Académique Documents
Professionnel Documents
Culture Documents
2
Purpose of Strategy
Amity School of Business
4
What do we mean by Strategy?
Amity School of Business
6
How Strategy evolved?
Amity School of Business
7
How Strategy evolved?
Amity School of Business
8
The leading edge of strategy: fit or stretch
Amity School of Business
10
Strategic Management
Amity School of Business
• Strategic issues
– Require Top-Management decisions
– Require large amounts of Firm’s resources
– Affect the firms’ long – term prosperity
– Are future – oriented
– Have multi-functional or multi-business
consequences
– Require considering the firm’s external
environment
12
Benefits of Strategic Management
Amity School of Business
13
Challenges to Strategic Management
Amity School of Business
• Impact of Globalization
– The World is Flat
• Impact of Environmental Sustainability
– Regulatory risk
– Supply-chain risk
– Product and technology risk
– Litigation risk
– Reputational risk
– Physical risk
14
Linking Strategy and Strategic
Amity School of Business
Management
• Strategy is the direction and scope of an
organization over the long term, which
achieves advantage for the organization
through its configuration of resources within a
changing environment and to fulfill
stakeholder expectations.
• Strategic Management includes understanding
the strategic position of an organization,
strategic choices for the future and turning
strategy into action. 15
Basic Model of Strategic Management
Amity School of Business
16
Amity School of Business
Feedback
Long Term Objectives Generic and grand strategies
Short-term objectives;
Functional tactics Policies that empower
reward system
action
Deliberate Strategy
Unpredicted
Change Unplanned
Shift by Top
Unrealized Emergent
Level
Strategy Strategy
Managers
Autonomous
Serendipity Action by Lower
Level by Managers
Intended & Emergent Strategies
Amity School of Business
24
Amity School of Business
Vision
Mission
Goals
Objectives
Plans
Fig. – Hierarchy of Strategic Intent (Miller, 1998).
25 25
Most Specific Greatest in number
Vision Amity School of Business
30
Defining Mission
Amity School of Business
31
Characteristics of a Mission Statement
Amity School of Business
• Feasible
– Should aim high but should not be impossible.
• Precise
– Should not be too narrow or too broad.
• Clear
– Should be clear enough to lead to action.
• Motivating
– Should motivate members of the organizations to work for
it.
• Distinctive
• Indicate the major components of strategy
• Indicate how objectives are to be accomplished
32
Constituents of Corporate Mission
Amity School of Business
• Company Goals:
– Survival: often taken for granted to the extent that it is neglected.
– Profitability: profit in the long term indicates a firm’s ability to satisfy
principal claims and desires of employees and stockholders.
– Growth: growth is invariably related to survival and profitability, but
care should be taken to define it broadly. A company can set up growth
priorities.
• Company Philosophy: reflects or specifies the basic beliefs, values,
aspirations, and philosophical priorities to which strategic decision
makers are committed in managing the company.
• Public image: present and potential customers attribute certain
qualities to particular businesses, these public's expectations are
reflected in the mission statements.
• Company Self-Concept: the firm must realistically evaluate its
competitive strengths and weaknesses.
• Sensitivity to customer wants
• Concern for quality
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Goals Amity School of Business
34
Objectives Amity School of Business
36
Defining the Business Amity School of Business
Customer Groups
37