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Strategy Management

BA1702 STRATEGIC MANAGEMENT
UNIT-- I
STRATEGY

➢ At first, the word was used in terms of Military Science to mean what a manager does to offset actual or potential actions of competitors
➢ The term strategy is derived from the G reek word strategos, which means generalship.
➢ The word strategy litereally means the art of the general.
➢ In business, there is no definite meaning assigned to strategy.

( e.g ) Kotak Mahindra Finance Ltd is a major NBFC, that has experienced low profitability qwing to the various problems faced by NBFC’s in India. It is planning to adopt a divestment strategy in wholesale corporate lending and focusing on new growth areas, such as wealth management, retail, Insurance and Information Services.

DEFINITION:

❖ A strategy is a plan of action designed to achieve a particular goal.

Alfred D Chandler (1962)

-He analyzed the history of organizational change in 70 manufacturing firms in US.

“The determination of the basic long term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary for carrying out these goals.”

William F Glueck (1972)

“ A unified , comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved”.

Michael E porter (1996)

“Developing and communicating the company’s unique position , making trade –offs and forging fit among activities”.
STRATEGY HAS FOUR COMPONENTS

❖ First, strategy should include a clear set of long term goals.
❖ Second ,it should define the scope of the firm i.e. the types of products the firm will serve etc.
❖ Thirdly, a strategy should have a clear statement of what competitive advantage it will achieve and sustain.
❖ Finally, the strategy must represent the firms’ internal contest that will allow it to achieve a competitive advantage in the environment in which it has chosen to compete

NEED FOR STRATEGY

1....