CHAPTER CONTENTS INTRODUCTION TO STRATEGIC MANAGEMENT INTRODUCTION - PowerPoint PPT Presentation

INTRODUCTION TO STRATEGIC MANAGEMENT CHAPTER - 1 CHAPTER CONTENTS INTRODUCTION TO STRATEGIC MANAGEMENT INTRODUCTION TO STRATEGIC MANAGEMENT VISIT US AT : www.waytopinnacle.com • BUSINESS POLICY • CONCEPT OF MANAGEMENT • STRATEGY • STRATEGIC MANAGEMENT • STRATEGIC MANAGEMENT IN GOVERNMENT AND NOT FOR PROFIT ORGANIZATION • STRATEGIC LEVELS

STRATEGIC MANAGEMENT REVISION CLASS CHAPTER - 1 VISIT US AT : www.waytopinnacle.com Business Policy * Stream of instruction, guidance & direction for decision & action * Future Oriented. * Formulated by top management. * Emphasize on rational-analytical aspect of SM. * Gives direction * Set of rules & regulations. Example : Product cannibalization of Intel

STRATEGIC MANAGEMENT and Managers practice this discipline carry out the functions and Concept of Management discharge these tasks. and Managers practice this discipline carry out the functions and Peter Drucker: "Management" is a Function, a Discipline, a task to be done, discharge these tasks. and Managers practice this discipline carry out the functions and Peter Drucker: "Management" is a Function, a Discipline, a task to be done, discharge these tasks. discharge these tasks. and Managers practice this discipline carry out the functions and REVISION CLASS Peter Drucker: "Management" is a Function, a Discipline, a task to be done, Peter Drucker: "Management" is a Function, a Discipline, a task to be done, Two Senses objectives management to achieve it's process carried out by the • Set of interrelated functions and in charge of it’s affairs. • Key Group in an organization CHAPTER - 1 VISIT US AT : www.waytopinnacle.com

STRATEGIC MANAGEMENT and integrated plan of Env is dynamic " Reactive change or new learning • In Reaction of environmental " Proactive resource past trend etc. • Based on knowledge partly reactive Strategy is partly proactive & that objectives are achieved action designed to assure • Unified comprehensive REVISION CLASS actions decisions and stream of • A pattern in a setup. military was used in word Strategos from Greek Term derived Strategy CHAPTER - 1 VISIT US AT : www.waytopinnacle.com

STRATEGIC MANAGEMENT Proactive. (iii) Formulation strategy (iv) Implement (v) Control Objectives of SM Limitations of SM (i) Give direction. (ii) Makes organization (iii) Create future and pathfinder (i) Define vision mission of opportunities. (iv) Longativity of business. (v) Competitive advantage. (vi) Defense Mechanism. (vii) Framework for major decisions. Importance of SM (ii) Set Objective " Management process of REVISION CLASS (ii) CHAPTER - 1 (i) To create a competitive advantage (ii) To cope with changing environment (I) Costly Time Taking " Creates Competitive Advantages. (iii) Complex Environment (iv) Difficult to understand/ Estimate strategies response of rivals Strategic Management " Consists of analysis, decision & action VISIT US AT : www.waytopinnacle.com

STRATEGIC MANAGEMENT private firms unrelated business or merge with other • Issued are discussed in media & legislature Strategic Management In Government And Not For Profit Organization Many Non-Profit Organization outperforms A Non-Commercial • Political interference Organization is established to meet the needs not met by business enterprises SM Required in all types of Org whether commercial or non-commercial Required to cope with mounting competitive pressure • Generally can't diversify into and redirecting objectives. REVISION CLASS • Sharing of medical tests CHAPTER - 1 Medical Institutions Educational Institutions • Collecting Samples door to door • Day treatment facilities • Back-end Integration • Medical search online by people online freedom in altering mission • Electronic monitoring at home etc • Campus Interview. • Online Degrees. • Introduction of Technology. • Online Examinations etc. Governmental Agencies & Departments • Strategist operates with less strategic autonomy • Strategies usually enjoy little VISIT US AT : www.waytopinnacle.com

STRATEGIC MANAGEMENT function " Less Profit potential " Mid term " Less Risky " Less costly " Moderate organization " Periodic decision or rare " Bridge between corporate & " Plant Capacity specific to a particular business. " Concerned with strategies for individual business. direction into concrete strategies " Translates general statement of " Business Level mgrs " Plant Layout " Distribution network etc. " Include Executives at business " Low flexibility " Daily Transportation etc. " Inventory Management " Production scheduling operational Issues " Day to day action oriented " Risk is low " Periodical decision 3) Functional Level " Short Range " Usually quantifiable Business & Functional Level " Provide info & Support to " Develop Functional Strategies. " Consists of functional manager level. REVISION CLASS 1) Corporate Level " Sets strategic direction. strategy for whole org. " Oversee Development of Senior Executives. " Consists of CEO, BOD, Decision. " Less Concrete Examples of Decisions Characteristics of Description Strategic Level CHAPTER - 1 " Value Oriented " Conceptual 2) Business Level " Divestment of acquisitions etc. " Launching new business Implementing Strategy " Formulating & financing " Deciding on long term " Dividend Policies " Rare " High Flexibility. involvement " Maximum organization wide " High Profit Potential " High Cost " High Risk " Long Term VISIT US AT : www.waytopinnacle.com