Topics: Strategic management, Strategic planning, Management Pages: 41 (5520 words) Published: July 25, 2013
Strategic management
The concept of strategy
➢ Strategy is the great work of organization. In situations of life or death it is the Tao of survival or extinction. Its study cannot be neglected. ----SUN TZU, The Art of War.2500 B.C ➢ Strategy is about winning.

➢ Strategy is not a detailed plan or program of instructions, it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization.

Characteristic of a winning strategy

➢ Goals that are simple, consistent, and long term. ➢ Profound understanding of the competitive environment. ➢ Objective appraisal of resources.
➢ Effective implementation.
➢ Examples
➢ Kochouseph & V Guard
➢ Viswanathan Anand
➢ General Giap
➢ Dheerubhai Ambani

Origin of the word

➢ Strategic means generalship in Greek. Stratos means “ army “. Ag means, “ to lead”. ➢ The concept of strategy was first given in the ART OF WAR by SUN TZU in China 500 BC ➢ There are 13 chapters in the book.

➢ Laying plans
➢ On waging war
➢ The-sheathed sword
➢ Tactics
➢ Energy
➢ Weak points and strong points
➢ Maneuvering
➢ Variations of tactics
➢ The army on the march
➢ Terrain
➢ The nine situations
➢ Attack by fire
➢ The use of spies.
➢ What is there in these chapters that can be adapted to Business?

Sun Tzu says

¬If you know the enemy and yourself, you need not fear the result of a hundred battles. ¬If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. ¬If you know neither the enemy nor yourself, you will succumb in every battle.

SUN TZU says,

Know the other and know yourself

Triumph without peril

Know nature and know the situation

Triumph completely.

Some definitions of strategy

The art of war, especially the planning of movements of troops and ships etc, into favourable positions; plan of action or policy in business or politics etc. (oxford dic.)

The determination of the long-run goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. (Alfred Chandler)

A strategy is the pattern or plan that integrates organisations major goals, policies, and action sequences into a cohesive whole. A well formulated strategy helps marshal and allocate an organisations resources into a unique and viable posture based upon its relative internal competencies and shortcomings, anticipated changes in the environment, and contingent moves by intelligent opponents

Strategy is the pattern of objectives, purposes, or goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be.( Kenneth Andrews.)

What business strategy is all about is, in a word, competitive advantage. The sole purpose of strategic planning is to enable a company to gain, as efficiently, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company’s strength relative to that of its competitors in the most efficient way. (KENICHI OHMAE.)

The functions and responsibilities of choice of objectives, mobilisation of resources, allocation of such resources, continuous monitoring of performance. It is the highest function of management.

The supervision of the continuous process of deciding the nature of the enterprise and setting, revising and attempting to achieve its goals. (KENNETH ANDREWS)

Fundamental issues in SM.

Purpose and missions

Corporate objectives

Choice of businesses

Courses of action for achieving the objectives.

Nature & scope of SM

Route map for the organisation

Decision guide

Lays down growth objectives

What to do how to do where to reach

Look forward and far ahead...
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