of one or
more of its businesses in terms of
their respective customer group,
customer function and alternative
technologies.
Contd…
Combination Strategies:
Itis followed when an organization
adopts a mixture of stability,
expansion and retrenchment
either at the same time in different
businesses or at different times in
the same businesses with the aim
of improving its performance.
Stability Strategies:
No Change Strategies.
Profit Strategy.
Expansion Through :
Concentration.
Integration.
Diversification.
Cooperation.
Internationalization.
Retrenchment strategies:
It is followed when an
organization substantially
reduces the scope of its
activities.
They are:
Turnaround Strategies
Divestment Strategies
Liquidation Strategies
Strategic Evaluation &
Control:
Nature of Strategy Evaluation:
To evaluate the effectiveness of strategy
in achieving organizational objectives.
S.E & C can be defined as a process
of determining the effectiveness of a
given strategy in achieving the
organizational objectives and taking
corrective actions whenever
required.
Through the process of S.E & C the
strategists attempt to answer two
sets of following questions:
S.E & C:
1. Are the premises made during strategy
formulation proving to be correct? Is the
strategy guiding the organization towards
its intended objectives? Are the
organization & Managers doing things
which ought to be done? Is there a need
to change and reformulate the strategy.
2. How is the organization performing? Are
the time schedules being adhered to?
Are the resources being utilized
properly? What needs to be done to
ensure that resources are utilized
properly and objectives met?
Importance of Strategic
Evaluation:
It helps in segregation of key
managerial tasks which leads to a
situation where individual managers
are required to perform a small
portion each of the overall tasks
required to implement a strategy.
The importance of S.E lies in its
capacity to coordinate the tasks
performed by individual managers
and also groups, divisions or SBUs
through the control of Performance.
Contd…
It provides feedback and thus also
helps in appraisals of the employees
at different levels.
It also helps to keep a check on the
validity of a strategic choice.
It provides a considerable amount of
information & experience to
strategist that can be useful in new
strategic planning.
Participants in S.E:
Conception Phase.
Definition Phase.
Planning & Organizing Phase.
Implementation Phase.
Clean Up Phase.
Resource Allocation:
It deals with the procurement and
commitment of financial, physical
and human resource to strategic
tasks for the achievement of
organizational objectives.
It is both a one time and continuous
process.
When a new project is implemented
it requires resource allocation.
An ongoing concern would also
require a continual infusion of
resources.
Factors affecting Resource
Allocation:
Objectives of the organization.
Preference of dominant
strategists.
Internal Politics.
External influences.
Difficulties in Resource
Allocation:
Scarcity of Resources.
Restrictions on generating
Resources.
Overstatement of needs.
Structural Implementation:
Corporate Culture.
Corporate policies & use of power.
Social Responsibility.
Leadership Implementation:
The role of appropriate leadership in
strategic success is highly
significant.
Leadership plays a critical role in the
success and failure of enterprise.
It is considered as one of the most
important elements affecting
organizational performance.
Theory of leadership states:
A leader must:
Develop new qualities to perform
effectively.
Be a visionary.
Exemplify the values, goals and
culture of the organization.
Pay attention to strategic thinking
and intellectual activities.
Lead by empowering others.
Create leadership at lower levels.
Delegate authority and place
emphasis on motivation.
Styles of Leadership:
Risk Taking: Willing to take risks.
Technology: Use of planning,
qualified personnel and techniques.
Organicity: Extent of organizational
structural flexibility.
Participation: Involvement of
managers.
Coercion: Domination by Top
Management.
Corporate Culture:
The phenomenon that often
distinguishes good organization from
bad organization is termed as
Corporate Culture.
The well managed organizations
apparently have distinct cultures that
are in some way responsible for
their ability to successfully implement
strategies.
Composition of Corporate
Culture:
It is the set of important assumptions- often
unstated – that members of an organization share
in common.
There are two major assumptions in common:
Beliefs.
Values.
Beliefs are assumptions about reality & are derived
and reinforced by experience.
Values are assumptions about ideals that are
desirable and worth striving for.
When beliefs and values are shared in an
organization, they create a corporate culture.
Corporate politics and use of
power:
All corporate cultures include a
political component and
therefore all organizations are
political in nature.
Organizational members bring
with them their likes, dislikes,
views, opinions, prejudices and
inclinations when they enter
organization.
Understanding Power &
Politics:
Power is defined as the ability to
influence others and corporate
politics is the carrying out of the
activities not prescribed by the
policies for the purpose of
influencing the distribution of
advantages within the organization.
Politics is related to the use of Power
but it is not simillar.
Functional & Operational
Implementation:
Functional strategies deal with a relatively
restricted plan which provides the
objectives for a specific function, for the
allocation of resources among different
operations within the functional area and
for enabling a coordination between them
for an optimal contribution to the
achievement of the business and corporate
level objectives.
Functional strategies are derived from
business and corporate strategies and are
implemented through functional and
operational implementation.
Vertical fit:
It leads us to define functional
strategies in terms of their capability
to contribute to the creation of a
strategic advantage for the
organization.
Types of Functional Strategies:
Strategic marketing management.
Strategic financial management.
Strategic operations management.
Strategic human resource management.
Strategic information management.
Horizontal fit:
Organisational Capability
Competencies
Synergistic Effects
1. Internal Analysis
3. Comparative Analysis
5. Comprehensive Analysis
1.Tangible.
2. Intangible.
Resources:
1. Valuable
2. Rare
3. Costly to imitate
4. Non-Substitutable
Synergistic Effects:
Competencies:
Organisational Capability:
Financial Capability:
It is availability, usage and management of funds. Following
factors are for consideration:
2. Factors related to source of funds.
3. Factors related to usage of funds.
4. Factors related to management of funds.
Marketing Capability:
It rests on and relate to product, its promotion &
distribution and pricing etc.
3. Product related factors.
4. Price related factors.
5. Place related factors.
6. Promotion related factors.
7. Integrative & System factors.
Method and Technique used for
Organisational Appraisal
1. Internal Analysis
i. Value Chain Analyses.
ii. Quantitative Analysis
a. Financial Analysis
b. Non-Financial Analysis.
iii. Qualitative Analysis.
2. Comparative Analysis
i. Historical Analysis
ii. Industry Norms
iii. Benchmarking
3. Comprehensive Analysis
i. Balance Scorecard
ii. Key factor rating
ORGANISATIONAL STRATEGIC ADVANTAGE