ms-221 strategic management

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MS-221 STRATEGIC MANAGEMENT

(RDVV)

Jabalpur (M.P.)

By :- Ashish kumr Yadav


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Unit 1

1.Business Policy.

2.Conceptual & Foundation in Business Policy.

3.Strategic Management ,Process ,Models ,Types.

4.Corporate Strategy-Mission & Objectives.5.Strategic Planning-Programming ,Implementation.

6.Evaluation & Control.


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Business Policy

Business Policy defines the scope or

spheres within which decisions can be

taken by the subordinates in anorganization.


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It permits the lower level management

to deal with the problems and issues

without consulting top levelmanagement every time for decisions.

Business Policy


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Policy influences public behavior as well as attitudes;people influence policy and set expectations for the

businesses that serve them; and business, of course,

influences policy and people.


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Features of Business Policy

1. Specific

2. Clear

3. Reliable/ Uniform

4. Appropriate

5. Simple

6. Inclusive/ Comprehensive

7. Flexible

8. Stable


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Difference between Policy and

StrategyThe term policy should not be considered assynonymous to the term strategy. The difference

between policy and strategy can be summarized as

follows-

1. Policy is a blueprint of the organizational activities

which are repetitive/routine in nature. While

strategy is concerned with those organizational

decisions which have not been dealt/faced before

in same form.


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Strategy

2. Policy formulation is responsibility of top level

management. While strategy formulation is

basically done by middle level management.

3. Policy deals with routine/daily activities

essential for effective and efficient

running of an organization. While strategy

deals with strategic decisions.


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Strategy

4. Policy is concerned with both thought and actions.

While strategy is concerned mostly with action.

5. A policy is what is, or what is not done. While a

strategy is the methodology used to achieve a

target as prescribed by a policy.


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Strategic Management


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Strategy is

A plan of action or policy

designed to achieve a

major or overall aim.

The art of planning and

directing overall militaryoperations and

movements in a war or

battle

Derived form Greek word strategos which means

Generalship.

The art of a general


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Mintzberg 5Ps ofStrategy

Mintzberg first wrote about the 5 Ps of Strategy in 1987.

Each of the 5 Ps is a different approach to strategy.

They are:

1.Plan.2. Ploy.

3. Pattern.

4. Position.

5. Perspective.

By understanding each P, you can develop a robust

business strategy that takes full advantage of your

organization's strengths and capabilities.


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Strategic Management

The dynamic process offormulation,

Implementation,evaluation and control of

strategies to realize the organization'sstrategic intent.


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Components of Strategic Management Process


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Comprehensive Model of Strategic

Management Process

Strategic intent

1. Vision

2. Mission

3. Business definition

4. Business model

5. Objectives

Strategy formulation

Environmental Organizational

Appraisal Appraisal

1. SWOT Analysis

2. Corporate level strategies

3. Strategic analysis and choice

4. Strategic plan

Strategy

implementation

1. Project

2. Procedural

resource

allocation

3. Structural

behavioral

functional &operational

Strategic

Evaluation

Strategic Control


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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.


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Corporate Strategy

CORPORATE STRATEGY is the direction an organization takes

with the objective of achieving business success in the long term.

Recent approaches have focused on the need for companies to

adapt to and anticipate changes in the business environment i.e.

a flexible strategy.

The development of a corporate strategy involves establishing the

purpose and scope of the organization's activities and the nature

of the business it is in, taking the environment in which it

operates, its position in the marketplace, and the competition it

faces into consideration; most times analyzed through a SWOTanalysis.


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Corporate strategy Mission &

Objectives


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Characteristics of Misson

statement

Mission should be precise.

Mission should be clear.

Mission should be feasible.

Mission should be based upon

organizational goals.

Mission should be motivating. Mission should be distinctive.


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Elements of effective mission


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Hierarchy of Objectives

Societal objectives

Overall organizational objectives

Objectives of SBUs

Objectives in key-result areas

Departmental objectives

Individual-level objectives


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Mission, Vision, Aims/Goals &

Objectives


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StrategicplanningStrategic planning is an organization's process of defining

its strategy, or direction, and making decisions on allocating itsresources to pursue this strategy. In order to determine the

direction of the organization, it is necessary to understand itscurrent position and the possible avenues through which it can

pursue a particular course of action. Generally, strategic planning

deals with at least one of three key questions:

"What do we do?"

"For whom do we do it?"

"How do we excel?

In many organizations, this is viewed as a process for determining

where an organization is going over the next year ormore

typically3 to 5 years (long term), although some extend their

vision to 20 years.


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key components of 'strategic planning'

The key components of 'strategic planning' include an

understanding of the firm's vision, mission, values andstrategies.

1. Vision

2. Mission

3. Values

4. Strategies

Vision Mission Values Strategies


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Vision

outlines whatthe organizationwants to be, orhow it wants

the world inwhich itoperates to be.

(an "idealised"view of the

world)

Mission

Defines thefundamentalpurpose of anorganization or

an enterprise,succinctlydescribing whyit exists andwhat it does toachieve itsvision.

For example,the charityabove mighthave a missionstatement as"providing jobsfor thehomeless andunemployed".

Values

Beliefs that areshared amongthe stakeholders of an

organization.Values drivean organization's culture andpriorities andprovide aframework inwhich decisionsare made.

For example,"Knowledge andskills are thekeys to success"

or "give a manbread and feedhim for a day,but teach himto farm andfeed him for

life".

Strategies

means "the artof the general"

a combination

of the ends(goals) forwhich the firmis striving andthe means(policies) by

which it isseeking to getthere.

Following are the important concepts of Strategic


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Strategy - Definition and Features

Components of a Strategy Statement

Strategic Management Process

Environmental Scanning

Strategy Formulation

Strategy Implementation

Strategy Formulation vs Implementation

Strategy Evaluation

Strategic Decisions

Business Policy

BCG Matrix

SWOT Analysis

Competitor Analysis

Porters Five Forces ModelStrategic Leadership

Corporate Governance

Business Ethics

Core Competencies

o o g a e t e po ta t co cepts o St ateg c

Management:
http://www.managementstudyguide.com/strategy-definition.htmhttp://www.managementstudyguide.com/strategy-statement-components.htmhttp://www.managementstudyguide.com/strategic-management-process.htmhttp://www.managementstudyguide.com/environmental-scanning.htmhttp://www.managementstudyguide.com/strategy-formulation-process.htmhttp://www.managementstudyguide.com/strategy-implementation.htmhttp://www.managementstudyguide.com/strategy-formulation-vs-implementation.htmhttp://www.managementstudyguide.com/strategy-evaluation.htmhttp://www.managementstudyguide.com/strategic-decisions.htmhttp://www.managementstudyguide.com/business-policy.htmhttp://www.managementstudyguide.com/bcg-matrix.htmhttp://www.managementstudyguide.com/swot-analysis.htmhttp://www.managementstudyguide.com/competitor-analysis.htmhttp://www.managementstudyguide.com/porters-model-of-competetion.htmhttp://www.managementstudyguide.com/strategic-leadership.htmhttp://www.managementstudyguide.com/corporate-governance.htmhttp://www.managementstudyguide.com/business-ethics.htmhttp://www.managementstudyguide.com/core-competencies.htmhttp://www.managementstudyguide.com/core-competencies.htmhttp://www.managementstudyguide.com/business-ethics.htmhttp://www.managementstudyguide.com/corporate-governance.htmhttp://www.managementstudyguide.com/strategic-leadership.htmhttp://www.managementstudyguide.com/porters-model-of-competetion.htmhttp://www.managementstudyguide.com/competitor-analysis.htmhttp://www.managementstudyguide.com/swot-analysis.htmhttp://www.managementstudyguide.com/bcg-matrix.htmhttp://www.managementstudyguide.com/business-policy.htmhttp://www.managementstudyguide.com/strategic-decisions.htmhttp://www.managementstudyguide.com/strategy-evaluation.htmhttp://www.managementstudyguide.com/strategy-formulation-vs-implementation.htmhttp://www.managementstudyguide.com/strategy-implementation.htmhttp://www.managementstudyguide.com/strategy-formulation-process.htmhttp://www.managementstudyguide.com/environmental-scanning.htmhttp://www.managementstudyguide.com/strategic-management-process.htmhttp://www.managementstudyguide.com/strategy-statement-components.htmhttp://www.managementstudyguide.com/strategy-definition.htmhttp://www.managementstudyguide.com/strategy-definition.htmhttp://www.managementstudyguide.com/strategy-definition.htmhttp://www.managementstudyguide.com/strategy-definition.htm


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ms-221 strategic management

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