Strategic Management-SM

  Strategic Management  
sl no unit 1:- introduction to strategic management page
no.
1 evolution of strategic management 2
2 Importance of strategic management 5
3 Apollo tyres 7
4 renovision 10
5 changing business scenario 10
6 industrial revolution 10
7 James Watts 10
8 Mass production 10
9 world war II 10
10  by the end of 20th century 11
11 E-commerce 11
12 WTO 11
13 Present scenario 11
14 survival of the fittest 11
15 role of manager 11
16 technical skills 12
17 conceptual skills 12
18 human skills 12
19 design skills 12
20 work life balance 12
21 interpersonal roles 12
22 information al role 13
23 decision role 13
24 Nicholas piramal limited 13
     
  unit 2:-understanding strategy  
1 Alfred Chandler 20
2 William Glueck 20
3 strategic business units 23
4 functional level strategies 23
5 corporate level 23
6 SBU level 23
7 levels of strategy 24
8 operational level 24
9 issues in strategic decision making 26
10 Maruti Udyod limited 27
11 strategists and their role in strategic management 37

12 role of board of Directors 37

13 Role of chief executive officers 37
14 role of entrepreneur 37
15 role of senior management 38
16 role of SBU-level executive 38
17 role of corporate planning staff 38
18 role of consultant 38
19 role of middle level managers 38
     
  unit 3:-definitions of strategic management  

1 Glueck 44
2 Hofer 44
3 Ansoff 44
4 Sharplin 44
5 Harrison and St.John 44
6 strategic planning process 46
7 clarifying the mission of the corporation 46

8 surveying the environments 46

9 external and internal 46
10 internal appraisal of the firm 47
11 general strategic alternative, evaluate and select 47

12 setting the corporate objective 47

13 formulate the corporate objective 47
14 implement,monitoring,feedback and control of the 47
strategy
15 company vision and mission 48
16 core ideology 48
17 core values, core purpose 48
18 Jerry Porras and James Collin 48
19 envisioned future 50
20 target 50
21 common enemy 50
22 role model 50
23 internal transformation 50
24 BHAG- 51
25 benefits of vision 52
26 characteristics of mission statement 53
27 key elements in developing a mission statement 53

28 history of the organisation 53

29 organizations distinctive competencies 53
30 organizations environment 53
31 elements of the mission statement 53
32 characterizes of mission statement 53
33 market focus 53
34 achievable 54
35 motivational 54
36 specific 54
37 clear 54
38 distinctive 54
39 indicate major components of strategic objective 54

40 achievement of the policies 54

41 functions of mission statement 54
42 need for a written mission statement 55
43 contents of mission statement 55
44 company product or service 55
45 markets 55
46 technology 55
47 philosophy 55
48 public mage 55
49 corporate values 55
50 strategic intent 58
51 C k Prahlad and Gary Hamel 58
52 stretch,Leverage,Fit 61
53 goals and objectives 62
54 role of objectives 62
55 characteristic of objectives 63
56 factors to be considered 63
57 specificity 63
58 multiplicity 63
59 periodicity 63
60 verifiability 63
61 environment 63
62 reality 63
63 critical success factors 64
64 policies 64
65 procedures 65
66 rules 65
67 programs 65
68 budgets 66
     
  unit 4:-environmental appraisal and SWOT  

1 concept of environment 70
2 customers take charge 71
3 competition intensified 71
4 change becomes constant 71
5 global environment 71
6 relevant environment 71
7 immediate environment 71
8 internal environment 71
9 external and internal environment 72
10 opportunity threat 72
11 strength 72
12 weakness 73
13 environmental scanning 73
14 events 73
15 trends 73
16 issues 73
17 expectations 73
18 sources of information for environmental scanning 74

19 important sources of information 74

20 secondary sources of information 74
21 sources internal to the company 74
22 methods and techniques for environmental scanning 74

23 single variable exploration, multivariable interaction 74

analysis
24 structured/unstructured expert/inpert opinion 74

25 dynamic modes and mapping 74

26 scenario writing,simulation,morphological analysis, 74
game theory, cross-impact analysis, analogies and
other forecasting techniques

27 external environment 75
28 marketing environment 75
29 financial environment 75
30 demographic environment 75
31 economic environment 75
32 political legal environment 76
33 social cultural environment 76
34 supplier and technological environment 76

35 international and global environment 76

36 SWOT analysis of financial services company 77

37 organisation al appraisal 78
38 competencies 79
39 C K Pahalad and Gary Hamel 79
40 core competence 79
41 organizational capability 80
42 factors leading to financial capability 80
43 source of funds 80
44 usage of funds 80
45 management of funds 80
46 factors leading to marketing capability 81
47 factors leading to operation al capability 81

48 factors leading to personnel capability 81

49 factors leading to information management capability 81

50 Arvind Mills 81
51 environmental appraisal 82
52 value chain analysis 82
53 quantitative analysis 82
54 Qualitative analysis 82
55 comparative analysis 82
56 comprehensive analysis 82
57 factors affecting environmental appraisal 82

58 strategist- related factors 82

59 organization -related factors 82
60 environment related factors 82
61 structuring environmental appraisal 82
     
  unit 5:-Corporate level strategies-I  
1 grand strategies 90
2 Tata steel 90
3 dimensions of business definition 93
4 stability strategies 93
5 maintain strategies no change strategy 94
6 small exploration strategy-pause/proceed with 94
caution strategy
7 consolidation /better profit strategies 94
8 expansion strategy 94
9 expansion strategies can be undertaken 95

10 expansion through concentration 95

11 expansion through integration 97
12 expansion through diversification 97
13 expansion through cooperation 98
14 types of integration 98
15 vertical integration 98
16 horizontal integration 98
17 diversification strategies 99
18 concentric diversification 99
19 conglomerate diversification 99
20 Boddingtons Group 99
21 Coke 100
22 Mc Donald's 101
23 mergers 103
24 issues in mergers 103
25 strategic issues 103
26 financial issues 103
27 managerial issues 103
28 legal issues 103
29 joint venture strategies 103
30 Nicholas Piramal 104
31 strategic alliances 105
32 managing strategic alliances 105
33 types of international  strategies 106
34 stop ford and Wells's international structure model 106

35 Tata motors 107

     
  unit 6:- corporate level strategies-II  
1 organizational models 118
2 multinational 118
3 international 118
4 global 118
5 corporate example 119
6 ways t enter global market 119
7 entry modes 119
8 export entry modes 119
9 direct export/indirect export, contractual entry 119
modes: licensing/franchising

10 investment entry modes 119

11 joint venture/independent ventures/wholly owned 119
subsidiaries
12 retrenchment strategies 119
13 non recoverable situation 119
14 temporary viability 119
15 IBM 120
16 L&T 120
17 turn around strategies 120
18 divestment or liquidation 120
19 Ispat Mexicana-Imexa 121
20 General Electric 121
21 divestment strategies 122
22 divestiture or cutback 122
23 costs to the corporation 123
24 costs to the unit 123
25 depressed exit price 123
26 making it happen 123
27 identifying candidates for divestiture 123
28 corporation's overall portfolio 124
29 structure the deal and communicate the decision 124

30 creation and destruction 124

31 combination strategies 124
32 dimension of grand strategies 125
33 internal/external dimension 125
34 related/unrelated dimension 125
35 horizontal/vertical dimension 125
36 active /passive dimension 125
37 business level strategies 125
38 Michael Porter 125
39 cost leadership 125
40 differentiation 126
41 focus 127
42 other business strategies 128
43 strategies for a market leader 128
44 expanding the total market 128
45 by getting new users 128
46 by new uses 128
47 by more usage 128
48 defending market share 128
49 position defense 128
50 flank defense 128
51 preemptive defense 128
52 counter offensive defense 128
53 mobile defense 128
54 contraction defense 129
55 strategies for market follower 129
56 counterfeiter 129
57 cloner 129
58 imitator 129
59 adapter 129
60 strategies for market challenger 129
61 attack strategies 129
62 frontal attack 129
63 flank attack 129
64 encirclement attack 129
65 bypass attack 129
66 guerilla attack 129
67 strategies for a niche marketer 129
     
  unit 7:-tools for strategic analysis and choice-I  

1 strategic decision making under certainty 138

2 residual uncertainty 138

3 levels of decision making 138
4 clear enough future 138
5 alternate future 138
6 range of future 139
7 true ambiguity 139
8 clear enough future 139
9 Casio 139
10 alternate future 140
11 range of future 140
12 true ambiguity 140
13 strategic postures 141
14 shapers 141
15 adapters 141
16 reserve the right to pay 141
17 strategic portfolio of actions 141
18 big bets 141
19 options 141
20 no regrets moves 141
21 maruti Suzuki 142
22 Mckinsey 7 -s framework 142
23 super ordinate goals 144
24 structure 144
25 company structure 144
26 major functions of structure 144
27 systems 145
28 style 146
29 actions of top management 146
30 reporting relation ships 146
31 culture of the company 146
32 staff 147
33 skills 147
34 Acme 148
35 ICICI Lombard 149
36 creating new market space 153
37 W Chan Kim and Renee Mauborgne 153
38 looking across substitutes 153
39 looking across strategic group within industries 154

40 looking across chain of buyers 154

41 looking across complementary product and service 154
offerings
42 looking across function al or emotion al appeal to 155
buyers
43 looking across time 155
44 regenerating large companies 155
45 the emerging theory of manufacturing 156
46 Petre Drucker 156
47 Statistical quality control-SQC 156
48 modern manufacturing accounting methods 156

49 traditional cost accounting-limitation s 156

50 Flotilla 157
51 Tata group 157
52 system approach 158
53 comparative study of four concepts 158
54 corporate parenting analysis 159
55 parenting opportunities and parenting characteristic 159

56 group of business 160

57 Heartland business 160
58 Edge of Heartland business 160
59 Ballast business 160
60 Alien Territory business 160
61 Value trap Businesses 160
62 Parenting fit Matrix 160
63 Heartland business 160
64 Edge of Heartland business 161
65 Ballast business 161
66 Alien Territory business 162
67 Value trap Businesses 162
68 Arvind Mils group 163
69 Michael porter's model for industry analysis 164

70 competition 164
71 return in an industry 165
72 competitive forces 165
73 Threat of entry 165
74 barriers to entry 165
75 rivalry among current competitors 166
76 numerous or equally balanced competitors 167
77 slow industry growth 167
78 high  fixed or storage costs 167
79 lack of differentiation or switching costs 168

80 capacity augmented in large increments 168

81 diverse competitors 168

82 high strategic stakes 168
83 high exit barriers 169
84 threat of substitutes 169
85 bargaining power f buyers 169
86 bargaining power of suppliers 170
87 structural analysis and competitive strategic analysis 170

88 M&M 170
     
  unit 8:-tools for  strategic analysis and choice-II  

1 strategy formulation 178

2 Boston Consulting Group-BCG Approach 178

3 need for segregation 178

4 stars 179
5 cash cows 180
6 question marks 180
7 dogs 180
8 cash an important aspect 181
9 the product portfolio 181
10 cash flow of the product 181
11 star of the portfolio 182
12 anatomy of cash cow 183
13 portfolio concept 184
14 advantage 185
15 sustainable competitive advantage 185
16 growth 185
17 criticism 186
18 GAP analysis 186
19 General Electric model 187
20 investment strategy 188
21 Industry attractiveness 188
22 introduction to portfolio analysis 189
23 corporate 189
24 SBU 189
25 product line 189
26 multifactor portfolio matrix 190
27 Tata groupBharathi enterprise 190
28 market attractiveness 191
29 competitive strength 191
30 superposition of BCG matrix on GE matrix 193

31 Directional  policy matrix 194

32 leader domain 195
33 try harder domain 195
34 growth domain 195
35 double or quit domain 195
36 proceed with care domain 196
37 cash generator domain 196
38 phased withdrawal domain 196
39 divestment domain 196
40 comparison 196
41 profit impact of market strategy model-PIMs 197

42 quality ,capital intensity, market evolution 197

43 some important linkages 198

44 quality of the product and services 198
45 market share 199
46 high investment 199
47 cash flow position 199
48 vertical integration 199
49 return on investment 199
50 Australian quality council 199
51 Hong Kong awards for industry 199
52 Japan quality award 200
53 Malaysia's prime ministers quality award 200

54 Philippines quality award 200

55 Singapore quality award 200
56 srilanka's national quality award 200
57 Thailand quality award 200
58 ROI 200
59 high ROI companies have the following 200
characteristics
60 use of PIMS 201
61 PIMS is a  general management tool 201
62 problems using PIMs 201
63 limitations of PIMs 201
64 game theory 203
65 LOSE-Lose 203
66 WIN-WIN 203
67 Delphi method 204
68 Historical background 204
69 basics 204
70 advantages 205
71 process of Delphi method 205
72 issues to be considered 206
73 other models 206
74 Product life cycle-PLC 207
75 stages 208
76 introduction 208
77 growth 208
78 maturity 208
79 decline 208
80 strategic position and action evaluation -SPACE 209

81 axes of SPACE 209

82 internal dimension 209
83 external dimension s 209
84 internal strategic position 209
85 external strategic position 209
86 financial strength-FS 209
87 environmental stability-ES 209
88 competitive advantage-CA 209
89 industry strength-IS 209
90 SPACE matrix 210
91 Characterize your industry 210
92 Analysis of your enterprise position 212
93 Invest 212
94 grow 212
95 harvest 212
96 divest 212
97 enterprise curve analysis 213
     
  unit 9:-implementation strategy  
1 strategy implementation 221
2 strategies,plans,programmes,projects,budgets,policeis 221
procedures rules regulations

3 decision making 221

4 characteristics of decisions 222
5 familiarity 222
6 ambiguity 222
7 complexity 222
8 irreversibility 222
9 significance 222
10 accountability 222
11 time 222
12 three decision contexts 222
13 certainty 222
14 risk 222
15 uncertainty 222
16 role of rationality in decision making 223
17 bounded rationality 223
18 subjective rationality 223
19 relative risk aversion 223
20 nature of strategic decision making 224
21 approaches to strategic decision making 224

22 objective setting 224

23 maximization 224
24 satisfying 224
25 instrumentalism 224
26 rationality in decision making 225
27 creativity 225
28 variability 225
29 person related factors 225
30 individual versus group 225
31 types of decisions 225
32 conventional decision making 225
33 programmed decisions 226
34 non-programmed decisions 226
35 tactical decisions 226
36 operational decisions 226
37 risk analysis 226
38 decision trees 226
39 preference theory 227
40 steps in problem solving and decision making 227

41 identify and diagnose the problem 227

42 indicators of the problem 227
43 diagnosis 227
44 develop alternate solution 228
45 evaluate alternate solution 228
46 choose an alternate solution 228
47 implement the decision 228
48 evaluate and control 228
49 resource allocation 229
50 strategic budgeting 229
51 matrix base budgeting 229
52 plc based budgeting 229
53 capital budgeting 229
54 zero based budgeting 229
55 organisation structure 230
56 organizing process 230
57 steps in problem solving and decision making 230

58 3 factors 230
59 organization levels 231
60 organization with narrow span 231
61 organisation with wide span 231
62 levels of management or organisation 232
63 comments 232
64 board of directors 232
65 executive committee 233
66 top management 233
67 functions of top management 233
68 middle management 233
69 lower management 234
70 departmentation 234
71 basics 234
72 function or purpose 234
73 types of departmentation 235
74 departmentation by product 235
75 departmentation by process 236
76 departmentation by customer 237
77 departmentation by geography 238
78 mixed departmentation 239
79 entrepreneurial structure 240
80 line and staff organisation 240
81 matrix organisation 241
82 strategic business units 242
83 why business models matter 243
84 telling a good story 243
85 tying narrative to numbers 244
86 why business models fail 244
87 relation between strategy and business model 245

88 evolution and revolution 246

89 Larry Greiner 247
90 age of the organisation 247
91 size of the organisation 247
92 stages of evolution 247
93 stages of revolution 247
94 growth rate of industry 247
95 phases of growth 247
96 creativity 247
97 direction 247
98 delegation 248
99 coordination 248
100 collaboration 248
     
  unit 10:-implementing strategy-II  
1 data versus information 254
2 operational level system 255
3 knowledge level system 255
4 management level system 255
5 strategic level system 255
6 control system 255
7 information system for management control 256

8 appraisal system 257

9 major issues 257
10 motivation system 258
11 development system 258
12 planning system 258
13 leadership 258
14 evaluating emotional quotient-EQ 259
15 components of emotional intelligence 259
16 self awareness 259
17 self regulation 259
18 motivation 260
19 empathy 260
20 social skills 260
21 factors affecting strategic decision making 261

22 administrative constraints 261

23 financial constraints 262
24 CEO's agenda and management approach 262

25 social responsibility of business 263

26 Johnson and Johnson 263
27 Corporate social responsibility 263
28 the invisible hand 264
29 hand of the government 264
30 hand of the management 264
31 anti free loader argument 265
32 capacity argument 265
33 enlightened self interest 265
34 ethical and discretionary responsibility 265
35 economic and legal responsibility 265
36 Bowen 266
37 Koontz and O'Donnell 266
38 doctrine of social responsibility 266
39 Peter Drucker 267
40 Abraham Maslow 267
41 Adam Smith and Milton Friedman 267
42 rationale of social responsibility 268
43 concept, nature and necessity of social responsibility 268

44 models of social responsibility 269

45 austere model 269
46 householders model 269
47 vendor's model 269
48 investment model 269
49 civic model 269
50 creative model 269
51 area of social responsibility 269
52 inner circle 269
53 intermediate circle 269
54 outer circle 269
55 types of social responsibilities of business 270

56 primary/economic goals 271

57 responsibilities towards customers 271
58 social goals 272
59 responsibilities towards society and community 272

60 Indian companies 273

61 Asian paints 273
62 BHEL 273
63 BROOKE bond 273
64 Colgate Palmolive 273
65 Escorts Ltd 273
66 ITC 273
67 SAIL 273
68 TISCO 273
69 values and ethics 274
70 managerial ethics from Indian perspective 275

71 evolution of ethics in India 275

72 KPMG 275
73 types of managerial ethics 276
74 immoral management 276
75 moral management 276
76 Amoral management 277
77 situational factors that influence ethical behavior 277

78 external factors 277

79 environmental competitiveness 277
80 environmental munificence 277
81 extreme dependency of one organisation over another 277

82 internal factors 278

83 mechanism for ethical management 278
84 top management commitment 278
85 code of ethics 278
86 ethics committee 278
87 ethics audit 278
88 ethics training 278
89 ethics hotline 279
     
  unit 11:-implementing strategy-III  
1 functional strategy 284
2 vertical fit 284
3 horizontal fit 284
4 budgeting 285
5 capital budget 285
6 sales budget 285
7 revenue or expense budget 285
8 scope and importance of budgeting 285
9 budgeting process 286
10 drawbacks 286
11 flexibility with budget 286
12 manpower planning 287
13 planning process 288
14 human resource demand 288
15 HR supply 288
16 HR plan implementation 288
17 requisites of successful HRP 289
18 NTPC 289
19 production management policies and plans 290

20 capacity and utilization 290

21 location of facilities 291
22 processes 291
23 equipment and maintenance 291
24 sourcing 292
25 financial planning 292
26 capital structure planning 292
27 cost principle 293
28 risk principle 293
29 control principle 293
30 flexibility principle 293
31 FHL bank 294
32 cash flow planning 294
33 working capital planning 296
34 inventory planning 296
35 receivables planning 296
36 dividend planning 297
37 taxation planning 297
38 marketing plan-MP 297
39 purpose and significance 297
40 structure of marketing plan 298
41 executive summary 298
42 environmental analysis 298
43 SWOT analysis 298
44 Marketing goal s and objectives 298
45 Marketing strategy 298
46 Niche marketing 298
47 Customized marketing 298
48 Marketing mix 298
49 product price place promotion 299
50 marketing implementation 299
51 research and development planning 300
52 R and D for Products and Processes 301
53 offensive or defensive strategies 301
54 allocating R & D resources 301
55 integration of foundational policies 302
56 the knowledge creating company 302
57 Ikujiro Nonaka 302
58 knowledge creation 302
59 spiral of knowledge 303
60 tactic to tactic 303
61 explicit to explicit 303
62 tactic to explicit 303
63 explicit to tactic 303
64 metaphor to model 303
65 analogy 304
66 model 304
67 knowledge creating company 304
68 conceptual umbrella 304
69 standards 304
70 knowledge creation 304
71 knowledge retention 304
72 knowledge transfer 305
73 knowledge utilization 305
74 business strategies related to knowledge 305
management-KM
75 change management 305
76 best practices 305
77 risk management 305
78 benchmarking 305
79 knowledge 305
80 roadblocks to adoption of knowledge management 307
solutions
81 categorization of knowledge management approaches 307

82 management of information 307

83 management of people 307
84 mechanistic approach to knowledge management 308

85 cultural/behaviorist approaches to knowledge 308

management
86 systematic approaches to knowledge management 309

87 the value of knowledge management 309

88 Infosys 310
89 supply chain management 313
90 plan source make deliver return 313
91 strategic level 313
92 tactical level 313
93 operational level 313
94 supply chain management software 314
95 goal of installing supply chain management software 315

96 customer relations management 316

97 goal of CRM 316
98 DELL 318
99 beyond connecting 319
100 mass customization 319
101 spectrum 319
102 need for speed 320
103 mass customization depends on flow of 320
manufacturing
104 spontaneous supply chains 321
105 supply chain simplification 321
106 standardization 321
107 automatic spontaneous resupply 321
108 spontaneous build to order parts-BTO 321
109 how products are customized 321
110 modular customization 321
111 adjustable customization 321
112 dimensional customization 322
113 knowledge management system 322
114 outsourcing, mergers and acquisitions 323
115 reasons for outsourcing 324
116 factors influencing successful outsourcing 324

117 mergers,acquisitions,takeovers, restructuring 324

118 reasons for acquisitions 325

119 problems in achieving success 325
120 types of acquisitions 325
121 horizontal 325
122 vertical  325
123 related 325
124 restructuring 325
125 restructuring strategies 326
126 synergy 327
127 shared know-how 327
128 shared tangible resources 327
129 pooled negotiating power 327
130 coordinated strategies 327
131 vertical integration 327
132 combined busies creation 327
133 synergy biases 328
134 parenting biases 328
135 skill biases 328
136 upside biases 328
137 sizing the price 330
138 bringing downsides to light 330
     
  unit 12:-strategic evaluation and control  

1 levels of evaluation 338

2 strategic evaluation 338
3 operational evaluation 338
4 nature of strategic evaluation 338
5 importance of strategic evaluation 339
6 participants in strategic evaluation 339
7 barriers in evaluation 339
8 requirements of effective evaluation 340
9 types of strategic controls 340
10 premise control 340
11 implementation control 340
12 strategic surveillance 341
13 emergency alert control 341
14 process of evaluation 341
15 types of operational control 342
16 measurement of performance 342
17 difficulties in measurement 342
18 timing of measurement 342
19 periodicity in measurement 342
20 analyzing variances 342
21 courses for corrective action 343
22 evaluating corporate strategy 344
23 Seymour Tiles 344
24 identifying goals 344
25 achieving 345
26 becoming 345
27 the growth fad 345
28 role of policy 345
29 need to be explicit 346
30 Bacardi 346
31 making an evaluation 346
32 critical resources 347
33 money 348
34 competence 348
35 physical facilities 348
36 achieving the right balance 348
37 why transformation efforts fail 349
38 Firestone 352