Being strategic is nothing but being different in the context you are operating. Being strategic is nothing but being different – the moment you are not unique, you get copied and you lose your market share.
Strategies exist at several levels in any organisation - ranging from the overall business (or group of businesses) through to individuals working in it.
Corporate Strategy is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement".
Business Unit Strategy is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.
Operational Strategy is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc.
How Strategy is Managed - Strategic Management
In its broadest sense, strategic management is about taking "strategic decisions" - decisions that answer the questions above.
In practice, a thorough strategic management process has three main components, shown in the figure below:
Strategic Analysis
This is all about the analyzing the strength of businesses' position and understanding the external factors that may influence that position. The strategy evaluation and choice depends on the analysis of the following five key factors
- PREST Analysis - a technique for understanding the "environment" in which a business operates. Political, regulatory, environmental, social and technological analysis
- ICA: Industry and competitor analysis (includes Five Forces Analysis)
- RCS: Resource and capability analysis
- Cultural analysis
- Stakeholder’s expectation
The result of above analysis help in swot analysis
PREST+ICA = Opportunities and Threats
RCA +cultural analysis = Strengths and weakness
Stakeholder analysis = Vision and goals
On the basis of above analysis, strategic options are generated. Strategic options nothing but different business models
1) Customer selection
2) Competition selection
3) Value =P+S+E (Products+ Solution +Experience)
4) Value delivery model i.e. the way value is delivered.
References :
Prof. Ranjan Das Professor IIM-Calcutta
thestrategyacademy.org
&
tutor2u.net
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