BA7302

STRATEGIC
MANAGEMENT
GREEK WORD- STRATEGOS- GENERALSHIP

COURSE OBJECTIVE:
To

learn the major initiatives taken by a

company's top management on behalf
of corporate, involving resources and
performance in external environments.
It entails specifying the organization's
mission, vision and objectives,
developing policies and plan to
understand the analysis and
implementation of strategic
management in strategic business units.

COURSE OUT COME :

This Course will create knowledge and

understanding of management concepts
principles and skills from a people, finance,
marketing and organisational perspectives the
development of appropriate organisational
policies and strategies within a changing
context to meet stakeholder interests
information systems to learn from failure key
tools and techniques for the analysis and design
of information systems, including their human
and organisational as well as technical aspects.

UNIT I

STRATEGY
AND PROCESS

Contents:
Conceptual

framework for strategic

management,
the Concept of Strategy and the Strategy
Formation Process
Stakeholders in business
Vision, Mission and Purpose
Business definition, Objectives and Goals
Corporate Governance and Social
responsibility case study.

Philosophy
What's

the use of running if you are

not on the right road- German
proverb
If you do not know where you come
from, you do not know where you
stand, if you do not know where
you stand, you do not know where
you go- Chinese Proverb
To run in a right road to reach your
destination is strategy.

Strategy
Strategy

is a set of related actions that

managers take to increase
organizations performance.
If it results in superior performance to
that of its rivals it is said to have
competitive advantage.
Example: Wal Mart, American Airlines,
Airtel

15

ENVIRONMENT VARIABLES

ENVIRONMENT SCANNING
SOCIETAL ENV
SHARE HOLDERS
SOCIOCULTURAL

GOVT

SP INT
GROUP
CUSTO
MERS
POLITICAL
& LEGAL

TASK ENV
S
S
SUPP
S INTERNAL
LIERS

I
N
CULTURE
T

ECONOMIC

STRUCTURE

S
T
R

RESOURCES

CREDIT
ORS
COMMUNITIES

EMPLOYEES
COMPETITORS

TECHOLOGICAL

TRADE
ASSOCIATIONS

16

STAKEHOLDERS IN
BUSINESS
STAKEHOLDERS IS THE PERSON OR PEOPLE
WHO ARE RUNNING THE BUSINESS.
THE DEPENDENCE AND IMPORTANT OF
BUYERS AND SUPPLIERS were the part of
the stakeholder family.
The stakeholder are those individuals or
groups who depend on the organization to
fulfill their own goals and on whom , in
turn, the organization depends.

17

INTERNAL

STAKEHOLDERS:
Market(primary) stake holders are
those that engaged in economic
transactions with the business (For
example stock holders, customers,
suppliers, creditors and employees)

18

EXAMPLES OF A COMPANYS STAKE

HOLDERS
Stake holders

Examples of interests

Owner Private/Shareholder

Profit, Performance, Direction

Government

Taxation, VAT, Legislation, Low

unemployment

Senior Management Staf

Performance, targets, growth

Non-Managerial Staf

Rates of pay, job security

Trade Unions

Working conditions, Minimum

wages, Legal requirements

Customers

Value, Quality, Customer Care,

Ethical products

Suppliers

Providers of products and services

used in the end product for the
Customer.

Creditors

Credit score, New contracts,

Liquidity

Community

Jobs , Involvement, Environmental

STRATEGY FORMULATION
PLANNING PROCESS
EXTERNAL ANALYSIS
OPPOURTINITIES
THREATS

FEEDBACK

MAIN COMPONENTS OF STRATEGIC

19

MISSION&GOALS

SWOT STRATEGIC
CHOICE

INTERNAL ANALYSIS
STRENGTH&
WEAKNESS

FUNCTIONAL
LEVEL STRATEGY
BUSINESS LEVEL
STRATEGY

GLOBAL STRATEGY
STRATEGY
IMPLEMENTATION
IMPLEMENTING
STRATEGY IN SINGLE
INDUSTRY

CORPORATE
PERFORMANCE
GOVERNANCE,&ETHICS

IMPLEMENTING
STRATEGY ACROSS
INDUSTRIES

CORPORATE
GOVERNANCE
Corporate governance is the set of processes, customs, policies, laws, and
institutions affecting the way a corporation (or company) is directed
The system by which business corporations are directed and controlled.
The corporate governance structure specifies the distribution of rights and
the process by which agencies are directed and controlled. It is generally
understood to encompass authority, accountability, leadership, direction and
control.
The relationship between all the stakeholders in a company. This includes
the shareholders, directors, and management of a company, as defined by the
corporate charter, bylaws, formal policy, and rule of law.
The way in which a company is governed and how it deals with the various
interests of its customers, shareholders, employees and society at large.

SOCIAL RESPONSIBILITY
Social

Responsibility refer to the businessman

decisions and actions taken to reasons at least
partially beyond the firm's direct economic or
technical interest Davis.