1.Deals with long-term plans or fixed missions.
2.It is separate from day-to-day management.
3.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
1.Role of Past strategy.
2.Degree of firm’s external dependence.
3.Attitude towards risk..
4.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
MODEL A: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...