A strategy is a set of related actions to increase a company's performance. It differs from a plan in that a plan focuses on how goals will be achieved, while a strategy explains why goals need to be achieved. Strategic management is a continuous process of analyzing strengths and weaknesses, formulating action plans, implementing plans, and evaluating results. The strategic planning process involves selecting a mission and goals, analyzing the internal and external environment, selecting strategies, and implementing those strategies. There are four levels of strategies - functional, business, global, and corporate.

1. Strategy
• Definition-A strategy is a set of relation actions
that managers take to increase their company’s
performance.
• Difference between plan and strategy.
• Plan is a step taken to accomplish goal.It tells us
how,when,where ,what etc..
• Strategy tells us why the goal has to be achieved.
• Strategy is bigger than plan
• The plan is aimless without strategy.

2. people
• Strategic planning is done by top management
people on behalf of customers ,shareholders,
employees etc
• The top management people are
CEO,president,vice-president ,top executives .
• Board of directors elected by shareholders .

3. Strategic management
• Definition: strategic management is a continuous
process of creating, implementing and evaluating
decisions that enables organization to achieve its
objectives or mission.
• Analyzing internal and external strengths and
weaknesses. (Environmental scanning )
• Formulating action plans.(Strategy formulation)
• Executing action plans.(strategy implementation)
• Evaluating to what degree the desired results are
achieved.(evaluation and control)

4. Strategic planning process
• It has five major steps
• Select the corporate mission and major goals.
• Analyze the organizations internal operating
environment i.e strength and weakness.
• Analyze the organizations external opportunity
and threats.
• Select the strategies which depend on strength
and correct its weakness and take advantage of
external opportunity and counter the threads.
• Implement the stratgies.

5. MISSION STATEMNET
• Mission –A company’s mission statement
describes what the company does.
• What is our business?
• Who is our customer?
• What is being
satisfied?(skill,product,knowledge,service..)
• Eg FORD-Passionately committed to provide
personal mobility for people around the
world.

6. Vision and values
• Vision-broader statement of mission ,which is
more on futuristic state of the a company.
• Ie what the company wants to be in due
course of time and what the company want to
achieve in future.
• values-it states how managers and employees
should conduct themselves ,they should do
business, the quality of product they offer to
achieve company's mission.

7. SWOT

8. Types of strategies
• There are four types
• Functional level.
• Business level strategies.
• Global strategies.
• Corporate level strategies.

9. Functional strategies
• It aims at improving the effectiveness of the
company’s operation
• superior efficiency-Eos,lean production,mass
customisation
• Quality-eliminating defects through
TQM,Quality circles(six sigma)
• innovation –product development,new ideas
• Customer responsiveness-customer reponse
time,cutomisation(tailor made).

10. Business level strategies
• Differentiation, Firm seeks to be unique, Toyota by
quality, woodland/timberland by adventure shoes.
• Cost leadership, low cost leader, dell by direct selling.
• Focusers, Carve out a market niche, like ferrari, by
providing products and services customers can get in
no other way.
• Market segmentation-grouping of customers according
to their needs eg shoes
• Shoes-athletic-walking,tennis,aerobics etc
• casual

11. Global strategies
• Exporting-high transport cost,government
policies,haevy tax
• Licensing-right to produce the product in a
foreign country-no control over product and
quality-royalty payments
• Franchising-not only license but help to operate
business-satffing policies,prodution
methods,location,design of the officce-
mcdonalds
• Joint venture-50-50 partnership

12. Corporate level
• Company wide level (corporate level)
• Pepsico runs pepsi, fritto lay, and pizza hut, so
needs a corporate level strategy
• Diversification- expand by adding new product
lines
• Vertical integration – expands by producing its
own raw material