Strategists and Their Role in Corporate Management

Gagan Bhatia, Prof.Marketing

Strategists
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Strategists are individuals or groups,

who are primarily involved in the Formulation, Implementation and

Evaluation of strategy.

Gagan Bhatia, Prof.Marketing

Board of Directors
3

Elected by the shareholders, controlling agencies ,

government, financial institutions & holding company

Responsible for the governance of the organization

Gagan Bhatia, Prof.Marketing

Board of Directors
4

Guide the senior management in setting and

accomplishing objectives
Review and evaluate organizational performance Appoint senior executives

Gagan Bhatia, Prof.Marketing

Chief Executive Officer

5

Responsible for formulation to evaluation of strategy Designated as MD, ED, President or General Manager Responsible

of setting mission, objectives of the

organization
To see that organization does not deviate from the path

Gagan Bhatia, Prof.Marketing

Typical profile of a CEO

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Fund raising experience. Deal maker with a successful track record. Marketing and business development skills. Strong presentation and inter-personal skills. International experience Ability to take products from R&D to market.

Gagan Bhatia, Prof.Marketing

Senior Management
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Managers @ highest level of organizational hierarchy. Responsible for implementing strategies and plans & for

a periodic evaluation of performance.

Look after modernization, technology up gradation,

diversification and expansion, and new product development.

Gagan Bhatia, Prof.Marketing

SBU Level Executives

8

SBU level strategy formulation and implementation Wield considerable authority within the SBU Coordination maintained with other SBU heads and

corporate level management

.

Gagan Bhatia, Prof.Marketing

Corporate Planning Staff

9

Plays a supporting role in strategic management. Responsible for conducting special studies & research

pertaining to strategic management

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Consultants
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Many organizations do not have corporate planning

department
Reasons being small size, infrequent requirements,

financial constraints, etc.

These cos. take the help of consultancy firms

Gagan Bhatia, Prof.Marketing

Consultancy..
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Professional service Performed by specially trained & experienced people

Consultantswork on specific, time bound

assignments

Gagan Bhatia, Prof.Marketing

Middle Level Managers

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Rarely play an active role in Strategic Management Involved in implementation of functional strategies Designated as Managers & Asst. Managers Functions include refinement of business, target setting,

man management, etc.

Gagan Bhatia, Prof.Marketing

STRATEGIC LEADERSHP
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Gagan Bhatia, Prof.Marketing

14

Strategic leader is the one who influences value, style & culture of the organization

Leadership is the ability to awaken in others the desire to follow a common objective

Gagan Bhatia, Prof.Marketing

Strategic Leadership Skills

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Human Skills :

Empathy Objectivity Ability to communicate ideas Ability to sell vision Social skills Ability to lead

Gagan Bhatia, Prof.Marketing

Strategic Leadership Skills

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Conceptual skills :

An understanding of the Organization behavior An understanding of the Competitors of the firm. An understanding of the Financial status of the firm. Ability to learn from success & failures

Gagan Bhatia, Prof.Marketing

Strategic Leadership Skills

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Technical Skills :

Specialized knowledge of tools & techniques. Analytical skills Through knowledge & competence pertaining to a job.

Gagan Bhatia, Prof.Marketing

Strategic Leadership Skills

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Personal Skills :

Ability to withstand mental & physical stress Intelligence Personal Motivation Integrity Ability to infuse trustworthiness & confidence in subordinates

Gagan Bhatia, Prof.Marketing

Managers v/s Leaders

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Manager Characteristics

Leader Characteristics

Administers
A copy Maintains Focuses on systems &structure Relies on control

Innovates
An original Develops Focuses on people Inspires trust

Short range view

Accepts the status quo Classic good soldier Does things right
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Long range perspective

Challenges the status quo Own person Does the right thing

To name a few
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Kishore biyani of The Future Group

(Diversified business model-business ranging from retail clothing, retail hypermarket to retail electronics)
Ratan Tata of The Tata Group (Business ranging from Automobiles, retail clothing, retail hypermarket, retail electronics to software solutions)

Gagan Bhatia, Prof.Marketing

Leadership Styles
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Autocratic Leadership Participative or Democratic leadership Laissez Faire leadership Paternalistic Leadership Charismatic leaders

Gagan Bhatia, Prof.Marketing

Types of Leadership Styles :22

Autocratic Leadership :

Gives orders which he insists must be obeyed. Determines policies for the group without consulting them Dictatorial Gets work done by threats & imposing penalties.

Gagan Bhatia, Prof.Marketing

Adolf Hitler and his administration were responsible for the deaths of millions of Jewish people. Stalin killed over 3 million people through famines, executions and forced labor. Castro is symbolic with having control over Cuba's resources, resulting in food rationing and numerous attempts by residents to flee the country.

Types of Leadership Styles :24

Participative or Democratic leadership : He invites & consults subordinates in the decision making process. Ensures policies are worked out only if accepted by group. Avoids use of power to get the job done. Subordinates guided rather than threatened to get work done

Gagan Bhatia, Prof.Marketing

Narayana Murthy and Infosys

Narayana Murthy turned a small software development venture that he had set up with his friends in 1981, into one of the leading companies of the country. Infosys grew rapidly throughout the 1990s. He distributed the companys profits among the employees through a stock option program and adopted the best corporate governance practice.

Types of Leadership Styles :26

Laissez Faire leadership :

He does not lead but leaves the group to itself. He has no clear ideas of goals to be attained. He relieves himself of responsibilities and is ready to blame subordinates for any failure. Can succeed only if subordinates are highly educated, brilliant and responsible.

Gagan Bhatia, Prof.Marketing

Types of Leadership Styles :27

Paternalistic Leadership :

The leader assumes that his role is fatherly. He works to help, guide, protect & keep his subordinates happy. Provides subordinates with good working conditions Subordinates work harder out of sheer gratitude as well as emotional bondage

Gagan Bhatia, Prof.Marketing

Strategic Management Style

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Degree of Involvement by Top Management

High

Entrepreneurship Management Chaos Management

Partnership Management Stipendiary Management

Low

Low

High

Degree of Involvement by Board of Directors

Gagan Bhatia, Prof.Marketing

Entrepreneurship Management
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InvolvementHIGH (Top Management):

LOW(B.O.D) B.O.D simply accepts what the top management decides Changes initiated by top management are fully endorsed by B.O.D. without any resistance

Gagan Bhatia, Prof.Marketing

Partnership Management
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InvolvementHIGH (Top Management):

HIGH(B.O.D)
Board & top management work closely with each

other to establish mission, objectives, strategies & policies

Gagan Bhatia, Prof.Marketing

Chaos Management
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InvolvementLOW(Top Management):

LOW(B.O.D) Both are inactive for strategic decision making Keep on looking each other for initiatives Firm unable to compete efficiently Recipe for disaster

Gagan Bhatia, Prof.Marketing

Stipendiary Management
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InvolvementLOW(Top Management):

HIGH(B.O.D) Top management concerned primarily with running the company B.O.D. takes all the vital decisions

Gagan Bhatia, Prof.Marketing

Functions of Management
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Planning
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Consists of managerial activities related to preparing for

the future

Specific tasks include Forecasting

Establishing objectives Devising strategies Developing policies Setting goals

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Organizing
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Specific areas include job analysis. job descriptions, job specifications,

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Leading/ Motivating
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Motivating involves efforts directed towards shaping human

behavior.
Specific topics include-- leadership,

communication,

behavior modification,
job enrichment, job satisfaction,

organizational change,
employee & managerial morale.

Gagan Bhatia, Prof.Marketing

Staffing
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Staffing activities are centered on personal or human resource

management

Includes wage and salary administration,

employee benefits, interviewing, hiring, firing, training, management development, employee safety, equal employment opportunity, union relations, grievance procedure,
Gagan Bhatia, Prof.Marketing

Controlling
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Managerial activity directed towards ensuring that actual

results are consistent with planned results.

Includes quality control

financial control
sales control inventory control

expense control

Gagan Bhatia, Prof.Marketing

THANK YOU
39

Gagan Bhatia, Prof.Marketing