Strategic Management ( Credit 3 )
This course intends to provide the management of strategy in the business enterprise. It integrates the work of strategic management theorists, practitioners and researcher along with adequate emphasis on real world applications of concepts. The strategic management process comprising strategic formulation, implementation and control are the key aspects of the course.
Unit I: Overview of Strategic Management
Strategic management: Introduction, three levels of strategy, characteristics of strategic management decisions, CEO – the strategy maker, benefits and risks of strategic management.
Strategic management process: Components of strategic management, strategic management as a process – practical limitations.
Unit II: Strategic Formulation
Company mission: Meaning of company mission, formulating mission statement, incorporating social responsibility in organization’s mission. The external environment: Remote environment – PEST analysis, and operating environment. Industry analysis: Potter’s Five Forces analysis, value chain analysis. Formulating long term objectives and grand strategies: long term strategies, concentration, market development, product development, innovation, horizontal integration, vertical integration, joint venture, concentric diversification, conglomerate diversification, retrenchment/turnaround, divestiture, liquidation, selection of long-term objectives and grand strategy. Strategic analysis and choice: BCG matrix, GE Nine-cell planning grid, SWOT analysis, grand strategy selection matrix, behavioral considerations affecting strategic choice
Unit III: Strategic Implementation
Implementation of strategy through short-term objectives, financial tactics, reward system and employment empowerment; annual objectives: qualities, consistency and benefits of effective annual objectives, Functional objectives: functional strategies in Marketing, finance/accounting, research and development, production/operations/human resource. Developing and communicating business policies. Institutionalizing the strategy structure, leadership and culture; simple and functional, divisional, SBU and, matrix organizational structures, structure follows strategy. Organizational leadership: role of CEO, assignment of key manager. Organizational culture: managing strategy-culture connection, culture influence on organization life. Strategic control and continuous improvement premise control, implementation control, strategic surveillance, special alert control; operational control systems; budgeting systems, scheduling, key success factors; monitoring performance and evaluation deviations; reward systems; motivating execution and control.
Thompson, Jr., A. A., & Strickland III, A. J. (2003). Strategic Management: Concepts and Cases. (13th ed.). Tata McGraw-Hill: New Delhi.
Pearce, II, J. A., & Robinson, Jr., R. B. (2003). Strategic Management: Strategy Formulation and Implementation. (8th ed.). AITBS: New Delhi.