Strategic management

Strategy

strategizing

Strategic mgmt -Definition - The systematic analysis of factors associated with customers and competitors( external Environment) and the organization itself(internal environment) to provide the basis for optimum management practices.

Eg- abbot buying Nicolas piramal for a huge sum.

St mgmt-- objectives

To achieve better alignment of corporate policies and strategic priorities.

Egin nineties many american multinationals decided to focus only on core strengths

St mgmt--Fundamental questions Goals Strategy Evaluation

Eg-- Individual planning tour for a holiday--

St mgmt----Characteristics What is important for the long range success of ur business ? Eg unique products ? Turnover? New products? Efficient distribution? good margins? Human talent? Basic research?

St mgmt-

How should I position my business to meet management and business goals?

Eg--Positioning with regard to premium quality products ?

positioning on the theme of introducing products for the first time in the country or in the world eg--

St mgmt-

Involves big picture of ur business

Egorganic growth or inorganic growth? or a mix of both? or growth through diversification?

St mgmt-

Involves

Planning, analyzing and implementing a business strategy.

St mgmt-

Involves Seeing &identifying opportunities and threats in the market and industry and the outside world in general Eg ITC diversification

St mgmt
Is based on premise that all the businesses are not the same.

Eg mechanism and mode of operations differ to a large extent in pharma business

( API,ANIMAL PRODUCTS,BIOTECH PRODUCTS, INSTITUTIONAL BUSINESS,HERBAL BUSINESS, EXPORTS)

St mgmt-

Involves assessing the strengths and weaknesses of ur business

St mgmt-

Involves looking into the future rather than dwelling on the past Future----- more uncertain, more complex and complicated

St mgmt-

Is proactive rather than being reactive Eg- MacDonald decided not to sell beef and pork products in india because of religious volatility and sentiments

St mgmt-

Anticipates change and taking advantage of it Eg reentry of COKE in india

St mgmtsignificance

Well formulated strategy can bring various benefits to the organization in present as well as future

Reduces frustration because it has been planned in such a way that it follows a procedure.

St mgmt-

Brings growth because it seeks opportunities ORG --- can work in a direction Builds up the reputation of org.

St mgmt-

Companies can foresee events in future and that is why they can remain stable in the market. Can identify threats so the companies can work to get rid off them or neutralize the threats in such a way they become opportunities for their success.eg banned products anti-inflammatory, letrozole Coke neutralizing the threat for pesticide content