What is an Organisation?

Why does and organization exist?

•Because consumers exist

•Value creation for society
•Growth and Evolution
What are the important activities
done by an organization?
•Planning
•Organizing
•Coordinating
•Directing
•Staffing
•Control
Activities are LONG term & SHORT term
 MOST IMPORTANT
• Which is needed by all functions ….
• Which is needed at all times…..
• Which is needed at all levels….

DECISION MAKING
There are several techniques and
tools for Decision Making

STRATEGIC MANAGEMENT IS ONE OF THE

MOST IMPORTANT TOOLS for
MANGERIAL DECISION MAKING IN
LONG RUN !
 Boundaries of Strategic Mgt
• Managerial Decisions
– Operational Decisions
– Organizational Decisions
– Strategic Decisions
 Operational Decisions
(operational effectiveness)

• Absorb bulk of managerial time and

attention
• Are self generative
• Concerned with optimal use of resources
allocated
 Organization Decisions
• Orgn. Structure to create maximum
performance potential (authority, reporting,
control, information etc.)
• Arise with periodicity
• Shaped by scope of activities
• Shaped by corporate objectives and policies

“Structure Follows Strategy” – Alfred Chandler

 Strategic Decisions
• Simultaneously concerned with external and
internal environment
• Judicious allocation and reallocation of
resources
• Long term growth and survival
• Not self generative
(one decision may not be repetitive)
 Strategic Management
• Has major resource implications
• Likely to affect long term direction of an
organization
• Likely to affect operational and organizational
decisions
• Affected and shaped by values and expectations of
managers and other stakeholders
• Some examples:-
– What are the long term goals and objectives?
– Which product markets to enter?
– Whether to diversify or to merge?
– How to cope with environmental changes?
Hierarchy of Strategy
 Strategic Management Defined
Strategic management is the art and science of
formulating, implementing, and evaluating
cross functional decisions that enable an
organization to achieve its objectives.

“It is not a single act but a set of activities”.

 Strategic Management Process
Stages Activities

Strategy Conduct Integrate intuition Make Decision

Formulation Research with analysis

Strategy Establish Device Policies Allocate

Implementation annual Resources
Objectives

Strategy Review internal Measure Take Corrective

Evaluation and external Performance Action
factors
Basis for good Strategic Decision
Intuition + Analysis

Effective Strategic Decision

Long Range Planning

Business Policy

Strategic Management