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Strategic Management & Strategic Competitiveness Courtesy: Dr Gagan Pareek www.gaganpareek.com

Strategic Management & Strategic Competitiveness Courtesy: Dr Gagan Pareek www.gaganpareek.com. Dr Gagan Pareek alias Dr Harish Pareek M.Com, A.I.C.W.A, PhD Area of Expertise : Accounting & Finance, Credit Risk Management

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Strategic Management & Strategic Competitiveness Courtesy: Dr Gagan Pareek www.gaganpareek.com

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  1. Strategic Management & Strategic Competitiveness Courtesy: Dr Gagan Pareek www.gaganpareek.com

  2. Dr Gagan Pareek alias Dr Harish Pareek M.Com, A.I.C.W.A, PhD Area of Expertise : Accounting & Finance, Credit Risk Management Strategic Management Corporate Trainer & Key Resource Person : In the area of Finance and Strategy, Leadership, Team Building and Motivation Email: contact@gaganpareek.com; Mobile:+919831865258 Research: Awarded PhD degree on “Operation of NBFCs in India- a changing profile “ in the Dept of Commerce, Calcutta University. Industry Exp: Having 12 years of experience in the area of accounting and finance, credit and risk analysis. Worked for companies like Kesoram Industries Ltd (B.K. Birla Group of Companies), UTI-ISL, Magma Fincorp Ltd. He has also been associated with academic research for the last 9 years.

  3. Strategy……. Speaking informally to a group of MBA students at Harvard Business School, Jack Welch explained: “ Strategy is trying to understand where you sit today in today’s world. Not where you wish you were and where you hoped you would be, but where you are. And (it’s trying to understand) where you want to be…It’s assessing with everything in your head the competitive changes that you can capitalize on or ward off to go from here to there. It’s assessing the realistic changes of getting from here to there.”

  4. Strategy… • Mintzberg : Strategy thus may not be something which is within a formal plan, but is more likely to be discovered intuitively. This can be achieved by reflecting on what has actually happened , or what is currently happening, or what is about to happen.

  5. What is strategic management? • A continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment (Certo and Peter) • It is a continuous process of effectively relating the organization's objectives and resources to the opportunities in the environment (Schellen Berger and Boseman) • It is a process of formulating, implementing and evaluating cross-functional decisions that enable an organisation to achieve its objectives (F R David) • It is a stream of decisions and actions which lead to the development of an effective strategy or strategies to a help achieve corporate objectives (Glueck and Jauch) • It is the set of decisions and actions resulting in formulation and implementation of strategies designed to achieve the objectives of an organisation (Pearce and Robinmson, 2001)

  6. Business Strategy Gurus and the things which they are famous for

  7. Strategic Management Framework Environmental Scanning Strategy Formulation Implementation Evaluation & Control Management Values & Philosophy Organizational Design Internal Environment: Human Financial Production Marketing History Others Performance Evaluation Determination of Mission Culture Structure & Control Establishment of Objectives Leadership Results & Rewards Budget Programs Strategy Planning External Environment: Industry Competition Technology Govt Regulations Economy Uthers Corporate & Business Strategy Strategic Decisions Feedback , Feed Forward ,Recycle Revise As Needed Change / Improve

  8. External Analysis Competitive Positioning Implementation Strategic Options Learning & Control The Strategic Management Process

  9. Environmental Analysis • Environmental analysis is a holistic exercise in which total view of environment is taken rather than viewing trends piecemeal. • Environmental analysis is a heuristic or exploratory process. • Environmental analysis must be a continuous process rather than being an intermittent scanning system.

  10. Exogenous nature of environment

  11. One of the most under spread models for environmental scanning is SWOT analysis (Ansoff 1965), can help to identify, external changes with a direct or indirect impact on your business. (Strength, Weakness, Opportunities, Threats) • Environmental scanning can also be done through PEST factors at large in the environment. ( Political, Economical, Social, Technological)

  12. PEST Factors TECHNOLOGIOCAL POLITICAL ECONOMIC SOCIAL

  13. Environment Scanning: SKEPTIC

  14. BCG Matrix BCG Matrix can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy,

  15. After SWOT analysis Porters’ five forces is one of the most prominent technique Rivalry Among Competing Firms in Industry Threat of New Entrants Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products

  16. GE Matrix

  17. MC KINSEY’S 7S FRAMEWORKMcKinsey & Company, a US based consultant , has prescribed seven factors which lead to success through CSF factors in order to generate competitive advantage:

  18. MC KINSEY’S 7S FRAMEWORK 1. Strategy means to achieve objectives. 2. Structure basic framework to designate responsibilities and functions. 3. Systems management tools for planning, decision making , communication, and control. 4. Staffs human resources of the organisation. 5. Skills organizational and individual capabilities , how managers lead and motivate. 6. Shared values organizational values which govern behavior of its members.

  19. Competitive Advantage: It can be achieved through Resources and Capabilities when they are: Valuable Intended to exploit opportunities and /or neutralize threats of the external environment in which the firm operates Rare Resources and capabilities are available to very few, if any, current and potential competitors Costly to Imitate when other firms either cannot obtain or copy the resources or capabilities or can be obtained at a much higher cost Nonsubstitutable Obtaining the full benefits of the available resources in order to develop a cutting edge to realize a competitive advantage

  20. Core Competencies • When these four criteria are met, Resources and Capabilities become core competent. • Core Competencies are resources and capabilities that creates an edge to get a Competitive Advantage.

  21. References: • Harvard Business Review on Corporate Strategy, Harvard Business School Press,1999 • Grundy Tony, Gurus on Business Strategy, 2008, Viva Books Private Ltd. • Kazmi Azhar, Business Policy & Strategic Management, 2nd Edition, Tata McGraw Hill. • Alkhafaji Abbass.F, Strategic Management 2008, Jaico Publishing House • Wilson Ian, The Art of Strategy 2008, Jaico Publishing House. • Haines Stephen & Mckinlay James, Reinventing Strategic Planning 2008, Jaico Publishing House. • Haines Stephen, Strategic Thinking for Leaders 2007, Jaico Publishing House. • Thompson Arthur A. Jr. & Strickland . A. J III , Strategic Management Concepts and Cases, 13th Edition, Tata McGraw Hill. • Hitt Michael A. , Ireland R. Duane , Hoskisson Robert E. , Strategic Management, 2000 South-Western College Publishing • RAI Openware Course Material on Strategic Management

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