strategic management 1.pptx vaibhav

8/22/2019 Strategic Management 1.Pptx Vaibhav

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Presentation on

Strategic Management

&

company mission

By Vaibhav kumar

Ashish bharti

Brajendra kumar


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Strategic Management Strategic management is the set of decisions

and action that result in formulation andimplementation of plans designed to achievecompanys objective and goals and sustaincompetitive advantage


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Task involved in strategicmanagement Strategic management involves planning ,

directing ,organizing and controlling of a

companys strategic-related decision and action

Strategy Formulation process include

Composing Mission Objectives , philosophy ,

goal and developing long-range plans by

assessing external environment resources

available and opportunities effectively.


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Dimensions of strategicdecisions Strategic issues require top mgt. decision

It require decision on resources allocation

Strategic decision affect the firms long term

prosperity Strategic issues are future oriented

Strategic issues have multifunctional or multi

business consequences Strategic issues require to consider external

environment


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Three levels of strategy inorganizationCEO

Product

manager

Head of

functional areas


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Benefits of strategicmanagement It connect all levels of managers with the

companys objective be it financials or non

financials in planning and its implementation

The involvement of employees in strategy

formulation improve their understanding of

productivity-reward relationship which

improve the level of motivation


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Risk of strategicmanagementManagers must guards against three types of unintended

negative consequences:-

The time that managers spend on strategic

management process

Un involvement in the implementation of the strategy

Strategic managers must be trained to anticipate andto respond to the disappointment of participatingsubordinate over unattained expectations


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Strategic management process

Process used to formulate and direct theirstrategic management activities Changes from company to company

Very formal and structured in big companies andcorporate houses

Lil bit informal and show more of basic planningconcerns rather then complex strategic managementsystems

However, despite differences basic componentsof model used to analyze strategic managemrntoperations are similar.


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Component of Strategic Management

Model

Company mission: unique purpose that sets acompany apart from others of its type andidentifies the scope of its operations

Internal analysis Analyzes quantity and quality of companys financial,

human and physical resources

Assesses strengths and weaknesses of company

External environment Consists of all conditions and forces that affect its

strategic options and define its competitive situation


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Strategic Analysis and choice

Analyzing internal situation and external environment,range of possible set of opportunities are identified

Identified opportunities should be inline withcompanys mission

Long-Term objectives

Results that an organization seeks to achieve over a

multiyear period Involves productivity, profitability, market share,

technological advancement, employee relations etc


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Generic and Grand Strategies Fundamental options for design of strategies which all

companies follow

Low cost, differentiation, and focus strategy are three

ways to achieve it Short-Term Objectives

Desired results company seeks over a period of oneyear or less

Logically consistent with firms long-term objectives These are just objectives not the way any work is done

e.g. employee turnover, raw material usage etc.


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Functional tactics Specific actions that need to be taken to to achieve the

short term objectives, usually by different functional areas

Radio ad campaign, inventory reduction, introductory loan

rate are some of the examples Policies That Empower Action

Predetermined decisions that substitute for managerialdiscretion in repetitive decision making

All future decisions in functional areas follow the policies

to speed up the process and remove discretion Increase managerial effectiveness by standardizing routine

decisions


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Restructuring, Reengineering and Refocusing theOrganization A way to recast organization and look inside organization

so that companys mission and any strategy made could be

fulfilled GM example: improved operations to accomplish strategy

of low cost, increased efficiency and improved designs

Strategic control and continuous improvement Tracking a strategy as it is being implemented, detecting

problems or changesin its underlying premises and makingnecessary adjustments

A form of strategic control to improve all operations in thefirm


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Strategic management as a process


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Company Mission

It is the unique purpose that sets a companyapart from others of its type and identifies the

scope of its operation.

The mission statement is a message designedto be inclusive of the expectations of all

stakeholders for the companys performance

over the long run.


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Formulating a Mission

In general a business begins with the beliefs,desires and aspirations of a single entrepreneur.

benefit of Product/Service Price

Product/Service satisfy customer need

Technology used Cost + Quality

Sustainable + Profitable + Growth

Good public image


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Company Philosophy

It appears within mission statement

It specifies beliefs, values, aspirations and

philosophical priorities to which strategicdecision makers are committed in managing

the company.


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Public Image

Mission statements should reflect the publics

expectations, because this makes achievement

of the firms goals more likely.


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Company Self Concept

The firm must know itself i.e. the firm realistically

must evaluate its competitive strengths and

weaknesses.

Firms success is the extent to which the firm can

relate functionally to its external environment.


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Newest Trend in Mission Components

Customers

Majority of companies in Us and India too havebecame customer centric

customer is our priority is a slogan that theyclaim

Xerox allows 40 % annual bonus if customerreviews are good and impose a penalty of 20% on

bad feedback by the customer RCA, Sears, 3M maintain extensive product safety

programs to ensure customer satisfaction


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Quality

With time quality has become one of the most

important factor which any organization ensure

and keep in mind while creating missionstatement

Motorolas production goal is 60 or fewer defects

per every billion components that it manufactures

Mumbais dabbawala also maintain above six

sigma in their delivery service


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Vision statement

A statement that presents a firms strategic intent

designed to focus the energies and resources of

the company on achieving a desirable future

HMT mission statement: To be a leading

Global Engineering conglomerate focused on

customer delight in our field of endeavor

strategic management 1.pptx vaibhav

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