1. The document is a semester assignment submitted by Devesh Nidaria, a student with roll number 581125616. It contains answers to 6 questions related to strategic management.
2. The questions cover key concepts like defining strategic management, explaining Porter's five forces model, defining business policy and its importance, types of strategic alliances, decision support systems, and short notes on corporate social responsibility and business plans.
3. Detailed explanations and examples are provided for each answer drawing from concepts in strategic management.
The document discusses business continuity planning (BCP) and the steps involved in creating a BCP. It describes BCP as a collection of procedures developed to be used in an emergency or disaster situation. The key steps in BCP are initiation, business impact analysis, developing disaster readiness strategies, creating and implementing the plan, and ongoing maintenance and testing. Business impact analysis is identifying time-sensitive operations, financial impacts of disruptions, and resources needed for response and recovery. Disaster readiness strategies include evaluating alternative strategies and recommending options based on a cost-benefit analysis. The plan is then created, implemented across business units, and regularly tested and updated through exercises and training.
The document discusses strategies and strategic management. It defines strategy as a plan of action to achieve goals. Goals are long-term and abstract, while objectives are specific and measurable targets set over a period of time. Strategic management involves analyzing, planning, and implementing strategies to ensure long-term success. There are different types of strategies including corporate-level strategies like stability, expansion, and retrenchment.
This document discusses strategic management and business policy concepts. It defines strategy as a common direction set by a company to achieve a desired future position through careful planning. There are three levels of strategy: corporate, business, and operational. The stages of strategy formulation are defined as: defining mission/goals, specifying objectives, developing strategies, and setting policy guidelines. The main strategy formulation process involves identifying useful information, utilizing information according to business strategies, and transferring information between partners. Types of strategic alliances discussed include joint ventures, mergers and acquisitions, collaborations/co-branding, technological partnering, contractual agreements, and outsourcing. Examples are provided for each type.
This document provides information about assignments available for the MBA Semester 4 course MB0052 Strategic Management and Business Policy. Assignments can be purchased for Rs. 125 each by emailing subjects4u@gmail.com or calling 09882243490. The document includes 6 questions related to strategic management topics like the strategic management process, planning for business continuity, core competencies, turnaround strategies, the BCG portfolio model, and strategic alliances. Students must answer each question in 300-400 words for a total of 60 marks.
Strategic management is the process of specifying an organization's objectives, developing policies to achieve those objectives, and allocating resources to implement the policies. It involves environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Strategic decisions are made at the corporate, business unit, and functional levels. Strategic intent is reflected through an organization's vision, mission, objectives, and goals. The strategic management process involves analyzing the environment, identifying strategic alternatives, choosing a strategy, implementing it, and evaluating performance. Mintzberg proposed that strategies can emerge through deliberate planning or as patterns from actions and decisions over time.
Corporate Strategies are considered as Grand Strategy of a company. Here we are dealing with corporate strategy and its types. They are: Stability Strategies, Expansion Strategies, Retrenchment Strategies, and Combination Strategies
This document discusses strategic management and planning in a global environment. It defines strategic management as overall, long-run management and strategic planning as the process of making long-term plans and decisions focused on performance. The strategic management process involves strategic analysis, strategy formulation, strategy implementation, and evaluation and control. Strategic analysis assesses internal strengths and weaknesses as well as external opportunities and threats through a SWOT analysis. Strategy formulation establishes goals and identifies strategic alternatives. Strategy implementation focuses on achieving goals through clear strategies at all levels. Evaluation and control monitors performance to ensure effectiveness and efficiency.
Strategy involves determining long-term goals and objectives and adopting plans to achieve them. There are three levels of strategy: corporate, business unit, and functional. Corporate strategy focuses on selecting business portfolios and coordinating them. Business unit strategy develops competitive advantages for specific goods/services. Functional strategy coordinates resources to efficiently execute higher-level strategies. Strategic management is the process of formulating, implementing, and evaluating cross-functional decisions to achieve objectives. It involves environmental scanning, strategy formulation, implementation through programs and budgets, and feedback.
The document discusses business continuity planning (BCP) and the steps involved in creating a BCP. It describes BCP as a collection of procedures developed to be used in an emergency or disaster situation. The key steps in BCP are initiation, business impact analysis, developing disaster readiness strategies, creating and implementing the plan, and ongoing maintenance and testing. Business impact analysis is identifying time-sensitive operations, financial impacts of disruptions, and resources needed for response and recovery. Disaster readiness strategies include evaluating alternative strategies and recommending options based on a cost-benefit analysis. The plan is then created, implemented across business units, and regularly tested and updated through exercises and training.
The document discusses strategies and strategic management. It defines strategy as a plan of action to achieve goals. Goals are long-term and abstract, while objectives are specific and measurable targets set over a period of time. Strategic management involves analyzing, planning, and implementing strategies to ensure long-term success. There are different types of strategies including corporate-level strategies like stability, expansion, and retrenchment.
This document discusses strategic management and business policy concepts. It defines strategy as a common direction set by a company to achieve a desired future position through careful planning. There are three levels of strategy: corporate, business, and operational. The stages of strategy formulation are defined as: defining mission/goals, specifying objectives, developing strategies, and setting policy guidelines. The main strategy formulation process involves identifying useful information, utilizing information according to business strategies, and transferring information between partners. Types of strategic alliances discussed include joint ventures, mergers and acquisitions, collaborations/co-branding, technological partnering, contractual agreements, and outsourcing. Examples are provided for each type.
This document provides information about assignments available for the MBA Semester 4 course MB0052 Strategic Management and Business Policy. Assignments can be purchased for Rs. 125 each by emailing subjects4u@gmail.com or calling 09882243490. The document includes 6 questions related to strategic management topics like the strategic management process, planning for business continuity, core competencies, turnaround strategies, the BCG portfolio model, and strategic alliances. Students must answer each question in 300-400 words for a total of 60 marks.
Strategic management is the process of specifying an organization's objectives, developing policies to achieve those objectives, and allocating resources to implement the policies. It involves environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Strategic decisions are made at the corporate, business unit, and functional levels. Strategic intent is reflected through an organization's vision, mission, objectives, and goals. The strategic management process involves analyzing the environment, identifying strategic alternatives, choosing a strategy, implementing it, and evaluating performance. Mintzberg proposed that strategies can emerge through deliberate planning or as patterns from actions and decisions over time.
Corporate Strategies are considered as Grand Strategy of a company. Here we are dealing with corporate strategy and its types. They are: Stability Strategies, Expansion Strategies, Retrenchment Strategies, and Combination Strategies
This document discusses strategic management and planning in a global environment. It defines strategic management as overall, long-run management and strategic planning as the process of making long-term plans and decisions focused on performance. The strategic management process involves strategic analysis, strategy formulation, strategy implementation, and evaluation and control. Strategic analysis assesses internal strengths and weaknesses as well as external opportunities and threats through a SWOT analysis. Strategy formulation establishes goals and identifies strategic alternatives. Strategy implementation focuses on achieving goals through clear strategies at all levels. Evaluation and control monitors performance to ensure effectiveness and efficiency.
Strategy involves determining long-term goals and objectives and adopting plans to achieve them. There are three levels of strategy: corporate, business unit, and functional. Corporate strategy focuses on selecting business portfolios and coordinating them. Business unit strategy develops competitive advantages for specific goods/services. Functional strategy coordinates resources to efficiently execute higher-level strategies. Strategic management is the process of formulating, implementing, and evaluating cross-functional decisions to achieve objectives. It involves environmental scanning, strategy formulation, implementation through programs and budgets, and feedback.
Strategic management involves ongoing formulation, implementation, and evaluation of cross-functional decisions to achieve organizational objectives in light of internal and external environments. Key terms in strategic management include strategists who are responsible for organizational success or failure, mission statements that identify an organization's scope and values, and external opportunities and threats from trends outside an organization's control. Environmental scanning involves researching external information on opportunities and threats as well as analyzing internal strengths and weaknesses.
This document outlines various strategic options and levels at which strategies can be formulated, including corporate, business, and functional strategies. It discusses corporate strategies like stability, expansion, and retrenchment. Expansion strategies include concentration, integration, diversification, internationalization, and cooperation. Diversification can be concentric or conglomerate. Retrenchment includes turnaround, divestment, and liquidation strategies. The document also briefly discusses various strategic analysis tools.
There are multiple levels of strategy needed for companies. Corporate strategy covers objectives and coordination across business units (SBUs). SBU strategies provide objectives and coordination for each business unit to contribute to corporate goals. Functional strategies deal with objectives and coordination within specific functions like marketing, sales, and distribution to support SBUs and corporate strategy. Strategists at different levels are involved in strategic management, including the board of directors, CEO, senior management, SBU executives, corporate planning staff, consultants, and entrepreneurs.
This document discusses the nature and scope of strategic alliances. It defines strategic alliances as written agreements between two companies to cooperate in certain identified areas while maintaining independence. Strategic alliances allow companies to expand offerings without large investments and achieve objectives like entering new markets or accessing technologies more quickly and cheaply than other methods. The document outlines the characteristics, types, advantages, factors for success, and considerations for cross-cultural alliances.
Strategic Management And Strategic CompetitivenessMrirfan
This document discusses strategic management and objective setting for e-business. It provides an overview of strategic management processes including internal and external analysis, competitive strategies, and setting objectives and key performance indicators. The strategic management process involves determining long-term goals and objectives, and choosing actions to achieve those aims over time.
Top management is responsible for strategic leadership, vision, and managing the strategic planning process. They articulate a strategic vision for the long-term direction of the company. As part of managing the planning process, top management initiates environmental scanning, formulates strategies, implements programs and budgets, and evaluates performance through feedback and control systems. The board of directors provides governance and oversight of the strategic management process, monitoring developments, evaluating strategies, and influencing strategic decisions. Strategic management aims to achieve competitive advantage and long-term success through this strategic planning process.
This document discusses strategic management and various strategic approaches for organizations. It covers topics such as formulating business-level and corporate-level strategies, implementing strategies, and analyzing strengths, weaknesses, opportunities, and threats. Various frameworks for strategic analysis and development are presented, including Porter's generic strategies, the BCG matrix, and the GE business screen. The document also discusses strategies for international expansion, such as multi-domestic, global, and transnational strategies.
The document discusses developing a strategic vision, which is phase 1 of the strategy-making and executing process. It defines a strategic vision as a road map that paints a picture of a company's future direction and motivates employees. An effective vision delineates management's aspirations, charts a strategic path, steers employee energies, and is distinctive to the organization. The document provides examples of company visions and discusses communicating the vision to overcome resistance to new strategic directions.
This document discusses the concept of strategic management. It begins by defining strategy and explaining its origins and importance for firms. It then discusses different views on defining strategy from various scholars. It also summarizes the key features of strategy. The document goes on to define strategic management and explain its purpose and benefits. It discusses different levels of strategy, including corporate, business and functional strategies. It outlines the strategic management process and concludes by discussing strategic management in a global business context.
This document discusses various strategic management concepts including:
1. The four generic strategic alternatives of stability, expansion, retrenchment, and combination strategies.
2. Business level strategy and how firms formulate strategies to attract customers and create competitive advantages.
3. Corporate strategy and how large, diversified firms manage their various business units to maximize overall objectives.
4. Strategies in the global environment, including international, multi-domestic, global, and transnational strategies as well as strategic alliances.
Strategic management involves establishing strategic intent, formulating strategies, implementing strategies, and evaluating strategies. It operates at the corporate, business unit, and functional levels. At the corporate level, strategy involves overall direction and resource allocation. Business unit strategy focuses on a single business. Functional strategy relates to a specific function. Strategists, such as managers and CEOs, are responsible for strategic decisions and providing organizational direction to achieve objectives. Their roles include setting objectives, formulating, implementing, and evaluating strategies.
This document discusses different types of diversification and business level strategies. It describes reasons for pursuing a diversification strategy, including better use of resources and increasing organizational capabilities. There are three main types of diversification: concentric, horizontal, and conglomerate. The document also outlines generic competitive strategies such as cost leadership, differentiation, and focus strategies. It discusses the risks and benefits of each strategy in relation to Porter's five forces. Finally, it covers strategic analysis tools like BCG matrix and the roles and styles of corporate parenting.
The strategic management process(an overview)jawalala
The document outlines the five tasks of strategic management: 1) developing a strategic vision and mission, 2) setting objectives, 3) crafting a strategy, 4) implementing and executing the strategy, and 5) evaluating performance and making corrections. It provides details on each task, including developing a vision for the future direction of the company, setting financial and strategic objectives, determining how to achieve objectives through strategic choices around business focus, competitive advantage, and responding to the market, and evaluating performance to improve strategy. Crafting strategy is presented as both a planned process and a reactive one that adapts to changing conditions.
The document discusses various components of strategy implementation including organization structure, changing structures and processes, corporate culture, and strategy evaluation. It provides an overview of different organization structures that can be used for strategy implementation such as entrepreneurial, functional, divisional, SBU, matrix, network, cellular, and modular structures. It also discusses Mintzberg's 5Ps of strategy including plan, ploy, pattern, position, and perspective. The McKinsey 7S framework is introduced as a tool to analyze how well an organization is positioned to achieve its objectives.
Notes for mba (strategic management) unit isnselvaraj
This document provides an overview of strategic management concepts and processes. It discusses:
1) The conceptual framework of strategic management, including how it has evolved from long-range planning to address rapid changes in business environments.
2) Key elements of strategic management like vision, mission, objectives, and the roles of top management in providing direction.
3) The strategic management process including analyzing internal/external environments, strategic choice, implementation involving structure and control, and feedback.
4) Examples are given to illustrate how organizations strategize to adapt to their environments through expansion, divestment, stability and other decisions.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
This document provides an overview of corporate strategy and strategic management. It defines corporate strategy as determining the overall purpose and scope of an organization, including the business it is in. Strategic management focuses on identifying competitive advantages. The document outlines different levels of strategy, from corporate level to operational. It also discusses key concepts in strategic management like strategic analysis, development, implementation, and evaluation.
This document discusses various business strategy concepts including situational analysis (SWOT), mission/objectives, alternative strategies, and the impact of the internet. It provides details on SWOT analysis including its structure and uses. TOWS matrix is introduced as a variant that emphasizes external factors. Types of business strategies and the impact/benefits of internet on business are also summarized. Both positive and negative impacts of internet on business are outlined such as new competitors, security issues, and lost productivity.
The document summarizes key points from Chapter 9 of a management textbook on strategic planning and competitiveness. It discusses the strategic management process, including strategy formulation and implementation. It also covers different types of strategies used by organizations, such as growth, diversification, restructuring, global, and cooperative strategies. The strategic management process involves assessing the organization, industry, and environment to develop strategies that create competitive advantage.
Corporate strategies presented by Supriya Singh, Himanshu Gaur, Shifali Choudhary, and Rohit Sharma discuss growth strategies, concentration strategies, and diversification strategies. Growth strategies pursue survival, scale economies, and talent stimulation. Concentration strategies are vertical or horizontal. Diversification strategies are concentric or conglomerate. In conclusion, corporate strategies determine a firm's direction, portfolio choices, and achieving synergy across product lines through resource sharing and development.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
This document discusses strategic management and business policy. It begins by defining strategic management as the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It then discusses the nature, characteristics, and features of strategic management, including that it involves a long time perspective, is an intellectual process, has wide ramifications, and is a continuing dynamic social process. The document goes on to discuss the importance and relevance of strategic management, including its financial and non-financial benefits. It closes by emphasizing the importance of effective strategic management for business success.
Strategic management involves ongoing formulation, implementation, and evaluation of cross-functional decisions to achieve organizational objectives in light of internal and external environments. Key terms in strategic management include strategists who are responsible for organizational success or failure, mission statements that identify an organization's scope and values, and external opportunities and threats from trends outside an organization's control. Environmental scanning involves researching external information on opportunities and threats as well as analyzing internal strengths and weaknesses.
This document outlines various strategic options and levels at which strategies can be formulated, including corporate, business, and functional strategies. It discusses corporate strategies like stability, expansion, and retrenchment. Expansion strategies include concentration, integration, diversification, internationalization, and cooperation. Diversification can be concentric or conglomerate. Retrenchment includes turnaround, divestment, and liquidation strategies. The document also briefly discusses various strategic analysis tools.
There are multiple levels of strategy needed for companies. Corporate strategy covers objectives and coordination across business units (SBUs). SBU strategies provide objectives and coordination for each business unit to contribute to corporate goals. Functional strategies deal with objectives and coordination within specific functions like marketing, sales, and distribution to support SBUs and corporate strategy. Strategists at different levels are involved in strategic management, including the board of directors, CEO, senior management, SBU executives, corporate planning staff, consultants, and entrepreneurs.
This document discusses the nature and scope of strategic alliances. It defines strategic alliances as written agreements between two companies to cooperate in certain identified areas while maintaining independence. Strategic alliances allow companies to expand offerings without large investments and achieve objectives like entering new markets or accessing technologies more quickly and cheaply than other methods. The document outlines the characteristics, types, advantages, factors for success, and considerations for cross-cultural alliances.
Strategic Management And Strategic CompetitivenessMrirfan
This document discusses strategic management and objective setting for e-business. It provides an overview of strategic management processes including internal and external analysis, competitive strategies, and setting objectives and key performance indicators. The strategic management process involves determining long-term goals and objectives, and choosing actions to achieve those aims over time.
Top management is responsible for strategic leadership, vision, and managing the strategic planning process. They articulate a strategic vision for the long-term direction of the company. As part of managing the planning process, top management initiates environmental scanning, formulates strategies, implements programs and budgets, and evaluates performance through feedback and control systems. The board of directors provides governance and oversight of the strategic management process, monitoring developments, evaluating strategies, and influencing strategic decisions. Strategic management aims to achieve competitive advantage and long-term success through this strategic planning process.
This document discusses strategic management and various strategic approaches for organizations. It covers topics such as formulating business-level and corporate-level strategies, implementing strategies, and analyzing strengths, weaknesses, opportunities, and threats. Various frameworks for strategic analysis and development are presented, including Porter's generic strategies, the BCG matrix, and the GE business screen. The document also discusses strategies for international expansion, such as multi-domestic, global, and transnational strategies.
The document discusses developing a strategic vision, which is phase 1 of the strategy-making and executing process. It defines a strategic vision as a road map that paints a picture of a company's future direction and motivates employees. An effective vision delineates management's aspirations, charts a strategic path, steers employee energies, and is distinctive to the organization. The document provides examples of company visions and discusses communicating the vision to overcome resistance to new strategic directions.
This document discusses the concept of strategic management. It begins by defining strategy and explaining its origins and importance for firms. It then discusses different views on defining strategy from various scholars. It also summarizes the key features of strategy. The document goes on to define strategic management and explain its purpose and benefits. It discusses different levels of strategy, including corporate, business and functional strategies. It outlines the strategic management process and concludes by discussing strategic management in a global business context.
This document discusses various strategic management concepts including:
1. The four generic strategic alternatives of stability, expansion, retrenchment, and combination strategies.
2. Business level strategy and how firms formulate strategies to attract customers and create competitive advantages.
3. Corporate strategy and how large, diversified firms manage their various business units to maximize overall objectives.
4. Strategies in the global environment, including international, multi-domestic, global, and transnational strategies as well as strategic alliances.
Strategic management involves establishing strategic intent, formulating strategies, implementing strategies, and evaluating strategies. It operates at the corporate, business unit, and functional levels. At the corporate level, strategy involves overall direction and resource allocation. Business unit strategy focuses on a single business. Functional strategy relates to a specific function. Strategists, such as managers and CEOs, are responsible for strategic decisions and providing organizational direction to achieve objectives. Their roles include setting objectives, formulating, implementing, and evaluating strategies.
This document discusses different types of diversification and business level strategies. It describes reasons for pursuing a diversification strategy, including better use of resources and increasing organizational capabilities. There are three main types of diversification: concentric, horizontal, and conglomerate. The document also outlines generic competitive strategies such as cost leadership, differentiation, and focus strategies. It discusses the risks and benefits of each strategy in relation to Porter's five forces. Finally, it covers strategic analysis tools like BCG matrix and the roles and styles of corporate parenting.
The strategic management process(an overview)jawalala
The document outlines the five tasks of strategic management: 1) developing a strategic vision and mission, 2) setting objectives, 3) crafting a strategy, 4) implementing and executing the strategy, and 5) evaluating performance and making corrections. It provides details on each task, including developing a vision for the future direction of the company, setting financial and strategic objectives, determining how to achieve objectives through strategic choices around business focus, competitive advantage, and responding to the market, and evaluating performance to improve strategy. Crafting strategy is presented as both a planned process and a reactive one that adapts to changing conditions.
The document discusses various components of strategy implementation including organization structure, changing structures and processes, corporate culture, and strategy evaluation. It provides an overview of different organization structures that can be used for strategy implementation such as entrepreneurial, functional, divisional, SBU, matrix, network, cellular, and modular structures. It also discusses Mintzberg's 5Ps of strategy including plan, ploy, pattern, position, and perspective. The McKinsey 7S framework is introduced as a tool to analyze how well an organization is positioned to achieve its objectives.
Notes for mba (strategic management) unit isnselvaraj
This document provides an overview of strategic management concepts and processes. It discusses:
1) The conceptual framework of strategic management, including how it has evolved from long-range planning to address rapid changes in business environments.
2) Key elements of strategic management like vision, mission, objectives, and the roles of top management in providing direction.
3) The strategic management process including analyzing internal/external environments, strategic choice, implementation involving structure and control, and feedback.
4) Examples are given to illustrate how organizations strategize to adapt to their environments through expansion, divestment, stability and other decisions.
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
This document provides an overview of corporate strategy and strategic management. It defines corporate strategy as determining the overall purpose and scope of an organization, including the business it is in. Strategic management focuses on identifying competitive advantages. The document outlines different levels of strategy, from corporate level to operational. It also discusses key concepts in strategic management like strategic analysis, development, implementation, and evaluation.
This document discusses various business strategy concepts including situational analysis (SWOT), mission/objectives, alternative strategies, and the impact of the internet. It provides details on SWOT analysis including its structure and uses. TOWS matrix is introduced as a variant that emphasizes external factors. Types of business strategies and the impact/benefits of internet on business are also summarized. Both positive and negative impacts of internet on business are outlined such as new competitors, security issues, and lost productivity.
The document summarizes key points from Chapter 9 of a management textbook on strategic planning and competitiveness. It discusses the strategic management process, including strategy formulation and implementation. It also covers different types of strategies used by organizations, such as growth, diversification, restructuring, global, and cooperative strategies. The strategic management process involves assessing the organization, industry, and environment to develop strategies that create competitive advantage.
Corporate strategies presented by Supriya Singh, Himanshu Gaur, Shifali Choudhary, and Rohit Sharma discuss growth strategies, concentration strategies, and diversification strategies. Growth strategies pursue survival, scale economies, and talent stimulation. Concentration strategies are vertical or horizontal. Diversification strategies are concentric or conglomerate. In conclusion, corporate strategies determine a firm's direction, portfolio choices, and achieving synergy across product lines through resource sharing and development.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
This document discusses strategic management and business policy. It begins by defining strategic management as the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It then discusses the nature, characteristics, and features of strategic management, including that it involves a long time perspective, is an intellectual process, has wide ramifications, and is a continuing dynamic social process. The document goes on to discuss the importance and relevance of strategic management, including its financial and non-financial benefits. It closes by emphasizing the importance of effective strategic management for business success.
The document provides an overview of strategic management. It discusses key concepts like strategy, the strategic management process, and analyzing the external environment. Specifically:
1) Strategy is a plan to achieve organizational goals in the face of challenges and competition. The strategic management process involves formulation, implementation, and evaluation of strategy.
2) Analyzing the external environment is important to understand opportunities and threats. This includes analyzing political, economic, social, and technological factors. Both qualitative and quantitative forecasting techniques are used.
3) Industry and competitive analysis examines a firm's industry structure and factors for success. This helps identify opportunities and benchmarks for evaluating the company versus competitors.
STRATEGY, STRATEGIC PLANNING, STRATEGIC DECISION, STRATEGIC CAPABILITY, OPERATIONS MANAGEMENT, ROLE OF OPERATIONS IN AN ORGANIZATION, SCOPE OF OPERATIONS MANAGEMENT, OPERATIONS STRATEGY, DIFFERENCES BETWEEN STRATEGIC, ADMINISTRATIVE AND OPERATIONAL DECISIONS, BUSINESS ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION AND LEARNING,
This document discusses strategic decision making in organizations. It defines strategic decisions as those that are long-term, require significant resources, and affect the organization's prosperity. Strategic decisions relate to an organization's future, scope of activities, competitive advantage, strategic fit, resources, stakeholders, and dealing with complexity and uncertainty. The document contrasts strategic decisions which are long-term and affect the whole organization, with tactical decisions which implement strategies, and operational decisions which are short-term and routine. It discusses analyzing an organization's environment, capabilities, stakeholder expectations, and culture to determine strategic positioning. Organizations must evaluate options and make strategic choices regarding products, markets, and growth strategies. Tools like SWOT analysis and Porter's Five Forces
This document provides an overview of strategic management concepts including strategy, strategic management, SWOT analysis, and different types of business-level and corporate-level strategies. It discusses strategy formulation, implementation, and evaluation. Key points covered include the nature of strategic management, types of strategic alternatives like diversification, integration and concentration strategies. Frameworks for analyzing strengths, weaknesses, opportunities and threats are presented. Porter's generic strategies of cost leadership, differentiation and focus are also summarized. The document aims to help students understand the principles of strategic management and strategy planning.
An overview of strategic management.ppsx11richamandla
Strategic management involves establishing organizational goals, analyzing the internal and external environment, formulating strategies to achieve goals, implementing strategies, and evaluating performance. It occurs at three levels - corporate, business unit, and functional. Corporate strategy defines the businesses the company will compete in, business strategy defines how it will compete in each business, and functional strategy defines how each department will contribute. Strategic management is an ongoing, cyclical process that orients the entire organization towards achieving its mission.
This document discusses strategic planning and strategic thinking frameworks. It describes strategy as guiding long-term goals and objectives, and how strategic planning involves assessing the environment and deciding on a mission. Two frameworks are explained: the BCG matrix categorizes products based on market share and growth, and Porter's five forces model analyzes competitive forces in an industry. The strategic planning process involves assessing the environment, establishing a mission and goals, and developing strategies to achieve objectives.
This document provides an overview of strategic management concepts including definitions, models, and frameworks. It defines strategic management as identifying and executing a company's strategic plan by matching capabilities with environmental demands. Several strategic management models and frameworks are described in detail, including Porter's 5 Forces model, the GE planning grid, McKinsey's 7S framework, and Boston Consulting Group's growth-share matrix. The levels of strategy and process of strategic management are also outlined.
This document discusses strategic management concepts including defining strategic management, levels of strategy, characteristics of strategic decisions, stages of strategic management, key terms, benefits of strategic management, importance of vision and mission statements, and self-examination questions. Strategic management involves formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It focuses on integrating various business functions to achieve success. Strategies exist at the corporate, business unit, and operational levels. Strategic management allows organizations to be proactive, use a systematic approach, and gain benefits like improved performance and employee commitment. Vision and mission statements provide purpose, direction, and meaning for employees.
1. The document defines key strategic planning terms like strategy, strategic planning, decision making, tactical planning, barriers to entry, absolute cost advantage, economies of scale, industry, superior profitability, comparative advantage, critical success factors, key success factors, external environment, and internal environment.
2. It discusses similarities and differences between business strategy and military strategy, and explains how a company's strategy is partly proactive and partly reactive.
3. It identifies factors that drive industry changes like government regulations, societal attitudes, technology trends, and their impact on industry attractiveness and the need to adjust strategies accordingly.
Strategic management involves 3 levels of strategy:
1. Corporate level strategy determines the overall scope and direction of the organization.
2. Business level strategy identifies how each business unit will compete in its market.
3. Functional level strategy guides activities within specific operational areas like marketing and HR.
The strategic management process includes environmental scanning, strategy formulation, implementation, and evaluation. Setting a vision, mission, and objectives provides guidance for strategic planning.
The document discusses key concepts related to strategy and strategic management. It defines strategy as a plan or course of action related to pursuing organizational goals and objectives. Strategic management is described as a process directed by top management to determine long-term goals and ensure decisions align the organization with its environment. The strategic management process involves environmental scanning, strategy formulation, implementation, and evaluation.
Scott droney - strategic planning and strategic managementScott Droney
Scott Droney is provide financial services spectrum as well as data processing and managing segments. Since most of its financial services were retail focused, the need to build scale and skill in the transaction processing domain became imperative.
The document discusses various components of a decision support system that help decision making. It provides three examples:
1. Annual budgets which allocate money to activities/departments and are compared to actual expenditures in a feedback loop.
2. Daily financial statements like income, cash flow, and balance sheets that provide up-to-date information, especially on cash flow.
3. Daily ratios reports that analyze dozens of important company aspects like profits, returns, costs, and compare to history, competitors, and industry to identify deviations requiring intervention. Ratios help rationalize policies and warn of impending issues.
The document discusses strategic planning and management. It defines strategic management as formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives. It notes that strategic management helps organizations succeed by guiding them to achieve strategic goals in light of internal and external factors. The strategic management process consists of three stages: strategy formulation, implementation, and evaluation.
The document provides an overview of strategic management. It discusses that strategic management involves environmental scanning, strategy formulation, implementation, evaluation and control. It examines strategy at the corporate, business unit, and functional levels. The strategic management process includes environmental scanning (external and internal), strategy formulation involving defining the mission, objectives and strategies, and then strategy implementation.
2. Q1 Define the term “Strategic Management”. Explain the
importance of strategic management?
Ans: Strategic Management
Definition: Strategic management is a systematic approach of analysing, planning and
implementing the strategy in an organisation to ensure a continued success. Strategic
management is a long term procedure which helps the organisation in achieving a long
term goal and its overall responsibility lies with the general management team. It focuses
on building a solid foundation that will be subsequently achieved by the combined efforts
of each and every employee of the organisation.
Importance of strategic management
• A rapidly changing environment in organisations requires a greater awareness of
changes and their impact on the organisation. Hence strategic management
plays an important role in an organisation.
• Strategic management helps in building a stable organisation.
• Strategic management controls the crises that are aroused due to rapid change in
an organisation.
• Strategic management considers the opportunities and threats as the strengths and
weaknesses of the organisation in the crucial environment for survival in a
competitive market.
• Strategic management helps the top level management to examine the relevant
factors before deciding their course of action that needs to be implemented in
changing environment and thus aids them to better cope with uncertain
situations.
• Changes rapidly happen in large organisations. Hence strategic management
becomes necessary to develop appropriate responses to anticipate changes.
• The implementation of clear strategy enhances corporate harmony in the
organisation. The employees will be able to analyse the organisation’s ethics and
rules and can tailor their contribution accordingly.
• Systematically formulated business activities helps in providing consistent financial
performance in the organisation.
• A well designed global strategy helps the organisation to gain competitive
advantages. It increases the economies of scale in the global market, exploits
other countries resources, broadens learning opportunities, and provides
reputation and brand identification.
3. Q 2. Describe Porter’s five forces Model.
Ans: Porter’s Five Force model
Michael E. Porter developed the Five Force Model in his book, ‘Competitive Strategy’.
Porter has identified five competitive forces that influence every industry and market.
The level of these forces determines the intensity of competition in an industry. The
objective of corporate strategy should be to revise these competitive forces in a way that
improves the position of the organisation.
Figure below describes forces driving industry competitions.
Figure: Forces Driving Industry Competitions
Forces driving industry competitions are:
Threat of new entrants – New entrants to an industry generally bring new capacity;
desire to gain market share and substantial resources. Therefore, they are threats to an
established organisation. The threat of an entry depends on the presence of entry
barriers and the reactions can be expected from existing competitors. An entry barrier is
a hindrance that makes it difficult for a company to enter an industry.
Suppliers – Suppliers affect the industry by raising prices or reducing the quality of
purchased goods and services.
Rivalry among existing firms – In most industries, organisations are mutually dependent.
A competitive move by one organisation may result in a noticeable effect on its
competitors and thus cause retaliation or counter efforts
Buyers – Buyers affect an industry through their ability to reduce prices, bargain for higher quality
or more services.
Threat of substitute products and services – Substitute products appear different but satisfy the
same needs as the original product. Substitute products curb the potential returns of an industry
by placing a ceiling on the prices firms can profitably charge.
Other stakeholders - A sixth force should be included to Porter’s list to include a variety of
stakeholder groups. Some of these groups include governments, local communities, trade
association unions, and shareholders. The importance of stakeholders varies according to the
industry.
4. Q 3. Define the term “Business Policy”, Explain its importance.
Ans Business Policies
Business policies are the instructions laid by an organisation to manage its activities. It
identifies the range within which the subordinates can take decisions in an organisation.
It authorises the lower level management to resolve their issues and take decisions
without consulting the top level management repeatedly. The limits within which the
decisions are made are well defined. Business policy involves the acquirement of
resources through which the organisational goals can be achieved. Business policy
analyses roles and responsibilities of top level management and the decisions affecting
the organisation in the long-run. It also deals with the major issues that affect the
success of the organisation.
Importance of Business Policies
A company operates consistently, both internally and externally when the policies
are established. Business policies should be set up before hiring the first employee
in the organisation. It deals with the constraints of real-life business.
It is important to formulate policies to achieve the organisational objectives. The
policies are articulated by the management. Policies serve as a guidance to
administer activities that are repetitive in nature. It channels the thinking and action
in decision making. It is a mechanism adopted by the top management to ensure
that the activities are performed in the desired way. The complete process of
management is organised by business policies.
Business policies are important due to the following reasons:
— Coordination – Reliable policies coordinate the purpose by focusing on
organisational activities. This helps in ensuring uniformity of action
throughout the organisation. Policies encourage cooperation and promote initiative.
— Quick decisions – Policies help subordinates to take prompt action and quick
decisions. They demarcate the section within which decisions are to be taken. They
help subordinates to take decisions with confidence without consulting their
5. superiors every time. Every policy is a guide to activities that should be followed in a
particular situation. It saves time by predicting frequent problems and providing ways
to solve them.
— Effective control – Policies provide logical basis for assessing performance. They
ensure that the activities are synchronised with the objectives of the organisation. It
prevents divergence from the planned course of action. The management tends to
deviate from the objective if policies are not defined precisely. This affects the overall
efficiency of the organisation. Policies are derived objectives and provide the outline
for procedures.
— Decentralisation – Well defined policies help in decentralisation as the executive
roles and responsibility are clearly identified. Authority is delegated to the executives
who refer the policies to work efficiently. The required managerial procedures can be
derived from the given policies. Policies provide guidelines to the executives to help
them in determining the suitable actions which are within the limits of the stated
policies. Policies contribute in building coordination in larger organisations.
6. Q 4: What, in brief, are the types of Strategic Alliances and the Purpose
of each? Supplement your answer with real life examples.
Ans: Strategic alliances constitute a viable alternative in addition to Strategic
Alternatives. Companies can develop alliances with the members of the strategic group
and perform more effectively. These alliances may take any of the following forms.
Following are the different types of strategic Alliances:
1. Product and/or service alliance: Two or more companies may get together to
synergies their operations, seeking alliance for their products and/or services. A
manufacturing company may grant license to another company to produce its
products. The necessary market and product support, including technical know-how,
is provided as part of the alliance. Example: - Coca-cola initially provided such
support to thumps Up.
Two companies may jointly market their products which are complementary in nature.
Example:- 1) Chocolate companies more often tie up with toy companies. 2) TV
Channels tie-up with Cricket boards to telecast entire series of cricket matches live.
Two companies, who come together in such an alliance, may produce a new product
altogether. Example: - Sony Music created a retail corner for itself in the ice-cream
parlors of Baskin-Robbins.
2. Promotional alliance: Two or more companies may come together to promote their
products and services. A company may agree to carry out a promotion campaign
during a given period for the products and/or services of another company.
Example :- The Cricket Board may permit Coke’s products to be displayed during the
cricket matches for a period of one year.
3. Logistic alliance: Here the focus is on developing or extending logistics support.
One company extends logistics support for another company’s products and
services. Example:- The outlets of Pizza Hut, Kolkata entered into a logistic alliance
with TDK Logistics Ltd., Hyderabad, to outsource the requirements of these outlets
from more than 30 vendors all over India – for instance, meat and eggs from
Hyderabad etc.
Pricing collaborations: Companies may join together for special pricing collaborations.
Example :- It is customary to find that hardware and software companies in information
technology sector offer each other price discounts. Companies should be very careful in
selecting strategic partners. The strategy should be to select such a partner who has
complementary strengths and who can offset the present weaknesses.
7. Q 5. Explain the concept, need for and importance of a Decision
Support System.
Ans: Annual Budget: It is really a business plan. The budget allocates amounts of
money to every activity and/or department of the firm. As time passes, the actual
expenditures are compared to the budget in a feedback loop. During the year, or at the
end of the fiscal year, the firm generates its financial statements: the income statement,
the balance sheet, the cash flow statement. When putting together, these four
documents are the formal edifice of the firm’s finances. However, they can not serve as
day-to-day guides to the General Manager.
1. Daily Financial Statements: The Manager should have access to continuously
updated statements of income, cash flow, and a balance sheet. The most important
statement is that of the cash flow. The manager should be able to know, at each and
every stage, what his real cash situation is – as opposed to the theoretical cash
situation which includes accounts payable and account receivable in the form of
expenses and income.
2. The Daily Ratios Report: This is the most important part of the decision support
system. It enables the Manager to instantly analyse dozens of important aspects of
the functioning of his company. It allows him to compare the behaviour of these
parameters to historical data and to simulate the future functioning of his company
under different scenarios. It also allows him to compare the performance of his
company to the performance of his competitors, other firms in his branch and to the
overall performance of the industry that he is operating in.
The Manager can review these financial and production ratios. Where there is a
strong deviation from historical patterns, or where the ratios warn about problems in
the future – management intervention may be required.
Examples of the Ratios to be Included in the Decision System
SUE measure – deviation of actual profits from expected profits
ROE – the return on the adjusted equity capital
Debt to equity ratios
ROA – the return on the assets
The financial average
ROS – the profit margin on the sales
ATO – asset turnover, how efficiently assets are used
Tax burden and interest burden ratios
8. Compounded leverage
Sales to fixed assets ratios
Inventory turnover ratios
Days receivable and days payable
Current ratio, quick ratio, interest coverage ratio and other liquidity and coverage
ratios
Valuation price ratios
And many others
A decision system has great impact on the profits of the company. It forces the
management to rationalize the depreciation, inventory and inflation policies. It warns the
management against impending crises and problems in the company. It specially helps
in following areas:
a. The management knows exactly how much credit it could take, for how long (for
which maturities) and in which interest rate. It has been proven that without proper
feedback, managers tend to take too much credit and burden the cash flow of their
companies.
b. A decision system allows for careful financial planning and tax planning. Profits go
up, non cash outlays are controlled, tax liabilities are minimized and cash flows are
maintained positive throughout.
The decision system is an integral part of financial management in the West. It is
completely compatible with western accounting methods and derives all the data that it
needs from information extant in the company.
So, the establishment of a decision system does not hinder the functioning of the
company in any way and does not interfere with the authority and functioning of the
financial department, but infact helps the manager to take quick decisions and make
profit to the company.
9. Q 6. Write Short Notes on:
1. Corporate Social Responsibility
2. Business Plan.
Ans: 1: Corporate Social Responsibilities (CSR)
Corporate Social Responsibility (CSR) is the continuing obligation of a business to
behave ethically and contribute to the economic development of the organization. It
improves the quality of life of the organization. The meaning of CSR has two folds. On
one hand, it exhibits the ethical behaviour that an organization exhibit towards its internal
and external stakeholders. And on the other hand, it denotes the responsibility of an
organization towards the environment and society in which it operates. Thus CSR makes
a significant contribution towards sustainability and competitiveness of the organization.
CSR is effective in number of areas such as human rights, safety at work,
consumer protection, climate protection, caring for the environment, sustainable
management of natural resources, and such other issues. CSR also provides
health and safety measures, preserves employee rights and discourages
discrimination at workplace. CSR activities include commitment to product
quality, fair pricing policies, providing correct information to the consumers,
resorting to legal assistance in case of unresolved business problems, so on.
Example – TATA implemented social welfare provisions for its employees since 1945.
Features of CSR
CSR improves the customer satisfaction through its products and services. It also
assists in environmental protection and contributes towards social activities. The
following are the features of CSR:
• Improves the quality of an organization in terms of economic, legal and ethical
factors – CSR improves the economic features of an organization by earning
profits for the owners. It also improves the legal and ethical features by fulfilling
the law and implementing ethical standards.
• Builds an improved management system – CSR improves the management
system by providing products which meets the essential customer needs. It
develops relevant regulations through the utilization of innovative technologies in
the organization
• Contributes to countries by improving the quality of management – CSR
contributes high quality product, environment conservation and occupational
health safety to various regions and countries.
10. • Enhances information security systems and implementing effective security
measures – CSR enhances the information security measures by establishing
improved information security system and distributing them to overseas business
sites. The information system has improved by enhancing better responses to
complex security accidents.
• Creates a new value in transportation – CSR creates a new value in
transportation for the greater safety of pedestrians and automobiles. This is done
by utilizing information and technology for automobiles. The information and
technology helps in establishing a safety driving assistance system.
• Creates awareness towards environmental issues – CSR serves in
preventing global warming by reducing the harmful gases emitted into the
atmosphere during the process of business activities.
2 Business Plans
A business plan is a complete internal document that summarises the operational and
financial objectives of a business. It also contains the detailed plans which show how the
objectives are being accomplished.
An accurately made business plan helps to allocate resources properly, to handle
unforeseen complications like financial crisis and to make good business decisions.
Strategies for creating a business plan
This section describes the strategies for creating a business plan. Every entrepreneur
creates a business plan and its completion will determine the feasibility of the plan. The
strategies for creating a business plan are as follows:
• Define your business vision – You must clear the following queries while defining
the business vision:
• Who is the customer?
• What business are you in?
• What do you sell (product/service)?
• What is your plan for growth?
• What is your primary competitive advantage?
• Make a list of your goals – You must create a list of goals after proper research.
In case of a start up business, more effort must be put on the short-term goals.
• Certain things must be kept clear before setting up your goal. They are listed
below:
• What do you want to achieve?
• How much growth you want to achieve?
11. • Describe the quality and quantity of the service and the customer satisfaction
levels?
• How would you describe your primary competitive advantages?
• Understanding the customer – Understanding the customer is essential for a
perfect business plan. You must understand the customer in terms of the
following factors:
• Needs – The following customer requirements should be understood clearly:
• What unmet needs do your customers have?
• How does your business meet those needs?
• Problems – Customers buy things to solve their specific problems. Always be
specific about the advantages of the product/services of your business which
resolve the customer’s problems.
• Perceptions – Always try to know the perception of the customer. Clarify the
doubts of the customer regarding your profession and the products/services of
your business.
• Learn from your competitors – You can learn a lot about the business and the
customers by looking at the business of your competitors. Always get the
answers of the following questions which will assist you in learning from your
competitor and focusing on your customer.
• What do you know about your target market?
• What competitors do you have?
• How are competitors approaching the market?
• What are the competitor’s weaknesses and strengths?
• How can you improve upon the competition’s approach?
• Resolving financial matters – Several questions might arise when we need to
make financial decisions. They are as follows:
• How will you make money?
• What is the profit potential of your business?
• You can resolve the financial issues by taking smart strategic investment
decisions.
• Identify your marketing strategy – Identifying the marketing strategy is another
essential skill which you must have. The following are the four steps to create a
marketing strategy for your business:
• Identify all the target markets
• Qualify the best target markets
• Identify the tools, strategies and methods
• Test the marketing strategy and tools