1. Introduction to Strategic Management

2. Course Objectives Explain What is Strategic Management
Explain What is a Strategy
Describe the Strategy Statement and its Components
Explain the Steps of Strategic Management Process
Describe the Components of Strategic Management Process
Differentiate between Strategy Formulation and Strategy Implementation
Differentiate between Strategic, Administrative and Operational Decisions
Describe the Qualities of a Strategic Leader
Explain What is a Business Policy
Describe the Structure of BCG Matrix
Describe the Factors of SWOT Analysis
Explain Porter’s Five Forces Model of Competition
Explain What is Corporate Governance
Explain What is Business Ethics
Describe the Core Competency Theory of Strategy

3. Introduction
Helium Inc. is a leading manufacturer of electrical safety equipments such as Miniature Circuit Breakers (MCBs), Molded Case Circuit Breaker (MCCBs) etc. for the past six decades.
It has carved a niche for itself in this area and captures the largest market share in its industry and segment.

4. Introduction
However, now Helium wants to venture into the mobile and Smartphone market.
It has decided to launch a range of mobiles and Smartphone that will cater to the various segments of the society.

5. Introduction
What do you think Helium should do to become successful in its venture?
Yes, a careful strategy planning will help Helium recognize its position in the market, its competitors, and challenges etc. to help it become successful in its new venture.

6. Strategy Statement and its Components
Strategic Intent
Mission
Goals and Objectives
Vision Statement
Statement of Mission
Let us look at each in detail.

7. Goals and Objectives Mission Goals: Goals and Objectives
A goal is a desired future state or objective that an organization tries to achieve. Goals specify in particular what must be done if an organization is to attain its mission or vision. Goals make mission more prominent and concrete. They co-ordinate and integrate various functional and departmental areas in an organization.
Objectives:
Objectives are defined as goals that organization wants to achieve over a period of time. These are the foundation of planning. Policies are developed in an organization so as to achieve these objectives. Formulation of objectives is the task of top level management.
The following are the features of well defined goals:
They are precise and measurable.
They look after critical and significant issues.
They are realistic and challenging.
They must be achieved within a specific time frame.
They include both financial as well as non-financial components.

8. Real Life Example Vision Vision:
“To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services.”

9. Real Life Example Vision Vision Mission Mission:
“Sony is committed to developing a wide range of innovative products and multimedia services that challenge the way consumers’ access and enjoy digital entertainment. By ensuring synergy between businesses within the organization, Sony is constantly striving to create exciting new worlds of entertainment that can be experienced on a variety of different products.”

10. Components of Strategic Management Process
The image given below shows the components of the Strategic Management Process.
Environmental Scanning
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Let us look at each component in detail.

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Real Life Example
Globus Inc. is a leading manufacturer of economy class cars.
However, monitoring and analysis of the external environment indicates that original forecasts of the prices of the raw materials that are involved in making the car are no more credible.
It has recently decided to launch a new car ‘Flash’ which will be a low-priced car catering to the low-budget consumers.
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Real Life Example
The prices of many of the raw materials are likely to go up by at least 15%.
Such analysis of the external environment helps Globus carry out a more focused scanning, forecasting and analysis to create a more trustworthy prediction about the input costs.
How do you think these changes affect the launch of ‘Flash’ by Globus?
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Real Life Example
Then, based on the input costs depicted, Globus can decide to either to raise the cost price of the car or to make any alterations in the design or features offered to keep the price same.
Thus, you can see that analysis of the environment plays a key role in formulating strategies that help make an organization successful.
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14. Strategy Formulation Process
The following are the six steps of strategy formulation process:
Setting Organizations’ objectives
Evaluating the Organizational Environment
Setting Quantitative Targets
Aiming in context with the divisional plans
Performance Analysis
Choice of Strategy
Let’s look at each in detail.
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15. Did You Know?
People learn more from their failures than from their success. Hence, one of the best approaches to avoid copying best practices is to create a process involving frank discussion about worst practices. This will help create very effective strategies because people debate on the merits of different examples of good practice, scout the organizations for promising practices that may already be bubbling up and then develop a view of what next practice should be.

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