Académique Documents
Professionnel Documents
Culture Documents
BY:
UNIT- I
STRATEGIC MANAGEMENT:
In a hyper competitive marketplace, companies can operate
successfully by creating and delivering superior value to target
customers and also learning how to adopt to a continuously
changing
business
environment.
So
to
meet
changing
The
model
illustrated
in
the
Figure:
Strategic
for
formulating,
implementing,
and
evaluating
strategies
management
is
the
process
starting
because
point
an
for
any
strategic
organization
present
even
dictate
particular
course
of
action.
Every
UNIT- I I
that
are
located
in
multiple
countries
with
UNIT- I I I
Grand strategies/directional strategies:
Grand strategies are the decisions or choices of long term plans
from available alternatives. Grand strategies also called as master
or corporate strategy. It is based on analysis of internal and
external
environment.
This
direct
the
organization
towards
involve
Expansion,
Quality
Improvement,
Market
Stability Strategies:
Are pursued by the firms who want to achieve a slow and
steady improvement in their performance and are doing well in
the industry which itself is a trouble free.
#It is less risky, involves fewer changes
#Environment is relatively stable
#Example- Corporation Bank
1-No Change Strategy :
It is a conscious decision to do nothing new Because no Major
Strengths and weakness within the organization and no new
competitors
Expansion strategies :
Here, the firm seeks significant growth-maybe within the current
businesses; maybe by entering new business that are related to
existing businesses; or by entering new businesses that are
unrelated to existing businesses.
Expansion strategy is adopted because:
1- It may become imperative when environment demands
increase in pace of activity.
2- Psychologically, strategists may feel more satisfied with the
prospects of growth from expansion; chief executives may
experience
curve
and
scale
of
Expansion
Expansion
Expansion
Expansion
Expansion
through
through
through
through
through
concentration
integration
diversification
cooperation
internationalization
Intensification strategies:
Intensification strategies, Focus or specialization strategy It
involves investment of resources in a product line for an
identified market with the help of proven technology. For
expansion concentration is often the first preference strategy
It requires minimal organizational changes so that is less
threatening Fewer problems as dealing with known situation.
Igor Ansoff gave a framework as shown which describe the
intensification options available to a firm.
Diversification Strategies:
Diversification endeavors can be related or unrelated to
existing businesses of the firm. Based on the nature and
extent
of
their
relationship
to
existing
businesses,
UNIT IV
Cooperative strategies:
Mergers and acquisitions
Joint ventures
Strategic alliances
Accelerating a
company's growth,
particularly when its
internal growth is
constrained due to
scarcity of resources.
Enhancing profitability
Diversifying the risks of
the company
A merger may result in
financial synergy
Joint Venture strategies:
A Joint venture could
beseverity
considered as anof
entity
Limiting
the
resulting from a long term contractual agreement between two
or more
parties, to undertake mutually
beneficial economic
competition
by
activities, exercise joint control.
increasing
The
JV parties can be the
individuals, partnerships or
corporations that continue to operate independently from the
company's
other except
for activities relatedmarket
to the Joint Venture.
It is
an Entity resulting from a long term contractual
power.
Korea
6-Tax advantage.
7-To obtain access to distribution channels or raw material
supply.
STRATEGIC ALLIANCE:
Strategic Alliance is a formal relationship between two or more
parties to pursue a set of agreed upon goals or to meet a
critical
business
need
while
remaining
independent
organizations. Partners may provide the strategic alliance with
resources
such
as
products,
distribution
channels,
manufacturing capability, project funding, capital equipment,
FACTORS
PROMOTING
ALLIANCES:
THE
RISE
OF
STRATEGIC
UNIT V
Strategic evaluation and control:
Evaluation and control mechanisms are set in place to inform
every stage of the strategic management process. They are a
means of collecting whatever information we may need to
compare plans against actual events, to ensure that things are
working well, and to anticipate, or correct, any faults or
weaknesses in the system. Effective evaluation and control can
tell us what we are doing well and what we are not. This may
sound good in theory, but it is not exactly pleasant when you
are out there in the workplace and your CEO wants to know
why you have fallen flat on your face! Here is how some witty
minds explain the managers tendency to forget about
evaluation and control:
Strategic controls take into account the changing assumptions
that determine a strategy, continually evaluate the strategy as
is being implemented and take the necessary steps to adjust
the strategy to the new requirement.
These relates to the environmental and organisational factors
that are dynamic and eventful
Strategic controls are early warning system and differ from
post-action controls that evaluate only after implementation
had been completed.
Premise Control
Implementation Control
Strategic Surveillance
Special alert control
control
standards. What
are
the
targets
and
tolerances?
3. Measure performance. What are the actual standards?
4. Compare the performance the performance to the
standards. How well does the actual match the plan?
corrective
action. Are
corrections
needed
in
Strategic Audit:
A Strategic Audit takes a detailed look at the prevailing
strategies in key areas of the organisation. Asking the right
questions and identifying and implementing appropriate actions
to enable the organisation to get on course and stay on course.
The strategic audit is the ideal starting point for all new
ventures and for any business or organisation wishing to
develop and grow.
Strategic Audits are conducted from a specially devised
template based on the keyquestions listed above. These are
adapted to suit the specific focus of the organisation. The
and