94115117 Chap1 SMBP Kazmi

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Transcript of 94115117 Chap1 SMBP Kazmi

  • STRATEGIC MANAGEMENT AND BUSINESS POLICYTHIRD EDITIONAZHAR KAZMIChapter 1Introduction to strategic management and business policy

  • Learning objectivesDescribe the historical development of strategic management and business policy in the world and in IndiaDiscuss the likely future developments in the field of strategic management and business policy Explain the concept of strategy and its limitationsDescribe the process of strategic decision makingDiscuss the various schools of thought on strategy formationDescribe the strategic management process

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Evolution of strategic management and business policyThe genesis of strategic management and business policyEvolution based on management practicesHistorical perspectivePointers to the future

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • (c) Dr. Azhar Kazmi 2008*Hambrick and Fredrickson model of strategic management D. C. Hambrick & J. W. Fredrickson: Are you sure you have a strategy? (2001). Academy of Management Executive Vol. 15, No. 4, pp. 48-59

    (c) Dr. Azhar Kazmi 2008

  • The Indian scenarioRole of IIMs and ASCIRole of AICTERole of AIMSRole of AIMAIndia-focused international studiesStrategic Management Forum of IndiaPublications

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Business policy definedBusiness policy, as defined by Christensen and others, is "the study of the function and responsibilities of senior management, the crucial problems that affect success in the total enterprise, and the decisions that determine the direction of the organisation and shape its future. The problems of policy in business, like those of policy in public affairs, have to do with the choice of purposes, the moulding of organisational identity and character, the continuous definition of what needs to be done, and the mobilisation of resources for the attainment of goals in the face of competition or adverse circumstance.

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • The concept of strategyA strategy could be:plan or course of action or a set of decision rules making a pattern or creating a common thread;the pattern or common thread related to the organisation's activities which are derived from the policies, objectives and goals;related to pursuing those activities which move an organisation from its current position to a desired future state; concerned with the resources necessary for implementing a plan or following a course of action; andconnected to the strategic positioning of a firm, making trade-offs between its different activities, and creating a fit among these activities.the planned or actual coordination of the firm's major goals and actions, in time and space that continuously co-align the firm with its environment.

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Levels at which strategy operates(c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Strategic decision-makingObjectives to be achieved are determined;Alternative ways of achieving the objectives are identified;Each alternative is evaluated in terms of its objective-achieving ability; andThe best alternative is chosen.

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Issues in strategic decision-makingCriteria for decision-makingRationality in decision-makingCreativity in decision-makingVariability in decision-makingPerson-related factors in decision-makingIndividual versus group decision-making.

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Schools of thought on strategy formationThe prescriptive schoolsThe descriptive schoolsThe integrative school

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Strategic management definedStrategic management is defined as the dynamic process of formulation, implementation, evaluation and control of strategies to realise the organizations strategic intent.

    (c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Four phases in strategic management(c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008

  • Comprehensive model of strategic management(c) Dr. Azhar Kazmi 2008*

    (c) Dr. Azhar Kazmi 2008