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7/29/2019 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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Difference between Policy and
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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Difference between Policy and
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.htm7/29/2019 Ms-221 Strategic Management
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