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Strategic Management: DR - Gopal Iyangar DR - Varsha Nadkarni

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Strategic

Management
Dr.Gopal Iyangar
Dr.Varsha Nadkarni

GI &VN
Strategy and the Quest for
Competitive Advantage

 Some companies will stand out as the


top performers in terms of
profitability,sales,growth or growth in
shareholder’s value.
 Some companies are there in right
business at the right time.
 Some companies manage to rise to the
top and stay there year after year
pleasing customers.
GI &VN
STRATEGY

 Strategy means making clear-cut choices about how to


compete.

Jack Welch,Former CEO of GE

If your firm’s strategy can be applied to any other firm, you


don’t have a very good one.

David Collins, Management Consultant

GI &VN
What do we mean by
strategy?
 How to attract and please customers?
 How to compete against rivals?
 How to position the company in the marketplace.
 How best to respond to changing economic and market
conditions?
 How to capitalize on attractive opportunities to grow
the business?
 How to achieve the company’s performance targets?

GI &VN
What do we mean by
strategy?
 A company’s strategy is its action plan for
outperforming its competitors and achieving superior
profitability and performance.
 It is managerial commitment to integrated array of
considered choices about to compete. (English)
 Strategy is about competing Differently.
 Actions and moves in marketplace that managers are
taking to gain a competitive advantage over rivals.

GI &VN
Defining Strategy

Some Useful Definitions of Strategy


 Strategy as the determinant of the long-term
goals of the enterprise. - Chandler
 Strategyas the pattern of objectives,
purposes, or goals and plans for achieving
these goals. - Andrews
 Strategy as the common thread among a
firm’s activities. - Ansoff

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Military origins of strategy

 The term strategy is derived from the Classic and


Byzantine (330 A.D.) Greek word ”Strategos” which means
generalship.
 Strategy means the art of the general.
 Strategy sprung from the need for people to defeat their
enemies.
 Strategy refers to high level planning to guarantee security
or victory while tactics refers to achieving objectives set
by strategy.
 Military strategies included deterrence, offence, defense
and alliance.

GI &VN 06/08/2020
Military strategy hierarchy

 The strategic goals


 policies
 programs

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Evolution of strategy
 Basic Financial Planning (Budgeting)
 Long-range Planning (Extrapolation)
 Strategic (Externally Oriented) Planning
 Strategic Management
 Complex Systems Strategy:

GI &VN
Evolution of strategy
 D’Aveni shows the need to change the organization
continually through the 7-S approach.

Ø      Superior stakeholder satisfaction.


Ø      Strategic soothsaying.
Ø      Positioning for speed.
Ø      Positioning for surprise
Ø      Shifting the rules of the game.
Ø      Signaling strategic intent.
Ø      Simultaneous and sequential strategic thrusts

GI &VN
Concept of Strategic management

Strategic Management is the art and


science of formulating, implementing,
and evaluating cross-functional decisions
that enable an organization to achieve
its objectives.

GI &VN
Concept and Characteristics of Strategic
management

GI &VN 06/08/20
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Mintzberg’s 5Ps of Strategy

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Mintzberg’s 5Ps of Strategy
 Strategy as a plan
 Useful Techniques: PEST Analysis , SWOT
Analysis, Brainstorming  help identify
opportunities;  change management  and project
management teach the skills to deliver the strategic
plan.

GI &VN
Mintzberg’s 5Ps of Strategy
 Strategy as a ploy
 UsefulTechniques - Futures Wheel , Impact
Analysis  and Scenario Analysis  help map
possible outcomes so a choice can be made.
can help you explore the possible future
scenarios in which competition will occur.
Likewise Game Theory  

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Mintzberg’s 5Ps of Strategy
 Strategy as a pattern –
 Useful Techniques - USP Analysis  and Core
Competence Analysis (VRIO) which are an
indication of how well a planned strategy can
be implemented

GI &VN
Mintzberg’s 5Ps of Strategy
 Strategy as a position
 UsefulTechniques – Porter’s 5 Forces,
Porter’s Diamond, Strategic Group Analysis,
VRIO, USP analysis and SWOT

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Mintzberg’s 5Ps of Strategy
 Strategy as a perspective
 Useful Techniques - cultural analysis tools
like the Cultural Web and the Congruence
Model

GI &VN
Defining Strategy

DifferentKinds
Different Kindsof
ofStrategy-
Strategy-Mintzberg
Mintzberg

Deliberate
Intended Strategy Realized
Strategy

Emergent
Unrealized Strategy
Strategy
Different Levels of Strategy

GI &VN
Strategic Management Process

Strategic management is a process—a flow of


information through interrelated stages of
analysis toward the achievement of some
goal.
Strategic Management Process

 Phase 1 – Strategic Intent


 Phase 2 – Strategy Formulation
 Phase 3 – Strategy Implementation
 Phase 4 – Strategic Evaluation

GI &VN 06/08/20
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Strategic Management Process

Phase 1 – Strategic Intent


 Vision
 Mission
 Values
 Business Definition and Model
 Goals
 Objectives
Strategic Management Process

Phase 2 – Strategy Formulation


 Environmental Analysis (Macro and Industry)
 Organisational Analysis
 SWOT
 Strategy Choices
 Corporate and Business Level Strategies
 Functional Strategic Plans
Strategic Management Process

Phase 3 – Strategy Implementation


 Project
 Procedural
 Resource Allocation
 Structural
 Behavioural
 Functional
 Operational (Tasks)
Strategic Management Process

Phase 4 – Strategic Evaluation


 Periodic Assessment of Performance
Overlapping Aspect – Strategic Control
 Applies to all 4 phases
 Three levels – Action, Strategy,
Paradigm

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