Strategic Management

Session 1, Term IV

Prasad SN
Professor
sdmimd, Mysore
 Strategy in Action!
• Demonetization, GST, ‘Quantitative
Easing* by the US Govt’, currency swap
• Paytm in action, Walmart to WalKart,
Selling Air India
• Work from home, Client location team
• International treaties, sanctions, anti-
dumping tariffs

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 Strategy
“ Strategy can be defined as the determination of
basic long term goals and objectives of an enterprise
and the adoption of courses of action and the
allocation of resources for carrying out these goals”-
Chandler. A
“ The process of deciding on the objectives of the
organization, on changes in these objectives, on the
resources used to govern the acquisition, use and
disposition of these resources” – Anthony.R.N
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“ 

Strategy and Tactics

“Strategy without tactics is the slowest
route to
victory. Tactics without strategy is the
noise before defeat.”- Sun Tzu

Tactics – the intermediate steps in the

strategic path.

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 Igor H Ansoff’s Strategy Components

• Product – Example, a Software Firm

• Objectives
Market scope
 ROI, Threshold 20%, Goal 30%
 Sales Growth rate: Threshold 25%, goal 35%
• Growth vector • Strategy Components
 Prod-Market scope- Knowledge Mgt
 Growth vector- Branded products and
• Competitive diversification
advantage  Competitive Advantage- Value added services;
End to end services
 Synergy- Use of firm’s knowledge capabilities
• Synergy and marketing for better customer value
addition

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Types of Strategies

Corporate Strategy-
Gives overall direction
Business Strategy-
Functional
Improving Strategy-
competitive position
Approach in functional area
to achieve business unit’s
objectives

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 Strategy and the Organisational
Context
• Organisational Purpose, Mission and Objectives derive
the Strategy
• Organisational Vision constructs the possible result of
achieving the Objectives by following the Strategy
• Goals – Official, Operative and Operational
• Goals normally address – Efficiency, Profitability,
Growth, Shareholder returns, Resource utilization,
Brand reputation, Employee welfare, Societal
contribution, Leadership of market, Leadership in
technology, Innovation, Product/Process evolution,

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Porter’s Five Forces Model

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Porter’s Five Forces Model

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Pyramid of Business Policy

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Operating and Strategic Decisions

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Strategic Management Process

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The 7-S Framework

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Consolidation End Game Curve

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Strategic Management: Step and Ladder
Approach

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Corporate Planning Concept

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Involvement of Board of Directors in
Strategic Management

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Strategic Management Styles

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Four Responsibilities of Managers

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 Blue Ocean Strategy
• Based on a study of 150 strategic moves spanning more
than a hundred years and thirty industries, W Chan
Kim & Renee Mauborgne of INSEAD argue that
companies can succeed not by battling competitors, but
rather by creating ″blue oceans″ of uncontested
market space. They assert that these strategic moves
create a leap in value for the company, its buyers, and
its employees while unlocking new demand and making
the competition irrelevant

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Issues Priority Matrix

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Continuum Resource Sustainability

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Typical Value Chain of a Manufactured
Product

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The Corporate Value Chain

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Basic Corporate Structure

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Product Life Cycle

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Thank You

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