Professional Documents
Culture Documents
Chapter 1
Learning objectives
To understand Meaning and definition of strategic management Evolution of strategic management Different levels of strategy Relationship between business model and strategy Functions and benefits of strategic management
course in management
Strategy.
Strategy has been defined as an integrated set of actions leading to a sustainable competitive advantage. Thus, Strategy is.
1. 2. 3. Plan or a course of action A common thread between an organizations policies, objectives & goals Concerned with resources necessary for implementing a plan & following a course of action
Compete successfully
Conduct operations Achieve target levels of organizational performance
HUL in Action
HULs Businesses--1. Food Brands [Brooke Bond, Kwality walls, Bru, Kissan, Knor, Lipton, Modern} 2. Home Care[Wheel, Cif, Domex, Surf, Rin, Vim] 3. Personal Care [Axe, Lux, Lifebuoy, Liril, Hamam, dove, Close-Up, Fair & Lovely, Pears, Vaseline, Sunsilk} 4. Water- {Pureit}
an attractive number of buyers prefer its products/services over those of rivals &
when the basis for this preference can be maintained over time
Being the industrys low-cost provider (a cost-based competitive advantage) Incorporate differentiating features (a superior product type of competitive advantage keyed to higher quality, better performance, wider selection, value-added services, or some other attribute) Focusing on a narrow market niche (winning a competitive edge by doing a better job than rivals of serving the needs and preferences of buyers comprising the niche) Developing expertise and resource (strengths not easily imitated or matched by rivals)
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Develop expertise, resource strengths, and capabilities not easily imitated by rivals
FedEx Next-day delivery of small packages
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Two more
1. Higher than corporate level Called societal strategies Company relates itself to society to fulfill the societies needs 2. Lower than functional level Called operational strategies Deal with a highly specific & narrowly defined area Eg: Functional strategies @ Marketing level subdivided into ________________________
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Strategy . . .
Deals with a companys competitive initiatives and business approaches
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Relationship Between Business Model and Strategy Business Model in a retail sense, one model could be brick and mortar storefronts, another could be selling merchandise over the Internet i.e. e-tailing. Cost & revenue implication, & finally THE NET PROFIT Strategy would define
what products or services you propose to sell (or do sell?), Who your customers are, how you intend to reach those customers? How you will finance the business? How each major function within your company will operate?
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Strategic Management
A stream of decisions or actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives___[Gulcek 1984]
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It allows for identification of opportunities. Determination of long term goals & objectives of the organization
identify opportunities.
It creates a framework for internal communication among personnel. It gives encouragement for forward thinking.
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It provides a co-operative, integrated and enthusiastic approach to tackling problems and opportunities.
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Phase 1 & 2
Vision Mission Objective
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Phase 4.(Implementation)
Project Resource Allocation Behavioral Operational Functional
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9. Self Interest
10. Fear of the Unknown
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Learning outcomes
Meaning and definition of strategic management Evolution of strategic management Different levels of strategy Relationship between business model and strategy Functions and benefits of strategic management
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