Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Strategic management
1.
2.
The Process of making decisions about their future in
its complex & changing environment is called
strategic management.
Involves in making decisions that defines the
organizaton’s mission & objectives.
Determines the organization’s most effective
utilization of its resources & seek to assure the
effectiveness of the organization within its
environment.
Strategic Management
4.
Concerned with making decisions with regards to:
Defining the org. philosophy & mission
Establishing long & short range objectives to achieve
the org.’s mission
Selecting the strategy to be used in achieving the
organization’s objectives.
Strategy Formulation
5.
Concerned with aligning the organizational structure ,
systems & processes with the chosen strategy.
Strategies exist @ different levels in an org
The hierarchy of strategies
1.Mission-
2.Objectives-Long term & Short term
3.Corporate Strategies-established @the highest level of
mgt & involve a long range time horizon
4.Business Unit Strategies- Narrower in scope than before
5.Functional Strategies- more narrower.
Strategy Implementation
6. Stable growth strategy
Growth strategy
Concentration on a Single product or service
Concentric diversification
Vertical diversification
Horizontal diversification
Conglomerate diversification
Endgame strategies
Retrenchment strategies
Trunaround strategy
Disinvestment strategy
Liquidation strategy
Combination strategy
Simultaneous strategy
Sequential strategy
Corporate Strategies
7.
Change the management personnel both at the top &
bottom levels.
Cut down on Capital expenditure
Centralize decision- making in an attempt to control costs.
Reduce recruitment
Reduce advertising & promotion expenditures
Fire employees if required
Sell off some assets.
Tighten inventory ctrl
Improve the collection of accounts receivable.
The turnaround strategy aims to cut costs by
using the following measures:
8.
The disinvestment strategy involves selling off a
major part of the business which can be a strategic
business unit, a product line, or a division.
Liquidation strategy involves terminating an
organization’s existence either by selling off its assets
or by shutting down the entire operation.
Cont……
9.
Overall cost leadership strategy-aims to produce & deliver
the product or service with specified quality, at a low cost
relative to its competitors.
Differentiation Strategy- aims to create a new product or
service which is unique in that industry.
The uniqueness may be achieved through design or brand
image, technology, customer services or dealer network.
This strategy will enable the organi.to fix a higher price
for its product or service.
Focus Strategy- aims to concentrate on a particular group
of customers, geographic mkt or pdt line segment in
order to serve a well defined but narrow mkt better than
its competitors who serve a broader mkt.
Generic competitive(or
Business Unit) Strategy
11.
Aims to provide product/services to its customers by
using a combination of the following strategies to fill mkt
gap.
1. timely delivery of products/services.
2. flexibility in meeting customer’s demand in terms of
change in product design or change in production
volume.
3. quality of products/services to meet customer’s
specifications.
4. cost effectiveness in terms of low price for its
products/services relative to that of its competitors.
Production /Manufacturing
Strategies
12.
Some of the specific operations objectives are as follows:
1. achieving highest efficiency @ all operational subsystem.
2. gearing up the operations subsystems to meet delivery
commitments
3. flexibility in meeting customer’s demand in terms of change
in product design
4. flexibility in production volume to meet changing customers
demand
5. satisfying customers’ demand with world class product
quality
6. to be effective in labour relation & manpower cost ctrl
7. efficient material utilization and its cost ctrl.
8. efficient facility utilization and its cost ctrl.
Cont……
13.
To increase the rate of rate of return on investment
To increase sales turnover
To maximize profit
To improve the economy of the nation
To improve earning per share
To improve employment
To attain substantial market share.
In general , Organizations would be interested in improving their
productivity by formulating proper corporate strategies. The
objectives of such corporate strategies are(Sahay,Prem Vrat & Jain,
1996):
