13 August 2010

14:00

Phases in Strategic Management SMED : Single Minute Exchange the Dye

JIT : Just in Tine
Steps to be taken in Strategic Management
1. Strategic Indent
2. Strategy Formulation
3. Strategy Implementation
4. Strategic Evaluation

20th August 2010

Strategy Formulation
Strategic Indent

Strech =>(Obstacles)

→ Re-Engineering
→ Cost Control & Cost Reduction
→ Leverage
→ Efficiency & Effectiveness

Leverage
Leverage refer to concentrating accumulating complementing conserving and recovery resources in a
such a manner that the meager resource base is strech to meet the aspirations that an organization
dares to have.

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 Strategy Formulation
20 August 2010
14:00

FIT: the Idea of FIT means positioning the firm by matching its Organization resources to its Environment.

Strategy Formulation
→ Forming the "VISION"
Vision is a description of an organization a corporate culture, a business, a technology, an activity in the future.

→ Forming the "MISSION"

Mission is essential purpose of the organization concerning particularly " why it exists ", the nature of business
carried out by them and the customer which they want to serve and satisfy.

→ Forming the "GOAL"

'Goals' denote what an organization hopes to accomplish in a future period of time.

→ Forming the "OBJECTIVES"

Objectives are the ends that states specifically how the goals shall be achieved.

Strategic Formulation

1. Environment Appraisal
 Internal & External
 Political
 Socio-Culture
 Regulatory
 Market
 International

2. Scanning of Environmental Situations

– Events
– Trends
□ Outsourcing
□ Logistics
□ Competitor's Surveillance
– Issues
□ Finance
□ Manpower
– Expectations

3. Organizational Appraisal

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 2 September 2010 & 17 September 2010

Organizational Capabilities includes:

Financial Capabilities (Constituents) Availability/ use General Management of finance



 Marketing Capabilities

Operations (Constit High Level of Favorable High degree of Reliable Effective control Good inventory High caliber of Technical
Capabilities uents) Capacity plant Vertical sources of of operation cost control system R&D Personnel collaboration with an

Utilization Location Integration Supply reputed firm

Personnel (Constitu Real Concern for Efficient & Organizational Excellent Efficient Highly High levels of Low level of Safe and
Capabilitie ents) HR Management Effective would be Training working satisfied organizational absenteeis salutary
 s & Development Personnel perceived as model opportunities & environment integrated loyalty m working
System Employees Facilities workforce conditions

Information (Constitu Ease & Widespread use of Availability & Positive Wide coverage Presence of Presence of Top Management
Managemen ents) Convenience computerized info. operatability Hi- attitude to of networking foolproof info. buyers & understanding of
t Capabilities assess to info System Tech sharing and of computer Security system suppliers Support to IT & its
sources Equipments. Disseminating systems conversant to IT Applications within
Info. Applications Organization.
General (Constitu Effective Control, reward & Business Good rapport Favorite Commonly being Development Political processes
Managemen ents) system for incentives system for Orientation & with Govt. & corporate perceived as a oriented used for consensus
t Capabilities corporate top mgmt. geared to high propensity bureaucracy image good organizational building in

planning the achievements of of High risk organization to Culture Organizational
Objectives taking Work for Interest.
17 September 2010
Effective
Management
of
Organization
Capabilities:
al Changes
Organizational Capabilities is the inherent capacity or potential of an organization to use its strengths and
overcome its weaknesses in order to exploit the opportunities and face the threats in its external
environments.

Competencies:
Competencies are special qualities possessed by an organization that make them withstand the pressure
of competition in the market place.

24 September 2010

Corporate level Strategies

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 Strategies
1. Expansion Strategies

a. Expansion strategies are adopted because it may become imperative when the environment demands increase n the pace of activit y .
b. Psychologically strategist may feel more satisfied with a prospect of growth from expansion , chief executives may take prid e preceding over those
organization perceived to be growth oriented.
c. Increase in size may lead to more control over the market and the competitors.
d. Advantages from the experience curve and scale of operations may accrued.

2. Stability Strategies

The survival strategies are adopted because:

a. It is less risky, involves less changes and people feel comfortable with the things as they are..
b. The environment phase is relatively stable.
c. Expansion may be perceived as bane .
d. Consolidation is sort through stabilizing after a period of rapid expansion.

3. Retrenchment strategies

The Retrenchment are adopted because :

a. The management is no longer wishes to remain in the business either partly or fully, due to continuous losses and the organiz ation is becoming
unviable.
b. The environment phase is threating (bane).
c. Stability c an be ensured by reallocation of sources from unprofitable to profitable businesses.

4. Combination strategies

Combination strategies are adopted because

a. The organization is large and faces complex environment.

b. The organization is composed of different businesses each of which lies in different industry requiring a different responses .

Expansion Strategies • Expansion through concentration

• Expansion through Integration
• Expansion through Diversification
• Expansion through Co-operation
• Expansion through Digitalization
• Expansion through Internalization

Expansion thru Concentration Strategies:

This is the first level of type for expansion strategies.

It involvers resources in one or more of a firms business in terms of there respective customer needs, customer function or a lternative technology either solitarily or
jointly in such a manner that results in expansion.

Expansion thru Integration Strategies:

Integration means combination activities related to the present activities of the firm

Expansion Diversification Strategies:

Diversification involves a Substantial Change in business definition signally or Jointly in Terms of customer function customer groups or alternative technology
of One or more of a firms business

Expansion thru Co-operation

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 Stability Strategies No Change Strategies
Pause/ Proceed Strategies
Profit Strategies

Retrenchment Strategies Turnaround Strategies

Divestment Strategies
Liquidation Strategies

Concentration Strategies Simultaneous Strategies

Sequential Strategies
combination of simultaneous + sequential

Ansoff's Product Market Matrix

Product Market Present New

Present Market Product
Penetration Development
New Market Diversification
Development

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 Business Level strategies
01 October 2010
16:00

Business Level strategies

The business strategies are the courses of action adopted by the organization for each of its business separately to
serve identifies customer groups and to provide value to the customer by satisfaction of their needs. In the
process the organization use its competencies to gain sustain and enhance its strategic or competitive advantage.

Michael Porter has structured the business level strategies by way of competitive forces these are five in
numbers.
Threat of new entrants.
Threat of substitute product.
Bargaining power of supplier.
Bargaining power of buyer.
Competition between the existing competitors in the industry

Pasted from <http://www.themarketers.in/wp-content/uploads/2010/01/Porter_Five_Forces1.jpg>

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 Strategic Implementation
15 October 2010
14:32

The strategic Implementation concerns the managerial exercise of putting a fresh strategy into place, strategies themselves d o not
leads to action they are a statement of indent and hence the implementation tasks are mean to released the indent the strate gies
are have to be activated through implementation. The following are the characteristics of the strategy implementation:
1. Action orientation.
2. Comprehensive scope.
3. Demanding varied skills.
4. Wide ranging involvement.
5. Integrated process.

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