Download presentation
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.
11
© ManagementStudyGuide.com. All rights reserved.
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. © ManagementStudyGuide.com. All rights reserved.
12
© ManagementStudyGuide.com. All rights reserved.
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? © ManagementStudyGuide.com. All rights reserved.
13
© ManagementStudyGuide.com. All rights reserved.
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. © ManagementStudyGuide.com. All rights reserved.
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. © ManagementStudyGuide.com. All rights reserved.
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.
16
ManagementStudyGuide.com Learn Management the Easy Way – A Continuous Learning for People of Any Age Group – Learn At Your Own Pace…. This is a DEMO Course On – Strategic Management. The Complete Presentation consists of – 210 Slides. Register Now & Download Your Set of FREE Presentations. Go to All Courses and Get Access to More than 75 Courses. For Every Course You Get Powerpoint Presentation + New Courses Added Every Week.
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.