CH 1 - INTRODUCTION TO STRATEGIC MANAGEMENT
CONCEPT OF MANAGEMENT CONCEPT OF STRATEGY
Management is an influence process to make Igor H. ansoff - The common thread among the organization’s activities and product-markets
things happen, to gain command over phenomena, that defines the essential nature of business that the organization has or planned to be in future.
to induce & direct events and people in a William F. Glueck - A unified, comprehensive and integrated plan designed to assure that the basic
particular manner. objectives of the enterprise are achieved.
Influence is backed by power, competence, Strategy is partly proactive and partly reactive -
knowledge and resources. A company’s strategy is typically a blend of (1) proactive actions on the part of managers to
Managers formulate organisational goals, values improve the company’s market position & financial performance and (2) reactions to
and strategies, to cope with, to adapt & to adjust unanticipated developments and fresh market conditions.
themselves with behaviour & changes in the Proactive strategy is planned strategy whereas reactive strategy is adaptive reaction to
environment. changing circumstances. RTP “Strategy is partly proactive
Nov 20 & partly reactive.” Discuss
STRATEGIC MANAGEMENT
Objectives of SM Benefits of SM
To create competitive advantage, so a) Helps management to define realistic objectives & goals which are in line RTP Nov 19
that the company can outperform with vision of co. Strategic management helps an
the competitors in order to have organization to work through
b) Helps organisations to be proactive instead of reactive
changes in environment to gain
dominance over the market. c) able to control their own destiny in a better manner competitive advantage. In light
To guide the company successfully d) Provides framework for all major decisions of statement discuss its
It provides better guidance to entire org. on crucial point benefits.
through all changes in environment e)
f) act as pathfinder to various business opportunities
g) identify ways & means as how to reach them
h) Serves as a corporate defence mechanism against mistakes & pitfalls
i) Avoid costly mistakes in product market choices or investments
j) Helps org. to develop certain core competencies & competitive advantages
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Limitations of SM May 19 ‘Strategic Management is not a panacea for all the corporate ills, it
has its own pitfalls which can’t counter all hindrances and always
a) Environment is highly complex & turbulent. It is difficult to understand complex achieve success’. Do you agree with this statement? Discuss.
environment & exactly pinpoint how it will shape-up in future
RTP
b) SM is a time-consuming process Ramesh Sharma has fifteen stores selling consumer durables in Delhi
Nov 19
Region. Four of these stores were opened in last three years. He believes
c) It is a costly process in managing strategically and enjoyed significant sales of refrigerator,
d) In a competitive scenario, where all organisations are trying to move strategically, televisions, washing machines, air conditioners and like till four years
it is difficult to clearly estimate competitive responses to a firm’s strategies back. With shift to the purchases to online strores, the sales of his stores
came down to about seventy per cent in last 4 years. Analyse position of
RTP Define strategic management. Also discuss Ramesh Sharma in light of limitations of strategic management.
May 21 the limitations of strategic management
STRATEGIC LEVELS IN ORGANISATION
Corporate Level Business Level Functional Level
i) It consists of CEO, other senior executives, i) Development of strategies is responsibility i) It consists Functional Managers
BOD, & corporate staff of those in charge of different businesses ii) Responsible for specific business functions or
ii) These individuals participate in strategic called business level managers. operations
decision making within org. ii) It consists divisional managers & staff iii) Whereas general managers oversee operation of a
iii) This role includes defining mission & goals, iii) Business-level manager, is head of division whole co. or division
determining what businesses it should be iv) Strategic role of these managers is to iv) It provide most of info that makes it possible
in, allocating resources among different translate general statements of direction for business & corporate level general managers to,
businesses, formulating & implementing v) Business-level managers are concerned formulate realistic & attainable strategies
strategies that span individual businesses, with strategies that are specific to a v) It may generate important ideas that
& providing leadership for org. particular business subsequently may become major strategies for Co.
Jan 21 ABC Limited is in a wide range of businesses which include apparels, lifestyle products, RTP Explain the difference between three levels
furniture, real estate & electrical products. The company is looking to hire a suitable May 20 of strategy formulation
Chief Executive Officer. Consider yourself as the HR consultant for ABC limited. You
have been assigned the task to enlist the activities involved with the role of the Chief
Executive Officer. Name the strategic level that this role belongs to and enlist the
activities associated with it.
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STRATEGIC MANAGEMENT IN NON-PROFIT & GOVERNMENT ORGANISATION
Educational institutions Medical organizations Governmental agencies & Dept.
i) Significant change in competitive climate has i) Hospitals are creating new strategies today as i) Central, state, municipal agencies, Public
taken place, hence different strategies are advances in diagnosis & treatment of chronic Sector Units, departments are responsible for
adopted for attracting best students diseases are undercutting that earlier mission formulating, implementing, & evaluating
ii) Educational delivery system has also undergone ii) Backward integration strategies that some strategies
considerable changes with introduction of hospitals are pursuing include acquiring ii) Governmental strategists usually enjoy little
computers & internet technologies ambulance services, waste disposal services, & freedom in altering organizations' missions or
iii) Online college degrees becoming common & diagnostic services redirecting objectives
represent threat to Traditional Colleges iii) Strategic landscape of healthcare is changing iii) Strategic issues get discussed & debated in
because of Internet media & legislatures
"Strategic Management concepts are useful for "There is a need for Strategic Management for government
Nov 19 Nov 20
educational institutions." Explain with reasons. and medical organization too." Comments.