Board of Directors: Is responsible for the governance of the organization.

As directors, the members of the board are responsible for providing guidance and establishing the directives according to which the managers of the organization can operate.

The Chief Executive Officer: Is the most important strategist who is responsible for all the aspects of strategic management, right from formulation to the evaluation of strategy. He plays a very important role in strategic decision making.

Various strategists

Entrepreneurs: are persons who always searches for change, responds to it and exploits it as an opportunity. They play a very important and a proactive role in strategic management. They provide a sense of direction to the organization and set objectives and formulate strategies to achieve them.

Senior Management: When assigned with specific responsibilities senior managers look after modernization, technology up gradation, diversification and expansion, plan implementation and new product development. Senior managers perform a variety of roles by assisting the board and the CEO in formulation, implementation and evaluation of strategies.

SBU level executives:

The idea for organizing to SBU is to manage a diversified company as a portfolio of businesses. SBU level heads are also known as profit center heads are considered as CEOs of a defined business unit for the purpose of strategic management.

Corporate planning staff: It plays a supporting role in strategic management. They not only assist in whole planning process but also are responsible for the communication of strategic plans. They also conduct special studies and research related to strategic management.

Consultants:

The main advantage of hiring consultants is getting unbiased and objective opinion from a knowledgeable outsider and availability of specialists skills. Some Consulting cos are, Mc Kinsey and company, Accenture, AF Ferguson, KPMG, Boston consulting, S B Billimoria etc.

IMPORTANCE AND ROLE OF MANAGERS IN STRATEGIC MANAGEMENT

Strategic management integrates the knowledge and experience gained in various functional areas. It helps to understand and make sense of complex interaction in various areas of management. It helps in understanding how policies are formulated and in creating appreciation of complexities of environment that the senior management faces in policy formulation. Managers need to begin by gaining an understanding of the business environment and to in control.

Mohsir

Strategic Management Process

ORGANISATION
Mission Objectives Strategies Policies

INTERNAL Environment ANALYSIS Strengths weaknesses

GENERATIO N& EVALUATION

IMPLEMEN TATION OF THE BEST ALTERNATI VE

ORGANISATI ON
Current performance

REVIEW
Top management

SELECTION OF Strategic Factors

REVIEW
Mission objectives

Rework as needed

MONITORING REVIEW & EVALUATION

EXTERNAL Environment ANALYSIS Opportunities threats

Strategic Management Process

1)Establishing the hierarchy of strategic intent: Performing environmental appraisal. Doing organizational appraisal. Creating and communicating a vision. Defining the business.

Strategic management process

2) Formulation of strategies: Considering corporate level strategies. Designing a mission statement Setting objectives. Considering business level strategies. Strategic analysis. Formulating strategies. Preparing strategic plan.

Strategic management process.

3) Implementation of strategies: Activating strategies. Designing structures and systems. Managing behavioral implementation. Managing functional implementation. Operationalyzing strategies.

Strategic management process

4) Performing strategic evaluation and control: Performing strategic evaluation. Exercising strategic control. Reformulating strategies.

STRATEGIC INTENT

Effective Strategy Making begins with a strategic intent of where the organization needs to head!

Elements of strategic intent

Most integrative

Vision mission Business definition Objectives & Goals Plans

Fewest in number

Most specific

Greatest in number

Vision
&

Why We Need ?

VISION
What the firm would ultimately like to become? An aspiration of organization. Organization has to strive and exhert to achieve it.

Examples

BHEL
A world class innovative, competitive and profitable

engineering enterprise providing total business

Colgate-palmolive
To be the company of first choice in oral and personal

hygiene by continuously caring for consumers & partners

NTPC
To be the worlds largest and best power producer,

powering Indias growth

Tata steel
We aspire to be the global steel industry benchmark for

Value Creation and Corporate Citizenship

Examples continued

Ranbaxy Industries

To become a research based international Pharmaceuticals Company.

Voltas

we will be among the 10 most admired industrial corporations in the country with leadership focus on delivery of products and services which are globally competitive; continuous improvement of our product, processes & people

Whirlpool-

Grow with new opportunities & be the leader in an ever-changing global market. We

will be driven by our commitment to continuous quality improvement & to exceeding

all our customers expectations

MISSION STATEMENT
Defines Current business activities Highlights boundaries of current business Conveys

Who we are?
What we do?, and Where we are now?

Continued..
Company specific, not generic- so as to give a company its own identity. A companys mission is not to make a profit! The real mission is always- What will we do to make a profit?

Examples of Mission Statement

MICROSOFT CORPORATION

Empower people through great software any time, any place and on any device. ONGC
To stimulate, continue and accelerate efforts to develop and maximize the contribution of the energy sector to the economy of the country

Components of a mission statement

Customers Products or services Markets Technology Concern for survival, growth, & profitability Self-concept Concern for public image Concern for employees

OBJECTIVES & GOALS

Ultimate end results which are to be accomplished by the overall plan over a specified period of time. Goals and objectives are set to achieve Vision & Mission Goals denote a broad category of financial and non-financial issues that a firm sets for it self. Objectives are the ends that state specifically how the goals shall be achieved.

Need for Objectives

Yardstick to measure performance Serve as a motivating force Help the organization to pursue its vision and mission Define the relationship of organization with internal and external environment. Provide a basis for decision-making.

EXAMPLES..
Profit Objective Marketing Objective Productivity Objective Product Objective Social Objective Financial Objective Human resources objective

Strategic Stretch

To Achieve strategic intent one has to stretch forward and has to look at the resourcefulness instead of looking at resources. One has to make use of Innovation and resources. Stretch leads to leverage.

Strategic Leverage

Refers to concentrating on the resources to achieve strategic intent, accumulating, learning, experiences & Competencies in a manner to meet the aspirations by stretching the scarce resource that an organizational resource to the environment. Instead of allotting the competitors blindly & taking their head companies must leverage the resources.

Strategic Fit

: Strategic fit is the traditional way of looking at strategy. Strategic fit is conservative and seems to be more realistic but u may not be aware of the potential. Under stretch & leverage Strategic extent could be impossible, idealistic but under fit strategic something far beyond possibilities and look at the potential possibilities.

In the modern business context strategic management faces many challenges such as:

Orientation for globalization

Every aspect of the business is getting globalised and business organizations step in to global operations with MNC and other foreign business operations methods. Due to the globlised operations of the business world there are new orientations such as international human resource management (IHRM) and international finance are emerging. Companys strategic management process has to be updated to cope up with these new orientations.

Emerging e-commerce and internet culture

With the wide expansion of world wide wed (www) and the technology businesses have moved on to e-commerce where they conduct business electronic means such as online purchasing/selling and online advertising. Strategic management process of the business should be able to accommodate ecommerce motives into the business process.

Cut throat competition With the globalization, e-commerce and other changes in the business environment, today's business world has become hyper competitive where the organization can no longer survive without executing proper competitive strategy. Strategic management process should generate competitive intelligence and predict the next moves of the competitors and build the competitive strategy to win the battle with competitors.

Diversification

With the rapid changing business environment and increased uncertainty the business risk has increased drastically. To diversify the business risk companies now engage in diversified operations where they focus on more than one business area/industry rather than specializing in one area. The strategic management should be able to identify diversified business opportunities and manage them well.

Active pressure groupsIn the modern world there are active pressure groups operating such as environmental activism and consumer protectionism. Strategic management should identify these external pressure groups and hear about their concerns.

Motive for Corporate Social Responsibility (CSR) and ethics

The modern business organizations have engage in CSR and ethics to keep up their corporate reputation and be competitive in the environment. Strategic management should look into possible CSR activities and implement those to be in line with expectations of the society.