Concept, Definition, Need, and Dimension of Management Strategy

Topics: Strategic management, Management, Decision making Pages: 7 (1228 words) Published: December 3, 2013
Group No. 2 :
MBA 3rd Semester
Strategic Management

Agenda to Discuss:

1) Concept, Definition, Need and Dimension of Strategy

2) Strategy planning and Strategy Decision making and process

3) Strategic intent

4) Knowledge management strategy

Submitted to: Submitted by: Dr. Bhagvan Singh Prakriti sood Shantanu Raj Ankit Jamwal Vinod Kumar (G.Leader) PRAKRITI SOOD (CUHP12MBA76)

Concept, definition, need and Dimension of strategy.
Concept of strategy
Igor Ansoff, known as the father of strategic management, established the concept of strategy in 1960s. A strategy can be defined as a plan of action to achieve a set of pre-determined and specific goals. The word strategy originated from the Greek word “strategos” which means a military general.

The concept of strategy can be made clear by looking at its objectives, which are as follows: Providing direction and stability to the organisation
Determining long –term goals of the organization
Facilitating the decision –making process
Allocating the resources to various departments, such as marketing, human resource, finance, and operations ,of the organization Defining the code of conduct that lays down various rules and policies for an organization

Definitions of Strategy:
According to James Brain Quinn
“The pattern of plan that integrates an organisation’s major goals, policies and action sequences into a cohesive whole.” According to Henry Mintberg
Strategy is a plan, a “how”, a means of getting from here to there. Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a “high end” strategy. Strategy is a position; that is, it reflects decisions to offer particular products or services in particular markets. Strategy is perspective, that is, vision and direction.

Need for strategy:
To have rules to guide the search for new opportunities both inside and outside the firm. To take high quality project decisions.
To develop measures to judge whether a particular opportunity is a rare one or whether much better ones are likely to develop in the future. To have an assurance that the firm’s overall resource allocation pattern is efficient. To have and develop internal ability to anticipate change.

To save time, money and executive talent.
To identify, develop and exploit potential opportunities.

Dimensions for strategy:
Effective formal strategy contains three essential elements viz., - Most important objectives to be achieved
-the most significant policies guiding or limiting action and - Major action sequences that are to accomplish the defined goals within the limits set. Effective strategies develop around a few key concepts and thrusts, which give them cohesion, balance and focus. Strategy deals not just with the unpredictable but also with the unknowable. Complex business organisations have a number of hierarchically related and mutually supporting strategies.


Strategy Planning and Strategy Decision making And Process

It refers to a management tool that helps an organization to plan its future Efficient use of money, people, and other resources
Strategic planning is the continuous process of making present entrepreneurial (risk-taking) decisions systematically and with...
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