Mintzberg’s 5 Ps

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 Mintzberg’s 5 Ps

1. Strategy as Plan: Strategy needs to be developed in advance

and with purpose.
2. Strategy as Ploy: To disrupt, dissuade, discourage, or
otherwise influence them, can be part of a strategy.
3. Strategy as Pattern: Sometimes, strategy emerges from past
organizational behavior. Rather than being an intentional
choice, a consistent and successful way of doing business can
develop into a strategy.

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 Mintzberg’s 5 Ps

4. Strategy as Position: How you decide to position yourself in

the competitive environment. (Low cost Vs. Differentiation)

5. Strategy as Perspective: The choices an organization makes

about its strategy rely heavily on its culture. Patterns of thinking
will shape an organization's perspective, and the things that it is
able to do well. (Risk taking and Innovation)

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 7 S Framework

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 7 S Framework
Hard elements are easily identified and influenced by management, while soft
elements are fuzzier, more intangible, and influenced by corporate culture.
Hard Elements Soft Elements
• Strategy • Shared values
• Structure • Skills
• Systems • Style
• Staff

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 Organizational Structure

1. Flat Organizational Structure

2. Functional Organizational Structure
3. Divisional Organizational Structure
4. Geographic Organizational Structure
5. Matrix Organizational Structure

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 Components of a Strategic Plan

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 Leadership

Leadership is the process of influencing others towards the

accomplishments of goals. It is the ability of a manager to induce
subordinates to work with zeal and confidence.

Strategic Leadership
Operational Leadership

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 Leadership and Corporate Culture

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 Functions of Leadership

Leader develops teamwork.

Leader is a representative of subordinate.
Leader is an appropriate counsellor.
Leader uses power properly.
Leader manages time well.

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 Leadership Styles

 Charismatic Leadership
 Transactional Leadership
 Transformational leadership
 Situational Leadership

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 Strategic Choice

Strategic choice is the evaluation of alternative strategies and

selection of the best alternative.

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 Factors Affecting Strategic Choice

1. Environmental constraints.
2. Attitude of management towards risk.
3. Restrictions related to time such as time pressure and decision timing.
4. Reaction of competitors.
5. Restrictions related to information.
6. Values and preferences.
7. Past strategies impact.
8. Relationship between management power and internal organization.

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 Process of Strategic Choice

1. Focusing On Strategic Alternatives

2. Analyzing The Strategic Alternatives
3. Evaluation Of Strategic Alternatives
4. Making A Strategic Choice

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 Corporate Culture

Corporate culture refers to the shared values, attitudes, standards,

and beliefs that characterize members of an organization and
define its nature.

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 Type of Corporate Culture
1. Clean Culture: Commitment to organization; involvement
and participation

2. Adaptability Culture: Innovation and risk taking

3. Bureaucratic Culture: Consistency, conformity

4. Market culture: Profit-making, professionalism, ambition

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 Components of Culture
 Values
 Norms (standard)
 Artefacts (Physical aspects)
 Leadership style

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 Corporate Social Responsibility

Corporate social responsibility (CSR) refers to business practices involving

initiatives that benefit society. A business's CSR can encompass a wide variety
of tactics, from giving away a portion of a company's proceeds to charity, to
implementing "greener" business operations.

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 New Bill Mandate

1. All companies with revenue greater than Rs. 1000 Cr or

profits of 5 Cr must spend 2% of the average of the last 3
years profits, towards CSR activity.
2.The Board must designate a 3-member CSR committee
(including one Independent Director) to ratify decisions on
spending.
3. Employee expenses will not be classifiable as CSR spending.

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 New Bill Mandate

4. Poverty alleviation, healthcare, education and social business

ventures have all been included as potential areas of
investment.
5. If the spend is not made in that year, the CSR committee
would have to submit an explanation for why that has occurred
to not be penalized.

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 Factors Affecting Social Orientation

1. Promoters and Top Management

2. Board of Directors
3. Stakeholders & Internal Power Relationship
4. Societal Factors
5. Industry and Trade Associations
6. Government & Laws
7. Political Influences
8. Competitors
9. Financial Resources

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 Arguments For CSR
1. Public expectations:
2. Long run profits:
3. Ethical obligation:
4. Public image:
5. Better environment:
6. Discouragement of further government regulation:
7. Balance of responsibility and power:
8. Stockholder interests:
9. Possession of resources:

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 Arguments Against CSR

1.Violation of profit maximization:

2. Dilution of purpose: Costs:
3. Lack of skills:
4. Lack of accountability:
5. Lack of broad public support:

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 Business Ethics

It is the science of morals describing a set of rules of behavior.

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 Reasons for Unethical Behaviors

1. Pressure to balance work and Family

2. Poor Communication
3. Poor Leadership
4. Long Working Hours
5. Heavy Work Loads
6. Lack of management support
7. Company Politics

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 Why Should Businesses Act Ethically

1. Meet Stakeholders Expectations

2. Build trust with stakeholders
3. Build organizational Reputation
4. Prevent harm to general public

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 Some Ethical Issues

1. Bribery: When somebody is bribed for something his thinking

and actions are oriented towards his personal goals. Bribes
create a conflict of interest between person & organization.
2. Coercion: Coercion is forcing a person to act in a manner that
is against the person’s personal beliefs.
3. Insider Trading: Misuse of official position by an individual
in the organization. Employee leaks out certain confidential
data to outsiders and insiders, which in turn ruin the
reputation of the company.
4. Tax Evasion:
5. Conflicts of Interest:

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 Recognizing Ethical Organizations

1. On the basis of corporate Excellence:

2. In reference to the stakeholders
3. In relation to corporate governance

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 Strategic Evaluation and Control

Strategic evaluation refers to the measurement and testing the efficiency of

strategic decisions and the effective implementation of business strategy to
achieve desired business objectives.

1.Appropriate strategy to achieve desired objectives.

2.Consistency (As per resources and environment)
3.Feasibility of strategy

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 Types of Control

1. Strategic Control: Continuously evaluate the strategy as it is

being implemented and take the necessary steps to adjust the
strategy to the new requirements.

2. Operational Control: Allocation and use of organization

resources through evaluation of performance of organizational
units, divisions, SBU

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 Four Basic Type of Strategic Control

1. Premise Control: The goal is to find if the assumptions are

still valid or not (Environmental and organizational factors).

2. Implementation Control: It includes evaluating plans,

programs, projects to see if they guide the organization to
achieve predetermined organizational objectives or not. It
consists of identification and monitoring of strategic thrusts.

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 Four Basic Type of Strategic Control

3. Strategic Surveillance: It is designed to monitor a broad range

of events inside and outside the organization that are likely to
threaten the course of the firm. To identify new information and
untapped opportunities.

4. Special alert control: It is a rapid response or immediate

reassessment of strategy in the light of sudden and unexpected
events.

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 Process Strategic Evaluation & Control

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 Technique of Strategic Evaluation and
Control
(A) Strategic momentum control: These techniques are aimed
at assuring that the assumptions on whose basis strategies were
formulated are still valid, and finding out what needs to be done
in order to allow the organization to maintain its existing
strategic momentum.

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 Strategic momentum control:
1. Responsibility control centers: In this technique, strategies
are evaluated and controlled on the basis of revenue, expense,
profit, and investment centers.
2. The underlying success factors: On the basis of Key
Success Factors (KSFs) of an organization, the strategists can
continually evaluate and control the strategy.
3. The generic strategic approach: This approach is based on
the assumption that the strategies adopted by a firm similar to
another firm are comparable.

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 Technique of Strategic Evaluation and
Control
(B) Strategic leap control: This control can assist organizations
by helping to define the new strategic requirements and cope
with emerging environmental. realities.

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 Technique of Strategic Evaluation and
Control
1. Gap Analysis
2. SWOT Analysis
3. PEST Analysis
4. Benchmarking

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 Strategic Leap control

1. Strategic issue management: This technique is aimed at

identifying one or more strategic issues and assessing their
impact on the organization.

2. Strategic field analysis: It is a way of examining the nature

and extent of synergies that exist or are lacking between the
components of an organization.

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 Strategic Leap control

3. System modeling: It is based on computer-based models that

stimulate the essential features of the organization and its
environment.

4. Scenarios: Scenarios are perceptions about the likely

environment a firm would face in the future.

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 Barriers to Implementation of Strategy

1. Strategy not compatible with culture

2. Strategy not well suited with organizational structure
3. Lack of motivation
4. Wrong leadership

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