strat management-1 intro

7/30/2019 Strat Management-1 Intro

1/13

STRATEGIC MANAGEMENT

1


2/13

Dr. T.K. Vijay Kumar

Companies are operating in age of discontinuing change - anage of creative & constructive destruction. Business, technology and product life is shrinking. Demographic shift in terms of consumer preference andrequirements. A direct promotion from Agricultural economy to service orHi-tech economy in the new growth economy. A concept from liberalization, privatization & Globalization(LPG) to regionalization. Shift from controlled economy to market driven economy. Rich countries adopt deindustrialization. Emergence of new Global Socio economic system and worldorders. Knowledge is replacing Infrastructure Self-leadership is in, command and control out Networks are replacing hierarchies Wanted - employees with Emotional Intelligence.

2


3/13

Dr. T.K. Vijay Kumar

Increasing environmental awareness Growing health consciousness Expanding seniors market Impact of the Generation Y Declining mass market Changing pace and location of life Changing household composition Increasing diversity of workforce & market

3


4/13

Dr. T.K. Vijay Kumar 4

Rapid technological changes

Rapid technology diffusions

Dramatic changes in

information and

communication technologies

Increasing importance of

knowledge

Fundamental nature ofcompetition is changing The pace of change

is relentless....

and increasing

Traditional industry

boundaries are

blurring, such as... Computers

Telecommunications

21st Century Competitive Landscape


5/13


Changing Corporations

Old Organizat ion al Format New Organizat ional FormatOne large corporation Mini-business units & cooperative relationships

Vertical communication Horizontal communication

Centralized top-down decision making Decentralized participative decision making

Vertical integration Outsourcing & Virtual Organizations

Work/quality teams Autonomous work teams

Functional work teams Cross-functional work teams

Minimal training Extensive training

Specialized job design focused on individual Value-chain team-focused job design

Stability & Structured & Gradual Change & Flexibility & Speedy, Fast

Mass Production Mass Customization


6/13


FOUR MAJOR THRUST AREAS OF

BUSINESS

Managing Competition

- Aggressive Marketing Market Share Go Global

- Superior Quality of Products / Services

- Cost Reduction / Lowering Prices

-

Faster Deliveries / Response Time- Innovations / Productivity Improvements

Developing Leadership Skills for Vision and Change.

To focus on People besides Products, Process, Profits.

Today, every person is a Profit Center. Using IT based tsunami of information, ideas and tools

for managing the business E Business

Making ours a Learning Organization


7/13 Dr. T.K. Vijay Kumar 7

PRODUCT

MARKET FUNCTION

What Business the Firm is in?Why the Firm is in the Business?What should be Firms Business?

WHAT IS BUSINESS?



Strategic Management

Creating &

SustainingCompetitive

Advantages,Globally

Why?To ensure Growth

with Profits in

the long-run!



which are required for firms to achieve:

Above-Average Returns

Strategic Competitiveness

Sustained Competitive Advantage

The Strategic Management System

Involves the full set of:

ActionsCommitments Decisions



Sustained Competitive Advantage

Above-Average ReturnsReturns in excess of what an investor expects to

earn from other investments with similar risk

Occurs when a firm develops a strategy thatcompetitors are not simultaneously implementing

Provides benefits which current and potentialcompetitors are unable to duplicate

Strategic CompetitivenessAchieved when a firm successfully formulates

and implements a value-creating strategy


11/13 Dr. T.K. Vijay Kumar

STRATEGY: It is Unified, Comprehensive, and Integratedlong term plan that relates to the strategic advantagesof the firm to the challenges of the environment.

STRATEGIC MANAGEMENT: It is a stream of decisionsand actions which leads to the development of an

effective strategy to help achieve the corporateobjective. It is a continuous, iterative, & Cross functionalprocess of matching firm with its environment.

COMPETITIVE ADVANTAGE: is delivering superior valueadvantage to your target customers relative to your

competitors. Or delivering equivalent customer value toyour target customers relative to your competitors , butat a lower cost.

11


12/13


13/1313

MISSION & GOALS OF A COMPANY

VISION: It is a vividly descriptive image ofwhat you

what to be or what you want to be known for. Vision is

an art for seeing invisibles.

MISSION : It a statement of intent ofwhat a firm wants tocreate and through which line of Business. It is a process

of legitimization of corporate existence of business. Itdefines the culture, philosophy and grand design of the

firm. To pursue the Creation of Value to all Stakeholders in

the Business. It is an answer to question What business

are we in?

GOALS / OBJECTIVES : End to be achieved. It is

To make Profit for today and forever

To satisfy Customers today and forever

To satisfy Employees today and forever

strat management-1 intro

Documents