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STRATEGIC MANAGEMENT
FLOW CHART DOCUMENT SRIVINIVASA COACHING CENTRE CA COACHING CENTRE BANGALORE
WRITTEN, DRAWN & DESIGNED BY VENKATA NAGENDRA BABU.G M.Com, B.Com & CA PE-II FACULTY OF SRINIVAS COACHING CENTRE
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OM SRIRAM
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AUTHOR
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BUSINESS ENVIRONMENT
Business Environment
Business
Environment
Definition
Objectives
Meaning
Characteristics
Influences
Efficiency Profitability
Complex Dynamic
Pervasive
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BUSINESS ENVIRONMENT
Environmental Analysis
Meaning
Goals
Need
Problem in understanding
Decision making Evaluating present strategy Formulating future strategy Setting strategic Objectives To grow
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BUSINESS ENVIRONMENT
Business Environment
Micro components
Macro components
Demographic Environment Economic environment Political legal environment Socio-cultural environment Technological environment Global environment
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BUSINESS ENVIRONMENT
Demographic Environment
Age Income
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BUSINESS ENVIRONMENT
Economic environment
Economic Indexes GNP GDP Industrial Growth rate Percapita income Balance of payment
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BUSINESS ENVIRONMENT
Legal Structure Law & Order Effiency of Govt agencies Judiciary Implementation of law
Political Goal
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BUSINESS ENVIRONMENT
Socio-Cultural Environment
Human Relationship Beliefs Social Attitude Values Cultural Values Norms Ethics in societies & monarities Education
Technological Environment
Education Technology needs. R&D needs Communications Cost Reduction Quality Productivity
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BUSINESS ENVIRONMENT
Global Environment
Global Markets
SARC NATO G8
Approach of Caution
Dynamic Approach
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Levels of Strategies
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Stability Strategy
Expansion Strategy
Retrenchment Strategy
Combine Strategy
Diversification Strategy
Takeover Mergers
Joint-ventures
Horizontal Diversification
Vertical Diversification
Concentric Diversification
Conglometric diversification
Backward integration
Forward integration
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Divestment
Liquidation
Step 2
Step 4
Step 5
Step 6
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Top Management involment Allocation of resources Impact on Long term Prosperity of the firm Future Oriented Multifunctional & Multi-Business Consideration of external Environmental factors
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OrganisatiOn analysis
TOWS Matrix
Organizational Strengths 1 2 List strengths 3 4 SO Strategies 1 Use the strengths to 2 take the advantage of opportunities 3 4 ST Strategies 1 Use the strengths to 2 avoid threats 3 4 Organizational Weakness 1 2 List Weakness 3 4 WO Strategies 1 Over come the weakness by 2 taking the advantage of opportunities 3 4 WT Strategies 1 Minimize the 2 Weaknesses and and avoid threats 3 4
ORGANISATION ANALYSIS
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SWOT ANALYSIS
The concept of SWOT Analysis is described in matrix form, S=Strengths, W=Weakness, O=Opportunities, and Threats
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BCG Matrix
Relative Competition position (Market Share) High Low
High
Stars
Questions Marks
Low
Cash Cows
Dogs
ORGANISATION ANALYSIS
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Ansoffs Matrix
Existing products
Existing Markets
New Products
Market Penetration
Product Development
New Markets
Market Development
Diversification
ORGANISATION ANALYSIS
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GE-NINE-CELL MATRIX
Industry Attractiveness
LOW
MEDIUM
HIGH
STRONG
AVERAGE
WEAK
ORGANISATION ANALYSIS
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Dominant
S VE VE T
Business Strength
Strong
HOLD
Favoured
Tenable
BU ILD
Unacceptable ROI
Weak
Embryonic
Growth
Mature
Decline
Embryonic = Introduction
ORGANISATION ANALYSIS
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Strategy
Systems
Skills
Style
Staff
STRATEGIC ANALYSIS
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What are the strategic level and Who are persons at different levels of a Corporate
Corporate Level Board of Directors
Business Level
Division A
Division B
Division C
Functional Level
STRATEGIC ANALYSIS
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Evaluation of Alternatives
Choice of strategy
STRATEGIC ANALYSIS
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INTERNAL POTENTIAL
ENVIRONMENTAL OPPORTUNITIES
STRATEGIC ANALYSIS
STRATEGIC ANALYSIS
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RISK ANALYSIS
Short Term Long Term
External
Strategic Risk
Inconsistencies with the strategy are developed on account of changes in internal capacities and preferences
Internal
STRATEGIC ANALYSIS
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SA SA SA SA SA
Product analysis Competitive situation Distribution situation Environmental Factors Opportunity and issue analysis
STRATEGIC ANALYSIS
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Thinking strategically about a company's external environmental Thinking strategically about a company's internal environmental
Select the best strategy and business model for the company
STRATEGIC ANALYSIS
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FUNCTIONAL STRATEGIES
Functional Strategies
Logistics Strategies
FUNCTIONAL STRATAGIES
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FINANCIAL DECESIONS
Source of Funds
Cash Level
Treasury Management
Creditors Management
FUNCTIONAL STRATAGIES
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FUNCTIONAL STRATAGIES
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R&D Policies enhance strategy R&D Emphasize product or Process improvements R&D Stress basic or applied research R&D Be leaders or followers in R&D R&D
FUNCTIONAL STRATAGIES
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STRATEGIC IMPLEMENTATION
STRATEGIC IMPLEMENTATION
Some of the important statement for this captor are as follows
Implementation means "TRANSLATING DECESION INTO ACTION" CHANGE WILL COME FROM IMPLEMENTATION BUT NOT BY PALN
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STRATEGIC IMPLEMENTATION
Project Implementation
Behavioral Implementation
Structural Implementation
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STRATEGIC IMPLEMENTATION
SOUND FLAWED
STRATEGY FORMULATION
A C
EXCELLENT
B D
WEAK
SOUND
Strategic Implementation
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STRATEGIC IMPLEMENTATION
OrganizatiOnal Structure
Functional Structure
CEO
Public Relation
Legal
Finance
Marketing
Personnel
Production
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Divisional Structure
CEO
Corporate finance
General Manager
Marketing
Marketing
Operations
Operations
Personnel
Personnel
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STRATEGIC IMPLEMENTATION
Head SBU 2
Head SBU 3
Division
Division
Division
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STRATEGIC IMPLEMENTATION
Matrix Structure
CEO Marketing
Marketing
Finance
Marketing
Personnel
Production
Project Manager A
Project Manager B
Project Manager C
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STRATEGIC IMPLEMENTATION
Network Structure
CORPORATE HEADQUARTER
Function Y
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Case Study
Almost all business schools across the globe use the case method as the prime tecahing technique for the course on business policy management. Student of strategic management practice business policy and strategic management case analysis. What is case? A case is a description of management problem or situation as viewed or presented to a decision maker. It is a pedagogical tool which involves a discussion centered around the case. It sets a situation with all the ancillary facts, figures, emotions, opinions, views grapevine and the like. Need for case method in management practices Prof. Charles Gragg observed that managerial skill and expertise can not be acquired through mere listening to lectures and reading books. He suggested that readymade answers about the practice of management cannot be found in text books. This is because of the fact that each managerial situation is different from others with unique aspects, requiring its own diagnosis and judgment. Cases provide the tomorrows managers with a valuable way to practice wresting with the actual problems of actual managers in actual companies. Most of the management students have no or limited knowledge about the practical aspects of management. Cases brined this gap to some extent and help the students to substitute for practical knowledge by Giving broader exposure to different types of situations, companies and industries Placing the students in different roles of case Providing an opportunity to apply principles ,concepts and techniques of management to problem situations Including the students to prepare managerial action plans and to deal with related issues.
Objectives of Case Analysis: The objectives of the case analysis are: To increase the understanding of the students of what managers hold and should not do in guiding a business to success To build the student skills in conducting strategic analysis in a variety of situations, companies and industries. To provide the student valuable practice in diagnosing strategic issues, evaluating strategic alternatives with the help of SWOT analysis and formulating practicable plans of action based on the ground realities To enhance the students sense of business judgment as opposed to accepting the opinion of the teacher or back of the book answers
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To provided the student an in-depth exposure to a variety of companies and industries, thereby gaining something close to actual business experience.
How to analyze a Case? The student can follow the approach discussed below Read the case material quickly to get familiarity Read the case a second time for full command of the facts, information, opinions, views, company values etc. Read the exhibits, appendices etc. carefully Study the case ( Student should be very clear on the words read and study ) Identify the strategic issues Diagnose the key issues Check the diagnosis Support diagnosis and opinions with reasons and evidence Checkout conflicting opinions and make some judgment about the validity of the data and information provided Start analysis of the issues Identify and make notes of data and information required to solve the problem diagnosed Compare the data and information available in the case with the data required to offer recommendations Fill-in the gaps Re-check the diagnosis Use tools and techniques of strategic analysis Analyze the case Generate alternative solutions Evaluate the alternative solutions Rank of solutions Select the best solution Prepare an action plan Communicate the results to parties concerned.
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Contact SRINIVAS COACHING CENTRE 080-23469376 VENKATA NAGENDRA BABU.G e mail: babu_gvnagendra@yahoo.co.in Mobile .+91-9008893322 Feedback e mail: babu_gvnagendra@yahoo.co.in Subject Feedback SM
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