BBALLB 4thSem
Strategic Management
Unit I Lectures:-10
Introduction: The nature of strategic management, the key terms of strategic
management, Strategic management model, Benefits of strategic management, Pitfalls
in strategic planning
Unit II Lectures:-10
Strategy formulation and external, internal assessment: The business vision and
mission, writing mission statements, the external forces, Porter five forces model, the
internal forces, value chain analysis,
Unit III Lectures:-10
Strategic analysis and choice: The nature of strategy analysis and choice, the input stage,
the matching stage (SWOT & BCG), the decision stage
Unit IV Lectures:-10
Strategy implementation: the nature of strategy implementation, resources allocation,
matching structure with strategy, managing resistance to change, creating a strategy
supportive structure, human resources concern when implementing strategy
, Unit-1
Strategy: Strategy is popularly related to war, as means or methods to defeat enemy. Strategy is
now used for business, meaning methods or means adopted to achieve business's objectives
defeating constraints.
The term strategy is derived from the Greek word ‘strategia’ which means “generalship.” In the
military concept, strategy refers to arranging troops into position before the enemy is actually
engaged in the war. Once the enemy has been engaged, attention shifts to tactics how to win war.
Here, the employment of troops is central point of strategy formulation, implementation and
controlling of war. And this concept transfers to the business world today which begins to take
form in terms of formulation, implementation and controlling business policy to achieve strategic
goals of the business enterprise.
Strategic Management refers to the process of forming a vision, setting objectives, building a
strategy, implementing and executing the strategy and then initiating adjustments to achieve the
objectives.
The term strategic management refers to the Managerial process o f
1. Forming a strategic vision,
2. Setting objectives,
3. Crafting a strategy,
Implementing and executing the strategy, and making corrective adjustments in the vision,
objectives, strategy, and execution are deemed appropriate.
Business responds to adverse or hostile environment with strategy. In business, Strategy is
considered as:
A plan by management to conduct operation, attract customers and compete successfully;
A comprehensive and integrated plan and actions to achieve the desired business goals and
objectives;
A long term plan or blue print to achieve desired image, direction and destination for
organization;
, A plan adopted for survival, stability and growth of business
CHARACTERISTICS OF BUSINESS STRATEGY
Formulated by Top Management
Long Term oriented
Integrated: Consider all elements of business
Flexible: Can be modified as per changed Environment
Purposeful: It is for making organization ready to cope-up to a competitive and complex
business environment successfully
Action Oriented and Goal Directed: It should help to start action to help in the achievement of
goal.
Allowances for Uncertainties and contingencies and should predict all possible chances
of deviation.
GENERAL STRATEGIC ALTERNATIVES (By W.F. Glueck and Lawrence R Jauch)
These general strategic alternatives are also known as Master Strategies, help organizations to face
competition and achieve its objectives successfully. These alternatives are categorized in four
broad head:
A. Stability Strategy or Do Nothing Strategy or Status Quo strategy: It states that business should
focus on their core products and should strive to improve functional efficiency, and also the
quality of products. By formulating this strategy, business wants to achieve unique position for
their products in the market, by continuously improving at all fronts as quality, customer
service, R&D and distribution, etc. It primarily focus on two issues:
, 1) Deal in similar products or services and markets
2) Focus on functional performance improvements
Expansion or Growth Strategy is one of the most important strategies. Profitable business always
looks for new avenues for efficient utilization of their profit. Expansion strategy can be in many
forms:Expand business of similar product to new markets: To catch new customer and market.
Expand business through diversification: Add new product and services.
Expand business through acquisition and mergers: Businesses acquire the other related or diversified
businesses, or merge themselves with it. It helps expansion in the shortest possible time with lower
risk. It is marriage of new business without divorce of existing business with same management.
B. Retrenchment/ Stop Loss Strategy: Products or business units which are not performing as per
their expectation, enterprises may divest such business units from their portfolio, as 'stop loss'
strategy. Following are the major characteristics of this strategy:
STRATEGIC MANAGEMENT FRAMEWORK:
Stage Five
How can we Ensure Arrival?
(Control) Introduction
Stage Four Stage One
Which way is best? Where are we now?
(Evaluation) (Beginning)
Stage T h r e e Stage Two
How Might we get there? Where we want to be?
(Means) (Ends)
Fig. Framework of Strategic Management
Strategic Management
Unit I Lectures:-10
Introduction: The nature of strategic management, the key terms of strategic
management, Strategic management model, Benefits of strategic management, Pitfalls
in strategic planning
Unit II Lectures:-10
Strategy formulation and external, internal assessment: The business vision and
mission, writing mission statements, the external forces, Porter five forces model, the
internal forces, value chain analysis,
Unit III Lectures:-10
Strategic analysis and choice: The nature of strategy analysis and choice, the input stage,
the matching stage (SWOT & BCG), the decision stage
Unit IV Lectures:-10
Strategy implementation: the nature of strategy implementation, resources allocation,
matching structure with strategy, managing resistance to change, creating a strategy
supportive structure, human resources concern when implementing strategy
, Unit-1
Strategy: Strategy is popularly related to war, as means or methods to defeat enemy. Strategy is
now used for business, meaning methods or means adopted to achieve business's objectives
defeating constraints.
The term strategy is derived from the Greek word ‘strategia’ which means “generalship.” In the
military concept, strategy refers to arranging troops into position before the enemy is actually
engaged in the war. Once the enemy has been engaged, attention shifts to tactics how to win war.
Here, the employment of troops is central point of strategy formulation, implementation and
controlling of war. And this concept transfers to the business world today which begins to take
form in terms of formulation, implementation and controlling business policy to achieve strategic
goals of the business enterprise.
Strategic Management refers to the process of forming a vision, setting objectives, building a
strategy, implementing and executing the strategy and then initiating adjustments to achieve the
objectives.
The term strategic management refers to the Managerial process o f
1. Forming a strategic vision,
2. Setting objectives,
3. Crafting a strategy,
Implementing and executing the strategy, and making corrective adjustments in the vision,
objectives, strategy, and execution are deemed appropriate.
Business responds to adverse or hostile environment with strategy. In business, Strategy is
considered as:
A plan by management to conduct operation, attract customers and compete successfully;
A comprehensive and integrated plan and actions to achieve the desired business goals and
objectives;
A long term plan or blue print to achieve desired image, direction and destination for
organization;
, A plan adopted for survival, stability and growth of business
CHARACTERISTICS OF BUSINESS STRATEGY
Formulated by Top Management
Long Term oriented
Integrated: Consider all elements of business
Flexible: Can be modified as per changed Environment
Purposeful: It is for making organization ready to cope-up to a competitive and complex
business environment successfully
Action Oriented and Goal Directed: It should help to start action to help in the achievement of
goal.
Allowances for Uncertainties and contingencies and should predict all possible chances
of deviation.
GENERAL STRATEGIC ALTERNATIVES (By W.F. Glueck and Lawrence R Jauch)
These general strategic alternatives are also known as Master Strategies, help organizations to face
competition and achieve its objectives successfully. These alternatives are categorized in four
broad head:
A. Stability Strategy or Do Nothing Strategy or Status Quo strategy: It states that business should
focus on their core products and should strive to improve functional efficiency, and also the
quality of products. By formulating this strategy, business wants to achieve unique position for
their products in the market, by continuously improving at all fronts as quality, customer
service, R&D and distribution, etc. It primarily focus on two issues:
, 1) Deal in similar products or services and markets
2) Focus on functional performance improvements
Expansion or Growth Strategy is one of the most important strategies. Profitable business always
looks for new avenues for efficient utilization of their profit. Expansion strategy can be in many
forms:Expand business of similar product to new markets: To catch new customer and market.
Expand business through diversification: Add new product and services.
Expand business through acquisition and mergers: Businesses acquire the other related or diversified
businesses, or merge themselves with it. It helps expansion in the shortest possible time with lower
risk. It is marriage of new business without divorce of existing business with same management.
B. Retrenchment/ Stop Loss Strategy: Products or business units which are not performing as per
their expectation, enterprises may divest such business units from their portfolio, as 'stop loss'
strategy. Following are the major characteristics of this strategy:
STRATEGIC MANAGEMENT FRAMEWORK:
Stage Five
How can we Ensure Arrival?
(Control) Introduction
Stage Four Stage One
Which way is best? Where are we now?
(Evaluation) (Beginning)
Stage T h r e e Stage Two
How Might we get there? Where we want to be?
(Means) (Ends)
Fig. Framework of Strategic Management
