MODULE – I

STRAEGIC MANAGEMENT

Meaning and Nature of Strategic Management.

Its importance and relevance. Characteristics of
SM, The Strategic Management Process-
Relationship between a Company’s strategy and
its Business Model

Dr. Salim G Sonekhan – SDMCET, Dharwad.

 MEANING OF STRATEGIC
MANAGEMENT
Meaning:
It is an outline of how a business intends to achieve its goals.
OR
It is set of Managerial Decision and actions that Determined the long
term Performance of a company.
OR
A plan or course of action or set of decision rules making a pattern or
creating a common thread;

Dr. Salim G Sonekhan – SDMCET, Dharwad.

 DEFINE IS SM
 It is the art and science of formulating,
implementing, and evaluating cross-functional
decisions that enable an organization to
achieve its objectives.
OR
 As this definition implies, strategic
management focuses on Integrating
management, marketing, finance/accounting,
production/operations, research and
development, and computer information
systems to achieve organizational success.

Dr. Salim G Sonekhan – SDMCET, Dharwad.

 IMPORTANCE AND RELEVANCE

 Proactively shape.
 Strategy –focused organization.

Dr. Salim G Sonekhan – SDMCET, Dharwad.

CHALLENGES TO SM
 Often companies allow their activities to fall into
routine in order to fulfill commitments.
 The ability to understand and address
contemporary issues like - Global village, critical
works impacts.
 The third issues is advancement of web- based
technology and e-commerce models like-
Amazon, Flipkart, and e- bay.
 It has to address the changing purpose of
organizations..
 NATURE OF STRATEGIC MANAGEMENT

 A global perspective is a matter of survival

for business.
 The natural environment an important
strategic issue.

Dr. Salim G Sonekhan – SDMCET, Dharwad.

 STRATEGIC MANAGEMENT ACHIEVES
ORGANIZATIONAL SUCCESS ORGANIZATION

 Process of Integrating:
–management
–marketing
–finance/accounting
–production/operations
–research and development
–computer information systems

Dr. Salim G Sonekhan – SDMCET, Dharwad.

 STRATEGIC MANAGEMENT
PROCESS

I. The Strategic Planner

II. The Light of Stage
III. Top Management review the
performance of the Organization.
IV. It scan the Internal Environment
and External Environment.

Dr. Salim G Sonekhan – SDMCET, Dharwad.

STRATEGIC MANAGEMENT PROCESS CHART.
IV
Internal Envi Any
•Strengths
•Weakness.

I
Organization III V
II Review Selection
• Vision Organization
•Mission •Board of Dir Of
•Objectives
Current •Top mage Strategic
•Strategies Performance. Factors
•Policies

IV
External Envi Anay
•Opportunities
Dr. Salim G Sonekhan – SDMCET, Dharwad. •Threats
 VIII
Implementation
VI VII Of the
Review/Redefine Generation Best
•Mission And Alternative
•Objectives Evaluation
Of Strategic
Alternatives

Rework as
Needed
IX
Monitoring
Review
And
Dr. Salim G Sonekhan – SDMCET, Dharwad. Evaluation.
 V. Internal & External helps selecting
Strategic Factors.
VI. Reviewed and Redefined in relation to the
Mission and Objectives.
VII. Set of Strategic alternatives are
Generated.
VIII. The best Strategic alternative is selected
and implemented through programme
budgets and procedures.

Dr. Salim G Sonekhan – SDMCET, Dharwad.

STRATEGIC DEVELOPMENT STAGES.
 Stage I
Entrepreneur promoted company, He involved in every
crucial detail & different phases of Organization.
Example: Hotmail.
 Stage II
A team of manager with functional specialization
replaces the entrepreneur Have the functional
structure of Organization.
Example: Cisco

Dr. Salim G Sonekhan – SDMCET, Dharwad.

  Stage III
Decentralized decision – making authority in managing
diverse product lines. These company grow by
diversifying their product lines and widening their
geographical base. Each operating as a stage II
company.
 Stage IV
Two possible structures could be the Matrix and Network
structure. These structures emphasize horizontal
connections between people and group and organize
work on temporary projects with sophisticated
information systems supports. Ex: NTPC

Dr. Salim G Sonekhan – SDMCET, Dharwad.

Matrix structure.
The functional and the product structures are
combined simultaneously at the same level of
the organization
The following three conditions must.
 Ideas need to be cross fertilized across
projects.
 Resources are scarce.

 Abilities to process information and to make

decisions need to be improved.

Prof. Salim G Sonekhan – SDMCET, Dharwad.

MATRIX
CHART. Top
Management

Manufacturing Marketing Finance

Manager Manufacturing
Marketing Finance
Unit I
Project A

Manager Finance
Manufacturing Marketing
Project B
Unit II
Prof. Salim G Sonekhan – SDMCET, Dharwad.
NETWORK STRUCTURE

The several in-house business functions are

eliminated and a number of activities
outsourced. Organization can be
considered as virtual organization.
Ex: Dell computers.

Prof. Salim G Sonekhan – SDMCET, Dharwad.

 Packers

Suppliers
Designers

Corporate HQ

Distributors
Manufacturers

Promotion

Prof. Salim G Sonekhan – SDMCET, Dharwad.

RELATIONSHIP BETWEEN A COMPANY’S
STRATEGY AND ITS BUSINESS MODEL.

A company’s business model sets forth the

economic logic of how an enterprise’s
strategy can deliver value to customers at
a price and cost that yields acceptable
profitability.

Dr. Salim G Sonekhan – SDMCET, Dharwad.