Strategic management involves defining an organization's strategy, implementing and executing the strategy, and evaluating performance. It is a continuous process that evaluates external and internal factors to guide an organization's vision and planning. The key elements of strategic management are environmental scanning, strategy formulation, strategy implementation, and evaluation. Environmental scanning involves collecting internal and external information, analyzing trends and issues. Strategy formulation determines long-term objectives and goals. Implementation is executing the chosen strategy, while evaluation assesses performance and makes adjustments.

1. INTRODUCTION TO
STRATEGIC MANAGEMENT
OFFLINE MODE
UNIT-1(6 HOURS)
JAY

2. KEY LEARNING OUTCOMES -
 Definition – what is Strategic Management
 Elements in Strategic Management process
 VISION &MISSION
 Creating & communicating a VISION
 Designing a MISSION statement
 Defining the business, Business Model, Setting objectives

3. YAHOO-The Story of Strategic Mistakes !

4. Yet Another Hierarchically Organized
Oracle’ (MISTAKES)
 Yahoo was founded by Jerry Yang and David Filo in January 1994 and was seen
as one of the pioneers of the early internet era during 1990s. There was a time
when it was the most popular search engine but the company started bleeding
since the late 2000s
In 1998 refused to buy Google for just $1 million
In 2002 again refused an offer to buy Google for
5 billion $
Falling to buy Facebook
Declining Microsoft's acquisition in 2008
Hiring wrong CEOs
Called itself as a media company
Yahoo acquired two companies in 1999 that are
now ranked as some of the worst internet
acquisitions of all-time.
YAHOO

5. STRATEGY
 The word “strategy” is derived from the Greek word “stratgos”; stratus (meaning army) and “ago”
(meaning leading/moving).
 Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy

6. FEATURES
 STRATEGY DEALS WITH LONG TERM DEVELOPMENT RATHER THAN ROUTINE
ACTIVITIES
 STRATEGY TAKES IN TO ACCOUNT PROBABLE BEHAVIOR OF
CUSTOMERS,EMPLOYEES AND COMPETITORS
 STRATEGY DEFINES OVERALL MISSION VISION AND DIRECTION
 STRATEGY MAXIMISE THE ORGANISATION STRENGTH AND UNDERSTAND
COMPETITOR STRENGTH
 STRATEGY BRIDGES THE GAP BETWEEN WHERE WE ARE AND WHERE WE
WANT TO BE

7. DIFFERENT LEVELS OF STRATEGY
 CORPORATE LEVEL
 BUSINESS LEVEL
 FUNCTIONAL LEVEL
 Example: TATA group in Steel,Telecom,Tea,Automobile

8. STRATEGIC MANAGEMENT
 Strategic management is a continuous process that evaluates and controls the
business and the industries in which an organization is involved; evaluates its
competitors and sets goals and strategies to meet all existing and potential
competitors; and then reevaluates strategies on a regular basis to determine how
it
 It enables the organization to survive in the long run
 It’s a continuous process
 Applicable to both small and large organisations
 It gives advantage over competitor

9. (SM) THINKING ANSWERING THREE
QUESTIONS
Where do we want
to go in future
How will we get there
Where are we

10. ELEMENTS IN SM PROCESS
 STEP-1- ENVIORMENTAL SCANNING
 STEP-2 FORMULATION OF STRATEGY
 STEP-3 STRATEGY IMPLEMENTATION /EXECUTION
 STEP-4 EVALUATION

11. ENVIRNMENTAL SCANNING
 The purpose of the scan is the identification of opportunities and threats
affecting the business for making strategic business decisions. As a part of
the environmental scanning process, the organization collects information
regarding its environment and analyzes it to forecast the impact of changes
in the environment. This eventually helps the management team to make
informed decisions.
 EXTERNAL AND INTERNAL ENVIRONMENT

12. CHARACTERSTICS OF ENVIORNMENT
 Environment is complex
 Environment is Dynamic
 Environment is Multifaceted – What shape and character an environment
assumes depends on the perception of the observer. Business environment is
multifaceted as it is an opportunity for some but a threat for others. Changes
may be viewed differently by different individuals
 Environment has far reaching impact(on organisations)

13. FACTORS TO BE CONSIDERED WHILE
CONDUCTING ENVIORNMENTAL
SCANNING
 EVENTS
 TRENDS
 ISSUES
 EXPECTATIONS

14. ENVIRNMENTAL SCANNING

15. APPROACHES TO ENVIORNMENTAL
SCANNING
 SYSTEMATIC APPROACH
 AD HOC APPROACH
 PROCESSED FORM APPROACH

16. SYSTEMATIC APPROACH
 Under this approach, information for environmental scanning is collected
systematically. Information related to markets and customers, changes in
legislation and regulations that have a direct impact on an organization’s
activities, government policy statements pertaining the organization’s business
and industry, etc, could be collected. Continuous updating such information is
necessary not only for strategic management but also for operational activities.

17. AD HOC APPROACH
 Using this approach, an organization may conduct special surveys and studies to
deal with specific environmental issues from time to time. Such studies may be
conducted, for instance, when organization has to undertake special projects,
evaluate existing strategy or devise new strategies. Changes and unforeseen
developments may be investigated with regard to their impact on the
organization.

18. PROCESSED FORM APPROACH
 For adopting this approach, the organization uses information in a
processed form available from different sources both inside and
outside the organization. When an organization uses information
supplied by government agencies or private institutions, it uses
secondary sources of data and the information is available in
processed form.

19. INTERNAL SCANNING-SWOT
1. Strength – an inherent capacity of an organization which helps it to gain strategic
advantage over its competitors.
2. Weakness – an inherent constraint or limitation which creates a strategic
disadvantage for a business.
3. Opportunity – a favorable condition in the organization’s environment enabling it
to strengthen its position.
4. Threat – an unfavorable condition in the organization’s environment causing
damage to the organization.

20. MBI COUNTER STACK MACHINE
INSTALLATION –SWOT
•Resistance from employees
•Brand image
•Competitor Activities
• More reach
•Can reduce labours
•Reduce time
•Increase revenue
•No hand touch
• First time implementing
• No skilled workers to
operate
• More space to install
machine
• Sufficient Fund
• Existing agency network
• Good circulation
• Contact with machine
vendors
STRENGTH WEAKNESS
THREATS
OPPORTUNITIES

21. ANSWER THE FOLLOWING QUESTIONS
 Define Strategy?
 What are the features of Strategy?
 What is Strategic Management?
 What are the elements in Strategic Management Process?
 What are the different approaches to Environmental Scanning?
 What is SWOT analysis ? Can you do a Personal (individual)SWOT analysis as a
Logistics Career Aspirant ?

22. EXAMPLE:
STRENGTH
I read a lot about Logistics Industry . So I have an
idea about it
WEAKNESS
Time Management in completing my training
Fear about Personal Interview
OPPORTUNITIES
Since I know more languages I can look for a job abroad
THREATS
Due to covid-19 opportunities may be less
PERSONAL SWOT
ANALYSIS

23. STRATEGY FORMULATION
 Strategy formulation is the process of deciding best course of action for accomplishing
organizational objectives and hence achieving organizational purpose. After conducting
environment scanning, managers formulate corporate, business and functional strategies

24. STRATEGY IMPLEMENTATION
 . Strategy implementation implies making the strategy work as intended or putting the organization’s
chosen strategy into action. Strategy implementation includes designing the organization’s
structure, distributing resources, developing decision making process, and managing human
resources

25. STRATEGY EVALUATION
 Strategy evaluation is the final step of strategy management process. The key strategy evaluation
activities are: appraising internal and external factors that are the root of present strategies,
measuring performance, and taking remedial / corrective actions. Evaluation makes sure that the
organizational strategy as well as it’s implementation meets the organizational objectives

26. STRATEGIC
INTENT,VISION,MISSION&OBJECTIVES
 STRATEGIC INTENT
 MISSION STATEMENT
 VISION
 GOALS&OBJECTIVES

27. STRATEGIC INTENT
 STRATEGIC INTENT IS the hierarchy of objectives that an organization sets for
itself .Within this there are Mission,Vision,Business definition and Objectives

28. MISSION-WHAT ARE WE HERE FOR ?
 Mission statement is the statement of the role by which an organization intends to serve it’s stakeholders. It describes why an organization is operating and thus provides a framework within which strategies are
framework within which strategies are formulated. It describes what the organization does (i.e., present capabilities), who all it serves (i.e., stakeholders) and what makes an organization unique (i.e., reason for
organization unique (i.e., reason for existence).
1. Mission must be feasible and attainable. It should be possible to achieve it.
2. Mission should be clear enough so that any action can be taken.
3. It should be inspiring for the management, staff and society at large.
4. It should be precise enough, i.e., it should be neither too broad nor too narrow.
5. It should be unique and distinctive to leave an impact in everyone’s mind.
6. It should be analytical,i.e., it should analyze the key components of the strategy.
7. It should be credible, i.e., all stakeholders should be able to believe it.
AMAZAON
 Mission: We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.
 Vision: To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online

29. VISION-’WHERE WE WANT TO BE’
 A vision statement identifies where the organization wants or intends to be in future or where it should be to best meet the
needs of the stakeholders. It describes dreams and aspirations for future. For instance, Microsoft’s vision is “to empower
people through great software, any time, any place, or any device.” Wal-Mart’s vision is to become worldwide leader in
retailing. A vision is the potential to view things ahead of themselves. It answers the question “where we want to be”
 An effective vision statement must have following features-
a. It must be unambiguous.
b. It must be clear.
c. It must harmonize with organization’s culture and values.
d. The dreams and aspirations must be rational/realistic.
e. Vision statements should be shorter so that they are easier to memorize.
SONY
 Mission: A company that inspires and fulfills your curiosity.
 Vision: Using our unlimited passion for technology, content, and services to deliver groundbreaking new excitement and
entertainment, as only Sony can.

30. MISSION & VISION

31. CREATING AN EFFECTIVE MISSION
STATEMENT
• Do keep it short and concise. Sum up the company’s mission in just a few sentences.
• Don’t write an essay. That is not the purpose of this brand building tool. You want the mission
statement to be tethered to the brand and that means it must be memorable. Long drawn out
prose is rarely memorable.
• Do think long-term. The mission statement is an investment in your company’s future, so keep it
open enough to reflect your long-term goals.
• Don’t make it too limiting. Do you only see the business selling to the residents of one small town
or do you hope to expand at some point?
• Do find out what your employees think of the mission statement. This is a tool designed with
them in mind, too, so get their opinion. Ask how they would improve it and what they dislike about
it.
• Don’t be afraid to change it. Things change in the business world. If the mission statement no
longer represents the company, it is time for a rewrite.

32. CREATING AN EFFECTIVE VISION STATEMENT
• Project five to 10 years into the future.
• Dream big, and focus on success.
• Use the present tense.(Living the Dream, As a team we will win!” can be replaced by “As a team we
always win)
• Use clear, concise, jargon-free language.
• Infuse it with passion, and make it inspiring.
• Align it with your business values and goals.
• Create a plan to communicate your vision statement to your employees.
• Prepare to commit time and resources to the vision you establish.

33. DEFINING THE BUSINESS
HMT ARMIN STROM MIRRORED FORCE RESONANCE at Ethos Watch
Boutique costing RS 5350000/-

34. BUSINESS MODEL

35. DERIK ABEL MODEL OF DEFINING THE
BUSINESS
 The Abell Model is a three dimensional framework that's used to describe
and map out a business model and activities. It's useful for making clear how a
business operates today, to help inform future strategic planning.
 The three dimensions in Abell's model are: Served Customer Groups (who are
the customers) Served Customer Functions (what are the customers'
needs) Technologies Utilized (how are needs being satisfied)

36. DERIK ABELL MODEL

37. ANSWER THE FOLLOWING QUESTIONS
 What is strategy formulation?
 What is strategy implementation?
 What is Strategy Evaluation?
 What are the three Dimensions of Derik Abell Business Model?

38. END OF THE
SESSION
JAY-BSc, MBA (Madras University)
Certified Trainer of Logistics Skill Council of
India