This document provides an introduction to strategic management. It discusses key concepts like business policy, strategy, strategic intent, strategic management process, and levels of strategy. The strategic management process involves establishing strategic intent through vision, mission, business definition and goals. Strategy formulation involves analyzing the environment, risks, opportunities and formulating alternative strategies. Strategy implementation is the process of putting plans and strategies into action through building organizational capabilities, allocating resources, and developing supportive policies.

1. Introduction to
Strategic Management
PROF. C. SURENDHRANATHA REDDY
HEAD, DEPARTMENT OF MANAGEMENT
KRISTU JAYANTI COLLEGE, BENGALURU

2. Unit 1: Business Policy &
Strategic Management
1.Business Policy- Part I: Need evolution and importance
2.Business Policy- Part II: Purpose and objectives
3.Case Study- Toyota Business Policy
4.Strategy- Definition, levels of strategy
5.Strategic Management- Need, meaning and definitions
6.Process of strategic management- Part I
7.Strategic decision making
8.Reasons for failure of strategic management
9.Strategists and their role in strategic management

3. Business Policy
➢ Business Policy = Business + Policy
➢ Business- Business means exchange of commodities and
services for increasing utilities.
➢ Policy- the mode of thought and the principles underlying
the activities of an organization or an institution or a
guideline for action.

4. Business Policy
Business policy as a principle or a group of related
principles, along with their consequent rules of action that
provide for the successful achievement of specific
organization / business objectives.
These are guidelines or boundaries within which decisions
can be made by the subordinates. The lower level
management can handle situation by referring to these
guidelines without having the need to meet top
management each time.

5. Generic Policies
➢Social Media Policy
➢Work from Home Policy

6. Social Media Policy
Don’t ban personal social media use in the workplace. Social media
activity can benefit employees’ work, whether they’re connecting
with customers on LinkedIn or discovering useful advice on Twitter.
Separate use of personal and corporate accounts. Employers
shouldn’t try to control what their employees post on their personal
social media.
Be clear about your expectations. It’s a good idea to remind
employees that they’re bound by confidentiality, data protection and
anti-discrimination policies

7. Work from Home Policy
Modern collaboration tools make working from home an
attractive, cost-effective option for employees and
employers alike. Though some companies remain hesitant
about embracing WFH, most companies proclaimed
as “best places to work” provide flexible schedules and
telecommuting options.

8. Examples of Business Policy
➢ Domino’s Quality Policy
➢ Food safety policy of Coca Cola
➢ Promotion policy of Infosys

9. Domino’s Quality Policy
Domino's is set to automate quality control of its pizzas in a move
designed to reduce the number of pizzas rejected by customers.
Domino's will roll out technology that uses a camera and artificial
intelligence to assess whether its pizzas are picture perfect.

10. Food safety policy of Coca Cola
At Coca-Cola HBC, we believe that success depends on the supply of
high-quality products, packages and services that meet and exceed
customer and consumer expectations of our brand products.
Fundamental to this is the responsibility to ensure the quality and
food safety of all the products we manufacture and distribute across
our markets.

11. Promotion Policy of Infosys
At the time of global slowdown, Infosys had launched
iRACE program under which the company's staff are
required to wait longer for their promotions so that
only the professionals with proven managerial skills
can lead project teams.

12. Evolution of Business Policy
First Phase- Paradigm of Adhoc Policy (till mid 1930s): Adhoc
policy making necessitated by the expansion of American firms in
terms of product markets and customers and the consequent need to
replace informal controls and coordination by farming functional
policies to guide managers.
Second Phase- Paradigm of planned Policy (1930s – 1940s):
Replacement of adhoc policy making by planned policy formulation
and shifting attention towards integration of functional areas, in line
with environmental requirements.

13. Evolution of Business Policy
Third Phase- Strategy Paradigm ( 1960s): Rapid force of
environmental changes and increasing complexity of managerial
functions demanding a critical look at the concept of business in
relation to its environment hence the need for strategic decisions.
Fourth Phase- Paradigm of Strategic Management (1980s):
shifting of focus to the strategic management process and the
responsibility of general management in resolving strategic
issues.

14. Importance of Business Policy
❑ Provide guideline for actions
❑ Help to develop rules and regulations
❑ Create positive work environment
❑ Contribute to higher customer satisfaction
❑ Treat every employee equally

15. Next Session
Business Policy- Part II:
Purpose and objectives

16. Features of good business policy
Specific- Policy should be specific/definite. If it is uncertain, then the
implementation will become difficult.
Clear- Policy must be unambiguous. It should avoid use of jargons and
connotations. There should be no misunderstandings in following the policy.
Reliable/Uniform- Policy must be uniform enough so that it can be efficiently
followed by the subordinates.
Appropriate- Policy should be appropriate to the present organizational goal.

17. Features of good business policy
Simple- A policy should be simple and easily understood by all in the
organization.
Inclusive/Comprehensive- In order to have a wide scope, a policy must be
comprehensive.
Flexible- Policy should be flexible in operation/application. This does not
imply that a policy should be altered always, but it should be wide in scope so
as to ensure that the line managers use them in repetitive/routine scenarios.
Stable- Policy should be stable else it will lead to indecisiveness and
uncertainty in minds of those who look into it for guidance.

18. Quality policy of Maruti Suzuki
We deal with only genuine components to ensure highest
standards in quality and reliability. Our quality policy has been
designed in tune with customer requirements.

19. Food safety policy of MTR
Our facilities are equipped with the latest systems. We
adhere to international standards across all operations:
from sourcing the finest ingredients to processing and
packing using cutting-edge technology.

20. Safety policy of Apple.com
The Apple.com site uses industry-standard encryption to
protect the confidentiality of the information you submit
during checkout. When you submit order and payment
information to us, we use 128-bit Extended Validation
Secure Socket Layer (EV SSL) encryption to protect that
information in transit.

21. Objectives of Business Policy
1) Integrating the knowledge and methods learned
2) Developing analytical skills and decision-making capabilities
3) Promoting positive attitude and ethical values

22. Policy Vs. Strategy
Policy Strategy
Blueprint of activities Long term plan to achieve
objectives
Policy is formulated by top
management
Strategy is formulated by top and
middle level management
Deals with daily activities of a firm Deals with strategic decisions
Concerned with thought and action Mostly concerned with action
Policy is a guideline Strategy is a methodology

23. Types of Policy
1) Based on Nature
a. Originated policy
b. Imposed policy
c. Appealed policy
2) Based on organisation structure
a. Internal policy
b. External policy

24. Types of Policy
3) Based on mode of expression
a. Oral policy
b. Written policy
c. Implied policy
4) Based on scope
a. General policy
b. Specific policy
c. Directive policy

25. Types of Policy
5) Based on function
a. Administrative policy
b. Composite policy
c. Departmental policy

26. Previous Session
Lecture 3: Case study- Toyota Business Policy

27. Strategy
➢ Term “Strategy” was first used in war
➢ Strategies were developed to defeat enemy in war
➢ Derived from Greek word “Strategos”, means
“General”
➢ Strategy is later adopted in business world to face
competition

28. Strategy
A strategy could be:
 A plan or course of action or a set of decision rules making a pattern
or creating a common thread or
 The pattern or common thread related to the organization's activities
which are derived from the policies and goals.
 Unified, comprehensive and long-term plan.

29. Definition
“A unified, comprehensive and integrated plan
designed to assure that the basic objectives of
enterprise are achieved”- William F. Gluek

30. Definition
Unified- having a single direction
Comprehensive- solution for all the problems
Integrated- implemented for entire organisation

31. Definition
“A general direction set for the company and its
various components to achieve a desired state
in the future. Strategy results from the detailed
strategic planning process.”

32. Example of a strategy
➢ Largest producer of fast moving consumer goods (FMCG)
➢ With over 35 brands spanning 20 distinct categories
➢ Company is a part of the everyday life of millions of
consumers across India.
➢ Selling products through 3.2 million stores across India.

34. HUL- Strategy
Objective: To grow our business, while decoupling
our environmental footprint from our growth and
increasing our positive social impact.
Products: Ranging from personal care to food
products
Strategies: Expansion and Intensive Distribution

35. Intensive Distribution
➢ HUL make their products available to every customer in
the market
➢ 3.2 million retailers help them to sell their products
➢ Established a strong network of distribution
➢ Strong rural distribution with the help of local women and
unemployed
➢ Systematic warehousing and timely stock replacement

36. Vision
➢Description of something in the future.
➢Answers question- “What do we want to become?”
➢A guiding philosophy
➢Influenced by the strengths and weaknesses of the
business

37. Definition of Vision
An aspirational description of what an organization would
like to achieve or accomplish in the mid-term or long-term
future.
It is intended to serves as a clear guide for choosing
current and future courses of action.

38. Vision statement examples
Google: “Provide an important service to the world-
instantly delivering relevant information on virtually
any topic”
LinkedIn: “Create economic opportunity for every
member of the global workforce”

39. Mission
➢ Statement of purpose that distinguishes one
organization from other similar enterprises
➢ States the purpose and identity of the organization
➢ An action-oriented vision statement
➢ Defines the purpose of existence of an organisation

40. Mission statement examples
Google: “Organize the world's information and
make it universally accessible and useful.”
LinkedIn: “Connect the world's professionals to
make them more productive and successful.”

41. Goals
Goals convert the organization’s mission into tangible
actions and results that are to be achieved, often
within a specified time frame.
Goals are general guidelines that explain what you
want to achieve in your community. They are usually
long-term and represent global visions such as
“protect public health and safety.”

42. Example

43. Objectives
 Objectives define strategies or implementation
steps to attain the identified goals.
 Unlike goals, objectives are specific, measurable, and
have a defined completion date.
 They are more specific and outline the “who, what, when,
where, and how” of reaching the goals.

44. Example
The main objectives for the Coca-Cola Company are
➢To be globally known as a business that conducts
business responsibly and ethically
➢To accelerate sustainable growth to operate in
tomorrow's world.

45. BSNL
Vision: To become the largest service provider in Asia.
Mission: To provide world class state of art technology telecom
services to its customers on demand at competitive prices.
Goals: To provide a balance between the provision of universal
service to all uncovered areas, including the rural areas, and the
provision of high-level services capable of meeting the needs of the
country's economy.
Objectives: National plan target of 500 million subscriber base for
the country

46. Levels of Strategy

47. Corporate Level Strategy
➢Corporate level strategy fundamentally is concerned
with the selection of businesses in which the
company should compete and with the development
and coordination of that portfolio of businesses.
➢ These strategies are called “Grand Strategies”
➢ They are implemented at the organisational level

48. Business Level Strategy
➢ A strategic business unit may be a division, product line, or
other profit center that can be planned independently from
the other business units of the firm.
➢Michael Porter identified three generic strategies (cost
leadership, differentiation, and focus) that can be
implemented at the business unit level to create a
competitive advantage and defend against the adverse
effects of the five forces.

49. Functional Level Strategy
➢The functional level of the organization is the level of the operating
divisions and departments.
➢Functional level strategies in marketing, finance, operations, human
resources, and R&D involve the development and coordination of
resources through which business unit level strategies can be
executed efficiently and effectively.
➢Functional units of an organization are involved in higher level
strategies by providing input into the business unit level and
corporate level strategy

50. Corporate
level
Business
level
Functional
level
Diversification
Strategy

51. Lecture 5: Strategic Management
➢Strategic Management
➢Definition
➢Need for Strategic Management

52. Strategic Management
➢ Strategic management is an art and science of formulating,
implementing, and evaluating cross-functional decisions that enable
the organization to achieve its objectives.
➢ Strategic management is a comprehensive area that covers almost
all the functional areas of the organization.
➢ Strategic management deals with organizational level and top-level
issues whereas functional or operational level management deals with
the specific areas of the business.
➢ Strategic management deals with organizational level and top-level
issues whereas functional or operational level management deals with
the specific areas of the business.

53. Definition
“The determination of the basic long-term goals &
objectives of an enterprise and the adoption of the course of
action and the allocation of resources necessary for carrying
out these goals”.

54. Understanding Definition
Set Goals and
Objectives
Determine
strategy
Allocate
resources
Achieve
Objectives

55. Need for Strategic Management
1. Increasing Rate of Changes
2. Higher Motivation of Employees
3. Strategic Decision-Making
4. Optimization of Profits

56. Strategic Management Process
Steps
➢ Establishing strategic intent
➢ Strategy formulation
➢ Strategy implementation
➢ Strategic Evaluation

57. Strategic Management Process

58. Strategic Intent
➢ Strategic Intent can be understood as the philosophical
base of the strategic management process. It implies the
purpose, which an organization endeavor of achieving.
➢ Strategic intent gives an idea of what the organization
desires to attain in future.
➢ Strategic Intent is extremely important for the future
growth and success of the enterprise, irrespective of its size
and nature.

59. Hierarchy of Strategic Intent

60. Vision
➢Description of something in the future.
➢Answers question- “What do we want to become?”

61. Mission
➢States the purpose and identity of the organization
➢Answers the question “How do we reach there?”

62. Business Definition
➢ Explain the business undertaken by the firm with respect to
customer needs, target audience, and alternative technologies.
➢With the help of business definition, one can ascertain the
strategic business choices.
➢The corporate restructuring also depends upon the business
definition.
➢Answers the question “What business we do?”

63. Business Model
➢ Way in which a business is conducted
➢ Decides the flow of operations in business
➢ Rival firms, operating in the same industry relies on the
different business model due to their strategic choice.
➢Answers the question: “How we do the business?”

64. Goals and Objectives
➢ Goals are general guidelines that explain what you
want to achieve in your community
➢ Unlike goals, objectives are specific, measurable,
and have a defined completion date.
➢Answer the question: “What we need to achieve?”

65. Strategic Intent of Google
Vision: “provide an important service to the world-instantly
delivering relevant information on virtually any topic.”
Mission: “organize the world’s information and make it
universally accessible and useful.”
Business Definition: American multinational technology
company that specializes in Internet-related services and
products, which include online advertising technologies, a
search engine, cloud computing, software, and hardware.

66. Strategic Intent of Google
Business Model:
Google “organizes” the “information.” Google doesn’t create
content. Indeed, Google assembles billion web pages and return an
accurate result in a matter of milliseconds. That information is
“universally accessible” as Google is free and available to billion of
users each day.
Goals and Objectives: To improve the lives' of people

67. Strategy Formulation
Strategy formulation is the process by which an
organization chooses the most. appropriate courses of
action to achieve its defined goals.
This process is. essential to an organization's success,
because it provides a framework for the. actions that
will lead to the anticipated results.

68. Steps in Strategy Formulation
➢ Set the objectives
➢ Define business and its environment
➢ Analyse the risks and opportunities
➢ Formulate alternative strategies
➢ Evaluate alternative strategies
➢ Establishing basic strategy

69. Strategic Management Process

70. Strategy Implementation
➢Strategic implementation is a process that puts plans
and strategies into action to reach desired goals.
➢The strategic plan itself is a written document that details the steps
and processes needed to reach plan goals, and includes feedback and
progress reports to ensure that the plan is on track.
➢Strategy implementation is the technique through which the firm
develops, utilises and integrates its structure, culture, resources,
people and control system to follow the strategies to have the edge
over other competitors in the market.

71. Strategy Implementation

72. Steps in Strategy Implementation
1.Building an organization, that possess the capability to put the strategies
into action successfully.
2.Supplying resources, in sufficient quantity, to strategy-essential activities.
3.Developing policies which encourage strategy.
4.Such policies and programs are employed which helps in continuous
improvement.
5.Combining the reward structure, for achieving the results.
6.Using strategic leadership.

73. Requires Support
➢ People
➢ Culture
➢ Structure
➢ Resources
➢ Systems

74. Strategy Formulation Vs. Strategy Implementation
Strategy Formulation Strategy Implementation
Planning and decision-making Executing the strategic plans.
Placing the Forces before the action. Managing forces during the action.
Entrepreneurial Activity based on strategic
decision-making.
Administrative Task based on strategic and
operational decisions.
Emphasises on effectiveness. Emphasises on efficiency.
Rational process. Operational process.
Requires co-ordination among few
individuals.
Requires co-ordination among many
individuals.
Requires a great deal of initiative and logical
skills.
Requires specific motivational and leadership
traits.
Strategic Formulation precedes Strategy
Implementation.
Strategy Implementation follows Strategy
Formulation.

75. Strategic Evaluation
➢ Strategy evaluation is that phase of the strategic management process in which
top management try to assure that the strategy formulated is being properly
implemented and is meeting its objectives of the enterprise.
➢ A follow through on strategy and at implementation requires a control system
and effective information system, which provides managers with accurate and
complete feedback in real-time so that they can act on the data.

76. Importance of Strategic Evaluation
1. Identifies the corrective steps and actions to achieve
objectives
2. Provides right directions to achieve desired organisational
goals
3. Provides essential inputs for the future strategic decisions
4 Motivates employees and boosts the morale of the
employees
5. Beneficial for all organizations whether small, medium, or
large.

77. Strategic Control
Strategic control is concerned with tracking the strategy as it is being
implemented, detecting problems or changes in the premises and
making necessary adjustments.
Strategic controls are intended to steer the company towards its long-
term strategic direction. After a strategy is selected, it is implemented
over time so as to guide a firm within a rapidly changing
environment.

78. Strategic Control Process

79. Strategic Management Process

80. Fabricated Example (Source: indeed.com)
Furniture company Wood's Fine Furnishings is
preparing to introduce a new line of kitchen tables.
They have decided to implement strategic
management to ensure that the product release goes
smoothly, efficiently and consistently across all of
their retail locations.

81. Strategic Intent
Objectives:
➢ To launch a new product line of kitchen tables
➢ To attract the customers to buy the new
product

82. Strategy Formulation
In the past, Wood's Fine Furnishings has suffered from
inconsistent marketing and incorrect shipping costs with the
release of new products in their multiple retail locations.
Before the release of their new kitchen table line, they have
decided to run a SWOT analysis to see how they can
improve the process.

83. Strategy Formulation – SWOT Analysis
Strengths:
•Quality product
•Several locations for the ease of purchase
•Flat shipping rate
Weaknesses:
•Poor communication between store managers and between store employees
•Shipping rate applied multiple times at some stores
•Inconsistent marketing strategy
Opportunities:
•Unified marketing
•Transparent fees
Threats:
•Wood's Fine Furnishings' main competitor released a line of kitchen tables last quarter

84. Strategy Formulation
➢Using their SWOT analysis, Wood's Fine Furnishings creates a
strategic plan for the release of their kitchen tables.
➢ It includes providing consistent marketing collateral, both physical
and digital, to all retail locations.
➢It also includes sending a representative to each retail location to
explain how to correctly apply the shipping rate to all purchases.
➢Finally, it sets up an internal messaging system so store managers
can communicate with one another quickly and easily about
challenges and successes in their stores.

85. Strategy Implementation
➢ One month before the release of the new kitchen tables, the marketing team has
provided the marketing collateral to all retail stores.
➢ Every store was given the same guidance on how to implement the marketing items
effectively. Two weeks before the launch, store managers were trained as a group on the
new messaging system.
➢ The trainers made sure that every manager had the messaging service set up on their
company cell phone and office computer to be accessible at all times.
➢ One week before the launch, a representative from company headquarters trained
every retail employee on how to appropriately apply shipping costs to a sale.
➢ Managers were also present to make sure this process is carried out correctly with
customers.

86. Strategy Evaluation
➢ Wood's Fine Furnishings reviewed the data from their kitchen
table release one month after the first day of sales.
➢ They found that the marketing plan drove consumers to the
retail location closest to them to see the tables in person.
➢ The internal messaging system was under-utilized by most
managers, many of whom did not like customers seeing them on
their phones while out on the floor.
➢ There were no issues with shipping costs during this release.
The strategic managers took this data and used it as they begin to
plan for their next new product release.

87. Strategic Decision Making
➢ It is the process of determining the best course of action from
the available alternatives in line with company’s mission and
goals.
➢This type of decision making guides the choices that are made,
aligning them with the company objective.
➢It requires out-of-the-box thinking as managers need to
consider future scenarios that may or may not happen.
➢It's these scenarios that will determine in which direction a
company will go.

88. Strategic Decision Making Process
➢ Define the problem
➢ Gather the information
➢ Develop the alternatives
➢ Evaluate the alternatives
➢ Choose the best decision
➢ Implement and monitor the decision

89. Define the problem
➢ What is the problem? Can it be solved?
➢ Is this the real problem or a symptom of a larger
one?
➢ Does it need immediate attention or can it wait?
➢ Is it likely to go away by itself? Can I risk ignoring it?
➢ What is my objective? What’s to be accomplished
by the decision?

90. Gather the information
•Stakeholders: Talk to individuals or groups affected by
the problem
•Facts and data: research, benchmarking studies,
interviews with credible sources, observed events
•Constraints: Lack of funding, resources, cultural
barriers
•Ask: What am I not seeing? What have I missed?

91. Develop the alternatives
➢ Choose options that show promise, need more
information, can be combined or eliminated, or will
be challenged.
➢ Identify the various solutions at your disposal.
➢ You have many different options when it comes to
making your decision

92. Evaluate the alternatives
•Weigh advantages/disadvantages of each.
•Consider cost to the business, potential loss of
morale/teamwork, time to implement the change,
whether it meets standards, and how practical the
solution is.
•Predict the consequences of each option. (“If/Then” or
“What if?”)
•Ask: What is the worst solution?

93. Choose the best decision
➢ Consider factual data, your intuition, and your emotional
intelligence when deciding a course of action.
➢ Accept that the solution may be less than perfect.
➢ Consider the middle ground. Compromising on competing
solutions may yield the best decision.

94. Implement and evaluate the decision
•Step-by-step process or actions for solving the
problem
•Communications strategy for notifying stakeholders
•Resource identification/allocation
•Timeline for implementation
•Measurements/benchmarks to gauge progress

95. Example
➢ The manager of a dog food company notices that dog owners want more
quality and fresh foods rather than kibble that lasts 10 years on the shelf,
even if those kibbles provide a similar nutritional value.
➢ The company's mission statement is to be the best company that sells the
healthiest dog food.
➢ To align the company with the changing needs and wants of its customers,
the manager decides to shift the company's products to focus more on
freshness.
➢ Yes, this means a reduced shelf life, but it does mean a higher profit
margin because dog owners are more than willing to pay more for fresh
quality foods.

96. Characteristics of strategic decisions
• Strategic decisions have major resource propositions for an organization.
• Strategic decisions are long term in nature.
• Strategic decisions deal with the range of organizational activities
• Strategic decisions involve a change
• Strategic decisions are complex in nature.
• Strategic decisions are at the top most level, are uncertain as they deal with the
future, and involve a lot of risk.
• Strategic decisions are different from administrative and operational decisions.

97. Strategic decisions Vs. Administrative decisions
Vs. Operational decisions
Strategic Decisions Administrative Decisions Operational Decisions
Strategic decisions are long-term
decisions.
Administrative decisions are taken
daily.
Operational decisions are not
frequently taken.
These are considered where The
future planning is concerned.
These are short-term based
Decisions.
These are medium-period based
decisions.
Strategic decisions are taken in
Accordance with organizational
mission and vision.
These are taken according to
strategic and operational Decisions.
These are taken in accordance with
strategic and administrative
decision.
These are related to overall Counter
planning of all Organization.
These are related to working of
employees in an Organization.
These are related to production.
These deal with organizational
Growth.
These are in welfare of employees
working in an organization.
These are related to production and
factory growth.

98. Reasons for failure of strategic
management
1. An overwhelming strategic plan: Managers don’t know where to begin. The goals
and initiatives generated in the strategic planning process are too numerous because
the leadership team failed to make tough choices to eliminate non-critical actions.
2. Unrealistic goals: While strategic objectives may stretch the organisation, they
still must be realistic. If people feel the goals are unachievable they may not try.
3. Lack of leadership: This issue is at multiple levels. It is not only about ensuring
that each manager at each level is clear about the accountabilities and authorities they
have for strategy implementation, it is about all managers understanding their role as a
people manager.
4. Focus on structural changes: Many organisations overly rely on structural change
to execute strategy. While changing structure has its place, it is only part of the
requirement for successful strategy implementation.

99. 5. Unclear accountability: If people are not clear of their role and their
accountabilities for strategy delivery, or are not held accountable for their work,
it’ll be business as usual for all but a few frustrated individuals. Clear
accountability helps drive change.
6. Lack of empowerment: Accountability needs matching authority to deliver
outcomes. It also needs the tools and resources necessary to achieve strategic
initiatives.
7. Lack of communication: Communication helps with organisational
alignment. If a plan doesn’t get communicated to employees, they won’t
understand their role or how they contribute to achieving the
organisation’s strategy.
8. Getting caught up in the day-to-day: Managers are often consumed by daily
operational problems and lose sight of long-term goals. Unless there is an
organisational focus on strategy implementation, managers will focus on their
day-to-day work.

100. 9. Lack of clarity on actions required: The actions required to execute
the strategy are not specified or clearly defined.
10. Inadequate monitoring: Managers are unable to assess if the strategy is
being achieved. Without clear information on how and why performance is
falling short, it is virtually impossible to take appropriate action.
11. No progress reporting: There’s no method to track progress, or the plan
only measures what’s easy, not what’s important, so no one feels any forward
momentum.
12. Lack of alignment: The organisation has not been aligned
for strategy implementation. Organisational silos and culture blocks execution
and/or organisational processes don’t support strategic requirements.

101. Example – Kodak Decides to Press Pause on
Digital Cameras
This is probably the most well-known of the world's worst
business strategies. Yep - this is the story of how Kodak
invented the digital camera, only to then decide not to launch
one until over 15 years later!
In 1975, Steve Sasson created the world's first digital camera
at the Kodak HQ in New York. It was a 0.1 Megapixel beast
that was around the size of a toaster. It was also utterly
revolutionary and would change the face of photography for
ever.

103. Kodak’s first digital camera

104. Kodak
The team at Kodak were smart - and they knew just how big of a
deal this was. So they invested millions of dollars into getting digital
cameras into production. A few years later, they were all set to
launch the world's first commercially available digital camera - until
members of the senior management team put a stop to the whole
endeavor.
Because they were worried about hurting the performance of their
film division which relied on selling single-use rolls of films to
customers with non-digital camera devices. Even when they were
told that they had at most, 10 years until digital would completely
displace film - they continued to resist in order to ensure that they
met their own short term financial KPIs.

106. Assessment
➢Please click the link provided in the chat box and
answer the quiz
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107. Strategist
A person skilled in planning action or policy, especially
in war or politics.
A person who is skilled in making plans for achieving
a goal: someone who is good at forming strategies.

108. Functions of a strategist
•Getting clarity around a problem or situation
•Gathering relevant information and market intelligence
•Analyzing challenges and problems by applying traditional and
visual/design thinking principles and tools
•Identifying points of competitive advantage and weakness
•Establishing clear, realistic goals
•Brainstorming and creating strategies and evaluating them
using probability and risk/reward tools
•Designing and creating strategic plans

109. Role of strategist in strategic management
.
1) Consultants: Many organizations which do not have a corporate
planning department owing to reasons like small size, infrequent
requirements, financial constraints, and so on, take the help of
external consult-ants in strategic management.
Example: McKinsey and Company, specializes in offering consultancy in the areas of
fundamental change management and strategic visioning. Anderson Consulting, is in
business restructuring, and info tech and systems. Boston Consulting helps in building
competitive advantage and KPMG Peat Marwick is in strategic financial management and
feasibility studies for strategy implementation.

110. 2) Entrepreneurs
Entrepreneurs: Entrepreneurs are promoters who conceive the idea
of starting a business enterprise for getting maximum returns on their
investment. They play their role right from the promotion of the
proposed venture. So, their strategic role to make the venture a
success is very conspicuous in a new business enterprise
Example: Kiran Mazumdar Shaw, a young entrepreneur, set up an export-
oriented unit manufacturing a range of enzymes. As an expert in brewing
technology, Mazumdar entered the field of biotechnology after
experiencing problems in getting a job. Later she set up another plant for
manufacturing two new enzymes created by her own research and
development (R&D) department.

111. 3) Board of Directors
Board of Directors: Board of Directors are professionals elected on
the he shareholders of the company. They are responsible for the
general administration of the organization. They are supposed to
guide the top management in framing business strategies for
accomplishing predetermined objectives.
Example: Nandan Nilekani is the member in Board of Directors in
Infosys.

112. 4) CEO
Chief Executive Officer: In the management circle, the chief executive is the top
man, next to the directors of the Board. He occupies the most sensitive post,
being held responsible for all aspects of strategic management right from
formulation to evaluation of strategy. He is designated in some companies as the
managing director, executive director or as a general manager.
Example: Sundar Pichai of Google.

113. 5) Senior Management
Senior Management: Starting from the chief executive to the level of functional
or profit-centre heads, these managers are involved in various aspects of
strategic management. Some of the members of the senior management act as
directors on the board usually on a rotational basis. All of them serve on
different top-level committees set up by the board to look after matters of
strategic importance and other policy is-sues.
Example: Strategic planning at MRF Ltd. used senior management expertise by
dividing them into five groups dealing with products and markets, environment,
technology, resources, and manpower. Each group had a leader who helped to
prepare position papers for presentation to the board. The executive directors in
the company were actively involved in SWOT analysis through the help of
managers and assistant managers.
5) Senior Management

114. 6) SBU Level Executives
SBU level executives: “SBU” stands for strategic business unit. Under this
approach, the main business unit is divided into different independent units
and is allowed to form their own respective strategies. In fact, the business
is diversified and thus the departmental heads are supposed to act as the
main strategist, keeping an eye on optimum benefit for their departments.
Hence strategists i.e., the departmental heads enjoy the maximum amount
of authority and responsibility within their strategic business units.
Example: At Shriram Fibres, the strategic planning system covered the
different businesses ranging from nylon yarn manufacture to the provision
of financial services. Strategic plans were formulated at the level of each
SBU as well as at the corporate level. The corporate planning depart-ment
at the head office coordinated the strategic planning exercise at the SBU-
level. Each SBU had its own strategic planning cell.

115. 7) Corporate planning staff
Corporate planning staff: Corporate-planning staff plays a supporting role in
strategic management. It assists the management in all aspects of strategy
formulation, implementation and evaluation. Besides this, they are responsible for
the preparation and communication of strategic plans, and for conducting special
studies and research pertaining to strategic management.
It is important to note that the corporate planning department is not responsible
for strategic management and usually does not initiate the process on its own. By
providing administrative support, it fulfils its functions of assisting the
introduction, working, and maintenance of the strategic management system.
Example: Administrative staff responsible for planning the implementation of a
strategy

116. 8) Middle Level Managers
Middle level managers: They are basically operational planners they
may, at best, be involved as ‘sounding boards’ for departmental plans,
as implementers of the decisions taken above, followers of policy
guidelines, and passive receivers of communication about functional
strategic plans.
As they are basically involved in the implementation of functional
strategies, the middle level managers are rarely employed for any
other purpose in strategic management.
Example: Marketing manager responsible for making strategies at
department level

117. 9) Executive Assistant
Executive Assistant: An executive assistant is a person who as-sists the chief
executive in the performance of his duties in various ways. These could be : to
assist the chief executive in data collection and analysis, suggesting alternatives
where decisions are required, preparing briefs of various proposals, projects and
reports, helping in public relations and liaison functions, coordinating activities
with the internal staff and outsiders, and acting as a filter for the information
coming from differ-ent sources. Among these “the most important and what one
manager labels the “bread and butter role” of EA (executive assistant) could be
that of corporate planner”.
Example: Assistant Manager and supervisor in the department.