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Transcript of SM_Unit 2_PPT
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Unit-2 Strategic Management
STRATEGIC MANAGEMENT
Objectives
The objective of this lecture is to discuss:
The evolution, need, scope and development of strategic management.
The roles of strategists and types of strategies.
The limitations of strategic management.
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Unit-2 Strategic Management
LECTURE OUTLINE
Introduction
Strategic Management
Role of Strategists in Decision Making
Types of Strategies
Limitations of Strategic Management
Summary
Check Your Learning
Activity
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Unit-2 Strategic Management
INTRODUCTION
Strategic management is a systematic procedure of analysing, planning
and implementing strategies in an organisation to gain continued success.
Importance of strategic management:
To cope with changing business environment in an organisation.
To formulate business activities which provide financial performance.
To gain competitive advantages.
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Unit-2 Strategic Management
STRATEGIC MANAGEMENT
During 1930s and 1940s, the increasing changes in business environmentemphasised the evolution of strategic management for integration of various
functional areas.
The advances in technology and increased boundaries in business has paved way
for development of strategic management.
Need and scope - Strategic management helps in making crucial decisions and
allows a systematic approach for business operations.
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Unit-2 Strategic Management
STRATEGIC MANAGEMENT CONTD
The Key features of strategic management are:
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Unit-2 Strategic Management
ROLE OF STRATEGISTS IN DECISION MAKING
The role of strategists involve thinking, planning and implementing
relevant strategies to gain long term goal in the organisation.
Strategists are present at various management levels in an organisation:
Top level management
Board of directors
Planning staff
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Unit-2 Strategic Management
TYPES OF STRATEGIES
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Unit-2 Strategic Management
TYPES OF STRATEGIES CONTD
Corporate level It consists of board of directors and CEO in framing strategies.
The strategies are influential, pioneering and futuristic in nature.
The strategies in corporate level are:
Stability and expansion strategy
Retrenchment strategy
Corporate restructure
Concept of synergy (Combination strategy)
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Unit-2 Strategic Management
TYPES OF STRATEGIES CONTD
Business level It deals with formulating the objectives and allocating appropriate
resources to various functional areas in the organisation.
The main features of business strategies are:
Business stakeholders
Achieving Cost Leadership and differentiation
Risk factors
External risk
Internal risk
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Unit-2 Strategic Management
TYPES OF STRATEGIES CONTD
Tactical of Functional level It consists of strategies specific to functional areas
and decisions at functional level are tactical.
The two types of functional level strategies are:
o Procuring and managing
o Monitoring and directing
Operational level It refers to the implementation of strategic decisions and
translation of strategic decisions into strategic actions at corporate level.
The main aspects of operational level are:
oAchieving cost and operational efficiency
o Optimal utilisation of resources
o Productivity
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Unit-2 Strategic Management
Strategic management is a long term process and the implementation of strategies
requires necessary changes in the organisation.
The limitations are:
Resistance to change
Dissatisfaction of employeesTime consuming
Concentrates in achieving goal and guidelines
Non practical planning
Political pressure
Ignorance of other managerial functions
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Limitations of Strategic Management
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Unit-2 Strategic Management
Strategic management process deals with executing planned strategies in an
organised manner.
Strategic management evolution relies upon the long term planning in the
organisation to achieve an overall progress.
Strategists take up responsibilities at various management levels. The limitations of
strategic management occurs due to various issues regarding the
implementation of strategies.
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Summary
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Unit-2 Strategic Management
CHECK YOUR LEARNING
1. Define strategic management process.
ANS: Strategic management is the process of analysing, planning, formulating,
implementing, evaluating and maintaining strategies in the organisation.
2. List the different types of strategies?
ANS: Corporate level
Business levelTactical of functional level
Operational level
3. What is strategic analysis?
ANS: Strategic analysis is the process of analysing the position of organisation
and plan strategies based on the analysis.
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Unit-2 Strategic Management
ACTIVITY
Referhttp://www.projectsparadise.com/strategic-approach-airtel/ and identify the
strategic approaches and strategic planning methods adopted by Bharti Airtel to
form an effective organisation.
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http://www.projectsparadise.com/strategic-approach-airtel/http://www.projectsparadise.com/strategic-approach-airtel/http://www.projectsparadise.com/strategic-approach-airtel/http://www.projectsparadise.com/strategic-approach-airtel/http://www.projectsparadise.com/strategic-approach-airtel/http://www.projectsparadise.com/strategic-approach-airtel/