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Complementary notes

Module I - V

Module I

Nature of Strategic management


1. Futuristic
2. External emphasis
3. Fit between environment and the organisation
4. Strategic management is a process

Guidelines for effective strategic


management
1. Should be people oriented
2. Timely and wisely implementation
3. It should be a self reflective learning process
4. Should foster learning and action
5. Open mindedness
6. Objectivity

Areas to be covered in Strategic implementation


1. Project implementation
2. Procedural implementation
3. Resource allocation
4. Structural implementation
5. Functional implementation
6. Behavioral implementation

Key components supporting strategy


Implementation
1. People
2. Resources
3. Structure
4. Systems
5. Culture

Strategic planning in an organization


Strategic planning takes place at 4 levels in an organization
1. Corporate level
2. Divisional level
3. Business unit level
4. Product level

Corporate planning
1. Establishing corporate mission
2. Defining Strategic business units
3. Assigning resources to each Strategic business units
4. Assuring growth opportunities

Strategy planning
1. Lay down the vision, mission and objective
2. Formulating an effective marketing research
3. Environmental scanning
4. Defining and establishing Strategic business units
5. Developing an effective marketing strategies
6. Implementation of strategy
7. Marketing control process
8. Evaluation of plan/strategy

Impact of Economic Environment on business


1. Foreign direct investment
2. Emergence of new entrepreneurs
3. Emergence of Private banks
4. Growth of mutual funds
5. Spread of Multinational companies
6. Growth in exports & imports
7. Era of Acquisitions, Take over's, Mergers & Joint Ventures
8. Powerful private sector
9. More employment opportunities
10. Rise in standard of living

Scenario planning- Long term strategic planning


1. Identifying the major decisions the organization has to take
2. Identifying the driving macro environmental forces that influence
key factors
3. Develop strategic plans

Incomplete

Tools in strategic analysis


1. PESTLE Analysis
2. Scenario planning
3. 5 Forces Analysis
4. Market segmentation
5. Directional policy matrix
6. Competitor Analysis
7. Critical success factor analysis
8. SWOT Analysis

Module II

Types of strategic alliance


1. Licensing agreement
2. Joint ventures
3. Cross holding arrangements: that include equity states and consortia

Types of Mergers
1. Co-generic mergers
2. Conglomerate mergers
3. Upstream mergers
4. Downstream mergers
5. Reverse mergers

Types of Mergers
1. Co-generic mergers: Between organizations within the same
industry may be sub divided into
1. Horizontal mergers &
2. Vertical mergers:
Horizontal mergers: Involved in same line of activity
Vertical mergers: Involved in different line of activity

Types of Mergers
2. Conglomerate mergers : Involving organizations within the different
industries
3. Upstream mergers: A subsidiary company merging with the parent
company with the parent company
4. Downstream mergers: A parent company merging with a subsidiary
company
5. Reverse mergers: A Profitable company merging with a loss making
company

Types of take overs


1. Friendly take over
2. Hostile take over
Incomplete

?
1. Turnaround strategy
2. Survival strategy
3. Liquidation strategy

Elements of strategic leadership


1. Developing a strategic vision & mission
2. Setting goals & Objectives
3. Designing a strategy
4. Executing the strategy
5. Evaluation the performance

Module II

Task of strategic management


1. Strategy formulation
2. Strategy Implementation
3. Strategy evaluation

Blue ocean strategy


1. Blue ocean strategy: Creating new demand in an uncontested market
space. Assigning innovation with utility, cost and price
Principles of Blue ocean strategy:
a. Create: Creating a factor5 that has never been offered
b. Reduce: Reducing certain factors below the industry standards
c. Eliminate: Eliminating factors which are not necessary
d. Raise: Raising certain factors above the industry standards

Red ocean strategy


2. Red ocean strategy: Aims to fight and beat competition
Elements of Red ocean strategy
a. Focus on existing market
b. Focus on beating and penetration
c. Focus the value/cost trade off
d. Exploit existing demand
e. Focus on execution

Module 4

Objectives of corporate governance


1. Independent & objective decisions
2. Transparent procedures & practices
3. Serve the concerns of Stake holders
4. Monitor functioning of management team
5. Effective control of affairs of company

Characteristics of good corporate governance


1. Participation
2. Rule of law
3. Transparency
4. Responsiveness
5. Consumer orientation
6. Equity & inclusiveness
7. Effectiveness & efficiency
8. Accountability

Corporate culture & Strategic management


1. Nature of desired managerial skills and capability
2. Actual performance or results achieved
3. Managerial style of planning and decision making
4. Management systems adopted
5. Nature of management control

Approaches to creating strategy supportive


culture
1. To ignore corporate culture
2. Adapting strategy implementation to sue corporate culture
3. Changing corporate culture to sue strategy requirement
4. Changing strategy to fit corporate culture

Module 5

Developing an ethical organization


1. Inculcating values & ethics
2. Reconciling diverging values
3. Modifying values to create consistency
4. _-_-_

Implementation of Strategic change


1. Determination of change strategy
2. Leadership implementation
3. Communication
4. Organization
5. Resource allocation

Obstacles of globalisation
1. Government policy & Procedures
2. High cost
3. Poor infrastructure
4. Resistance to change
5. Trade barriers
6. Supply problems

Factors favoring globalization


1. Human resources
2. Growing domestic market
3. Growing entrepreneurship
4. Economic liberalization
5. Trans-nationalization of world economy
6. Changes in demographic feature
7. Competition

Essential conditions for globalisation


1. Business freedom
2. Infrastructure
3. Government support
4. Resources
5. Competitiveness

Turn around management factors


1. Management factor
2. Human resource factor
3. Production facilities
4. Finance management
5. Product mix modification
6. Marketing strategy

END

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