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CONTENTS
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
DEFINITION:
Strategy
- a plan for achieving a major goal, planning & directing the whole
operation of an event.
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
DEFINITION:
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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Meaning and Nature of Strategic Management
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Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Intended Strategy
Un-realized Strategy
Divergent Strategy
Emergent Strategy
Realized Strategy
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Risks of SM
1. Conditions may vary so fast that managers are unable to do any
planning, especially long term planning.
Challenges of SM
5. Social Issues
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Hierarchy of Objectives
Mission
Corporate
Objectives
SBU Objectives
Departmental
Objectives
Divisional Objectives
Individual Objectives
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Corporate Strategy
Corporate Strategy
Corporate-level Strategy
- framed by BoD, CxOs
- responsible for the firm’s financial performance, enhancing brand
image, and fulfilling of CSRs
- develops strategies for the entire organization
- enhances the organization’s image and fulfills its overall social
responsibilities
- defines the vision, mission, and goals of the organization;
determines what business it should be in; allocates resources
among different businesses; and promotes leadership for the
organization.
- provides a link between strategic managers and share holders.
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Business-level Strategy
business divisions
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
decisions
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Functional-level Strategy
organization
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Meaning and Nature of Strategic Management
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Meaning and Nature of Strategic Management
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Meaning and Nature of Strategic Management
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Meaning and Nature of Strategic Management
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Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Strategic Leaders:
performing organization.
vision.
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
4. are well-informed
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
1. Devil’s Advocacy
2. Dialectic Enquiry
Expert Plan 1
(thesis)
Debate
Final Plan
(synthesis)
Expert Plan 2
- Definitions
- Recommended courses of action
(anti-thesis)
- Assumptions
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
3. environmental analysis
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
3. The SM Process
Defining Organizational Vision, Mission, Goals, Objectives, & Targets
Setting LT Objectives
Choice of Strategy
Strategy Formulation
Strategy Implementation
Implementation of Strategy
and Control
Feedback
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Business Model
- is the basic profit-generating idea of an organization.
- is the economic mechanism by which a business hopes to sell its
goods and services and generate profit.
- is evolved through consultations and brain storming and covers
all intricate details of the business. It is implemented by the
operational group.
- is the translation of strategies into an operational procedure to
achieve organizational goals and objectives.
- can change due to time, technology, and perceptions of the
future.
- some business models may prove successful at first but with
minor changes can become successful in future.
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Definitions
Definitions (contd…)
Core Competence
- The firm’s key capabilities and collective learning skills that
are fundamental to its strategy, performance, and LT profitability.
- Unique and enduring strength of a firm for generating
competitive advantage; this strength cannot be easily emulated
by its competitors.
- It represents accumulated knowledge and skills that are difficult
to imitate and by which it outperforms its competitors.
- It can lead to competitive advantage only if the constituent
knowledge, skills, and technologies are creatively harmonized and
quickly reconfigured to respond to new opportunities.
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Questions
1. What are the strengths & weaknesses of formal strategic planning?
2. Discuss the accuracy of the statement: “Formal strategic planning
systems are irrelevant for firms competing in high-technology
industries where the pace of change is so rapid that plans are
routinely made obsolete by unforeseen events.”
3. What is the difference between intended strategy and realized
strategy? Why is this distinction important?
4. Does the CEO alone make strategic decisions for a firm? Explain.
5. What are the pitfalls in the strategic management process?
6. What is strategic management? Explain.
7. Explain the (six) identifiable dimensions in strategic decisions?
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STRATEGIC MANAGEMENT
Meaning and Nature of Strategic Management
Questions (contd…)
Questions (contd…)
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