introduction to strategic management

1. BUSINESSES POLICY &
STRATEGIC ANALYSIS
By: Vinaykumar V Patrimath

2. ◦ Examination: One paper of three hours duration carrying 100 marks
(including 30 Marks internal)
◦ Teaching Workload: Four hours per week.
◦ Pedagogy: Class Room Lectures, and exercises.
◦ Objectives: To enable the students to develop a holistic perspective
of enterprise critical from the point of the view of the top executives.

3. ◦STRATEGY:
Strategy can also be defined as “A general direction set for the
company and its various components to achieve a desired state in
the future. Strategy results from the detailed strategic planning
process”.
◦MANAGEMENT:
Management is the coordination and administration of tasks to
achieve a goal.

4. ◦BUSINESS
The term "business" also refers to the organized efforts and activities
of individuals to produce and sell goods and services for profit.
◦POLICY
A set of ideas or a plan of what to do in particular situations that has
been agreed to officially by a group of people, a business
organization, a government, or a political party.

5. STRATEGY:
Strategy is a well defined roadmap of an organization. It defines the overall mission,
vision and direction of an organization. The objective of a strategy is to maximize an
organization’s strengths and to minimize the strengths of the competitors.
1. Strategy is a systematic phenomenon
2. By its nature, it is multidisciplinary
3. By its influence, it is multidimensional
4. By its structure, it is hierarchical
5. By relationship, it is dynamic
6. The purpose of strategy is to create competence
CHARACTERISTICS:

6. 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.

7. Features / ESSENTIALS OF GOOD BUSINESS
POLICY:
1.Specific
2.Clear
3.Reliable
4.Appropriate
5.Simple
6.Inclusive
7.Flexible
8.stable

8. Strategic management
◦ Strategic management is a set of managerial decisions and actions that
determines the long run performance of a corporation. It includes
environmental scanning (both external and internal), strategy formulation
(strategic or long-range planning), strategy implementation, and evaluation
and control.

9. Basic elements of strategic management:

10. ◦ 1. Environmental Scanning:
◦ Environmental scanning is the monitoring, evaluating, and disseminating of
information from the external and internal environment to key people within
the organization in order to identify strategic factors that will determine the
future of the corporation. The external environment of a business is scanned
through SWOT analysis. SWOT stands for Strengths, Weaknesses,
Opportunities, and Threats that are strategic factors for a specific company.
Internal Environment (strengths and weaknesses)
External Environment (opportunities and threats)

11. 2. Strategy Formulation:
Strategy formulation includes developing a vision and mission, identifying an
organization’s external opportunities and threats, determining internal
strengths and weaknesses, establishing long-term objectives, generating
alternative strategies, and choosing particular strategies to pursue.
Mission Vision
Objectives Strategies
Policies

12. 3. Strategy Implementation:
Strategy implementation is the process of putting strategies and policies into
action through the development of programs, budgets, and procedures that
might involve changes within the overall culture, structure, and/or management
system of the entire organization.
◦Program
◦Budget
◦Procedure

13. 4. Strategy Evaluation:
Strategy evaluation is the final stage in strategic management. Managers need to
know when and why particular strategies are not working well; strategy evaluation is
the primary means for obtaining this information.
Three fundamental strategy evaluation activities are:
◦ (1) Reviewing external and internal factors that are the bases for current strategies,
◦ (2) Measuring performance, and
◦ (3) Taking corrective actions.