Strategic

Management
 “Without a strategy the
organization is like a ship without a
rudder.”
- Joel Ross and Michael Kami
 Thinking Strategically:
The Three Big Strategic Questions

1. What’s the company’s present situation?

2. Where does the company need to go from here?

3. How should it get there?

 A company’s answer to “how

will we get there?” is its strategy
 What is a strategy?
► The word strategy comes from the Greek word
-“Strategia” ; which means a General or Military
Commander.

► Strategy is the overall plan of a firm deploying its

resources to establish a favorable position and
compete successfully against its rivals.
 What is Strategic
Management?
► Strategic Management is the process by which an
organization formulates its objectives and manages
to achieve them.

► It includes an analysis of internal and external

environment with a view to explore opportunities
and avoid threats
 Evolution of Strategic
Management

► Ansoff’’s Strategic Success Model

► Henry Mintzberg Technique
► Peter Drucker’s Contribution
► Michael Porter: Strategy & Competitive
Advantage
 Ansoff Strategic Success
Model

► The systematic study was pioneered by Igor

Ansoff - between 1948-68

► Acquisations - Rational or Opportunistic

Strategy
 Following are the elements of Ansoff
Model:

► No universal success formula

► Strategy depends on level of turbulence

► Success depends jointly depends on different

capabilities of the firm
 Henry Mintzberg Technique

► He brought the personal side of the manager into the

picture. (1973)

► A humane approach to strategy formulation was

advocated by him.

► He considered strategy Formulation as a deliberate,

delicate and dangerous process
 Peter Drucker

► He introduced the concept of MBO

► According to Drucker, “MBO is more than a

technique of management, it is an attitude
of managing”
 Michael Porter: Strategy and
Competitive Advantage

► He introduced Generic Strategies like Focus,

cost leadership & product differentiation

► Five force model of competitive Advantage

and value chain was introduced
Process of Strategic
Management
 Strategy Strategy
Formulatio Implement
n ation
Strategy
Objective Setting Selection Structure,
process Process
Establishin Strategy

g and
Competi
Identifyi
organizatio leadership
tive Establis
ng
nal Policy Analysis hing
Strategi
long Developing
c
Environ range Budget,
Alternat
Define ment and functional
ives
Organizatio Scannin short Strategies
range Strategy
n mission g
Internal objectiv Evaluati
Strategic
organiza on and
es Control
tion selectio
System
analysis n

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Need for Strategic
Management