1. Strategic Management MS-11
Yugal Raj Aryal

2. Concept of Strategy Strategy Formulation- A function of Management
Strategic Management- A process.
Plan- a grand design.
Objectives and goals
Action Plan
Use of resources
Direction

3. Survival of The Fittest
Strategy has been practiced whenever an advantage was gained by planning the deployment of resources while accounting for the capabilities and behavior of competition. 
Companies that are not able to learn, adapt, and apply emerging insights at an accelerated rate are subject to Darwinian natural selection.

4. Why do we need strategy? finite resources;
uncertainty about an adversary’s capability and intentions;
irreversible commitment of resources;
necessity of coordinating action over time and distance;
uncertainty about control of the initiative; and
the critical nature of the adversaries’ mutual perceptions of each other.

5. The basic requirements for strategy development are:
a critical mass of knowledge
an ability to integrate all of this knowledge and examine it as an interactive dynamic system
the skill at system analysis sufficient to understand sensitivity, time lags, immediate and future possibilities and consequences
the imagination and logic to choose between specific alternatives
resource control beyond immediate needs; and
the will to forego current benefits in order to invest in the future potential.

6. Competitive Strategy
In a 1996 Harvard Business Review article, Porter argues that competitive strategy is "about being different." He adds, "It means deliberately choosing a different set of activities to deliver a unique mix of value."
In short, Porter argues that strategy is about competitive position, about differentiating yourself in the eyes of the customer, about adding value through a mix of activities different from those used by competitors.
In his earlier book, Porter defines competitive strategy as "a combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there." Thus, Porter seems to embrace strategy as both plan and position. (It should be noted that Porter writes about competitive strategy, not about strategy in general.)

7. Strategy VS Tactics/Policies
What to do Vs How To do?
For Example:
Determining selling price.
Determining Credit Policy, etc

8. Session Debate Is bringing out a scheme a strategy?
Is procedure to do a certain work a strategy?

9. Levels of Strategy
Corporate Level
Business Levels
Functional Level

10. What are the importance of strategy?
Class Discussion

11. Process of Strategy Formulation
Strategic Intent
Environmental and Organizational analysis
Identification of strategic alternatives
Choice of strategy
Implementation
Evaluation
Refer to Fig: 2.1 and 2.2

12. Strategic Framework/Intent
Vision
Mission
Business Definition
Objectives and Goals

13. Environmental and Organizational Analysis
Monitoring the environment
Identifying Opportunities and Threats.
Determining Resources and Capacities.
Analytical Tools:
PEST
Porter’s 5 Forces
SWOT

14. Identification of Strategic Alternatives
Stability
Expansion
Retrenchment
Combination
Diversification
Joint Ventures
Strategic Alliance
Mergers, Acquisition and Takeovers
Divestment

15. Choice of Strategy Corporate Portfolio analysis Competitor analysis
Experience Curve
PLC Concept
BCG Matrix
GE NineCell Matrix
Competitor analysis
Industry Analysis

19. Implementation Project Implementation Procedural Implementation
Resource Allocation
Structural Implementation
Functional Implementation
Behavioral Implementation

20. Evaluation and Control
Measurement of Organisational Process
Feedback
Linking performance and reward
Setting performance standards
Measuring actual performance
Analyzing variance
Taking Corrective action

21. Discussion
How can information technology and knowledge management be used as a functional level strategy to improve customer satisfaction?

22. Unit 2
Yugal Raj Aryal

23. Strategic Analysis
There are three main activities in Strategic Analysis
Environmental Analysis
Competitive Analysis
Internal Analysis

24. Environmental Analysis
Relation between Environmental factors and relevance of factors in current/future scenario.
PESTEL analysis
Political
Economic
Socio-Cultural
Technological
Legal

25. Discussion on activity 1 & 2.

26. The Seven S Model
How an organization reacts to change in the external environment.
Superordinate Goals
Structure
Systems
Staff
Style
Shared Value
Skills

27. Competitive Forces Who is your Competitor? Porter’s Five Forces Model
Rivalry among competitors
Potential New Entrants
Substitute Products
Bargaining Power of Suppliers
Bargaining power of buyers.

29. Internal Analysis Resources- Simplified into 4 M. Men Material Money
Machienary

30. Types of Resources Assets Capabilities- HR-Finance- production, etc
Competencies- unique set of properties, patents, brand, recipe, Trademarks,etc.

31. How can your asset gain a competitive edge?
Unique Resource- Bhatbhaneni Supermarket.
Develop Core Competence By creating
Scarcity
Inimitability
Durability
Superiority

32. Critical Success Factor
Industry Characteristics
Asset Requirement.
Efficiency.
Competitive Positioning
Marketing Warefare- Riise and Trout

34. SWOT Analysis

35. Strategic Decision
Cost Leadership
Differentiation

36. Cost Behavior and Market Conditions
Cost In Seller’s Market
Selling Price= Internal Cost + Desired Profit Margin
Cost in Buyer’s Market
Profit Margin= Permissible Price- Internal Cost
Tolerable Cost= Permissible Price- Acceptable Profit

37. Experience Curve Economies of Scale Fixed cost Variable Costs
Profit Margins

38. Experience Curve Effect
Improved Productivity
Increased Specialization
Innovation
Value Engineering and Fine Tuning
Balancing Production Line
Standardization

39. Competitive Strategy Cost Leadership Differentiation Cost Focus
Differentiation Focus.

40. Differentiation
While Cost Leadership leads to competitive advantage. Differentiation leads to differential advantage.

41. Types Of Differentiation
Discuss how you can create differentiation opportunity? Also Discuss advantages and disadvantages?

42. Focus Niche Strategy as discussed in product life cycle.
Addressing the special needs.

43. Case Study

44. Unit 4
Yugal Raj Aryal

45. Corporate Strategies Growth or Directional Strategies
Portfolio Strategy
Corporate Parenting Strategy

46. Types of Corporate Strategies
Stability
Growth
Retrenchment
Combination

47. Stability Strategy When and why do we need stability?
Rationale for using stability Strategy?
Approach to Stability

48. Expansion or Growth Strategy
Expansion through Intensification.
Ansoff’s Product-Market Grid.
Market Penetration
Market Development
Product Development
Combination of all the above

49. Expansion Through Integration
Vertical Integration
Backward Integration
Forward Integration
Other Alternatives
Long Term Explicit Contracts
Franchise agreements
Joint Ventures
Co-location of Facilities
Horizontal Integration- Mergers and acquisition

50. International Expansion
Exporting
Licensing
Joint Venture
Direct Investment

51. Diversification What is Diversification? Related Diversification.
Unrelated Diversification.
Why do you need Diversification?

52. Alternative Routes to Diversification
Mergers and Acquisition
Horizontal Merger
Vertical Merger
Market Extension Merger
Product Extension Merger
Conglomeration
Strategic Parternering JV
Long Terms Contracts
Strategic Alliance

53. Benefits of M&A
Discussion
Discussion of why M&A failure

54. Steps in M&A Deals Determining the Value of the Companies
Comparative Ratios
Replacement Cost
Discounted Cash Flow
Synergy
Initial Offer by intending buyer
Response from target company
Closing the deal.

55. Strategic Alliance Why do we need Strategic Alliance?
Types of Strategic Alliance
Marketing and Sales alliance
Product and Manufacturing Alliance
Technology and Know How Alliance
Licensing Arrangements
Joint Ventures
Cross Holding, Equity Stakes and Consortia

56. Benefits Entering New Markets Reducing Manufacturing Costs
Developing and Diffusing Technology
Reducing Financial Risks and Cost Sharing of R&D
Achieve Competitive advantage

57. Why do Strategic Alliance fail
Cultural and Language Barrier
Lack of Trust
Loss of Autonomy
Lack of Clear Goals and Objectives
Lack of Coordination
Difference in management styles
Lack of Commitment
Creating potential competitor

58. Planning for strategic alliance
Choosing a strategic partner
Clarity of purpose
Select a project
Understand each other’s business
Formulation of alliance plan
Balancing contribution of partners
Build trust
Participation at the top
Freedom to innovate
Exit Strategy

59. Turnaround Strategy When is the turnaround strategy needed?
Discuss the psychological and behavioral reactions of a company in decline.
Retrenchment Strategy

60. Survival Strategy Divestment Spin-off
Restructuring the business operations
If all fails- Liquidation Strategy.