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Meaning of Strategic Management & Its Levels,[object Object]
Presented by…,[object Object]
WHAT IS STRATEGY?,[object Object],According to Lloyd L. Byars,,[object Object],     “Strategy includes the determination and evaluation of alternative paths to achieve an organization’s objectives and mission, and eventually, a choice of the alternative that is to be adopted.”,[object Object],According to Alfred D. Chandler,,[object Object],     “Strategy is the determination of the basic long-term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary for carrying out these goals.”,[object Object]
FORMULATION,[object Object],Doing a situation analysis,[object Object],Concurrent with this assessment, objectives are set,[object Object],The light of the situation analysis,[object Object],Three-step strategy formation process ,[object Object]
IMPLEMENTATION,[object Object],Allocation of sufficient resources,[object Object],Establishing a chain of command ,[object Object],Assigning responsibility of specific tasks ,[object Object],managing the process,[object Object],implementing specific programs,[object Object]
STRATEGIC MANAGEMENT,[object Object],According to Jauch and Glueck,,[object Object],    “Strategic management is a stream of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives. The strategic management process is the way in which strategists determine objectives and make strategic decisions.”,[object Object],According to H.L.Ansoff,,[object Object],    “Strategic management is systematic approach to a major and increasingly important responsibility of general management to position and relate the firm to its environment in a way which will assure its continued success and make it secure from surprises.” ,[object Object]
BIRTH OF STRATEGIC MANAGEMENT,[object Object],A discipline originated in the 1950s and 60s,[object Object],Importance of coordinating the various aspects,[object Object],Interactions between functions or between departments,[object Object],Looking long term perspective,[object Object],Strategy also follows from structure,[object Object],Compared market,[object Object],Corporate strategy (1965) he developed the "gap analysis",[object Object]
FEATURES,[object Object],Systematic Process,[object Object],Involves Multiple Decisions Continuous Process,[object Object],Focus on Objectives,[object Object],Longer Time Horizon,[object Object],Universal Applicability,[object Object]
NEED AND IMPORTANCE,[object Object],Aids decision making.,[object Object],SWOT Analysis.,[object Object],Aids in planning.,[object Object]
OBJECTIVES,[object Object],Mission statement: Assessing the landscape within which the company will operate, & formulating how the company sees its role within that landscape.,[object Object],Vision statement: Establishing objectives to taking both a long & short-term view of what the company can offer.,[object Object],Stipulating the goals: The company has for itself, both in terms of financial &strategic objectives. ,[object Object]
PROCESS,[object Object],Mission, goals and strategies,[object Object],External Analysis,[object Object],Internal Analysis,[object Object],Formulate Strategies,[object Object],Implement Strategies,[object Object],Evaluate the Results,[object Object]
WHAT IS SWOT ANALYSIS ?,[object Object],SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.,[object Object], It involves specifying the objective of the business venture or project and identifying the internal and external factors.,[object Object]
A SWOT analysis may be incorporated into the strategic planning model. ,[object Object],Strengths: attributes of the person or company that are helpful to achieving the objective(s).,[object Object],Weaknesses: attributes of the person or company that are harmful to achieving the objective(s).,[object Object],Opportunities: external conditions that are helpful to achieving the objective(s).,[object Object],Threats: external conditions which could do damage to the objective(s).,[object Object]
CONCEPTS,[object Object],A SWOT analysis is a structured evaluation of external and internal marketplace conditions. These are the key elements behind the SWOT analysis concept. ,[object Object],Internal factors – The strengths and weaknesses internal to the organization.,[object Object],External factors – The opportunities and threats presented by the external environment to the organization.,[object Object]
SWOT ANALYSIS involve  four concepts:,[object Object], Strength Concept,[object Object],Weakness Concept,[object Object],Opportunities Concept,[object Object],Threats Concept,[object Object]
STRATEGIC ANALYSIS,[object Object],PEST Analysis,[object Object],Scenario Planning,[object Object],Five Forces Analysis,[object Object],Market Segmentation,[object Object],Directional Policy Matrix,[object Object],Competitor Analysis,[object Object],Critical Success Factor Analysis,[object Object],SWOT Analysis,[object Object]
THREE LEVELS,[object Object],Level one (strategic capability requiring facility),[object Object],Level Two (the attainment of strategic perspective),[object Object],Level Three (the acquisition of reflective skills),[object Object]
Functional,[object Object],Business,[object Object],Corporate,[object Object],       Implementation,[object Object],LEVELS OF STRATEGY,[object Object]
FUNCTIONAL LEVEL STRATEGY,[object Object],The functional level of organization is the level of the operating divisions & departments. ,[object Object],The strategic issues at the functional level are related to functional business & value chain. ,[object Object],Functional units of organization are involved in higher level strategies by providing input into the business unit level & corporate level strategy.,[object Object],The emphasis is on short & medium term plans.,[object Object]
BUSINESS UNIT LEVEL STRATEGY,[object Object],Cost leadership: ,[object Object],    continuous efforts to lower costs relative to competitors are necessary in order to successfully be a cost leader. This can include:,[object Object],Building state of art efficient facilities,[object Object],Maintain tight control over production and overhead costs ,[object Object],Minimize cost of sales, R&D, and service. ,[object Object]
Differentiation,[object Object],Focused low cost,[object Object],Focused differentiation,[object Object],Focused strategies,[object Object]
CORPORATE STRATEGY,[object Object],How can corporate strategy be used in your organization?,[object Object],[object Object]
Establishes a pattern of action
In corporate perspective   What are the benefits of corporate strategic planning?,[object Object],[object Object]
Evaluate your competitors & adjust to current events
Motivate and encourage  managers,[object Object]
Establishes a pattern of action
In corporate perspectiveWhat are the benefits of corporate strategic planning?,[object Object],[object Object]
Evaluate your competitors & adjust to current events

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Meaning of strategic management & its levels111