This document provides an overview of strategic management concepts including business policy, corporate strategy, and the basic concepts of strategic management. It defines business policy as guidelines that govern organizational actions and define decision-making limits for lower level management. Corporate strategy concerns how different business operations work together to achieve goals and how the corporation can add value across businesses. The basic concepts of strategic management include defining the organization's vision as what it wants to ultimately become, and its mission as the purpose and reason for its existence, including who it seeks to serve.

1. STRATIGIC
MANAGEMENT
Business Policy, Corporate Strategy
and Basic concept of SM
Presented By: Nagendra Maurya

2. BUSINESS POLICY
• Business Policy defines the scope or spheres within which
decisions can be taken by the subordinates in an
organization. It permits the lower level management to deal
with the problems and issues without consulting top level
management every time for decisions. Business policies are
the guidelines developed by an organization to govern its
actions. They define the limits within which decisions must
be made.
• Business policy also deals with acquisition of resources
with which organizational goals can be achieved. Business
policy is the study of the roles and responsibilities of top
level management, the significant issues affecting
organizational success and the decisions affecting
organization in long-run.

3. Hierarchy of Business Policy

4. Corporate Strategy
• The overall scope and direction of a corporation and the
way in which its various business operations work
together to achieve particular goals.
• Corporate Strategy is concerned with how companies,
like Disney, create value across different businesses. It
takes as given the RC lessons on competitive strategy,
and asks how the corporation can add value over and
above that which a business unit creates by itself. This
requires the corporation to invest in a valuable set of
resources, craft the business portfolio, and design the
organization structure, systems and corporate functions
to share activities or transfer skills across businesses.

6. Basic Concept of SM
VISION
It is at the top in the hierarchy of strategic intent. It is what the firm
would ultimately like to become. A few definitions are as follows:
• KOTTER description of something (an organization, corporate
culture, a business, a technology, an activity) in the future.
• MILLER and DESS defined vision as the “category of intentions
that are broad, all inclusive and forward thinking”

7. Mision
• HYNGER and Wheelen “ purpose or reason for the
organization’s existence.
• DAVID F. Harvey states “ A mission provides the basis of
awareness of a sense of purpose, the competitive
environment, degree to which the firm’s mission fits its
capabilities and the opportunities which the government
offers.
• Thompson states mission as the “ essential purpose of the
organization, concerning particularly why it is in existence,
the nature of the business it is in, and the customers it seeks
to serve and satisfy.