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SMU MBA 4 HR ASSIGNMENT MB0036-SET1

SMU MBA 4 HR ASSIGNMENT MB0036-SET1

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SMU,MBA-4,HR,MB0036 ASSIGNMENT
SMU,MBA-4,HR,MB0036 ASSIGNMENT

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Published by: SAMDAVIDCB on May 26, 2011
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01/08/2013

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SMU/MBA/ASSIGNMENT/MB0036/SET-1/L. C. CODE 0120
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Name SAM. C. B. DAVIDRole No. 520960228L.C .No.00120Master of Business Administration -MBA Semester IVSubject Code – MB0036
Subject Name Strategic Management & Business PolicyAssignment Set- 1
Q.1 Explain how strategies are formulated and implemented.?
 
Strategy Formulation and Implementation
 It is the crux of the strategic management process. Strategy refers to the course of actiondesired to achieve the objectives of the enterprise. Formulation, together with itsimplementation, constitutes an integral part of the management activity. Managers usestrategies for different purposes such as to overcome competition, to increase sales, toincrease production, to motivate the employees to provide their best, and so on.Implementation of a strategy is a crucial task as the formulation of it. There may be a lotof resistance during the implementation process. It is necessary for the manager to bevery tactful to involve the members of his group in the formulation of strategy tofacilitate the implementation process.
Stages in Strategy Formulation and Implementation
 a) Identification of mission and objectivesb) Environment scanningc) Generic strategy alternativesd) Strategy variationse) Strategic choice
 
 
SMU/MBA/ASSIGNMENT/MB0036/SET-1/L. C. CODE 0120
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f) Allocation of resources and formulation of organisational structureg) Formulation of plans, policies, programmes and administrationh) Evaluation and control
1.5.2
 
Generic Strategy Alternatives
 They refer to the strategy alternatives in broader terms. After the nature of the businessof the firm is defined, the next task is to focus on the type of strategic alternative, ingeneral, the firm should pursue. The strategist seeks to identify the right alternativethrough questions such as:1. Should we get out of this business entirely?2. Should we try to expand?There are four strategy alternatives available to a firm or business:a) To expandb) To wind up or retrenchc) To stabilize, andd) To continue its operations pertaining to its products, markets or functions.a)
 Expansion strategy
can be adopted in the case of highly competitive and volatileindustries, particularly, if they are in the introduction stage of product / service life cycle.b)
Stability strategy
is a better choice when the firm is doing well, the environment isrelatively less volatile, and the product / service has reached the stability or maturitystage of the life cycle.c)
 Retrenchment strategy
is the obvious choice when the firm is not doing well in termsof sales and revenue and finds greater returns elsewhere, or the product / service is in thefinishing stage of the product life cycle.d)
Combination strategy
is not a new strategy as it combines the other strategies.However, it is to be noted that it is better to evolve individual strategies and combinethem rather than trying to evolve a complex combination strategy which could becumbersome with loss of precious business time. It is best-suited to multiple SBU firmsin times of economic transition and also when changes occur in the product / service lifecycle. If a firm realises that some of its main product lines have outlived their lives, itmay not be profitable to continue investment in the same product or SBU. The firm may
 
 
SMU/MBA/ASSIGNMENT/MB0036/SET-1/L. C. CODE 0120
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choose to withdraw its resources from this area (or SBU) (
 Retrenchment strategy)
andfollow an
 Expansion strategy
in a new product area. Combination strategy is best suitedwhen the firm finds that its product-wise performance is uneven, or all or most of itsproducts differ in their future potential.
Generic StrategyAlternatives
 Expand Retrench Stabilise Combination
 Businessdefinition
 
Pace
 
 Businessdefinition
 
Pace
 
 Businessdefinition
 
Pace
 
 Definitionor Pace
 Products Add newproductsFind newonesDrop oldpro-ductsDe-creaseproductdevelop-mentmaintain Makepackagechanges,qualityimprove-mentsDrop oldwhileaddingnewproducts
Markets
 Find newterritoriesPene-tratemarketsDropdistributionchan-nelsReducemarket sharemaintain Protectmarketshares,focus onmarketnichesDrop oldcustomerswhilefindingnewcustomers
Func-tions
 Forward,verticalintegra-tionIncreasecapacityBe-comecap-tivecom-panyDe-creaseprocessR&Dmaintain Improveproduc-tionefficiencyIncreasecapacityandimproveefficiency
Generic Strategy Alternatives
 Sometimes, a combination of a few or all of these strategies may be necessary. Any change must becontemplated considering what is to be done (
 Business definition)
and the speed (
Pace
) with which it isto be done. Each of these alternatives has to be evaluated on its merits.

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