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Business policy and strategic Management
Strategy and Strategic Management Strategic intent- Vision, Mission, goals and objectives SWOT Analysis Environmental appraisal Organizational Appraisal Corporate level strategy Business level strategy Strategic Analysis and choice Porter’s competitive Analysis Value chain Analysis
Need of BPSA Enormous change is taking place in Business
Environment both internal and external. Competition is almost cut throat in all sectors Considering the changes and competition
organization need t formulate the strategies an polices which will help them to survive in the market.
Crunch of the resources required for the business. Need strategies to utilize the resources at optimum level.
Business policy
“Guidelines which business need to follow considering the impact of internal and external environmental factors.”
Importance For learning the course For understanding the business
environment For Understanding the organization For personnel Development
Purpose of Business Policy
To integrate the knowledge gained in various functional areas of Management
To adopt a generalist approach to problem solving
To understand the complex interlink ages operating within an organization
Strategy Definitions The determination of the basic long term
goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary for carrying out these goals
The unified , comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved.
Corporate office
SBU A SBU B
Personnel
Production
Finance
SBU C Corporate level Strategies
Business unit Level Strategies
Functional Level Strategies
Different Levels of Strategy
Strategic Management Definitions
A stream of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives…….Glueck
The process which deals with the fundamental organizational renewal and growth with the development of strategy, structure , and system necessary to achieve such renewal and growth, and with the organizational system needed to effectively manage the strategy formulation and implementation processes……Hofer and others
Formulation of Strategies ( Environmental Appraisal, Organizational Appraisal) ( SWOT Analysis Porters competitive Analysis, value Chain)
Strategic Analysis and Choice(BCG matrix, Nine cell Matrix, Experience Curve
Industry Analysis, Competitive Analysis
Strategic Implementation
Strategic Evaluation
Strategic Management Process
grand strategies
Stability explanations
Retrenchment
Vision
Mission
Goals
Objectives
Strategies and tactics
Strategic Intent
vision
“ to be in the future”
Description of something in the future
Mental perception of the kind of environment organization aspires to create within a broad time of horizon and the underlying conditions for the actualization of this perception
Benefits of Vision
Inspiring and exhilarating Helps to create shared sense of purpose Vision which is unique, competitive an
original make sense in the marketplace. Foster risk taking and experimentation Foster long term thinking Clear the objectives of the organization
with the confidence of a learning, knowledge based and happy organization. We will establish ourselves as a supplier of choice by delighting our customer with our service and our product”
Mission what is our business? what to do? What should it be? Definition
“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
Characteristics of a Mission Statement
It should be feasible It should be precise It should be clear It should be motivating It should be distinctive It should indicate major component
of strategy It should indicate how objectives are
to be accomplished.
United Trust of India
Mission: “To keep the common man in
sharper focus, to encourage saving and investment habits among them.”
Goals And Objectives
Goals Goals denote what an organization hopes to
accomplish in a future period of time. This is stated broadly
Objectives These are the ends that specify how goals shall
be achieved Objectives makes the goals operational Objective need to be stated in quantity They are measurable and comparable
Role of objectives
I t defines he orgnisation’s relationship with the environment
It helps to pursue its vision and mission Provides the base of strategic decision
making It provides the standards for the
performance appraisal
Characteristics of objectives objectives should be understandable objectives should be concrete and specific objectives should be related to a time
frame objectives should be measurable and
controllable objectives should be challenging objectives should be correlated with each