STRATEGIES

Dheeba.J
Assistant Professor
Priyadarshini Engineering College
Principles of Management (BA5102)
DEFINITION

According to Alfred D. Chandler

Strategy
is the determination
of basic long term objectives and
adoption of action of resources to
achieve these goals
CHARACTERISTICS OF STRATEGY
Planned action
Provides overall framework

Unified direction

Contradictory action

Long term goals

Grand plan

Blend of internal and external factors

Future Oriented

Pro- active

Dependent on systems
TYPES OF STRATEGY
TYPES OF STRATEGY CONT.

Forward:
Gaining ownership or control of direct
distribution of the products.
Backward :
Increasing control over the suppliers.
TYPES OF STRATEGY
Intensive strategy
Market Penetration:
Increasing the present market share of the
product or service through newer market
strategies.
Market Development:
Introducing the product or services to new
geographic areas.
Product Development:
Increasing the sales of the product through
increasing the quality or adding different
features to it.
TYPES OF STRATEGY
Diversification Strategy
Concentric:
A company acquires or develops new product or
services which are related to its core business or
technology to enter one or more market.
Conglomerate:
Adding new unrelated products or services.
Horizontal:
Adding new and unrelated products for present
customers.
TYPES OF STRATEGY
Defensive strategy
Joint Venture:
Two are more firms joint together and form a
separate organization for cooperative purpose.
Divestiture:
selling a division or part of an organization.
Use to rise capital for further acquisition and
investment.
Liquidation:
Selling all of a companys assets, in parts, for their
tangible worth. Cease operation than loosing large sum
of money.
LEVELS OF STRATEGY
LEVELS OF STRATEGY
Vision
Corporate strategy Corporate goal
Philosophy and culture

Mission
Business unit strategy Business goal
competencies

Functional strategy

Human Research and Manufacturi

Marketing Finance
Resources Development ng
LEVELS OF STRATEGY
Corporate level:
The first level of strategy (corporate strategy) is related to
determining the corporate strategy. It decides what type of business
the organization should be in and how the overall group of activities
should be formed and managed .
Corporate strategy deals with issues Such as capability and
competence of the firm
the direction in which it should develop its activity;
the nature of its internal architecture;
governors and structure;
the nature of its relationships with its sector,
its competitors and the wider environment.
LEVELS OF STRATEGY
Strategic business unit:
A Strategic business unit (SBU) is a relatively
independent business that can function to a certain
extent on its own. Each SBUs has its unique set of
goals, competitors and strategies.
Functional Level :

It focus on developing action plans for managing a

particular functional area within a business.
POLICIES
POLICIES

Policies are general

statements or understanding
which guide or channel
thinking in decision making
of subordinates.
koontz and ODonnell
NATURE OF POLICIES
Broad outline
Consistent

Adequate number

Sound and practicable

Flexible

Objective related

Image of the company

TYPES
Organizational Policies
Functional policies

Written

Oral

Implied
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