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Strategic Management - Concept Of Corporate Strategy

Introduction of Strategic Management Process

   Posted On :  25.06.2018 10:00 pm

Once there were two company presidents who competed in the same industry.

Introduction of Strategic Management Process

Once there were two company presidents who competed in the same industry. These two presidents decided to go on a camping trip to discuss a possible merger. They hiked deep into the woods. Suddenly, they came upon a grizzly bear that rose up on its hind legs and snarled. Instantly, the first president took off his knapsack and got out a pair of jogging shoes. The second president said, “Hey, you can’t outrun that bear. The first president responded, ” May be I can’t outrun that bear but I surely can outrun you!” (Fred R. David, 2003,p.5)

This story captures the notion of strategic management, which is to achieve and maintain competitive advantage. How do business organizations operate successfully in the changing business environment? Strategic management has evolved as a primary value in helping organi-zation operate successfully in a dynamic, complex environment. Even the most successful Fortune 500 companies would accept that it is defi-nitely not by following traditional ways of doing business.
 
Most successful companies like General Electric have found in-ternet mentors to tutor their managers to world wide web. The company has launched its financial network www.gefn.com in the year 2000 for its consumers.
 
Launch of Apna PC is a strategic decision. The leader in PC busi-ness HCL Info systems has launched one PC below Rs.10, 000 (its sticker price is Rs.9, 990). It has committed to manufacture one million of them every year and expand its dealer network from 800 to 3,000. This strat-egy is to tap the small businesses and lower income classes in urban and rural India.
 
BHEL for example uses strategic management to create or modify its long-range plans, which range from 5 to 20 years.
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