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startegy formulation
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Content• Origin• Meaning of strategy• Hierarchy of plan• Strategy management process• Three level of strategy• Five forces corporate strategy• Case study
Origin
The concept of strategy is ancient. The word itself comes from the Greek strategia, Which means the science or art of being general. Effective Greek generals needed to Lead an army ,win and hold territory, protect cities from invasion, and wipe out the Enemy.The Greek knew that strategy was more than fighting battles.Effective generals had to determine right line of supply, decide when to fight and when not to fight, and manage the army relationship with citizens, politicians, and diplomats .
Strategy• The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
• "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".
Hierarchy of plan
Mission statement
Strategy plan
Operational plan
Strategic management process
Mission and objective
Strategy formulation
Strategy implementation
Strategic control
Environmental scanning
1. Mission and objective
The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities
2. Environmental Scanning
The environmental scan includes the following components:Internal analysis of the firm
•)
•Internal analysis •External analysis
Five forces
3. Strategy formulation
To encounter these forces we formulate three level of strategy
Multi business corporation
Three level of strategy
Strategic business unit
Functional Or Departmental
4.Strategy implementation
5.Strategy control The implementation of the strategy must be monitored and adjustments made as needed.
Evaluation and control consists of the following steps:
1. Define parameters to be measured
2. Perform measurements3. Compare measured results to the pre-defined standard4. Make necessary changes
JAPANESE LUXURY CARS OVERTAKE AMERICAN CARS IN US MARKET
CASE STUDY MISSION TO GET MAX PROFIT
ENVIRONMENTAL SCANNING COMPETITIVE SCENARIO
CRITICAL SUCCESS FACTORS
POTENTIAL CHALLENGES
STRATEGY FORMULATION QUALITY IMPROVEMENT
FUEL EFFICIENCY
PRICING STRATEGY
conclusion
