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Basic Concepts of Strategic Management

Prof. V.S. Bhakre Hon. Prof. Industry-Institute Interaction

Basic Concepts of Strategic Management

Basic Concepts of Strategic Management


Environmental Scanning
External
Social Environment General Forces Task Environment Industry analysis

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Internal
Structure: Chain of command Culture: Beliefs, Expectations, values Resources: Assets, skills, Competencies, Knowledge

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Basic Concepts of Strategic Management


Environmental Scanning
Mission Reason for existence Objectives Next Slide

What results to accomplish by when

Strategies Plan to achieve the mission & objectives Policies

Broad guidelines for decision making

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Basic Concepts of Strategic Management


Strategy Implementation
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Programs

Activities needed to accomplish a plan

Budgets Cost of the program Procedures Sequence of steps needed to do the job

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Basic Concepts of Strategic Management


Evaluation and Control

Performance Actual results

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Strategic Organisational Planning

Situation Assessment

Organizational Mission

Organizational Objectives

Situation Assessment

The Situation Assessment


Organizational Mission

Organizational Mission

Organizational Objectives

Analyze the organizations resources and capabilities to identify strengths, weaknesses, and distinctive competencies

Monitor the environment to identify threats And opportunities face the organization.

Approaches to Strategic Planning

Environment Scanning
Where R we? How did we reach here? What R the key facilitators Who R our competitors? & their Strategic

Analysis of Firms Strengths & Weaknesses SWOT


Objective Setting

Or
Hindrances in our Situation Market Share?

R.O.I? Sales Turnover?

Development & Evaluate Strategy options

Strategic Decision making

Implementation

SWOT ANALYSIS- TO ASSESS SITUATION


SWOT- Can be used to develop alternate strategies. SWOT illustrates how external opportunities & threats- can be matched with internal strengths & opportunities Used for corporate & Business Strategies

Strengths (Internal)

Opportunities (External)

Weaknesses (Internal)

Threats (External)

Opportunities: External available in the Companys current & future environment

Threats: Now & Future


Strengths: Specific areas of current & future Weaknesses; Areas of Current & future

Factors to be considered (Internal) (vary from case to case)


STRENGTHS - Quality - Top Management - Employee Relation WEAKNESSES Financial position Distribution channel Manufacturing facility

- Product Mix

R&D
Evaluate on A Scale 1-5 5- Excellent 1-Poor

EXTERNAL FACTOR ANALYSIS


Opportunities & Threats (Evaluate on Scale 15) Government Policy Competition Demographic Culture & Social Acceptance Technological Development by country & world at large Ecology SWOT Matrix- on of many ways to generate alternative strategies.

A Few Vision Statements


1. We do it for You McDonald 2. We Make it Simple Honda 3. 3M hears you 3M 4. IBM Means Service IBM 5. U comes before I U.B.I 6. To fly is to Serve British Airways 7. R.I.L An Institution that contributes to India on Sustainable basis. 8. GE Imagination 9. ADAG Think Bigger, Think Better 10. A global giant in Power Solutions Crompton Greaves 11. Quality Education through innovative Methodologies VPM