Course Outcomes

● Demonstrate an understanding of fundamental strategic management concepts.

● Apply tools such as SWOT, PESTLE, and the 5-Forces Model to analyze external
environmental factors and their impact on organizational strategies, utilizing appropriate
environmental scanning techniques.
● Assess internal organizational resources, capabilities, and core competencies to determine
competitive advantages, and apply models such as the Value Chain, Ansoff Matrix, and BCG
Matrix for strategic decision-making.
● Develop and evaluate generic strategies like cost leadership, differentiation, and focus, and
understand the interrelations between strategy formulation and implementation, including
integration and diversification strategies.
 Subject overview.
Subject code 06101354 - Strategic Management

INTRODUCTION TO STRATEGIC MANAGEMENT.

EXTERNAL ENVIRONMENT ANALYSIS.

INTERNAL ANALYSIS .

STRATEGY FORMULATION
 Program outcome.
❏ Strategic Thinking and Problem Solving.
Develop the ability to critically analyze complex business environments.
Synthesize information to identify opportunities and threats.
Apply strategic frameworks to solve organizational problems.

❏ Development of Vision and Strategy

Formulate organizational vision, mission, and values aligned with long-term objectives.Design effective
corporate, business, and functional strategies that drive competitive advantage.

❏ Strategic Analysis and Decision-Making

Conduct SWOT analysis, PESTEL analysis, and Porter's Five Forces to evaluate internal and external
factors.Make data-driven decisions by leveraging market research and industry trends.

❏ Leadership and Organizational Alignment

Demonstrate leadership skills in aligning team goals with strategic priorities.Foster cross-functional collaboration to
execute strategies effectively.
Assessment Criteria .
Total
External Marks Internal Marks
Credit Marks
T P T CE P
100
3 60 0 20 20 0

External Exam: 60 maks theory exam at the end semester. Passing criteria is 30
marks.
● Internal Exam: 40 marks theory exam at the Mid of the semester. Passing
criteria is 20 marks. Weightage is 20 Marks
● Continuous assessment scheme: Two class tests- 5 marks weightage, two
assignments 5 marks weightage, Presentation 5 Marks, attendance 5 marks: total
20 Marks
Overview of Strategic Management.
STRATEGIC
MANAGEMEN
T
MODULE 1
STRATEGY- MEANING

• Strategy can also be defined as “A general direction set for the

company and its various components to achieve a desired state in
the future”.
• Strategy in strategic management refers to a well-defined plan of
action that an organization formulates and implements to
achieve its long-term goals and objectives.
• It involves making choices about where the organization wants to go,
how it will get there, and what resources and actions are
necessary to reach its desired outcomes
STRATEGIC • Strategic management is the management of an
organization’s resources to achieve its
MANAGEMEN
goals and
objectives.
T
• Strategic management is the process of planning,
executing, and overseeing an organization's
strategies and initiatives to achieve its long-
term goals and objectives.
• Strategic management is the process of formulating,
implementing, and evaluating strategies to
achieve the long-term goals and objectives of an
organization
 STRATEGIC MANAGEMENT PROCESS

• Setting Objectives: Defining clear and specific long-

term goals and objectives for the organization.
• Environmental Analysis: Assessing both the internal
and external environment to understand the
organization’s
• Resource Allocation: Allocating resources effectively to
support the chosen strategies. This includes allocating
financial resources, human resources, technology, and
other assets as needed.
• Strategy Implementation: Executing the chosen strategy through
detailed action plans. These plans specify the tasks, responsibilities,
timelines, and the necessary resources for successful
implementation.
• Monitoring and Evaluation: Continuously tracking the progress of
the strategy's implementation and assessing its effectiveness.
Regular performance reviews and adjustments are made as needed
to keep the organization on track.
 IMPORTANCE OF STRATEGIC MANAGEMENT

• Direction and Focus: Strategic management helps organizations establish a clear sense
of direction by defining their long-term goals and objectives.
• Competitive Advantage: Developing and executing a well-crafted strategy can lead to
a sustainable competitive advantage.
• Resource Allocation: Strategic management helps in the effective allocation of
resources, including financial, human, and technological resources
• Adaptation to Change: In an ever-changing business environment, strategic
management allows organizations to be more adaptable and responsive to market
shifts, technological advancements, and other external changes.
• Risk Management: Strategic planning and analysis enable
organizations to identify and assess potential risks and threats.
• Motivation and Employee Engagement: When employees understand
the organization's long-term objectives and their role in achieving
them, it can boost motivation and engagement.
• Long-Term Sustainability: Strategic management promotes a long-
term perspective, which is essential for an organization's sustainability
.
STRATEGIC
FIT

Strategic fit
expresses the degree A strategic fit
to which an occurs when
organization is organisations design
matching their internal
its resources operations
and in accordance with
capabilities their external
with environment.
• In the area of finance, strategic fit can be used to ensure that the company’s
financial strategies support its business objectives. For example, a company may
invest in new technology or equipment that is necessary to meet its growth
objectives.
• In the area of operations, strategic fit can be used to ensure that the company’s
operations are aligned with its overall strategy. This involves understanding the
customer’s needs and developing processes and procedures that enable the
company to meet those needs.
• In the area of marketing, strategic fit can be used to ensure that the company’s marketing
efforts are in line with its overall business goals. This includes understanding
customer needs, developing effective promotional strategies.
STRATEGIC INTENT

Strategic intent is the guiding

principle of a business’s long-term
strategy. It defines the company’s
objectives and how it plans to
achieve them.
 HIERARCHY OF STRATEGIC INTENT

1. Vision: A clear and compelling statement of the purpose or goal of a business, its fundamental nature.
2. Mission: The function or purpose of the business as clearly articulated to employees and customers; is
a truth-based narrative that explains what the company does, why it does it, and how it does it.
3. Goals: Set objectives for the business operation based on your vision and mission; be specific in what
you want to accomplish (“become a $100 million company by 2025”).
4. Objectives: Specific actions taken by a business to achieve goals; must be measurable (e.g., make a sale)
5. Action Plans: Action plans are set within this hierarchical structure, outlining what needs to be achieved
(at what time) in order to achieve the objective (e.g., marketing campaign, new sales initiative
DIFFERENCE- STRATEGIC FIT& STRATEGIC
INTENT
• Strategic intent differs from strategic fit in a way that while strategic fit
deals with harmonizing available resources and potentials to the
external environment, strategic intent emphasizes on building
new resources and potentials so as to create and exploit future
opportunities.
• Strategy fit focuses on the degree of fit between existing resources and
current opportunities, strategic intent creates an extreme misfit
between resources and ambitions.
LEVELS
OF
STRATEGI
ES
 CORPORATE LEVEL STRATEGY

• Top-level of strategy in an organization.

• These plans are usually created by a select strategy group such as the CEO and the top management.
• Corporate level strategy is the uppermost level of strategy made by top-level management
which sets the overall direction of the organization.
• Corporate level strategies are concerned with decisions such as the organization's mission, vision,
values, and goals.
• Such a strategy describes the company’s overall direction regarding its various businesses and product lines.
• Corporate strategy defines the long-term objectives and generally affects all the business units under
its umbrella.
 BUSINESS LEVEL STRATEGY

• At this level, organizations define how they will compete within specific industries or markets.
• Concerned with gaining a competitive advantage in a particular market segment or business unit.
• Business level strategies are also called as Business Strategies or Strategic Business Unit, Level Strategy.
A Strategic Business Unit (SBU) is based on the idea of recognizing the separate market segments catered by
the company.
• Business strategies are formulated differently for each segment due to the differences in their
environment conditions.
• The main focus of the business strategy is on product development, innovation, integration (vertical,
horizontal), market development, diversification.
FUNCTIONAL LEVEL STRATEGY:

• Functional level strategies focus on specific functions or departments

within the organization, such as marketing, finance, human
resources, or operations.
• These strategies are designed to support the achievement of
business and corporate level objectives.
• For example, a marketing department might develop a strategy to
increase brand awareness and market share.
 A stability strategy is a type of
corporate level strategy which
1.Stability maintaining
involves the status quo
strategy and keeping operations within
existing parameters.
The stability strategy focuses
on preserving the current state
of business and avoiding any
major changes
2. Expansion
strategy

It involves deciding how to expand the

company’s business operations and activities
to achieve its long-term goals

Expansion strategies can include both internal

and external growth, such as mergers,
acquisitions, joint ventures

It could also involve new product launches or

services, entering new markets or expanding
3. Retrenchment strategy

• Retrenchment strategy, also known as downsizing or rightsizing, is a type of

corporate level strategy.
• Retrenchment strategies involve cutting staff and resources while
streamlining processes to maximise profits without sacrificing product quality
or customer satisfaction.
• This type of corporate level strategy is often employed when businesses are
facing financial difficulty due to economic recession, change in market
conditions.
4.
Combination
strategy
• A combination strategy is a
type of corporate
level strategy that involves
the simultaneous
implementation of two or
more different strategies
BUSINESS
LEVEL
STRATEGIES
• Broad market - offering your
products to a
diverse market
• Narrow market - offering
your products to a niche
market
FUNCTIONAL
LEVEL
STRATEGIES
 MISSION

• A mission refers to the core purpose or reason for

an organization's existence.
• It defines the fundamental objectives and goals of
the organization, outlining what it seeks to achieve and
whom it aims to serve.
• It is usually one sentence or a short paragraph, explaining
a company's culture, values, and ethics.
• It communicates the reason for the organization's existence,
its primary objectives, and the principles that guides
actions.
ELEMENTS OR NATURE OF MISSION
STATEMENT
Purpose or Mission
Values and
Principles
Target Audience or
Beneficiaries Products,
Services, or Offerings Unique
Selling Proposition (USP)
Timelessness and Relevance
Inspiration and Guidance
VISION STATEMENT

• A vision statement describes what a company desires

to achieve in the long-run, generally in a time
frame of five to ten years, or sometimes even longer.
• It depicts a vision of what the company will look like in
the future and sets a defined direction for the
planning
a. nd execution of corporate-level strategies.
NATURE OR ELEMENTS OF VISION
STATEMENT
• Forward-looking
• Motivating and inspirational
• Reflective of a company’s culture and core values
• Aimed at bringing benefits and improvements to the organization in the
future
• Defines a company’s reason for existence and where it is heading
• Clear& Concise
• Differentiation
• Communication
DIFFERENCE BETWEEN VISION AND MISSION

1. Focus:
• Vision Statement: It's future-oriented, describing the desired
future state or long-term aspirations of the organization. It provides
a broad, overarching view of where the organization aims to
be in the future.
• Mission Statement: It's present-oriented, defining the
organization's purpose, its reason for existence, and
the fundamental activities it engages in to achieve its
objectives.
2. Timeframe:
• Vision Statement: Typically looks ahead to a distant future,
outlining what the organization aims to achieve in the long term.
• Mission Statement: Concerned with the current state and
immediate objectives of the organization.
3. Scope:
• Vision Statement: It's broader in scope, encompassing the larger, aspirational
goals and the ultimate impact the organization seeks to make in the world.
• Mission Statement: More specific, outlining the primary purpose, target audience,
core values, and key activities of the organization.
4. Nature:
• Vision Statement: Often inspirational, motivational, and aspirational. It inspires
and guides employees, stakeholders, and partners towards a shared future.
• Mission Statement: More practical and actionable, detailing what the organization
does, who it serves, and how it operates on a day-to-day basis.
5.Longevity:
• Vision Statement: Typically remains relatively unchanged over the
years, enduring through time and serving as a constant
guide.
• Mission Statement: Might evolve or be adapted as the
organization grows, changes, or refines its goals and strategies.
THANK YOU…..