Market Scenario & BSNL status - training.bsnl.co.in · •Strategy Formulation •Strategy Evaluation •Strategy Characteristics •The Strategy Hierarchy •Reasons why strategy

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E5-E6 CSSS/PA/PS

STRATEGY CONCEPTS

WELCOME

• This is a presentation for the E5-E6 CSSS/PA/PS for the

Topic: Strategy Concepts .

• Eligibility: Those who have got the Upgradation from E5

to E6.

• This presentation is last updated on 15-3-2011.

• You can also visit the Digital library of BSNL to see this

topic.

© For internal circulation of BSNL only


AGENDA

• Concept of Strategy

• Strategy Management

• Strategy Formulation

• Strategy Evaluation

• Strategy Characteristics

• The Strategy Hierarchy

• Reasons why strategy fails

• Conclusion

Concept of Strategy

• Basically strategy is a plan of action

designed to achieve a particular goal

Strategy is different from Tactics:

– Tactics: concerned with the conduct of an

engagement

– Strategy: concerned with how different

engagements are linked


Concept of Strategy

Strategy management is the conduct of drafting,

implementing and evaluating cross-functional

decisions that will enable an organization to

achieve its long-term objectives


Concept of Strategy

A course of action aimed at ensuring that the

firm will achieve its objectives by matching its

internal resources and skills with the

environmental opportunities and risks it faces


Concept of Strategy

Strategy is the process of:

Specifying the organization's mission, vision and

objectives

Developing policies and plans

Allocating resources to implement the policies and

plans

Strategic management is an ongoing process that

evaluates and controls the business and the industries in

which the company is involved


Strategic Management

Strategic Management basically seeks to answer

the question:

How and why do some firms outperform others?


Why Strategic Management ?

• Provides a framework for thinking about the

―business‖

• Creates a fit between the organization and its

external environment.

• Provides a process of coping with change and

organizational renewal


Why Strategic Management ?

• Fosters anticipation, innovation, and excellence

• Facilitates consistent decision-making

• Creates organizational focus

• Acts as a process of organizational leadership.

• Finally and most importantly: To help the

organization to succeed (outperform) against its

competition!!


Strategy Formulation

1. Situation Analysis

2. Self Evaluation

3. Competitor Evaluation

4. Objectives are set( Vision, mission etc)

5. Placement and execution of required resources e.g.

financial, manpower, operational support, time,

technology support

6. Distributing the specific tasks

7. Strategy is drawn to achieve these objectives


SWOT Analysis


Strategy Evaluation

Three key success criteria:

1.Suitability: (Would it work?)(Economic)

2.Feasibility: (Can it be made to work?)

(Resources: people, money, time)

3.Acceptibility:(Will they work it?)(Stakeholders)

(Return, Risk)


Strategy Evaluation

Tools that can be used to evaluate

acceptability include:

– what-if analysis

– stakeholder mapping


Approaches to Strategic Management

1. The Industrial organisation approach

2. The Sociological approach


Strategic Management Techniques

• Bottom-Up

• Top-Down


Strategy Characteristics

• Long range

• Broad resource allocation

• Less formalized

• Proactive

• Broad issues

• Senior managers


The Strategy HierarchyLevels of Analysis

• Where to Compete?

• How to Compete?

• How to Contribute?


Corporate

Strategy

Business

Strategy

Functional

Strategy

Choice of Products

Choice of Markets

Choice of Competitors

The Strategy Hierarchy

• An additional level of strategy is operational

strategy

• It is very narrow in focus and deals with day-to-

day operational activities such as scheduling

criteria.


Portar’s 5 Forces Model


Reasons why strategy fails:

• Failure to understand the customers

• Inability to predict the environmental reactions

• Overestimation of resource competence

• Coordination failure

• Political interference

• Lack of senior management commitment

• Lack of Employee commitment


Reasons why strategy fails:

• Underestimation of time requirements

• No Persuasion

• Failure to manage change

• Poor communication

• Lack of motivation in the orgaisation


Competitive Advantage

• Competition provides the rationale for strategy without competition, strategy is of no concern.

• The essence of strategy is the interdependence of competitors—or the establishment of sustainable competitive advantage over rivals.


Competitive Advantage

It is achieved by:

Product Differentiation

Discovering new and better ways to compete in

an industry

Innovation

Understanding the value chains of its suppliers,

channels, and buyers


The Linearity Trap

The elements of strategic management –

(i) Reaching consensus on corporate objectives

(ii) Developing a plan for achieving the objectives

(iii) Allocating the resources required to implement

the plan are not Linear.

Formulation and implementation of strategy must

occur side-by-side rather than sequentially


Conclusion

• "Strategy is the direction and scope of an

organization over the long-term: which achieves

advantage for the organization through its

configuration of resources within a challenging

environment, to meet the needs of markets

and to fulfill stakeholder expectations".



Documents

Market Scenario & BSNL status - training.bsnl.co.in · •Strategy Formulation •Strategy Evaluation •Strategy Characteristics •The Strategy Hierarchy •Reasons why strategy