strategic mgt - 9 jan 07

21 st century mgt.


self leadership is in. No body 2 command and control u. u r yr own leader and destiny maker.
new need- employees with emotional intelligence.globalisation - the new mantra for survival. In a globalised economy, u have to be on your toes always.
women are assuming executive positions in greater numbers.
roce = margins * ato = profit/sales * sales/capital employed
= profit/capital employed ....capital = FA + inv + debtors - creditors
why does a company exist ? as per strategy, to create value to all stakeholders in the business.Strategy is the roadmap to achieve these goals . corporate/divisional /functional.basically str. mgt scans the environment, considers all possible options,resource mobilisation ALL for one single goal: to create sustainable competitive advantage.wat is competitive advtg: -- delivering superior value to yr customers relative to your competitors.value addition and exxtra value must be delivered at the same cost.
IT must work as a complementary tool for business.

the main challenge is : TO ACHIEVE EXTRAORDINARY RESULTS CONSISTENTLY, BY USING ORDINARY RESOURCES OF THE COMPANY AND THAT TOO, BY USING THE BARE MINIMUM.

in strategy formulation phase, u have the options on competitive positioning. u can position yrself the best vis a vis yr competitors.
i environment u hv the internal and external environment : internal -- culture,chain of command,skills, structure.formulation = mission + objectives + strategis + policies.
activities needed to accompish a plan = program . cost of a program is the budget.a policy = a plan of action to assist in decision making.Regulatory policies limit discretion of individual business owners and corporations. Businesses who disregard these policies may be fined, or may be threatened with sanctions.regulatory policies are restrictive in nature.

employees are of two types I can do (has capability) and I will do( shows commitment)....best is to have a combination of these two types..will do types are better than the can do types as commitment is most imp. it reflects yr attitude to yr work.blue ocean strategy = create uncontested market place(market developement).

porters genrric competitive strategies :competitive advtg . vs competitive scope.asically cost leadership, differentiation on a broader scope . focussed differentitauon on narrower scope.corporate level: directional strategy, portfolia and parenting str.