Introduction to Strategic

Management

Session Objectives
To understand the concepts of strategy - Five
P'S for strategy
(strategy as plan, as pattern, as position, as
perspective and as purpose).

To understand & give examples of the strategic

management process
To understand & give examples the
organization of strategic management function

Strategy
Comes from greek word strategos (stratus
army), and ago (meaning
leading/moving)
Its an action that mangers take to attain the org
goals.
It results from detailed strategic planning process
Its about integrating org activities and utilizing,
allocating the scarce resources within org
behavior to meet present obj.

Features of Strategy
It is significant
Deals with long term planning
Take into account behavior of customers and
competitors
Strategy is well defined roadmap of the
organization

Wining Strategy = Foresight + Vision

Henry Mintzberg 5 Ps
Plan : some sort of deliberately and consciously
chosen course of action. (going from here to there)
Ploy :just a specific maneuver(plan to achieve)
intended to outwit a competitor
Pattern: in actions over a time.. Plans are intended
strategy, whereas patterns are discernible(being
seen) in realized strategy.
Position: offer particular product /service in
particular market
Perspective: vision & direction - sense of a
persistent mindset regarding the world in which the
organization operates.

Henry Mintzberg 5
Ps
Perspective emphasizes
the substantial influence
that organizational
culture and collective
thinking can have on
strategic decision making
within a company.

With Position, strategy is

about how the
organization relates to its
competitive environment,
and what it can do to
make its products unique
in the marketplace.

As a Plan, strategy needs to

be developed in advance and
with purpose. As a Ploy,
strategy is a means of
outsmarting the
competition.

With strategy as a
Pattern, we learn to
appreciate that what was
successful in the past can
lead to success in the
future.

Approaches to Strategy
Planning
Mushroom - adaptability and incrementalism.
Questions to be asked :
How did the organization reach its present state?
Why is it producing its particular range of products and
services?
What kind of products or services does it intend to
produce in the future the same or different, and, if
different, how different?

Approaches to Strategy
Why are the people who make up the strategic apex in this position?
How do they think?
How are decisions made in the organization?
What is its management style top-down or bottom-up, autocratic
or democratic?
Why is the organization structured in a particular way?

Strategic Management
Is about identifying and description of the
strategies managers used to carry out to achieve
better performance.
Use of SWOT

SM process
Environmental Scanning :
Is a process of collecting scrutinizing and
providing information for strategic purpose

Strategy Formulation:
Is the process of deciding best course of action for
accomplishing org obj & hence achieving org
purpose.

SM process
Strategy Implementation:
Putting strategy into action.
Includes designing the organizational structure ,
distributing resources, developing decision,
making process & managing human resources

Strategy Evaluation:
Involves appraising internal & external forces,
measuring performances, and taking remedial /
corrective actions.

Diff between Strategy Formulation &

Implementation
Formulation

Placing forces before the

action
Entrepreneurial Activity based
on strategic decision making
Emphasizes on effectiveness
Rational process
Requires coordination among
few people
Requires initiative & logical
skills

Implementation

Managing forces during the

action
Administrative activity based
on Strategic & operational
decision
Emphasizes on efficiency
Operational process
Requires coordination among
many people
Requires motivation &
leadership skills

We learnt.
The concepts of strategy - Five P'S for strategy
(strategy as plan, as pattern, as position, as
perspective and as purpose).

The strategic management process

Case Study
Group 6 to 7 people
Mix Finance , HR, Marketing, Operations
Purpose Learning by doing
In Action Group is suppose to exhibit their case strongly with support of good
study relevant to the Business idea chosen. Group should able to go thru crossexamination while striving to apply concepts in practices
Learning outcome Group should be able to successfully present their case
passing all cross-examinations in class.

Guidelines
Need for practicality
Need for justification
Need for realism
Need for Specificity
Need for originality
Need to contribute
Need to put true efforts for learning beyond passing

Prepare Introduction to Business

Write a introductory note of your business
including
Identification & evaluation of the orgs purpose,
Area of work final outcome (goal to make
profit/brand establishment/start up etc), job roles
of each divisional head.
Start Date ; 24/12
Present ation date : 31/12

Thank you