Basic Concepts of Strategic Management

Prof. V.S. Bhakre

Hon. Prof. Industry-Institute

Interaction

Basic Concepts of Strategic Management

Strategic Organisational Planning

SituationAssessment

OrganizationalMission

OrganizationalObjectives

SituationAssessment

The Situation Assessment

OrganizationalMission

OrganizationalObjectives

OrganizationalMission

Analyze the organization’s resources and capabilities

to identify strengths, weaknesses, and distinctive

competencies

Monitor the environment to identify threats

And opportunities face the organization.

Approaches to Strategic Planning

Environment Scanning

Where R we? How did we reach here?

Analysis of Firm’s Strengths& Weaknesses SWOT

Objective Setting

Development & Evaluate Strategy options

Strategic Decision making

Implementation

Who R our competitors? & their Strategic

Or

Hindrances in our Situation

Market Share?

What R the key facilitators

R.O.I?

Sales Turnover?

SWOT ANALYSIS- TO ASSESS SITUATION

SWOT- Can be used to develop alternate strategies.

SWOT illustrates how external opportunities & threats- can be matched with internal strengths & opportunities

Used for corporate & Business Strategies

Strengths

(Internal)

Opportunities

(External)

Weaknesses

(Internal)

Threats

(External)

Opportunities: External available in the Company’s current & future environment

Threats: Now & Future

Strengths: Specific areas of current & future

Weaknesses; Areas of Current & future

Factors to be considered (Internal) (vary from case to case)

STRENGTHS WEAKNESSES

- Quality

- Top Management

- Employee Relation

- Product Mix

Evaluate on A Scale 1-5

5- Excellent 1-Poor

Financial position

Distribution channel

Manufacturing facility

R & D

EXTERNAL FACTOR ANALYSIS

Opportunities & Threats (Evaluate on Scale –57)

Government Policy

Competition

Demographic

Culture & Social Acceptance

Technological Development by country & world at large

Ecology

SWOT – Matrix- on of many ways to generate alternative strategies.

A Few Vision Statements1. We do it for You McDonald

2. We Make it Simple Honda

3. 3M hears you 3M

4. IBM Means Service IBM

5. U comes before I U.B.I

6. To fly is to Serve British Airways

7. R.I.L An Institution that contributes to India on Sustainable basis.

8. GE “Imagination”

9. ADAG Think Bigger, Think Better

10. A global giant in Power Solutions Crompton Greaves

11. Quality Education through innovative Methodologies VPM