It is not the strongest of the species that survive, nor the most intelligent, but the one most

responsive to change. Charles Darwin

Tomorrow always arrives. It is always different, and then even the mightiest company is in trouble if it has not worked on the future.

Objectives are something to aim at, although they should be regarded as a map grid reference rather than as a target at a rifle range. The company will not always find that the shortest distance is a straight line, and may have to make detours to avoid obstacles. But having made the detour it is possible to come back to the grid reference from another direction. Without a defined objective it becomes very difficult to measure progress: having detoured the company is likely to remain pointed in the wrong direction.

Decision making in an Organization

Who ? Why? When?

Concept Of Strategy

Chandler(1962)Strategy is the determinator of the basic longterm goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals; Mintzberg (1979) Strategy is a mediating force between the organization and its environment: consistent patterns in streams of organizational decisions to deal with the environment. Prahlad (1993) Strategy is more then just fit and allocation of resources. It is stretch and leveraging of resources Porter (1996) Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value

5 Ps of Strategy
1. A plan, a how do I get there 2. A pattern, in consistent actions over time 3. A position that is, it reflects the decision of the firm to offer particular products or services in particular markets. 4. A ploy, a maneuver intended to outwit a competitor 5. A perspective that is, a vision and direction, a view of what the company or organization is to become.

Levels at which Strategy Operates

Concept of Strategic Decision Making

Strategic Management

Strategic management is concerned with deciding on strategy and planning how that strategy is to be put into effect. It can be thought of as having three main elements within it . . . There is strategic analysis, in which the strategist seeks to understand the strategic position of the organization. There is a strategic choice stage which is to do with formulation of possible courses of action, their evaluation, and the choice between them. Finally, there is a strategic implementation stage which is to do with planning how the choice of strategy can be put into effect

The Elements

The Latest Approach

The Dynamic Process of formulation, implementation, evaluation and control of strategies to realize the Organizations strategic intent

Establishing the hierarchy of Strategic Intent

1 2 Creating and Communicating a Vision Designing a Mission Statement

3
4 5

Defining the Business

Adopting the Business Model Setting Objectives

Formulation of Strategies
6 Performing Environmental Appraisal

7
8

Doing Organizational Appraisal

Formulating Corporate Level Strategies

Formulating Business Level Strategies

10 Undertaking Strategic Analysis 11 Exercising Strategic Choice 12 Preparing Strategic Plan

Implementation of Strategies
13 Activating Strategies 14 Designing the Structure, systems and processes

15 Managing Behavioural implementation

16 Managing Functional Implementation 17 Operationalising strategies

Performing Strategic Evaluation and Control

18 Performing Strategic Evaluation 19 Exercising Strategic Control

20 Reformulating Strategies

Model of Strategic Management Process

Critical Factors for Strategic Success

What some people say about strategy and strategic planning

What some people say about strategy and strategic planning

Strategy is trying to understand where you sit in todays world. Not where you wish you were and where you hoped to be, but where you are. And its trying to understand where you want to be. Its assessing the competitive and market changes that you can capitalize on or ward off to go from here to there. Its assessing the realistic chances of getting from here to there.
Attributed to Jack Welch, CEO, General Electric

What some people say about strategy and strategic planning

The essence of strategic thinking is creating a sustainable competitive advantage.

M. Porter, The Economist, 23 May 1987

What some people say about strategy and strategic planning

Know the enemy and know yourself, in a hundred battles you will never be defeated. When you are ignorant of the enemy, but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and yourself, you are sure to be defeated in every battle.
Sun Tzu, Art of War, c.400 BC, page 107 of the Wordsworth1993 edition, translation by Yuan Shibing

What some people say about strategy and strategic planning

Strategists do not reject analysis. Indeed they can hardly do without it. But they use it only to stimulate the creative process, to test the ideas that emerge, to work out strategic implications, or to ensure successful execution of high potential wild ideas that otherwise never would be implemented properly. Great strategies, like great works of art or great scientific discoveries, call for technical mastery in the working out but originate from insights that are beyond the reach of conscious analysis.

Kenichi Ohmae, The Mind of the Strategist, p. 4, Penguin 1984 edition

What some people say about strategy and strategic planning

It is a view of strategy that recognizes that a firm must unlearn much of its past before it can find the future. It is a view of strategy that recognizes it is not enough to optimally position a company within existing markets; the challenge is to pierce the fog of uncertainty and develop great foresight into the whereabouts of tomorrows markets.
G. Hamel and C. K. Prahalad, Competing for the Future, p. 25, Harvard Business School Press, 1996 edition

Assignment

Documenting the Growth Path

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