2. Contents:
Strategy: Definition- need- importance;
Strategic Management: Meaning and definition; Levels
at which strategy operates,
Strategic Management process and models,
Strategic Intent: Developing a strategic Vision, Mission,
Objectives and Goals. Difference between policy, Strategy, and
Tactic;
Strategic Business Unit,
Approaches to Strategic Decision Making.
3. The evolution
of strategic
management
as an area of
study-
• In 1950s the Gordan Howell report,
recommended that business education be
made broader in nature and include a
capstone course in an area called
‘BUSINESS POLICY’
• Business policy emphasized the development
of skill in identifying, analyzing and solving
real world problems in a wide range of
substantive business areas.
• This course cane to include consideration of
the total organization and its environment.
E.g. Social responsibilities and ethics,
politics, legislative and economic factors.
• Broader emphasis prompted the leaders to
change the course name to ‘STRATEGIC
MANAGEMENT’.
5. What is Strategy?
A company’s strategy consists of the set
of competitive moves and business
approaches that management is
employing to run the company
Strategy is management’s “game plan” to
Attract and please customers
Stake out a market position
Conduct operations
Compete successfully
Achieve organizational objectives
6. Strategy??
A strategy is an
organization’s way of
saying how it
creates unique value and
thus attracts the custom
that is its lifeblood.
Strategy is the means by
which an organisation can
achieve its goals and
objectives.
7. Why Strategy?
• Strategy is related to pursuing those
activities which move an organization from
its current position to a desired future state.
• It helps in understanding:
• How to compete against rivals
• How to position the company in the
marketplace
• How to capitalize on attractive
opportunities to grow the business
• How best to respond to changing
economic and market conditions
10. Importance of
Strategic
Management
1. Allows Firms to Anticipate Changing Conditions
2. Provides Clear Objectives and Direction for
Employers
3. Accomplishment of Long-Term Objectives
4. Helpful to Study the Business Environment
5. Helpful to Identify Business Opportunities
6. Diagnosis of Business Environmental Threats
7. Suggestions to Overcome Internal Weakness
8. Suggestions to Maximize Internal Strengths
9. Helpful to Face Competition Effectively
10. Effective Control
11. Helpful to Face Uncertainties in Future
12. Maximization of Profits
11. Need for Strategic Management
For full exploitation of
opportunities.
Provides better
guidance to the entire
organization.
Helps in unifying the
organization. Creates a
more proactive
management posture.
It is the way to
systematize the most
important of business
decisions.
It serves as a road map
to the organization.
It helps in building
competitive
advantages.
Help in knowing true
actual position of
business.
Rapidly changing
business environment.
It helps in
systematizing an
organizations strategic
decisions and actions.
It facilitates Research
and Development.
It promotes effective
resource allocation
among the business
units.
Lot of competition in
business market now a
day.
Invention, discoveries
and enhancement of
technologies.
For high and sufficient
profits.
12. Benefits of
Strategic
Management
Strategic decisions have
multifunctional and
multi business effects.
It helps in environment
scanning.
It provides relevant
data essential for
taking decisions.
Strategic decisions are
for the future, It serves
as a road map for an
organization.
It ensures that a firm
chooses its products
and markets in a wise
manner.
It provides better
guidance to the whole
enterprise.
It prepares a firm to
face the future and
mold the future in its
favour
It helps a firm to
innovate so that the
firm may avail itself of
the new opportunities.
It creates a framework
for internal
communication among
the staff.
It unifies the
organization.
13. Benefits of
Strategic
Management
It helps in building
strategic knowledge of
the management.
Strategic planning
ensures a rational
allocation of resources.
Strategic planning
improves coordination
between various
decisions of the
organization.
Strategies provide the
frame work for plans by
operating decision and
after predicting them.
It helps in clarity of
direction of activities.
It helps in increase of
organizational
effectiveness.
It helps in providing
satisfaction to the
personnel of the
organization.
It helps in evaluating
results.
14. Role of Strategic Management in business organization:
1) It gives direction to business.
2) It gives sense of identity and unity towards business objectives.
3) It helps an organization in achieving its goals in an efficient and effective
manner.
4) It helps in getting rid of the threats or else neutralizes them.
5) It enables organization to grasp every opportunity that is available in the
market.
6) Strategic management decisions are usually made in a rational and in a logical
manner.
7) It helps in forecasting.
8) It helps in grasping every opportunity that is available in the market.
16. At the corporate level, strategy is formulated for your organization as a
whole. Corporate strategy deals with decisions related to various business
areas in which the firm operates and competes.
At the business unit level, strategy is formulated to convert the corporate
vision into reality.
At the functional level, strategy is formulated to realize the business unit
level goals and objectives using the strengths and capabilities of your
organization.
• There is a clear hierarchy in levels of strategy, with corporate level strategy at the top, business
level strategy being derived from the corporate level, and the functional level strategy being
formulated out of the business level strategy.
17. Levels Of
Strategy
• Defines the business areas in which your firm will
operate.
• Involves integrating and managing the diverse
businesses and realizing synergy at the corporate
level.
• Top management team is responsible.
1. Corporate Level Strategy:
• Involves defining the competitive position of a
strategic business unit.
• Decided upon by the heads of strategic business
units and their teams.
2. Business Level Strategy:
• Formulated by the functional heads along with their
teams.
• Involve setting up short-term functional objectives.
3. Functional Level Strategy:
18. Corporate
level strategy
Formulated where - At the
corporate level
Formulated by - Top
management
Formulated why? - To oversee
the interests and operation of
organizations
Position - It occupies the
highest level of strategic
Decision making
Level of decision making- It
occupies the highest level of
strategic decision making
Covers what - Cover action
dealing with the objectives of
firm, acquisition and
allocation of resources, and
coordination of strategy of
various units.
Applicability - It applies to the
enterprise as a whole
Explains what ? - It explains
the business in which a firm
will compete and how it
should utilize its resources.
Level - It is highest level of
strategy
19. RELIANCE STRATEGY MAPPING
• CORPORATE LEVEL STRATEGY
Reliance's diversification across multiple business areas
• Business Portfolio: Oil & Gas, Petrochemicals, Retail (Reliance Retail),
Telecommunications (Jio), Digital Services, Renewable Energy
• Synergy Realization: Using petrochemical expertise for packaging
materials in retail, leveraging Jio's digital infrastructure across all
businesses
• Top Management Decision: Mukesh Ambani and board deciding to
enter telecommunications and renewable energy sectors
20. BUSINESS LEVEL STRATEGY
BUSINESS LEVEL STRATEGY
Reliance Jio's competitive positioning in telecommunications
• Competitive Position: Disruptive low-cost data provider with
comprehensive digital ecosystem
• Value Proposition: Affordable high-speed internet, bundled digital
services, extensive network coverage
• Target Market: Mass market consumers and small businesses
• Competitive Advantage: Lowest data tariffs, superior 4G network,
integrated digital services
21. Strategic Management:
Strategic management is the sum of strategic planning and strategic thinking.
Strategic planning is the identification of achievable goals. Strategic thinking is the
ability to identify the needs of the organization to achieve the goals identified
through strategic planning.
Strategic management includes setting objectives for the company,
analyzing the actions of competitors, reviewing the organization's internal
structure, evaluating current strategies and confirming that strategies are
implemented company-wide.
Companies of all sizes and in all industries can benefit from the
practice of strategic management.
22. Functional
level strategy
Definition- A functional strategy is a short term game
plan for a key functional area within a company.
Implements- Functional strategies help in implementing
grand strategy.
Focus- on external environment
Decision making- At
operational level with respect
to specific functional areas-
- Production
- Marketing
- Personnel
- Finance etc
23. Functional strategy
•Marketing: Aggressive pricing strategy, celebrity endorsements, digital-first
campaigns
•Operations: Automated refineries, AI-driven network optimization for Jio
•HR: Talent acquisition from global tech companies, employee stock options
•Finance: Strategic partnerships with global investors (Facebook, Google), debt
optimization,
24. Strategy as a winning
phenomena
• The deliberate configuration of resources,
capabilities, and market positioning that
creates sustainable competitive advantage and
superior performance over time.
25. Haldiram's at a Glance
Founded: 1937 (Bikaner) | Revenue: ₹7,000+ crores
Transformation: Local sweet shop → Global Indian food brand
Strategic Success: Modernizing tradition without losing authenticity
Transformed fragmented traditional food industry by combining
authentic taste, modern quality standards, and scaled distribution -
creating a ₹7,000+ crore empire from a single sweet shop.
26. Haldiram winning strategy – from kirana shop
to Snack Empire
1. Resource Configuration
Physical Resources:
•State-of-the-art manufacturing facilities
•Over 410 products across traditional namkeens, western snacks, Indian sweets, cookies, and ready-
to-eat foods
Distribution Network:
•Extensive distribution network that has successfully penetrated Tier 2 and Tier 3
27. 2. Core Capabilities
Traditional Recipe Mastery:
• Stronger traditional Indian offerings compared to competitors focused on Westernized snacks
• Commitment to quality, traditional recipes, and innovative offerings
• Quality Leadership:
• Haldiram's: Marketing and Business Strategy Leading to IPO
• Although Haldiram's maintains quality leadership, competing on cost is challenging
• PepsiCo eyes stake in Haldiram: Rs 90,000 cr
valuation sparks competition | Company News - Business Standard
• Flexible Market Adaptation:
• Flexible packaging options catering to both mass and premium segments
• Small packets were introduced so that they became easy buys, helping achieve larger total
revenues
28. Market Positioning
,
Value-Based Competitive Positioning:
•Products priced at slightly lower rates than competitors like Bikaji and Bikano while maintaining quality and
•Value-based pricing strategy focusing on offering value to customers
•In FY22, Haldiram's market share reached an impressive 38.5%
•Namkeen accounts for over 90% of Haldiram's total turnover
•Brand Loyalty & Heritage:
•Established brand loyalty over decades
•Used storytelling to showcase their rich heritage and commitment to quality
•PepsiCo's interest in partnership demonstrates the value of
•Haldiram's extensive distribution networks and stronger foothold in the high-growth segment
29. Key Elements of Winning Strategy
• Unique Value Proposition: Differentiated
offering that customers value
• Resource Configuration: Optimal
deployment of assets and capabilities
• Competitive Positioning: Advantageous
market position relative to competitors
• Dynamic Adaptation: Evolving strategy in
response to changing conditions
• Performance Superiority: Consistent
outperformance of industry benchmarks
30. Characteristics
of Core
Competencies
Customer Value
Product differentiation
Non-substitutable: No strategic equivalent available
Inimitable: Difficult to copy or substitute
Rare: Not possessed by many competing firms
Valuable: Enables firm to exploit opportunities or neutralize threats
31. Strategic Fit
The degree of alignment
between an organization's
resources, capabilities, and
the opportunities available in
its external environment. It
represents the match
between 'what the company
can do' and 'what the market
demands.'
32. Dimensions of Strategic Fit
Internal Fit
Alignment between strategy, structure, systems, and culture
External Fit
Match between strategy and market environment
Dynamic Fit
Adaptation capability as conditions change
33. Strategic Fit Components
•Resource Fit: Available resources match strategic requirements
•Competitive Fit: Strategy matches competitive landscape
•Market Fit: Offerings align with customer needs and market
trends
•Operational Fit: Operations support strategic positioning
5 / 10
34. Haldiram's Strategic Fit Excellence
Market Opportunity Alignment
🎯 Perfect Market Timing
Market Need: Urbanization, nuclear families, working
women created demand for convenient, quality
traditional foods
Haldiram's Response: Ready-to-eat traditional foods
with authentic taste and modern packaging
Result: Captured emerging market segment before
competitors
35. Resource-Strategy Alignment
•Manufacturing Capability: 15+ facilities with technology
integration
•Distribution Network: 400+ distributors, 150+ retail stores
•Brand Heritage: 85+ years of trust and authenticity
•Supply Chain: 2,000+ farmers and suppliers ensuring quality
inputs
•R&D Investment: Innovation labs for continuous product
development
36. Strategy Mappin g
•Technology: Google/Alphabet, Microsoft, Apple
•Retail: Walmart, Target, Costco
•Food & Beverage: PepsiCo, Coca-Cola, Unilever
•Automotive: General Motors, Ford, Toyota
•Conglomerate: General Electric, 3M, Johnson & Johnson
37. Questions
• CORPORATE LEVEL STRATEGY
• Question 1: What business areas does
your company operate in? List at least 3-
5 different business units or industries.
• Question 2: How does the company
create synergy between these different
businesses? What resources or
capabilities are shared?
• Question 3: What major strategic
decisions has top management made
recently? (acquisitions, divestitures, new
market entry)
• BUSINESS LEVEL STRATEGY
• Question 4: Choose ONE major
business unit. How does this unit
compete in its market?
• Cost Leadership (competing on price)
• Differentiation (competing on unique
features/quality)
• Focus Strategy (serving specific niche
market)
• Question 5: What makes this business
unit different from its competitors? What
is its competitive advantage?
38. • FUNCTIONAL LEVEL STRATEGY
• Question 6: Identify specific functional
strategies that support the business strategy:
• Marketing Function: How does the
company promote/position its products?
• Operations Function: How does the
company produce/deliver its products
efficiently?
• HR Function: What is unique about how the
company manages its workforce?
• Technology Function: How does the
company use technology to support its
strategy?
41. 1) First, the strategy-makers develop a vision for the organization and then formulate a mission in the
light of the vision. While a vision states ‘where we are going,’ a mission describes its present
business and its purpose for existence.
2) Secondly, the strategy-makers conduct a thorough analysis of the organization’s internal and
external environments to gather enough information for setting objectives.
3) They set objectives in the third phase. These objectives subsequently use for measuring the
organization’s performance and progress.
4) Fourthly, they embark upon the most important task in strategic management – formulation of a
strategy to achieve the objectives in the third phase. A strategy comprises the organization’s
managers’ actions and approaches to effectively and efficiently achieve the vision, mission, and
objectives.
5) In the fifth phase of the strategic management process, the managers accomplish all the necessary
organizational tasks for the sound implementation of the chosen strategy.
6) Finally, strategic evaluation and control attempts to establish standards of performance, monitors
progress during the implantation strategy, and (if anything goes wrong) intimate corrective
adjustments.
44. Strategic Business Unit:
• A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has
its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it
is also an important part of the company. It reports to the headquarters about its operational status.
• A strategic business unit or SBU operates as an independent entity, but it has to report directly to
the headquarters of the organisation about the status of its operation. It operates independently
and is focused on a target market. It is big enough to have its own support functions such as HR,
training departments etc. There are several benefits of having an SBU. This principle works best
for organisations which have multiple product structure. The best example of SBU are companies
like Proctor and Gamble, LG etc. These companies have different product categories under one
roof.
• For example, LG as a company makes consumer durables.
• It makes refrigerators, washing machines, air-conditioners as well as televisions. These small
units are formed as separate SBUs so that revenues, costs as well as profits can be tracked
independently. Once a unit is given an SBU status, it can make its own decisions, investments,
budgets etc. It will be quick to react when the product market takes a shift or changes start
happening before the shift happens
45. • When a company has
many products and a
diversified portfolio, it
becomes difficult for the top
management to manage the
products individually. Hence
strategic business units are
formed in the organization.
• Thus, a company like HUL may
group its shampoos together
in one strategic business unit,
soaps in another and similarly,
it may make multiple strategic
business units as per its
requirement.
46. There are several advantages of strategic business units in an organization.
Responsibility – One of the first role of strategic business units is to assign responsibility
to others. With this, the top management has an overview of work being done in
each individual unit and they do not have to get involved in day to day activities for these
strategic business units.
Accountability – When handling multiple brands or products, it is easier if there are
separate business units which are accountable for the success or failure of the business
or product. By making these business units accountable, the company can directly take a
call when hard decisions are to be taken.
Accountancy – Profit and loss and balance sheets will look more prettier and more
manageable if the statements are prepared separately for separate strategic business
units. This makes the accountancy more transparent and at the same time, when
companies have to make investment decision than this accountancy will come in use for
the company.
Strategy – Companies like Nestle have different strategic units. One SBU like Magg
ie deals in Food products, other deals in Dairy products like Nestle milkmaid, the third
SBU deals in Chocolate products like Kitkat so on and so forth. Thus, in the above
example, it is very simple to change strategy for each business unit because the strategy
for each is independent of the other.
47. Independence – The managers of the strategic business units get
more independence to manage their own unit which gives them
the opportunity to be more creative and innovative
and empowers them for making decisions. The best thing that can
happen for SBU’s are fast decision making which is possible only
when these SBU’s are given independence to work by themselves.
Fund allocation – Fund allocation becomes simpler for the parent
company. Depending on the performance of the SBU, funds
allocation can be done on priority.
Thus, there are many advantages of having strategic business units
and it is highly recommended that any firm which has multiple
products adopt strategic business units in its organization structure.
50. Strategic intent refers to the purpose for which the organization strives
for. The hierarchy of strategic intent covers the vision and mission, goals
and objectives.
Vision constitutes future aspirations. This articulates the position that a
firm would like to attain in the distant future. A well conceived vision
consists of core ideology and envisioned future.
Mission is the social reasoning of organization. It has external orientation.
It legitimizes social existence. The mission statements may be precise,
realistic, achievable, clarity for action, distinct, dynamic, motivating etc.
Goals denote a broad category of financial and non-financial issues that a
firm sets for itself.
Objectives are the ends that state specifically how the goals shall be
achieved.
52. • Tesla, Inc.’s (formerly Tesla Motors, Inc.)
mission and vision statements reflect
the nature of its prominent all-electric
automobile manufacturing and related
businesses. Established in 2003, the
company became profitable in 2013.
• Tesla, Inc. follows its corporate vision
and mission statements to focus its
business on electric automobiles and
related products, such as solar panels
and rechargeable batteries for cars and
other applications. However, recent
changes in the market and the business
have prompted the company to revise
its corporate mission statement while
keeping the same corporate vision
statement for the meantime.
53. Tesla Inc.’s Mission
Statement
• Tesla’s mission statement was “to
accelerate the world’s transition to
sustainable transport.” However, in
mid-2016, under Elon Musk’s
leadership, the company changed
the corporate mission to “to
accelerate the world’s transition to
sustainable energy.” This new
statement indicates a slight but
significant shift in the company’s
business, to address market
opportunities for renewable energy.
• Tesla Inc.’s mission statement has
the following notable components:
1.To accelerate
2.The world’s transition
54. Tesla Inc.’s Vision
Statement
• Tesla’s vision statement is “to create the
most compelling car company of the
21st
century by driving the world’s
transition to electric vehicles.” This
corporate vision emphasizes the
company’s focus on renewable energy.
Specifically, the corporation addresses
the electric vehicle market as a major
avenue for facilitating growth of the
global renewable energy market. The
following components are significant in
Tesla Inc.’s vision statement:
1.Most compelling
2.Car company
3.21st
Century
4.The world’s transition to electric vehicles
59. Strategic
decisions are
basically long
term
decisions,
which affect
the way the
company
moves
forward.
Strategic
decision-making
should start with
a clear idea of
the company's
mission and
vision – the
reasons it exist
as a business
Strategic
decision making
aligns short-term
objectives with
long-term goals,
and a mission
that defines the
company's big
picture purpose.
This activity relates
to the future of
the company and
the setting
of medium- and
long-terms
goals for the
organisation.
These decisions
affect the entire
company and
normally involve a
firm commitment
to resources.
The challenge for
managers is that
they have to make
these decisions
with a limited
amount of
information and
with few past
experiences to
draw upon.
Strategic decisions
involve a high level
of uncertainty and
can rarely be
reversed.
60. Strategic decision making involves the
following 3 things
1.The long-term way forward for the
company
2.Selection of proper markets for
the company
3.The products and tactics needed
to succeed in the targeted market.
• Overall, a firm can move forward only
if it has taken the necessary strategic
decisions. Furthermore, whether the
decisions were right or wrong, can
only be proved only over a long
period of time. If these decisions were
right, and had great insight in the
future, then the company can be very
successful. However, if these strategic
decisions did not consider empirical
evidence of the current market
conditions, then the firm can fail
