CONVENTIONAL STRATEGIC MANAGEMENT
Deals with long-term plans or fixed missions.
It is separate from day-to-day management.
It is an orderly grand-design for future.
A hierarchy of plans, which are comprehensive, forward looking, internally consistent, which fit resources of the organization to its environment UNCONVENTIONAL
* Is the consequence of innovative experimentation and entrepreneurial behavior, which does not fit into rigidly defied fixed missions and objectives. * Is not hierarchy of grand-design with fixed mission.
* Is a consequence of the way in which challenges are created for the organization. * Is the manner in which single strategic issues are dealt with. * Is not comprehensive, anticipative long term planning.
FACTORS INFLUENCING STRATEGIC CHOICE DECISIONS
Role of Past strategy.
Degree of firm’s external dependence.
Attitude towards risk..
Internal political consideration & the CEO.
STRATEGIC MANAGEMENT MEANS :
* Resolving tension, which arises out of diametrically opposed requirements placed on organization and behavior. * Total control of the business, management of change of all kinds and handling of disturbances to the business flow caused by the change. * Visionary leadership, determination and effective team work. * Improving total control system of the organization, so that it is fit and flexible enough to play dynamic business games in highly uncertain environment. THREE MODELS OF STRATEGIC MANAGEMENT
MANAGING BUSINESS & ORGANISATIONAL PROCESS
Deals with strategy and operations
* Formulating of Strategy, that provides overall focus and direction for the organization. * Production and delivery of valued products and services, cost effectively to customers. * Creation of a structure that serves the business by optimizing information sharing, decision making and work flow. * Establishment of Human Resource Management System that develops committed and productive workforce. * Development of Pragmatic Leadership at every level of organization. MODEL B :
INITIATING AND MANAGING CHANGE
Provides comprehensive framework for instituting and managing innovation and change * What do we need to do, to make the business better?
* How can we make the organization serve the business more effectively? * How can we improve management and leadership continuously? MODEL C :
MANAGING DARK SIDE OF THE ORGANIZATION
Deals with irrational aspects of the system
* Coping with stress.
* Coping with resistance
* Dealing with organizational politics
* Dealing with negative dimension of organizational culture.
* ORGANIC GROWTH
* Organic growth represents the true growth for the core of the company. * It is a good indicator of how well management has used its internal resources to expand profits. * Organic growth also identifies whether managers have used their skills to improve the business. * The growth rate that a company can achieve by increasing output and enhancing sales. * This excludes any profits or growth acquired from takeovers, acquisitions or mergers. * Takeovers, acquisitions and mergers do not bring about profits generated within the company, and therefore, are not considered organic. * The growth rate that a company can achieve by increasing output and enhancing sales. * This excludes any profits or growth acquired from takeovers, acquisitions or mergers. * Takeovers, acquisitions and mergers do not bring about profits generated within the company, and therefore, are not considered organic.
* INORGANIC GROWTH
* A growth in the operations of a business that arises from mergers or takeovers, rather than an increase in the companies own business activity. * Firms that choose to grow...
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