1. Strategy, management, tactics, policy, VUCA (4).pptx

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1. Strategic Management Chapter 1 VKT

2. CONTENTS Strategy Strategy Management Tactics Policy VUCA VKT

3. Strategy Derived from Greek word Stratēgos meaning Military General Set of choices Strategy is about choices , which you make across the value chain (mapping of how business is done). Long range. ( Strategy is generally long range in nature though it is valid for short range as well) Dynamic : (of course we cant make strategies everyday and change them after unable to obtain success everyday, a time duration is required to obtain the results but still it should be dynamic to move in accordance to the environment) someone may ask that it should be changed after how much time, then it will totally depend upon the kind of product, industry, companies age; for ex. Tata may stick with selling Nano for few more years but a new firm could not afford such looses for this much long. VKT

4. Strategy Not a single step, but Process Holistic and Multidisciplinary (By its nature, it is multidisciplinary: strategy involves marketing, finance, human resource and operations to formulate and implement strategy) Hierarchical: (By its structure, it is hierarchical, corporate strategy by the top management and business strategy by lover level management and so on) VKT

5. Michael Porter identifies three principles underlying strategy : creating a "unique and valuable [market] position " making trade-offs by choosing "what not to do" creating " fit " by aligning company activities with one another to support the chosen strategy VKT

6. Strategy (Henry Mintzberg,1998) Strategy can be a plan – a directed course of action to achieve an intended set of goals; Strategy can be a consistent pattern of past behavior, with a strategy realized over time rather than planned or intended. Strategy as position – locating brands, products, or companies within the market, based on the conceptual framework of consumers or other stakeholders; a strategy determined primarily by factors outside the firm; Strategy can be a ploy which is a specific maneuver or trick or move intended to outwit a competitor; and Strategy can be defined as a perspective a natural extension of the mindset or ideological perspective of the organization. VKT

7. STRATEGIES Art of Generalship Formulated by the top management Focus remains very broad. (Deals with many things) Strategy is made up of several tactics It is set for long range of time frame. General guidance to whole organization TACTICS Art of arrangement Formulated by lower level management Focus is relatively narrow. It can be the sub-part of broader strategy. It determines the success and failure of the strategies. It is set for a short duration of time. Specific and situational guidance to specific section of organization Derived from the Greek word taktike ,; meaning art of arrangement Derived from the Greek word Stratēgos meaning Military General VKT

8. STRATEGIES Strategy is more about planning (WHY) Planning to send army in another nation can be the strategy Eg . firms feel drench of leaders, so they thought of developing leaders in the organization itself. E g ,. Acquiring new customers to increase sales can be a strategy Eg . To increase sales you may form the strategy to increase influence among the consumers. TACTICS Tactics is more about doing (HOW) But whether they will go in night or day, through land or sea will be part of tactics. Eg . For making leaders they developed small tactics such as small workshops and training sessions. Eg Providing sales coupons to the new customers can be the tactics Eg . for increasing influence you may use several channels, deciding that will come under tactics. VKT

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10. Strategic Management Strategic management is the highest level of managerial activity . It can be described as the identification of the purpose of the organization and development of plans and actions to achieve those purposes. It is the management of the three levels of strategies, i.e. corporate level, business level and operational level strategies. It is the art and science of the formulation, implementation, and evaluations of the three levels of strategies to successfully achieve organizational objectives VKT

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12. BUSINESS STRATEGY Strategy  is the best plan opted from a number of plans, in order to achieve the organizational goals and objectives.  Plan of action More dynamic in nature Can be made by top or mid level management  More of extroverted, depending upon the external world . BUSINESS POLICY Policy  is a set of common rules and regulations, which forms as a base to take day to day decisions . Principle of action Always made by top level management . More uniform in nature More of introverted depending upon the internal organizational settings . VKT

13. BUSINESS STRATEGY Strategies are more of action oriented More for dealing with uncertain situations whereas the policies deals with certain situations.  Eq. The firm will try to be the cost leader, can make the changes. BUSINESS POLICY Policies are more of thought oriented More formal in nature, legally binding too. More of Legal contract or binding.  Eq. Firm will not sell the data of the customers for financial gains VKT

14. Strategist 1. Shareholder Board of Directors Chief Executives Mangers VKT

15. Levels of Strategies in Orgnaisation VKT

16. Role and function of Top Management Planning Organizing Controlling Policy developer Financial Management Resource Provider VKT

17. Role of Different strategist Soothsayer: The one who tells the future of the organization and provide assistance to his team members in order to help them in foreseeing their future competition. Identifying the skills and abilities VKT

18. 2. Sculptor: 3. Politician 4. Guru 5. Jail Buster: Motivates employees to break their Shackles of fear and Dearing and unlock their true Potiential . VKT

19. Approaches to Strategy Making Autocratic approach Transformational approach Rational Approach Learning approach Political Approach VKT

20. Strategic Management process Environmental Scanning Swot External (OT) Internal (SW) VKT

21. 2. Strategy Formulation Vision Mission Objectives Strategies Policies VKT

22. 3. Strategy Implementation Programs Budget Procedure 4. Evaluation and Control Performance VKT

23. Thank you VKT