MBA ZG611/MM ZG611/POM ZG611/QM ZG611
Strategic Management and Business Policy
BITS Pilani
Pilani | Dubai | Goa | Hyderabad
Parag Rastogi, Ambuj Gupta, Nirankush Dutta, R. Raghunathan
BITS Pilani
Pilani Campus
Course Introduction
About the Course
• Organizations today operate in dynamic environments characterized by
VUCA (Volatility, Uncertainty, Complexity, and Ambiguity).
• Strategic management is critical for business sustainability and growth.
• It helps organizations align internal capabilities with external demands.
• This course is designed to equip you with :
– Knowledge and tools required to analyze, formulate, and implement
strategies in organizations.
– This course will help you navigate complex business environments and
make informed strategic decisions.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
How the Course would help you
This course will help you to develop:
• Ability to think strategically and take decisions, execute plans &
sustain competitive advantage.
• Reflect on strategic frameworks and apply them in practice
situations to analyze, evaluate and create value for customers
• Strategic Leadership to build unique positioning & capabilities
and shape the culture of Innovation & Excellence
• Knowledge & Preparedness to manage conflicting, uncertain &
disruptive situations.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Course Topics
1. Introduction, Basic concepts & 8. Strategy Implementation
Importance
9. Strategy evaluation and control
2. Elements of Strategic Management
Process 10. Strategies for Competing in
International Markets
3. Environmental scanning
4. Industry analysis 11. Business Model Innovation in
Technology
5. Internal Environmental Analysis
12. Blue Ocean Strategy
6. Business Strategy Formulation (2*)
13. Corporate Governance
7. Corporate Strategy (3*)
* Number of Sessions BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Course Materials
• Textbook: “Strategic Management and Business Policy: Globalization,
Innovation and Sustainability” by Charles E. Bamford, Alan N.
Hoffman, Thomas L. Wheelen, J. David Hunger, Purva Kansal, Pearson
Education, 16th ed. 2023
• Additional reading materials (Refer to the Handout)
• Case Studies (Links would be provided)
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Pedagogy
• Lecture sessions
• Classroom discussions
• Case Studies (3 comprehensive case studies will be discussed in
the class).
• There would be several caselets/activities/illustrative examples to
support theoretical concepts during the sessions.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Evaluation Scheme
Evaluation Component Weightage Comments
EC-1 Case Analysis 15% • Group assignment.
(Open Book) • Details on groups, expected
deliverables, submission timeline etc.
will be shared in due course of time.
Assignment 20% • Group assignment. Open Book.
(Open Book) • Details on groups, expected
deliverables, submission timeline etc.
will be shared in due course of time.
EC-2 Mid-Semester Test 30% • Syllabus covered in Sessions 1 to 8.
(Closed Book)
EC-3 Comprehensive 35% • Complete syllabus.
Exam
(Open Book)
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani
Pilani Campus
Topic 1
Introduction, Basic Concepts & Importance of
Strategic Management
Outline
1. What is/not Strategy
2. Benefits of Strategic Management
3. Challenges to Strategic Management
4. Strategic Management Model
5. Theories of Organizational Adaptation
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
1. What is/not Strategy?
Strategy is the integrated set of actions and policies designed to achieve
competitive advantage and organizational goals. (Reference: Porter, 1996)
Key Insights from Porter (1996):
• Strategy is about making unique choices that distinguish an organization.
• It’s not just operational efficiency but involves a clear positioning in the
market.
Illustration: IKEA’s strategy revolves around cost leadership, self-service,
and unique store layouts to achieve affordability and accessibility.
Contd. ...
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
1. What is/not Strategy?
…. Contd.
What Strategy is NOT:
• A list of goals without a clear path.
• Purely operational effectiveness (e.g.,
process improvements or cost-cutting).
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Strategy to Action: Ikea Layouts are Same Across
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
2. Benefits of Strategic Management
• Proactive Planning: Helps organizations anticipate and adapt to
market changes.
• Resource Allocation: Ensures optimal use of resources toward
strategic priorities.
• Competitive Advantage: Builds a distinctive edge over competitors.
• Organizational Alignment: Ensures that all departments work toward
a unified goal.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
3. Challenges to Strategic Management
• Rapid Market Changes: Industries like technology face constant
disruption. (Kodak's failure to adapt to digital photography.)
• Globalization: Managing diverse markets with varied consumer
preferences. (KFC has dal makhni in India)
• Resistance to Change: Employees may resist new strategic initiatives.
(Many family businesses face this)
• Uncertainty: Economic, political, or environmental uncertainty impacts
long-term planning. (Many businesses run Annual Plans only)
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Basic Model
Elements
1. Environmental Analysis
2. Strategy Formulation
3. Strategy Implementation
4. Evaluation and Re-assessment
Interconnectedness
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Expanded Model
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-1: Environmental Analysis
• Environmental analysis is the monitoring, evaluating, and
disseminating of information from the external and internal
environments to key people within the corporation.
• Its purpose is to identify strategic factors - those external and
internal elements that will assist in the analysis of the strategic
decisions of the corporation.
• The simplest way to represent the outcomes of environmental
scanning is through a SWOT approach.
– External Environment (Opportunities and Threats)
– Internal Environment (Strengths and Weaknesses)
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-1: Environmental Analysis
Environment Variables
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-2: Strategy Formulation
• Strategy formulation is the process of investigation, analysis, and
decision making that provides the company with the criteria for attaining
a competitive advantage.
• It includes defining the competitive advantages of the business,
identifying weaknesses that are impacting the company’s ability to grow,
crafting the corporate mission, specifying achievable objectives, and
setting policy guidelines.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-2: Strategy Formulation
• Mission: An organization’s mission is the purpose or reason for the
organization’s existence. It clearly states what separates the company
from its competitors.
• Objectives are the end results of planned activity. tell employees what is
to be accomplished and when, with appropriate metrics.
• Strategy states how the business will achieve its mission and objectives. It
maximizes competitive advantage and minimizes competitive
disadvantage. (3 types of strategy: Corporate, Business and Functional)
• Policy is a broad guideline for decision making that links the formulation of
a strategy with its implementation.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-2: Strategy Formulation
Hierarchy of Strategy
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-3: Strategy Implementation
• Strategy implementation is a process by which strategies and
policies are put into action through the development of programs,
budgets, and procedures.
• Often involves day-to-day decisions in resource allocation.
• Implementation of strategy is typically conducted by middle- and
lower-level managers, with review by top management.
• Also called as operational planning.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-3: Strategy Implementation
• Program or a Tactic is a statement of the activities or steps needed to support
a strategy.
– A program is a collection of tactics
– A tactic is the individual action taken by the organization as an element of
the effort to accomplish a plan.
• Budget is a statement of an organization’s programs in terms of dollars. Used
in planning and control, a budget lists the detailed cost of each program.
• Procedures are a system of sequential steps or techniques that describe in
detail how a particular task or job is to be done. Various activities that must be
carried out in order to complete the organization’s program.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Element-4: Evaluation and Reassessment
• Evaluation and reassessment is a process in which corporate
activities and performance results are monitored so that actual
performance can be compared with desired performance.
• Is used to take corrective actions and resolve problems.
• Pinpoints weaknesses in previously implemented strategic plans
and thus stimulates the entire process to begin again.
• For evaluation and reassessment to be effective, managers must
obtain clear, prompt, and unbiased information from the people
below them in the corporation’s hierarchy.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
4. Strategic Management Model
Additional Element: Feedback and Learning Process
As any organization develops strategies, programs, and the like, it
often must go back to revise or correct decisions made earlier in the
process.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BCCL/Timegroup : Shift in Strategy
Aspect Details
Revenue Model Transformation: Shifted focus from circulation
Strategy
revenue to advertising revenue.
Kept newspaper prices low or subsidized to boost circulation
Implementation
and attract advertisers.
Increased ad revenues through a larger audience base,
Outcome
achieving market leadership in print media.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Starbucks : Shift in Strategy (India/China Launch)
Remarks
Strengths Strong brand identity, customer loyalty, and product quality.
Weaknesses Lack of a global supply chain/sourcing (tie-up with Tata)
Opportunities Emerging markets like India and China.
Threats Rising competition from local coffee chains and economic downturns.
Outcome Starbucks adapted its menu to local preferences in international markets (e.g., masala chai in
India)
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
"Culture Eats Strategy for
Lunch"
This phrase (Peter Drucker), highlights that no matter how robust a strategy is, it will fail if the organizational
culture does not support its implementation.
Why Culture is Critical:
• Alignment: Culture determines how employees perceive and act on strategic goals.
• Change Management: A supportive culture enables smoother transitions when implementing new
strategies.
• Motivation and Engagement: Employees are more likely to execute strategies effectively if the culture
aligns with their values and work ethics.
Case Example:
• Google: Its open and innovative culture supports its strategy of fostering creativity and innovation.
Employees are encouraged to take risks, leading to groundbreaking products like Google Maps and
Google Drive.
• Kodak: A strong strategy for film but failed to adapt culturally to embrace digital photography, resulting in
its decline.
Balancing Culture and Strategy: An effective strategy should align with the existing culture, or the
organization must actively work on evolving its culture to align with strategic goals. Culture amplifies strategy,
and the two must work in tandem for sustainable success.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
5. Theories of Organizational Adaptation
Various Theories to understand how organizations obtain fit with their
environment?
• Population ecology theory: Once an organization is successfully established
in a particular environmental niche, it is unable to adapt to changing
conditions.
• Institution theory: Proposes that organizations can and do adapt to changing
conditions by imitating other successful organizations.
• Strategic choice perspective goes a significant step further by proposing that
not only do organizations adapt to a changing environment but also they have
the opportunity and power to reshape their environment.
• Organizational learning theory, which says that an organization adjusts
defensively to a changing environment and uses knowledge offensively to
improve the fit between itself and its environment.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Questions?
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
