According to Norman (1993), “Strategy is the art of creating value”.
According to Porter (1996), “Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value”.
2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
3. Contents
• Introduction to Strategic Management.
• Concept of Strategy.
• Process of Strategy.
• Strategic Framework.
• Vision, Mission, Objectives and Goals.
• Strategic Analysis.
• Environmental Analysis.
• Competitive forces.
• Internal analysis.
• SWOT Analysis.
4. Definition of strategy
• According to Norman
(1993), “Strategy is the art
of creating value”.
• According to Porter
(1996), “Strategy is about
being different. It means
deliberately choosing a
different set of activities
to deliver a unique mix of
value”.
5. Characteristics of strategy
• The decision is concerned with
or effects the long term
direction of an organization.
• Strategic decisions are normally
about trying to achieve some
advantage for the organization.
• Decision is likely to be
concerned about the scope of
an organization’s activities.
• Decisions can be seen as
matching of the activities of an
organization to the
environment in which it
operates.
6. Characteristics of strategy
• Decisions have major
financial or other
resource implications.
• Decision will have a major
impact outside the
organization.
• Strategic decisions are
likely to affect operations
decisions.
• Decisions entail significant
risks to the business.
7. 5 Ps of strategy
• Professor Henry Mintzberg
of McGill University in
Montreal, Canada,
articulated what he labeled
as “the 5 Ps of strategy.”
• According to Mintzberg,
understanding how strategy
can be viewed as a plan, as
a ploy, as a position, as a
pattern, and as a
perspective is important.
8.
9. Process of strategy
• Strategic management is
a process that involves
building a careful
understanding of how the
world is changing, as well
as knowledge of how
those changes might
affect a particular firm.
14. Examples of vision statement
• Hindustan Lever Ltd – Our
vision is to meet the
everyday needs of people
everywhere.
15. Mission - Definition
• Mission statement is a
statement of purpose and
function.
• It answers the following
questions.
– Why the organization does
exist?
– What is its value addition?
– What is its function?
– How does it want to be
positioned in the market and
minds of customer?
– What business is it in?
16. Characteristics of mission
• It draws on the belief
systems.
• It must be future oriented
and portray your
organization as it will be,
as if it already exists
• It must focus on one
common purpose.
• It must be specific to the
organization, not generic.
17. Example of Mission Statement
• Ranbaxy Laboratories
Ltd – Our mission is to
become a research
based international
pharmaceutical
company.
20. Nike’s strategic goals
• Protect Nike’s position as
the number one athletic
brand in America.
• Build a strong
momentum in the
growing fitness market.
• Intensify the company’s
efforts to develop
products that women
need and want.
21. Environmental analysis
• Why Does the Environment
Matter?
– First, the environment
provides resources that an
organization needs in order to
create goods and services.
– Second, the environment is a
source of opportunities and
threats for an organization.
– Third, the environment shapes
the various strategic decisions
that executives make as they
attempt to lead their
organizations to success.
22. PESTEL Analysis
• P Is for “Political.
• E Is for “Economic”.
• S Is for “Social”.
• T Is for “Technological”.
• E Is for “Environmental”.
• L Is for “Legal”.
