Scribd
Upload
32 views18 pages

Strategic Management: If The Only Tool You Have Is A Hammer, You Treat Everything Like A Nail. Abraham Maslow

Strategic management involves continuous planning, monitoring, and assessment to help an organization meet its goals. A company's strategy provides a plan for running the business and conducting operations to grow, attract customers, compete successfully, and achieve performance targets. An effective strategy establishes a sustainable competitive advantage through low costs, differentiation, value, or market niche focus. Regular evaluation and adaptation to changes are needed to realize the intended strategy.

Uploaded by

Komal Anwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
32 views18 pages

Strategic Management: If The Only Tool You Have Is A Hammer, You Treat Everything Like A Nail. Abraham Maslow

Strategic management involves continuous planning, monitoring, and assessment to help an organization meet its goals. A company's strategy provides a plan for running the business and conducting operations to grow, attract customers, compete successfully, and achieve performance targets. An effective strategy establishes a sustainable competitive advantage through low costs, differentiation, value, or market niche focus. Regular evaluation and adaptation to changes are needed to realize the intended strategy.

Uploaded by

Komal Anwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Strategic Management

If the only tool you have is a hammer, you


treat everything like a nail.

Abraham Maslow
Strategic management is continuous planning,
monitoring, analysis and assessment of all that is
necessary for an organization to meet its
goals/objectives.

A company’s Strategy is an action plan for


running the business and conducting operations.
Strategy includes all the competitive moves and
business approaches that managers employ to
• grow business,
• attract and please customers,
• compete successfully with competitors,
• conduct operations, and
• achieve the targeted levels of organizational
performances.
The purpose of making a good strategy is not to
make some temporary competitive success and
profits for short run, rather a lasting success.

Every strategy needs a distinctive element to


achieve desired goal; and make a distinctive
advantage.
Strategy is about competing differently from
rivals:
Doing better and differently what
competitors do

Doing what competitors don’t do


or can’t do
A company’s strategy provides a route in terms
of what the company should do but also what it
should not do.

Knowing what not to do is just as important as


knowing what to do, strategically.
A company’s strategy can be identified by
examining the following pattern of actions:

• Actions to gain sales and market share via


features, designs, quality, wide product selection
etc.
• Actions to gain sales and market share via lower
prices based on lower cost.
•Actions to enter new product or geographic
markets or to exit existing ones.
A company’s strategy can be identified by
examining the following pattern of actions:

• Actions to capture emerging market


opportunities & defend against external threats.
• Actions to strengthen market standing and
competitiveness.
•Actions to strengthen competitiveness via
strategic alliances & collaborative partnerships.
•Actions and approaches in managing Finance,
HRD, R&D, Production and other key areas.
A company’s strategy can be identified by
examining the following pattern of actions:

• Actions to upgrade, acquire or build important


resources and capabilities.
• Actions to strengthen firm’s bargaining position
with suppliers, distributors and others.
Hence, a company has to strive for

SUSTAINABLE COMPETITIVE ADVANTAGE

It is business concept which describes the


attributes which are durable; and that allow an
organization to outdo its competitors, allowing to
generate greater profits/sales or desired results
over long run.
Making a good strategy for sustainable
competitive advantage includes few questions to
be answered:

• How best to respond to changing economic


and market conditions.
• How to capitalize on attractive opportunities to
grow the business.
• How to attract and please customers.
• How to compete against rivals.
Making a good strategy includes few questions
to be answered:

• How to position the company in the market


place.
• How to achieve company’s performance
targets.
There are four frequently used and dependable
strategic approaches to setting a company apart
from rivals, building strong customer loyalty, and
winning a competitive advantage are:

1 – Striving to be the industry’s low cost


provider, thereby aiming for a cost-based
competitive advantage over rivals.

E.g. Walmart, Southwest Airlines.


2 – Outcompeting rivals on the basis of
differentiating features, such as higher quality,
wider product selection, added performance,
value-added services, more attractive styling,
and technological superiority.

E.g. Apple, Rolex, BMW


3 – Developing an advantage based on offering
more value for the money. This is also known as
‘best cost provider’ strategy.
E.g. Toyota

4 – Focusing on a narrow market niche within an


industry.

E.g. McAfee (virus protection software)


Weather (or business) channel news
Strategy is partly proactive and partly reactive.

Realized strategy is one which is a resultant of


intended strategy (practiced deliberately).

However, companies find Unrealized strategies


being practiced due to emergent situations.
Good Management =
Good Strategy + Good Strategic Implementation

It requires good Strategic Leadership to make a


good strategy and get it implemented.

Strategic leadership attributes are:


• Vision, Eloquence, & Consistency
• Commitment
• Being well-informed
• Willingness to delegate and empower
• Astute use of power
Managers with Strategic intent make good
strategies.

Then why does a strategy fail?

• Planning under uncertainty


• Planning for the present
• Ivory tower planning
• Cognitive biases (prior hypothesis bias,
escalating commitment bias, Reasoning by
analogies, Representativeness)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy