Strategic Management Module 1 Part I

Strategic Management
Major Bhargava R D
Executive Director
XHire HR Consulting LLP
Bangalore

Module 1
 Historical perspective of Strategic Management,
Conceptual Framework for Strategic Management
 The Concept of Strategy and Strategy Formation
Process – Stakeholders
 In business –Vision, Mission and Purpose –
Business definition, Objectives and Goals.
 The SM model

Historical Perspective of
 What is Strategy and What is SM?
 Strategic Management is the key process in
every organization’s efforts to gain and sustain
a competitive advantage. It is essential for both
small and large organizations.
 Strategic Management is a continuous process
of Strategic Analysis, Strategy Creation,
Implementation and Monitoring used by
organizations with the purpose to achieve and
maintain a competitive advantage.

Conceptual Framework for
 In developing a Strategic Plan, the use of
a conceptual framework which can guide
the planning process in a systematic,
rational, and strategic manner should be
considered. ...

Strategic Planning
 Strategic planning is defined as a process of identifying or
defining problems, formulating objectives or goals, thinking of
ways to accomplish goals and measuring progress towards
goal achievements (Middleton and Hsu Lin, 1975).
 A good Strategic plan has a strategy which reflects the target
beneficiaries' identified problems/needs and the way
information, education (i.e., training) and communication will
be used in solving such problems or meeting the needs.
 Such a plan must outline the management actions to be
taken in implementing the strategy.
 Thus, in this context, planning has to include both strategy
planning (i.e. what to do) and management planning
(i.e., how to make it happen).

The Concept of Strategy
 The top management of an organization is
concerned with the selection of a course of
action from among different alternatives to
meet the organizational objectives. The
process by which objectives are formulated
and achieved is known as Strategic
Management and Strategy acts as the
means to achieve the objective.

Strategy Formation Process –
Stakeholders
 Strategy Formulation is the process by which
an organization chooses the most appropriate
courses of action to achieve its defined goals.

 Formulation of strategy is a creative and
analytical process. It is a process because
particular functions are performed in a
sequence over the period of time. The process
involves a number of activities and their
analysis to arrive at a decision. Though there
may not be unanimity over these activities
particularly in the context of organizational
variability, a complete process of strategy
formulation and implementation can be
understood.

 There are several ways strategy formulation
can be done for a company. However some
methods are better than the others. Here are
10 steps which guide you in deciding the
strategy of your company.
 Steps 1 to 5 mainly involve internal or
external research as well as very long term
strategy making (Strategies made in the first
5 steps affect the whole life cycle of the
company)

Vision, Mission and Purpose
 Business Definition, Objectives and Goals

The S M Model
 The Strategic Management Model -- or
Strategic Planning model, as it is also
known -- is a tool used by managers to plan
and implement business strategies.
Although there are variations of the strategic
management model, most are divided into
six stages. Understanding these six stages
will help managers to create and implement
strategies in their own firms.

Six Stages of The SM Model
I. Mission
II. Objectives
III. Situation Analysis
IV. Strategy Formulation
V. Application
VI. Control

Strategic Planning Template
1) Write a Vision Statement
2) Mission Statement
3) Define the company profile
4) Study the External Environment
5) The 5th step involves matching all three –
Mission statement, Company profile and the
External Environment such that they are in
sync to achieve the vision of the company.

6) Deciding the actions for accomplishing the
mission of the organization
7) Selecting long term strategies which will
be most effective
8) Deciding on short term strategies arising
from the long term ones such that these
short term strategies too are in sync with the
mission and vision statement

9) Deciding the Budget and Resource
Allocation according to the short term
strategy
10) Implementation of the strategies along
with pre decided Review system along with
measures to maintain control and a fallback
short term plan.

Further Reading
 Strategic Management: Concepts
 Strategic IT Management: A Toolkit f...
 Strategic Intent
 Principles of Strategic management
 Blue Ocean Strategy
 Good to Great: Why Some Co...
 Strategy Safari
 Playing to Win

Strategic Management Module 1 Part I

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Strategic Management Module 1 Part I