STRATEGIC MANAGEMENT

Hierarchy of strategy

Corporate strategy - Corporate strategy refers to a company's overall course for development and the administration of its numerous activities. concentrating on the three key areas of viability, growth, and stability. For instance, Unilever

Business Strategy - Competitive and corporate tactics in business. It often takes place at the business unit or product level and emphasizes strengthening a corporation's product or service's competitive position in the particular industry or market segment that business unit serves. Unilever soaps, for instance

Functional Strategy - Maximize resource productivity through the use of functional areas' approaches to corporate and business unit goals. Possibly specific to a brand or company. Lifebuoy media strategy, for instance.

Basic Model of Strategic Management

Policy - A comprehensive set of rules for making decisions that connect the creation of a strategy with its execution.

According to 3M, researchers should work on side projects for 15% of the time they are on their main project. promoting the approach of "always seeking solutions that improve lives"

Development of programmes, finances, and procedures is how strategies and policies are put into practice through the strategy implementation process.

Operational planning, which entails daily decisions and frequent allocation, is how middle and lower level managers normally carry out strategy implementation.

Evaluation and control: A procedure in which business operations and performance outcomes are tracked so that actual and desired performance may be compared.

Performance is the end result of actions.

comprises the strategic management process' actual results.

Feedback: Based on performance, revise or correct the decision.

Two major keys of Strategic Success

To ensuring that the vision and the KRA are in alignment is one of two important factors in the success of a plan.

The functional head of the core strategy team must be a member of the strategic team.

When to trigger a strategy?

An occurrence that serves as a catalyst for changing tactics is known as a "triggering event" and can occur when:

-- A new CEO joins the company; he or she can introduce new strategies.

-- External interference, altered market dynamics, and rivalry.

-- Ownership transfer threat - hostile takeover attempt.

Performance Gap: Disparity between management goals and outcomes.

-- Rapid changes in technology and consumer preferences represent a strategic inflection moment.

Mintzberg's modes of strategic decision-making

Who penned "Management?" It isn't what you believe. Henry Mintzberg, a management expert, listed many techniques for making strategic decisions:

Entrepreneurial mode: One influential person develops the strategy.

Reactive rather than proactive looking for new chances, adaptive mode is characterized by solutions to current issues.

The planning mode involves the methodical collection of relevant data for a scenario analysis, the creation of workable alternative strategies, and the deliberate choice of the best strategy.

A synthesis of the planned, adaptive, and, to a lesser extent, entrepreneurial modes is logical incrementalism.

Henry Mintzberg's five principles of strategy are:

Plan - A course of action for every circumstance.

Utilize a particular strategy to sabotage the competition.

Recognizing patterns helps you figure out what is and is not working.

Share of the market position.

Viewpoint: Product quality and innovation.

Strategic decision making process

1. Examine the outcomes of recent performance. Review and assess the mission, goals, strategies, and policies that are currently in place.

2. Examine the board of directors and top management in terms of corporate governance.

3. Examine and evaluate the natural, sociocultural, and task environments. Examine external elements, such as threats and opportunities.

4. Examine and evaluate the structure, culture, and resources of the internal business environment. Consider the strengths and limitations of internal elements.

5. Examine strategic elements in the context of the current scenario. Review and revision of the mission and goals as appropriate.

6. Come up with, assess, and decide which alternative solutions are best.

7. Put chosen tactics, such as programmes, budgets, and processes, into action.

8. Review and manage the tactics you've used.

The strategic audit: Aid to strategic decision-making

Strategic audit enables top management to assess, oversee, and direct the company.

It offers a check-list of questions broken down by topic or issue that makes it possible to analyze various corporate tasks and activities in a methodical manner.

You should disregard your strategy plan as intended or created.

Considering the variables - Basic abilities

Capability for Performance Portfolio Execution

SWOT/PESTLE

effectiveness of the action plan

Evaluation

Alternative Approaches

Milton Friedman's Traditional view of business responsibility

-Contends that the idea of social duty is false.

-Profit maximization, not using shareholder funds for broader social objectives, is the primary objective of business.

-There is only one and only one social obligation that business has, and that is to use its resources and engage in activities that will raise its profits as long as it plays by the rules and engages in honest, open competition free from dishonesty or fraud.

Archie Carroll's four responsibility of business organizations

1.Produce goods and services that are valuable to society in order for the business to pay off its debts and increase shareholder wealth.

2. Legal obligations: outlined in legislation that management is required to abide by.

3. Ethical obligations: Adhere to the socially accepted norms for behaviour.

4. Discretionary obligations: completely optional commitments a corporation makes.

Business responsibilities include:

Optional, moral, and socially responsible

legal and economic - earning money

Instead of economic and legal criteria, discretionary and ethical factors are the most crucial. Most businesses and nations have embraced her theory.

Business firms have the following obligations:

The trust of important stakeholders, or social capital, can be exploited to an organization's advantage.

- opens doors in the neighborhood.

- improve brand recognition among customers.

"The essence of strategy is choosing what not to do?~Michael Porter"

"One of the key challenges we face in the strategy is the implementation team is unaligned with the formulation team"

"Two most common factor of a change in strategy are new CEO and the performance gap - between the actual and the desired performance"

"Take smaller steps and smaller decision to reach the organizational goal and be adaptive to change"

"Dream big, make a strategy, work hard and stand out from the crowd. Everyone has skills and talent but not everyone has strategy"

"You have got to think about big things while you are doing?small things so that all the small things go in the right direction"

"The traditional view of business -?Business is all about making profit and if any business is making profit it is fulfilling its social responsibility"

"Archie Carroll said that the two most important factors are discretionary and ethical factors - social responsibilities doing everything right is more important than economic and legal factors (means making profits)"

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