Strategic Management

352 Pages·2008·18.394 MB·English

by  M Jeyarathmm

Strategic
Management
Dr. (Mrs.) M. JEYARATHMM
MA., MBA., Ph.D.
Professor,
Bharathiar University
COIMBATORE-46
TAMILNADU
Hal
Glfimalaya GpublishingGlfouse
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CONTENTS
, 1 The Strategic Management Process 1 -12
Conceptual Framework for Strategic Management - Definition
- Strategic Formation Process - A Model of Strategic
Management Process - Approaches to Strategic Decision
Making Process - Pitfalls - Techniques for Improving Strategic
Decision Making - Impact of e-commerce - Learning
Organization - Questions,
'2 Mission and Goals 13 - 26
Definitions - How Mission is formulated? - Characteristics of
a Mission Statement - How Mission Contributes to Strategic
Management? - Objectives and Goals - Significance of
Objectives - Areas where objectives are set - Characteristics
of objective - Formulation of Objectives - Objectives and
Strategic Management - Mission Statements of Indian
Companies - A Content Analysis - Questions.
'3 Corporate Governance and Social Responsibility 27 - 45
Role of Board of Directors - Chief Executive Officers -
Corporate Planning Staff - Consultant - Board Committees-
Corporate Social Responsibil ity - Theories - Wealth Creation
- Business Ethics - Theories - Questions - Reading Material
: "Ethics in Work Places" - "Corporate Social Responsibility
and Performance: A Case of Canara Bank".
'4 External Environment 46-69
Environmental Factors - Concept of Environment - Macro
Environmental Forces - Demographic -Environment -
Technological Environment - Socio Cultural Environment
Economic Environment - Political Environment - Regulatory
Environment - International Environment - Factors Relevant
to specific Business - Market Environment - Industry and
Competition - Government Policies - Suppl ier Environment
Environmental Scanning - Task Environment - Sources -
Techniques - Bench Marking - Issue Probability Matrix -
External Factor Analysis Summary - Industry Analysis -
Framework for Industry Analysis - General Conditions -
Industry Settings / Environment -Industry Structure -Industry
Attractiveness - Industry Performance - Industry Practice -
Emerging Trends - Forecasting the Environment - Questions.
'5 Porter's Five Forces Model and Strategic Groups 70- 85
Threat of New Entry - Bargaining Power of Suppliers -
Bargaining Power of Buyers - Subs~itute Products - Rivalry
among Existing Players - Competitive Structure - Demand
Conditions - Exit Barriers - Strategic Croups - Limitations of
Porter's Model, Strategic Group Model - Strategic types -
Competitive changes during Industry - Evolution - Embryonic
stage - Growth Industries - Industry Shakeout - Mature
Industries - Declining Industries - Globalization and Industry
Structure - National Context and Competitive Advantage -
Hyper Competition - Questions.
Competitive Advantage:
Resource --Capabilities and Core Competence 86 - 96
- Competitive Advantage: Low cost and Differentiation - The
Generic Building Blocks of Competitive Advantage -
Distinctive Competencies : Sources - Evaluation of Key
Resources - Durability of Competitive Advantage - Core
Competence - HCL Case - Why do companies fail? - Avoiding
failures and sustaining competitive advantage - Questions
'7 Internal Scanning: Organizational Analysis 97 - 112
Value Chain Analysis - Industry Value Chain Analysis -
Components of value chain - Structure - Culture - Strategic
Financial Issues - Strategic Marketing Issues - Strategic
Operations Issues - Strategic Human Resource Issues - Strategic
Information Management Issues - Internal Factor Analysis
Summary - Questions.
Strategy Formulation: Situation Analysis 113 - 121'
SWOT Analysis - Strategic Factor Analysis Summary (SFAS)
Matrix - TOWS Matrix - Reading Material: Farmers Market
(UZHAVAR SANDAl) in Tamilnadu - A SWOT Analysis -
Reading Material.
9 Strategy Formulation: Corporate Strategy 122 - 133
Stabi I ity Strategy - Pause / proceed with caution - No change
strategy - Profit strategy - Growth strategy - Concentration -
Vertical Integration - advantages and disadvantages -
Diversification - Related diversification - Limitations -
Unrelated Diversification / Conglomerate Diversification -
Concentric Diversification - Strategic alliance as alternative
to diversification - Questions .
. 10 Strategy Formulation: At the Business Level 134 -146
Choosing a generic business level strategy - Cost Leadership
Strategy - Advantages - Disadvantages - Differentiation Strategy
- Advantages - Disadvantages - Both Cost Leadership and
Differentiation - Focus Strategy -Advantages - Disadvantages
- Being Stuck in the Middle - Choosing an Investment Strategy
at Business Level-Competitive position - Life cycle effects
Embryonic Stage - Growth stage - Shakeout stage - Maturity
stage - Decline stage - Competitive tactics - Timing Tactics
- Market Location Tactics - Defensive tactics - Questions.
11 Strategy Formulation: Functional Strategy 147 - 154
Overview - Outsourcing - Marketing Strategy - Product
Development Strategy - Advertising and Promotion -
Distribution - Pricing - Financial Strategy - Operations Strategy
- Human Resource Strategy - Research and Development
Strategy - Information Systems Strategy - Attitude to Ri,:;k
Culture - Questions.
12 Strategy in Global Environment 155 -169
Profiting from Global expansion - Transferring Distinctive
Competence - Realizing Location Economies - Moving Down
the Experience Curve - Competitive Pressures - Pressure for
Cost reduction - Pressure for Local Responsiveness -
Differences in Consumer Tastes and Preferences - Differences
in Infrastructure and Traditional Practices - Differences in
Distribution channel-Host Government Demands - Strategic
choice - International Strategy - Multi domestic Strategy -
Global Strategy - Transnational Strategy - Entrymode - Exporting
- Licensing - Franchising - Joint venture - Whollyowned
Subsidiaries - Global Strategic Alliance - How to make
Alliance work - Questions.
13 Building and Restructuring the Corporation 170 -189
Start up route - Acquisition - joint Venture - Merger - Takeover
- Restructuring - Retrenchment - Divestment - Harvest -
Liquidation - Turnaround Strategy - Successful Turnaround of
Indian Bank 2003 - Case Study - Turnaround ofTa ta Refractories
Ltd - Indian Companies Turn Global Turnaround Specialists
- Questions.
14 Strategic Choice and Balanced Score Card 190 - 216
Concept of Strategic Choice - Choice Process - Gap Analysis
- Evaluation of Strategic Alternatives - Portfolio Analysis -
BCG Matrix - GE Matrix - Corporate Parenting - Strategic
Choice - Subjective Factors - Past Strategy - Personal Factors
-Attitude to risks -Internal Political Consideration - Pressure
from stakeholders - Corporate Culture - Key Managers' Desires
- Constructing Corporate Scenario - Devils' Advocate -
Dialectical Enquiry - Balanced Score Card - 4 Perspectives-
Rockwater Illustration Questions - Balanced Scorecard in
«
Indian Companies - Reading Material - Measuring and
Enhancing Corporate Performance - H R Score Card - Personnel
Today - April-june 2005 - Dr. M.jeyarathnam - Questions.
15 Implementation of Strategy:
Designing Organizational Structure 217 - 233
Basics of Designing Structure - Differentiation - Vertical
Differentiation - Horizontal Differentiation - Functional
Structure - Multidivisional Structure - advantages, disadvantages
- Matrix Structure - Advantages, Disadvantages - Product
Team Structure - Geographic Structure) - Integration and
Integration Mechanism - Staffing - Questions.
16 Designing Strategic Control Systems:
Matching Control and Structure to Strategy 234 - 246
Introduction - Steps in Control Process - Characteristics of
Good control system - Levels of control-Types of co'ntrol
Market control-Output control-Bureaucratic Control-ISO
Activity Based Costing - Management Audit - Limitations -
Organization Culture - Culture and Strategic Leadership -
Strategic reward system - Questions.
17 Matching Structure and Control to Strategy 247 - 256
Structure and Control at Functional Level - Manufacturing
functions - R&D Functions - Sales Functions - Structure and
control at Business Level - Cost Leadership and Structure -
Differentiation and Structure - Focus strategy and structure-
Designing a Global Structure - Multi domestic strategy -
International strategy - Global strategy - Transnational strategy
- Structure at Corporate Level - Questions.
18 Implementation of Strategic Change:
Politics, Power and Change 257 - 268
Organizational Power and Politics - Sources of Power -
Organizational conflict- Differentiation - Task Relationships
- Scarcity of Resources - Organization's conflict process -
Managing Confl ict Strategically - Confl ict Resolution Strategies
- Implementing Strategic Change - Steps in Change Process-
Evaluating Change - Questions.
19 Techniques of Strategic Evaluation and Control 269 - 275
•
Strategic Control - Premise Control - Environmental Factors
-Industry Factors - Strategic Momentum Control-Strategic
Leap Control-Implementation Control-Monitoring Strategic
Thrust - Milestone Review - Strategic Surveillance Special
Alert Control - Financial Ratio - PIMS - Questions.
20 Strategic Issues in Managing Technology and Innovation 276 - 285
Role of Management - Environmental Scanning - External
Scanning -Internal Scanning - Resource Allocation - Time to
Market Issues - Strategy Formulation - Technology Sourcing
- Technology Competence - Strategy Implementation -
Innovative Culture - Corporate Entrepreneurship -
Organizational Design - Evaluation and Control-Questions.
21 Strategic Issues in Entrepreneurial Ventures and
Small Businesses 286 - 296
Definition - Degree of Formality - Strategic Management
Process in Small Business - Strategic Business Plan - Corporate
Governance - Issues in Environmental Scanning - Strategy
Formulation - Sources of Innovation - Factors Influencing
Success of a new Venture - Characteristics of Entrepreneurs
-Issues in Strategy Implementation - Transfer of Power within
Family Business -Issues in Evaluation and Control-Questions.
· 22 Strategic Issues in Not-for-Profit Organization 297 - 303
Nature of Not-for-Profit Organization - Application of Strategic
Management Concepts - Constraints - Issues in Strategy
Formulation - Issues in Evaluation and Control - Popular
Strategies - Piggy backing - Mergers - Strategic Alliance -
Questions.
23 Role of Technology and Knowledge Management 304 - 311
Knowledge - Characteristics of Knowledge - Knowledge
Management System - Business Application - Knowledge
Management Process - Approaches to the Study of Knowledge
Management - Limitations of Knowledge Management -
Questions.
Illustrative Case - Robinhood 312-316
Cases 317 - 343
The Strategic
Management Process
Conceptual Framework for Strategic Management
In earlier times, the managers focused on "today's decisions for today's business".
However the rapid changes experienced by companies have made the managers to anticipate
the future and prepare for it. They have prepared systems, procedures and manuals and
evolved budgets and planning and control systems, which included capital budgeting and
management by objectives. The inadequacy of these techniqu"es has led to the emergence
of long range planning which in turn gives rise to strategic planning and subsequently to
strategic management.
Strategic management deals with decision making and actions which determine an
enterprise's ability to excel, survive or die by making the best use of a firms' resources in
a dynamic environment .The main purpose of study of strategic management is to examine
why some organizations succeed while others fail and yet others completely change.
Consider the following examples.
• Bharat Heavy Electricals Ltd. (BHEL) is now planning to expand its range to
800 MW supercritical power projects.
• LG Electronics India Ltd. (LGEIL) signed a MOU with Maharashtra government to
expand manufacturing facility at Pune for Rs. 900 crores.
• GAIL India has received an offer from China Gas Holdings for participation in a gas
based petrochemical project to be set at Humor in Mongolia.
• The world's largest steel conglomerate Mittal Steel Company is to become the
second largest stakeholder in a Chinese Steel firm in Hunan Province.
• Mittal signed three MOUs with Jharkhand Government for setting up 12 million
tonne Greenfield project in two phases.