1. An Overview of Strategic Management
Chapter # 1
An Overview of Strategic Management
References
Strategic Management Concepts & Cases, Fred R. David
Strategic Management: Text and Cases, Gregory G. Dess, G. T. Lumpkin
Advanced Strategic Management: A multiple Perspective Approach, Mark Jenkins, Véronique Ambrosini, Nardine Collier
Resource Person: Furqan-ul-haq Siddiqui

4. In September 2013, Nokia sold what was once the world's largest vendor of mobile phones to Microsoft as part of an overall deal totaling €5.44 billion (US$7.17 billion). Stephen Elop, Nokia's former CEO, and several other executives joined the new Microsoft Mobile subsidiary of Microsoft as part of the deal, which closed on 25 April 2014.

5. Nokia CEO Rajeev Suri (pictured below) seems to have finally given up on saying that his company will not return to the smartphone market. Following one denial last year and another in April of this year, Suri now says the company is in fact planning on putting its name on new smartphones starting in It is yet to announce a release date or design for the next snake-enabled device.  

6. Strategy…!
A strategy is an integrated plan of action designed to achieve a particular goal.
The word strategy has military connotations, because it is derives from the Greek word for army ("leader or commander of an army, general“).

7. Tactic is concerned with the conduct of an engagement while strategy is concerned with how different engagements are linked.
Tactics are the actual means used to gain an objective, while strategy is the overall campaign plan, which may involve complex operational patterns, activity, and decision-making.
a method of employing forces in combat

8. Strategic Management
Strategic or Institutional management is comprehensive and ongoing management process aimed at the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives
Science (from the Latin scientia, meaning "knowledge") refers to any systematic knowledge-base or prescriptive practice that is capable of resulting in a prediction or predictable type of outcome. In this sense, science may refer to a highly skilled technique or practice.[1]
Art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.

9. Strategic management
Analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
Strategic management is the study of why some firms outperform others
How to compete in order to create competitive advantages in the marketplace
How to create competitive advantages in the market place.
An advantage that a firm has over its competitors,
Unique and valuable
Difficult for competitors to copy or substitute

10. Two Fundamental Questions
How should we compete in order to create competitive advantages in the marketplace?
How can we create competitive advantages in the marketplace that are unique, valuable, and difficult for rivals to copy or substitute?

11. Strategic Management Concepts
Efficiency: A measure of how well resources are used to achieve a goal
Effectiveness: Making right decisions & successfully implementing them.

12. SM Integrates Intuition & Analysis
Intuition is based on:
Past experiences
Judgment
Feelings
Intuition is useful for decision making in conditions of:
Great uncertainty
Little precedent
Highly interrelated variables
Several plausible alternatives
Intuition is the ability to acquire knowledge without inference or the use of reason.
If you win you need not to explain....But if you lose you should not be there to explain. ( by Adolph Hitler ).

13. Strategic Management Achieves Organizational Success
Process of Integrating:
Marketing
HRM
Finance/Accounting
Production/Operations
R & D
Computer information systems

14. “Strategic Management”
General Terminology
“Strategic Management”
Synonymous with
“Strategic Planning”
Strategic management
Used more often in academia
Strategic planning
Used more often in the business world

15. Specifically Strategic management Strategic planning Refers to:
Strategy formulation
Strategy implementation
Strategy evaluation
Strategic planning

16. Strategic-Management Process
Strategy Formulation
Strategy Implementation
Strategy Evaluation

17. Strategic-Management Process
Strategy formulation: the set of processes involved in creating or determining the strategies of the organization; it focuses on the content of strategies.
Strategy implementation: the methods by which strategies are operational or executed within the organization; it focuses on the processes through which strategies are achieved.
Strategy evaluation: Process by which strategies are evaluated & rectified

18. Opportunities & Threats Strengths & Weaknesses Alternative Strategies
Strategy Formulation
Vision & Mission
Opportunities & Threats
Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection

19. Strategy Implementation
Annual Objectives
Policies
Motivate Employees
Resource Allocation

20. Strategy Evaluation Review External & Internal Measure Performance
Corrective Action

21. Strategic Planning vs. Long-range Planning
Strategic planning assumes that an organization must be responsive to a dynamic, changing environment
Strategic planning assumes that organization must be quick to respond to a dynamic, changing environment, which may require changes in the future. Strategic planning, then, points out the importance of making decisions that will ensure your organization's ability to successfully respond to changes in the environment.
Long-range planning is considered to mean the development of a plan for accomplishing a goal or set of goals over a period of several years, with the assumption that current knowledge about future conditions is sufficiently reliable to ensure the plan's reliability over the duration of its implementation.

22. Adaptation to Change
Organizations must monitor events
On-going process
Internal and external events
Timely changes
Rate and magnitude of changes
Increasing dramatically
E-commerce
Demographics
Technology
Merger-mania
“The measure of intelligence is the ability to change.” ― Albert Einstein

23. Importance of Strategic Management
Provides a sense of long-term direction for organisation members.
Enhanced awareness of SWOT
Understanding of competitors’ strategies
Increased employee productivity & involvement
Reduced resistance to change
Clear performance-reward relationships
Order and discipline to the firm
View change as opportunity
Proactive vs. Reactive
More profitable and successful
Formulate better strategies (Systematic, logical, and rational approach)

24. Importance of Strategic Management
Competitive Advantage
Direction for
the Organisation
Supports Innovation
Builds
Commitment
An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition

25. Why Some Firms Do No Strategic Planning
Poor reward structures-
Fire-fighting- Embroiled in crises management
Waste of time-
Too expensive-
Laziness-
Content with success- We are successful so what's need of SM
Fear of failure-
Overconfidence on experience-
Prior bad experience
Self-interest- viewing new plans as threat
Fear of the unknown- uncertainty regarding new plans, system, new role, new skills
Suspicion- distrust upon management

26. Strategic Management Terms
Competitive Advantage
Anything that a firm does specially well as compared to rival firms.
A firm can sustain CA for only a certain period due to rival firms imitating & undermining that advantages.
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself.
Cost and differentiation advantages are known as positional advantages since they describe the firm's position in the industry as a leader in either cost or differentiation.

27. Long-Term Objectives
Long-term objectives are results that an organization seeks over a multiyear period. Common categories for business long-term objectives include profitability, employee development, productivity, technology development, employee relations & competitive position etc.
Challenging
Measurable
Consistent
Reasonable
Focus coordination
Provide basis for effective management

28. Annual Objectives
Short-term milestones necessary to achieve long-term objectives.
Represent the basis for allocating resources
Established at corporate, divisional, and functional levels
Stated in terms of accomplishments for:
management
marketing
finance/accounting
production/operations
research and development
information systems accomplishments

29. Policies
Important in strategy implementation as the means by which annual objectives will be achieved
Guide to decision making and address repetitive situations
Established at corporate, divisional, or functional levels
Allow consistency & coordination within and between organizational departments