1. An Overview of Strategic Management
Wednesday, March 22, 2017
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

2. 1865……….. Paper mill, electricity generation, rubber mill, cable works (Finland )
1967, when they were finally merged and Nokia Corporation was born. The newly formed company mainly focused on four markets: paper, electronics, rubber, and cable. It developed things like toilet paper, bicycle and car tires, rubber footwear, TVs, communication cables, robotics, PCs, and military equipment, among others.
river

4. Nokia eventually entered into a pact with Microsoft in 2011 to exclusively use Microsoft's Windows Phone platform on future smartphones.
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.

6. On 18 May 2016, Microsoft Mobile announced the sale of its feature phone business, described as an 'unwanted extra', to a new Finland-based company called HMD Global.
HMD Global Oy, branded as simply HMD, stylized as hmd., is a Finnish company that develops smartphones and tablets, and owns the rights to sell all types of "Nokia" branded phones and tablets. It was formed in May 2016 by buying Microsoft Mobile's feature phone business[dubious – discuss] and the rights to use the "Nokia" brand until 2024, along with a licensing agreement with Nokia. The sale was completed in December 2016.
Nokia CEO, Rajeev Suri  
The Nokia 3310 is a Nokia-branded mobile phone developed by HMD Global. It was announced on 26 February 2017 at Mobile World Congress (MWC) 2017 in Barcelona, Spain.

7. 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“).

8. 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

9. 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.

10. 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

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

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

13. A Model of Intended, Deliberate, and Realized Strategy
An intended strategy is the strategy that an organization hopes to execute.
 An emergent strategy is an unplanned strategy that arises in response to unexpected opportunities and challenges. 
A realized strategy is the strategy that an organization actually follows. Realized strategies are a product of a firm’s intended strategy (i.e., what the firm planned to do), the firm’s deliberate strategy (i.e., the parts of the intended strategy that the firm continues to pursue over time), and its emergent strategy (i.e., what the firm did in reaction to unexpected opportunities and challenges). 

14. 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 ).

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

16. 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

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

18. Strategy Implementation
Annual Objectives
Policies
Motivate Employees
Resource Allocation

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

21. The Strategy Diamond and the Five Elements of Strategy

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. 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
Globalization
“The measure of intelligence is the ability to change.” ― Albert Einstein

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.

28. 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

29. 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

30. 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

31. The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest corporations by total revenue for their respective fiscal years. The concept of the Fortune 500 was created by Edgar P. Smith, a Fortune editor, and the first list was published in 1955.

32. Lesson: That’s a lot of churning and creative destruction, and it’s probably safe to say that almost all of today’s Fortune 500 companies will be replaced by new companies in new industries over the next 59 years, and for that we should be thankful. The constant turnover in the Fortune 500 is a positive sign of the dynamism and innovation that characterizes a vibrant consumer-oriented market economy, and that dynamic turnover is speeding up in today’s hyper-competitive global economy. Steven Denning pointed out a few years ago in Forbes that fifty years ago, the life expectancy of a firm in the Fortune 500 was around 75 years. Today, it’s less than 15 years and declining all the time.

33. "Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it has no place to go."
—Joel Ross and Michael Kami