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Introduction To Strategy

Strategy involves setting long-term goals, defining a firm's scope and competitive advantage, and determining internal efforts to achieve that advantage. There are four components to strategy: goals, scope, competitive advantage, and internal efforts. Strategic decisions are future-oriented, involve large resources, and consider external factors. Strategy can be a plan, ploy, pattern, position, or perspective. It exists at the corporate, business, and operational levels. Firms formulate strategy through entrepreneurial, adaptive, or planning modes and manage it through vision, mission, goals, analysis, alternatives, implementation, and evaluation.

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23 views

Introduction To Strategy

Strategy involves setting long-term goals, defining a firm's scope and competitive advantage, and determining internal efforts to achieve that advantage. There are four components to strategy: goals, scope, competitive advantage, and internal efforts. Strategic decisions are future-oriented, involve large resources, and consider external factors. Strategy can be a plan, ploy, pattern, position, or perspective. It exists at the corporate, business, and operational levels. Firms formulate strategy through entrepreneurial, adaptive, or planning modes and manage it through vision, mission, goals, analysis, alternatives, implementation, and evaluation.

Uploaded by

deewanz
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to strategy

Defining Strategy

• Strategy is:
• A plan or course of action or a set of decision rules
forming a pattern or creating a common thread,
• The pattern or common thread is related to the
organization’s activities which are derived from its
policies, objectives and goals,
• Related to pursuing those activities, which move
an organization from its current position to a
desired future state.
Strategy has four components.
• Firstly, strategy includes a clear set of long term goals.
• Secondly, it defines the scope of the firm i.e. the
types of products the firm will serve etc.
• Thirdly, a strategy has a clear statement of what
competitive advantage it will achieve and sustain.
• Finally, the strategy represents the firm’s internal
effort that will allow it to achieve a competitive
advantage in the environment in which it has chosen
to survive, grow and compete.
Dimensions of Strategic Decisions

1. Top management involvement


2. Allocation of large amounts of
resources
3. Impact on long-term prosperity of the
firm
4. Future-oriented
Dimensions of Strategic Decisions
5. Multi-functional or multi-business
consequences
6. Consideration of factors in the external
environment
7. Values and preferences also have impact on
the type of strategy formulated apart from
opportunities and threats
The 5 Ps..
• Henry Mintzberg’s suggests five ways in which
the term strategy may be used. A strategy can
be a plan, ploy pattern, position or
perspective . They are not mutually exclusive.
 
1. Plan: A 'consciously intended course of action‘.
 
2. Ploy: A maneuver in a competitive game. For
example a firm might add unnecessary plant
capacity. The strategy is not to produce the goods
but to discourage a competitor from entering the
market. A specific plan Intended to outwit an
opponent or competitor.
 
3. Pattern: Emergent strategies.
 
4. Position : A strategy is a position- a means of locating
an organization in an “environment”. Environmental fit
and relationships with other organizations. A position
might be a distinctive niche, whereby the firm makes
distinctive products or services or exploits a distinct
competence.
 
5. Perspective :A unique way of looking at the world, of
interpreting information from it, judging its
opportunities and choices and acting. Different strategic
perspectives might respond to the same environmental
stimulus in different ways.
LEVELS OF STRATEGY

Corporate
This is the level where vision statement of the
Level
●

companies emerges

Strategies

Business Level ●
This level consists of primarily the business managers or
managers of Strategic Business units. Here strategies are about
how to meet the competition in a particular product market and

Strategies strategies have to be related to a unit within an organization.

Operational ●
For massive mobilization of resources and people and generating
high quality of strategic thinking, the planning should be carefully

Level dovetailed and integrated with significant administrative systems


viz. management control,
management, motivation, rewards etc.
communication, information

Strategies
Modes of strategy formulation
1. Entrepreneurial mode
2. Adaptive mode
3. Planning mode
Processes of Strategic Management

1. Defining the vision, business mission,


purpose, and broad objectives.
2. Formulation of strategies.
3. Implementation of strategies.
4. Evaluation of strategies.
Comprehensive Model of Strategic Management

Business vision

Business mission

Defining goals and objectives

Environment appraisal

Development of strategic alternatives

Implementation of strategy

Evaluation of strategy

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