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Strategic management

Strategy

strategizing

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Strategic mgmt --

Definition

-- The systematic analysis of factors

associated with customers and

competitors( external Environment) and the organization

itself(internal environment) to providethe basis for optimum management

practices.

Eg- abbot buying Nicolas piramal for

a huge sum.

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St mgmt-- objectives

To achieve better alignment ofcorporate policies and strategic

priorities.

Egin nineties many american

multinationals

decided to focus only on corestrengths

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St mgmt---

Fundamental questions

Goals

Strategy

Evaluation

Eg-- Individual planning tour for a

holiday--

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St mgmt-----

Characteristics

What is important for the long range

success of ur business ?

Eg unique products ? Turnover? Newproducts? Efficient distribution? good

margins?

Human talent? Basic research?

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St mgmt--

How should I position my business tomeet management and business

goals?

Eg--Positioning with regard to

premium quality products ?

positioning on the theme of

introducing products for the first time

in the country or in the world eg--

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St mgmt--

Involves big picture of ur business

Egorganic growth or inorganic

growth?

or

a mix of both?

or

growth through diversification?

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St mgmt--

Involves

Planning, analyzing and implementing

a business strategy.

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St mgmt--

Involves

Seeing &identifying opportunities and

threats in the market and industry andthe outside world in general

Eg

ITC diversification

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St mgmt

Is based on premise that all the businessesare

not the same.

Eg

mechanism and mode of operationsdiffer to a large extent in pharma business

( API,ANIMAL PRODUCTS,BIOTECHPRODUCTS,

INSTITUTIONAL BUSINESS,HERBALBUSINESS,

EXPORTS)

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St mgmt--

Involves assessing the strengths andweaknesses of ur business

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St mgmt--

Involves looking into the future ratherthan dwelling on the past

Future----- more uncertain, morecomplex and complicated

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St mgmt--

Is proactive rather than being reactive

Eg- MacDonald decided not to sell

beef and pork products in indiabecause of religious volatility and

sentiments

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St mgmt--

Anticipates change and takingadvantage of it

Eg

reentry of COKE in india

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St mgmtsignificance

Well formulated strategy can bringvarious benefits to the organization in

present as well as future

Reduces frustration because it has

been planned in such a way that it

follows a procedure.

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St mgmt--

Brings growth because it seeksopportunities

ORG --- can work in a direction

Builds up the reputation of org.

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St mgmt--

Companies can foresee events in futureand that is why they can remain stable inthe market.Can identify threats so the companies

can work to get rid off them or neutralizethe threats in such a way they becomeopportunities for their success.egbanned products anti-inflammatory,

letrozole

Coke neutralizing the threat for pesticidecontent