 Alfred Chandler “It is concerned with the determination

of the basic long term goals and objectives of an enterprise, and

the adoption of courses of action and allocation of resources
necessary for carrying out these goals”

 William Glueck “It is a stream of decisions and actions,

which lead to the deployment of an effective strategies to help
achieve corporate objectives, decisions and actions. Which
determine whether an enterprise survives or dies”
 It provides the road map for the firm, it shows the way for
achieving targets.
 It helps the firm utilize the resources in best possible
manner. It allows more effective allocation of time and
resources for identifying opportunities.
 The firm can respond to environmental changes in a better
way by exploiting opportunities to its advantage and
avoiding costly mistakes in investment decisions.
 It minimizes the chances of mistakes and unpleasant
surprises. It seeks to prepare the firm to confront future
challenges through certain proactive steps and shapes the
future to its advantage.
 It creates a framework for internal communication among
personnel. It helps to integrate the behavior of individuals
into a total effort. It provides basic clarification of individual
towards changes.
 Strategic planning is laborious and time
consuming.
 Very few shortcuts.
 Immediate results are rarely obtained.
 Establishing and maintaining a formal system
involves many expense.
 Many executives enthralled by strategic planning,
tend to overdue the fact gathering job.
 Much time and efforts is wasted thus in collecting
all sorts of data that is not fully put to fruitful use.
 It restricts the organization and executives to the
more rational and risk free options.
 It is not a box of tricks, a bundle of techniques. it is
analytical thinks and commitment of resources to action.
 It is not forecasting. Forecasting merely points to a range
of probabilities. Whereas planning helps in tracking the
opportunities and developing strategies to achieve them.
 It does not deal with future decisions. The Q as to what
the organization should do tomorrow is not as important
as to what it has to do today to be ready for an uncertain
tomorrow.
 It is not am attempt to eliminate and minimize risk. It
only helps in choosing rationally among risk taking
courses of action rather than moving into uncertainty on
basis on hunch, hear say or experience.
KEY
Questions
 It is an overall plan of a firm deploying its
resources to establish a favorable position and
compete successfully against its rivals. It
describes a frame work for charting a course of
action.
 It explicates an approach for the company that
bills on its strength and is a good fit with a firms
external environment.
 It helps the firm to achieve competitive
advantage.
 A Chandler “The determination of long term goals of an
enterprise, and the adoption of courses of action and
allocation of resources necessary for carrying out these
goals”
 M Porter “According to Porter the threat to a firms
profit come not only from its competitors but also from
its buyers, suppliers, positional new entrants etc. so to
earn above average returns, a firm should invariably try
to establish a superior competitive position as compare
to its rivals through its strategies.
 T Ansoff “Strategic decisions are primarily concerned
with external rather than internal problems of the firms
and specifically with the selection of the product mix the
firm will produce and the markets to which it will sells.
 Schellen Berger & Boseman “It is a
continuous process of effectively relating the
organization's objectives and resources to the
opportunities in the environment.”

 F R David “It is a process of formulating,

implementing and evaluating cross functional
decisions that enable an organisation to achieve
its objectives”
 Period 1950 1960 1970 Late1970s to Late 1980s to Mid to late
early 1980s early 1990s 1990s

Dominant theme Budgetary Corporate Corporate Analysis of The quest for Strategic
planning and planning strategy Industry & Competitive Innovation
control competition Advantage

Main Issues Financial control Planning Growth Portfolio Planning Choice of Sources of Strategic &
thru ops budgets industries, Competitive Organisational
markets & advantage within advantage
segments & the firm
positioning with
them

Principal Financial Forecasting Synergy SBUs Analysis of Resource Dynamic sources

Concepts & budgeting , Investment Portfolio planning industry Analysis, Analysis of competitive
Techniques Investment Planning Models matrices structure, of Core advantage,
planning, Project Experience Competitor Competencies Control of
Appraisal curves, Returns analysis standards,
to market Share Knowledge &
Learning

Organisational Financial Rise of corporate Diversification, Greater Industry Corporate The virtual
Implications management the planning Multidivisional & market restructuring & organisation, the
key departments & 5 structures, Quest selectivity, Business process Knowledge based
year formal plans for Global Market Industry re-engineering, firm, Alliances 7
share restructuring, Refocusing & networks, The
Active asset outsourcing quest for critical
management mass
 Outcomes

Goal
Pattern

Solutions
Problems

Problem Solution
Pattern Pattern

Changes
Actions
Forced

Natural Change
Response Pattern