8/2/2019 Strategic Management(Lecture 2)

1/13

Basic Concepts of Strategic

Management

Prof. V.S. Bhakre

Hon. Prof. Industry-Institute

Interaction

8/2/2019 Strategic Management(Lecture 2)

2/13

Basic Concepts of StrategicManagement

8/2/2019 Strategic Management(Lecture 2)

3/13

Basic Concepts of Strategic Management

Social EnvironmentGeneral Forces

TaskEnvironment

Industry analysis

External

Structure: Chain ofcommandCulture:

Beliefs, Expectations,values

Resources:Assets, skills,Competencies,

Knowledge

Internal

EnvironmentalScanning

Feedback/Learning

Next Slide

8/2/2019 Strategic Management(Lecture 2)

4/13

Basic Concepts of Strategic Management

Feedback/Learning

EnvironmentalScanning

Mission

Objectives

Strategies

Policies

Reason forexistence

What resultsto accomplish

by whenPlan to

achieve themission &objectives

Broadguidelines for

decisionmaking

Next

Slide

8/2/2019 Strategic Management(Lecture 2)

5/13

Basic Concepts of Strategic Management

Feedback/ Learning

StrategyImplementation

Programs

Budgets

Procedures

Activitiesneeded to

accomplish aplan

Cost of theprogram

Sequence of

steps neededto do the job

Next

Slide

8/2/2019 Strategic Management(Lecture 2)

6/13

Basic Concepts of Strategic Management

Feedback/ Learning

Evaluation andControl

Performance

Actual results

8/2/2019 Strategic Management(Lecture 2)

7/13

Strategic Organisational Planning

SituationAssessment

OrganizationalMission

OrganizationalObjectives

SituationAssessment

8/2/2019 Strategic Management(Lecture 2)

8/13

The Situation Assessment

OrganizationalMission

OrganizationalObjectives

OrganizationalMission

Analyze the organizationsresources and capabilities

to identify strengths,weaknesses, and distinctive

competencies

Monitor the environment toidentify threats

And opportunities face the organization.

8/2/2019 Strategic Management(Lecture 2)

9/13

Approaches to Strategic Planning

Environment Scanning

Where R we? How did wereach here?

Analysis of Firms Strengths& Weaknesses SWOT

Objective Setting

Development & EvaluateStrategy options

Strategic Decision making

Implementation

Who R ourcompetitors? & theirStrategic

Or

Hindrances in ourSituation

Market Share?

What R the keyfacilitators

R.O.I?Sales Turnover?

8/2/2019 Strategic Management(Lecture 2)

10/13

SWOT ANALYSIS- TO ASSESS SITUATION

SWOT- Can be used to develop alternate strategies.

SWOT illustrates how external opportunities & threats- can be matched withinternal strengths & opportunities

Used for corporate & Business Strategies

Strengths

(Internal)

Opportunities

(External)

Weaknesses

(Internal)

Threats

(External)

8/2/2019 Strategic Management(Lecture 2)

11/13

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 WEAKNESSES

- Quality

- Top Management

- Employee Relation

- Product Mix

Evaluate on A Scale 1-5

5- Excellent 1-Poor

Financial position

Distribution channel

Manufacturing facility

R & D

8/2/2019 Strategic Management(Lecture 2)

12/13

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.

8/2/2019 Strategic Management(Lecture 2)

13/13

A Few Vision Statements

1. We do it for You McDonald2. We Make it Simple Honda3. 3M hears you 3M4. IBM Means Service IBM

5. U comes before I U.B.I6. To fly is to Serve British Airways

7. R.I.L An Institution that contributes to India on Sustainable basis.8. GEImagination

9. ADAG Think Bigger, Think Better10. A global giant in Power Solutions Crompton Greaves

11. Quality Education through innovative Methodologies VPM