Understanding strategy :-

the term strategy is derived from the greek word strategos which means generalship the actual direction of military force as a distinct from the policy governing its deployment . therefore the word strategy litteraly means the art of gernal . definition of strategy a plan or course of action or a set of decision rules forming a pattern or creating a common thread a pattern or common thread related to organisations activities which are derived from its policies , objective and goals , related to persuing those activities which move an organisation from its current position to desired future state . concerning with the resources necessary for implementing a plan or following a course of action and connected with the strategic positioning of a firm , making trade offs between its different activities and creating a fit among these activities . LEVEL AT WHICH STRATEGY OPERATES

STRATEGIC DECISION MAKING :Decision making is the process of selecting a course of action from among many alternative . the process works somewhat like this : objective to be achieved are determined alternative ways of achieving the objective are identified each alternative is evaluated in terms of its objective achieving ability, and the best alternative is choosen ISSUES IN STRATEGIC DECISION MAKING :1. criteria for decision making :- different or has different objective so they adopt diff. Criteria for decision making 2. rationality in decision making :-rationality means exercising a choice from among various alternative course of action in such a way that it lead to the achievement of the objective in the best possible manner. 3. Creativity in decision making :-the creative desion must be original and different . 4. Variability in decision making :-two decision maker reach at totally different conclusion and its depend upon the individual perception . 5. Person related factor in decision making :-there are host of person related factor in decision making .some of these are age , education intelligence , personnel values , risk taking ability 6. Individual versus group decision making :- owing to person related factors, there are individual difference among decision makers these difference matter in strategic decision making .

PHASES IN STRATEGIC MANAGEMENT PROCSS :

ELEMENTS IN THE STRATEGIC MANAGEMENT PROCESS :1. ESTABLISHING THE HIERARCHY OF STRATEGIC INTENT :I. Creating and communicating vision II. Designing a mission statement III. Defining the business IV. Setting objectives 2. FORMULATION OF STRATEGIES I. PERFORMING ENV. APPRAISAL II. Doing org. Appraisal III. Considering corporate level strategies IV. Considering business level strategies V. Undertaking strategic analysis VI. Exercising strategic choice VII. Formulating strategies VIII. Preparing a strategic plan 3. IMPLEMENTATION OF STRATEGIES :I. Activating strategies II. Designing structure and system III. Managing behavioural implementation IV. Managing functional implementation V. Operationalising strategies 4. PERFORMING STRATEGIC EVALUATION AND CONTROL I. Performing strategic evaluation II. Exercising strategic control III. Reformulating strategies

Working model of strategic management process :

STRATEGIST AND THEIR ROLE IN STRATEGIC MGMT:Role of board of director :- the ultimate legal authority of an organisation vests in the board of director the owner of the organisation shareholders, controlling agencies, the govt.Financial institution , the holding company and parent company elect and appoint the director on the board . the board is responsible to them for the governance of the org. As directors the member of the board are responsible for providing guidance and establishing the directive according to the policies
Statement Formulation & Characteristics Mission Statement While the essence of vision is a forward-looking view of what an organisation wishes to become, mission is what an organisation is and why it exists. Mission is a statement, which defines the role that an organisation plays in a society. It refers to the particular needs of that society, for instance, its information needs. A book publisher and a magazine editor are both engaged in satisfying the information needs of society but they do it through different means. A book publisher may aim at producing excellent reading material while a magazine editor may strive to present news analysis in a balanced and unbiased manner. Both have different objectives but an identical mission. A mission was earlier considered as the scope of the business activities a firm pursues. The definition of mission has gradually expanded to represent a concept that embodies the purpose behind the existence of an organisation. Thompson (1997) defines mission as the "essential purpose of the organisation, concerning particularly why it is in existence, the nature of the businesses it is in, and the customers it seeks to serve and satisfy" Hunger and Wheelen (1999) say that mission is the "purpose or reason for the organization's existence". Now there is not much difference of opinion about the definition of mission. Yet, there are instances of organisations confusing mission with vision or objectives. In strategic management literature, mission occupies a definite place as a part of strategic intent. A mission statement, once formulated, should serve an organisation for many years. But a mission may become unclear as the organisation grows and adds new products, markets and technologies to it activities. Then the mission has to be reconsidered and reexamined to either change or discard it, and evolve a fresh statement of organisational mission. Formulation of Mission Statement Truly speaking, an organisation's mission statement lies in the basic philosophy of those who create and manage the organisation as shown in figure Most organisations derive their mission statements from a particular set of tasks they

are called upon to perform in the light of their individual, national or global priorities. Several public sector organisations, set up in India during the 1950s and 60s owe their existence to the vision of Jawaharlal Nehru, the first prime minister, who worked for the national aim of building a strong basic infrastructural independence. Role of Entrepreneur Usually, entrepreneurs lay down the corporate philosophy which an organisation follows in its strategic and operational activities. Such a philosophy may not be consciously and formally stated but may gradually evolve due to the entrepreneur's actions. Generally an entrepreneur has a perception of the type of organisation that he, wants his company to be. Mission statements could be formulated on the basis of e vision that an entrepreneur decides on in the initial stages of an organisation's, growth. Role of Strategists and Executives Major strategists could also contribute to the development of a mission statement. They do this informally by lending a hand in the creation of a particular corporate identity or formally through discussions and the writing down of a mission statement. Chief executives plan a major role in formulating a mission statement both formally and informally. They may set up executive committees to formally discuss and decide on a mission statement or enunciate a corporate philosophy to be followed for strategic management. Consultants may also be called upon to make an in-depth analysis of the organisation to suggest an appropriate mission statement. Characteristics of a Mission Statement A mission statement defines the basic reason for the existence of that organisation. Such a statement reflects the corporate philosophy, identity, character, and image of an organisation. It may be defined explicitly or could be deduced from the management's actions, decisions, or the chief executive's press statements. When explicitly defined it provides enlightenment to the insiders and outsiders on what the organisation stands for. In order to be effective, a mission statement should possess the following seven characteristics. 1. It should be feasible. A mission should always aim high but it should not be an impossible statement. It should be realistic and achievableits followers must find it to be credible. But feasibility depends on the resources available to work towards a mission. 2. It should be precise. A mission statement should not be so narrow as to restrict the organisation's activities nor should it be too broad to make itself meaningless. For instance, 'Manufacturing bicycles' is a narrow mission statement since it severely limits the organisation's activities, while mobility business' is too broad a term as it does not define the reasonable contour within which the organisation could operate. 3. It should be clear. A mission should be clear enough to lead to action. It should not be a high sounding set of platitudes meant for publicity purposes. Many organisations do adopt such statements but probably they do so for emphasizing their identity and character. For example, Asian Paints stresses 'leadership through excellence', while India Today sees itself as 'the complete news magazine'. The Administrative Staff College of India considers itself as 'the college for practicing managers' and Bajaj Auto believes in 'Providing, value for money, for years'. To be useful, a mission statement should be clear enough to lead to action. 4. It should be motivating. A mission statement should be motivating for members of the organisation and of society, and they should feel it worthwhile working for such an organisation or being its customers. A bank, which lays great emphasis on customer service is likely to motivate its employees to serve its customers well and to attract clients. Customer service, therefore is an important purpose for a banking institution.

5. It should be distinctive. A mission statement, which is indiscriminate, is likely to have little impact. If all scooter manufacturers defined their mission in a similar fashion,there would not be much of a difference among them. But if one defines it as providing scooters that would provide 'value for money, for years',like Bajaj, it will create an important distinction in the public mind. 6. It should indicate major components of strategy. A mission statement along with the organisational purpose should indicate the major components of the strategy to be adopted. The chief executive of Indal expressed his intentions by saying that his company "begins its fifth decade of committed entrepreneurship with the promise of a highly diversified company retaining aluminum as its mainline business, but with an active presence in the chemical, electronics and industrial equipment business". This statement indicates that the company is likely to follow a combination of stability, growth and diversification strategies in the future. 7. It should indicate how objectives are to be accomplished. Besides indicating the broad strategies to be adopted a mission statement should also provide clues regarding the manner in which the objectives are to be accomplished. COMPONENTS OF AN EFFECTIVE MISSION STATEMENT

Mission statements can and do vary in length, content, format and specificity. Most practitioners and academicians of strategic management consider an effectively written mission statement to exhibit nine characteristics or mission statement components. Since a mission statement is often the most visible and public part of the strategic management process, it is important that it include most, if not all, of these essential components. Components and corresponding questions that a mission statement should answer are given here.

1. Customers: Who are the enterprise's customers? 2. Products or services: What are the firm's major products or services? 3. Markets: Where does the firm compete? 4. Technology: What is the firm's basic technology? 5. Concern for survival, growth, and profitability: What is the firm's commitment towards economic objectives? 6. Philosophy: What are the basic beliefs, core values, aspirations and philosophical priorities of the firm? 7. Self-concept: What are the firm's major strengths and competitive advantages? 8. Concern for public image: What is the firm's public image? 9. Concern for employees: What is the firm's attitude/orientation towards employees?

Definition: A mission statement is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" The mission statement articulates the company's purpose both for those in the organization and for the public. For instance, the mission statement of Canadian Tire reads (in part): Canadian Tire is a growing network of interrelated businesses... Canadian Tire continuously strives to meet the needs of its customers for total value by offering a unique package of location, price, service and assortment. The mission statement of Rivercorp, business development consultants in Campbell River, B.C., is: To provide one stop progressive economic development services through partnerships on behalf of shareholders and the community. As you see from these two examples, mission statements are as varied as the companies they describe. However, all mission statements will "broadly describe an organization's present capabilities, customer focus, activities, and business makeup" (Glossary, Strategic Management: Concepts and Cases by Fred David). The difference between a mission statement and a vision statement is that a mission statement focuses on a companys present state while a vision statement focuses on a companys future. Every business should have a mission statement, both as a way of ensuring that everyone in the organization is "on the same page" and to serve as a baseline for effective business planning. See How to Write a Mission Statement to learn how to write one of your own.

Mission statements often include the following information:

aim(s) of the organization

The organization's primary stakeholders: clients/customers, shareholders, congregation, etc. How the organization provides value to these stakeholders, for example by offering specific types of products and/or services A declaration of an organization's sole core purpose. A mission statement answers the question, "Why do we exist?"

According to Bart[2], the commercial mission statement consists of 3 essential components: 1. Key market who is your target client/customer? (generalize if needed)

2. Contribution what product or service do you provide to that client? 3. Distinction what makes your product or service unique, so that the client would choose you? Examples of mission statements that clearly include the 3 essential components: For example:

McDonalds - "To provide the fast food customer food prepared in the same high-quality manner world-wide that is tasty, reasonably-priced & delivered consistently in a low-key dcor and friendly atmosphere."[citation needed]

Key Market: The fast food customer world-wide Contribution: tasty and reasonably-priced food prepared in a high-quality manner Distinction: delivered consistently (world-wide) in a low-key dcor and friendly atmosphere.

Courtyard by Marriott - "To provide economy and quality minded travelers with a premier, moderate priced lodging facility which is consistently perceived as clean, comfortable, well-maintained, and attractive, staffed by friendly, attentive and efficient people"

Key Market: economy and quality minded travelers Contribution: moderate priced lodging Distinction: consistently perceived as clean, comfortable, well-maintained, and attractive, staffed by friendly, attentive and efficient people

The mission statement can be used to resolve trade-offs between different business stakeholders. Stakeholders include: managers & executives, non-management employees, shareholders, board of directors, customers, suppliers, distributors, creditors/bankers, governments (local, state, federal, etc.), labour unions, competitors, NGOs, and the community or general public. By definition, stakeholders affect or are affected by the organization's decisions

What's the difference between a tagline, slogan, and mission statement?

A mission statement is a short written statement (paragraph) that describes the purpose of the company. Although it needs to be crafted with a marketing mind set, it is rarely intended for the general public. A good mission statement will succinctly rally the troops and make clear an organization's purpose and ultimate goal. A tagline and slogan can often be the same. A tagline is a formal line of "copy" often used

in advertising and frequently placed below the logo. Taglines should evoke emotion or compel an action, whenever possible, and go beyond mere description. A slogan is less formal than a tagline and can be a frequently used line or a motto to describe the company or its mindset.

"We create happiness by providing the finest in entertainment for people of all ages, everywhere." Mission Statement Examples Some most highly effective Mission Statement Examples include the following - can you guess which companies these Mission Statement Examples came from? Example 1 "To experience the joy of advancing and applying technology for the benefit of the public" Example 2 "To build a place where people can come to find and discover anything they might want to buy online." Example 3 "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts."

"We create happiness by providing the finest in entertainment for people of all ages, everywhere." Mission Statement Examples Some most highly effective Mission Statement Examples include the following - can you guess which companies these Mission Statement Examples came from?

Example 1 "To experience the joy of advancing and applying technology for the benefit of the public" Example 2 "To build a place where people can come to find and discover anything they might want to buy online." Example 3 "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts."

Goal vs Objective

The words Goal and Objective are often confused with each other. They both describe things that a person may want to achieve or attain but in relative terms may mean different things. Both are desired outcomes of work done by a person but what sets them apart is the time frame, attributes they're set for and the effect they inflict.

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Goal
The purpose toward which an endeavor (effort ) is directed.

Objective
Something that one's efforts or actions are intended to attain or accomplish; purpose; target. I want to complete this thesis on genetic research by the end of this month. Must be measurable and tangible.

Meaning:

Example:

I want to achieve success in the field of genetic research and do what no one has ever done. Goals may not be strictly measurable or tangible. Longer term

Measure:

Time frame:

Mid to short term

Difference Between Vision and Goals: Generally people get confused between goals and vision but both are very different. Here are some important differences 1. In order to achieve your vision you have to set goals. It means vision is the inspiration that inspires you to set your goals. For example if your vision is to change the world than you have to set the goals to achieve your vision. If you have not set your goals yet than please read the simplest processof goal setting. And if you have not set your vision or you are confused about setting your vision than answer this question why do you want to achieve your goals? The answer of this question will let you know your vision. 2. Goals are specific but vision is foresight and vision is a big picture that how you or your organization will look like. 3 Goals are measurable but it is very difficult to measure vision because vision is related with dreams and long term view. It means your goals can be short term and long term goals but vision only focuses on long term view. 4. Goals have specific deadline but vision does not have any specific deadline. 5. Usually goals are achievable or should be achievable. But vision should be complex. Here is a great quote about vision

If you can reach your vision with your current resources, you need a bigger vision! Dan Rockwell 6. Goals are realistic and should be realistic but vision should be futuristic. 7. Goals are mostly tangible and tangible goals can be traced but vison is intangible and you can not trace the intangible vision.

mpact of Internet and ECommerce

The impact of

e-commerce on business activity

Selling through websites is the fastest growing method of trading worldwide. There are two main forms of e-commerce:

o o

Business to business (B2B) trading where companies trade and exchange information using the World Wide Web.

Business to consumer (B2C) trading where companies deal directly with customers through web pages, and ordering is carried out online.

There are many different types of products and services that are traded on line including books, CDs, cars, holidays, and insurance. In response to e-tailing and e-trading, most businesses have now set up their own websites.

Trading online
Trading online enables businesses to reach much wider audiences while cutting the costs of traditional retailing methods. For example, an e-tailer does not have to spend so much on an expensive High Street presence. Until recently The Times 100 was a paper based resource that was used by every school in the United Kingdom. Now the resource appears in two formats - in a photocopiable folder of materials, and online. The online presence has opened up viewing of The Times 100 to a globalmarket and a large number of hits are recorded from students in almost every country in the world. Existing users are able to benefit from the convenience of quickly accessing case studies online and a range of additional online features have been added such as a theory section, and a range of tests and questions for students. Although the outlay on developing a good website is substantial the potential benefits are enormous in providing most types of business with a competitive advantage. One group of businesses that have been particularly successful as a result of the development of the web are specialist suppliers of items such as paintings, photographs, confectionery, and other items. An individual working from home can now advertise and sell their produce worldwide. A web page is a single document. A website is a collection of related documents. The World Wide Web consists of graphic and text documents that can be connected together through clickable 'hypertext' links. Source / Further Readings: http://www.thetimes100.co.uk/theory/theory--the-impact-e-commerce-on-business-activity--171.php

Impact of Internet and E-Commerce on Strategy

There is a positive relationship between e-commerce and firm strategy. Companies that incorporate e-commerce with strategy will implement firm strategy effectively. Matching e-commerce with internal and external situation The choice of e-commerce model is one of many strategic decisions that organisations make when conducting business activities in the e-commerce environment. Current literature on both strategic decision making and the development of e-commerce models does not adequately address. In developing the framework, organisations need to have a good understanding on the types of models available for adoption. While there is no single unique classification system for the types of e-commerce models available. For example, B2B e-commerce models are generally classified into four generic categories: merchant models; manufacturer models; the buy-side model; and brokerage models. Each of these models has different functional characteristics

resulting in different models being more applicable or suitable to particular industries, markets or situations. In addition, the focus of these models varies from buyer centric (such as the buy-side model) to supplier centric (such as the manufacturer model) with some being neutral (such as the mega-exchange model). Based on these four categories, a recent study has identified 10 specific e-commerce models as being used for conducting B2B e-commerce in the agribusiness(marketing of agriculture product ) industry. In addition to the complexity of the models, many factors are known to influence the strategic decision making process of organisations, which are also likely to impact on the choice of e-commerce models. The choice of e-commerce model is a strategic decision as the model chosen will form the framework for the organisation to pursue its business activities in the e-commerce environment and will also affect an organisations overall strategic direction.

E-commerce is generally less complex than any IT solution, so a firm must start with normal IT initiatives before creating e-commerce tasks (John A. Rodgers, David C. Yen and David C. Chou, 2002). E-commerce inludes two basic types, business to consumer (B2C) and business to business (B2B), that are two separate concepts. The former refers primarily to the buying and selling activities over the Internet, including such transactions as placing orders, making payments, and tracking delivery of orders on the Internet. So, the focus of B2C is typically on the customer side as well. All other stakeholders of the organization, including employees and suppliers, are generally not the main concern for B2C. It relies on client-to-server or port-to-port data flow (Moltzen, E, 2000). B2B generally refers to the use of the web and Internet-related technology to connect the extended organization, including such entities as suppliers, employees, and regulatory authorities. In general, expectations of B2B are high and in most cases justified. However, B2B is not just an application program and thus not a plug and play solution. B2B is a contingency approach, meaning that there is no one best way for the B2B transformation. Each case needs separate evaluation. It takes a conscious, thorough and extensive internal and external analysis of the organization, clear and appropriate goals, a deliberate strategic concept and change management at its best, to turn an organization into an successful e-company and hence to be able to leverage the opportunities of e-commerce in an optimal way. Therefore, we propose that e-commerce matched with internal and external situation would be a great benefit to the implementation of strategy.

Matching e-commerce with internal and external situation of firm will bring positive impact on implementation of firm strategy. Optimizing value chain by e-commerce The process of forming a corporation strategy is to respond to the challenges of environmental change. Normative thinking requires that a firm should analyze its industry forces and value-chain activities in order to identify opportunities for business innovation. Furthermore, it should examine assets, resources, and competency of the staff and identify those mechanisms that confer a distinctive advantage over their rivals. Choice of appropriate strategy could then lead to superior performance. With the help of e-comerce, firms implementing such initiatives should carefully analyze external forces, internal resources and their core competencies.

From the IS perspective, the value chain model highlights interdependence activities in businesses where competitive strategies can be best applied and where IS are most likely to have strategic impact. As information technologies developed, novel ways of business process redesign emerged. Most organizations today use Internet technology to redesign their processes in ways that provide new competitive advantage. For example, through the infrastructure of existing B2B exchanges in the e-marketplaces, many organizations will eventually be able to integrate activities of their value chain encompassing suppliers, customers, and distribution channels within an industry or across industries. B2B is not limited to the externalities of a firm. A company that wants to leverage the promising opportunities of B2B has to focus not only on its external relationships with channel partners along the value system. It also needs to adopt its value chain internally, to an appropriate extend. B2B, in a broad sense, offers solutions to both, the external as well as the internal challenge. Moreover, it gives an

organization the possibility to redefine itself, its strategic position within its industry and its relations with its business and non-business environment. This leads to Proposition 3: Proposition 3. Optimizing value chains by e-commerce will bring positive impact on implementation of firm strategy. Companies that optimize their value chains by e-commerce will achieve their stategic objectives easily.

CONCLUSION The use of e-commerce has played a major role in many strategic initiatives. But, organizations still are unsure how e-commerce system would be developed to support firm strategy. This study sought to investigate how e-commerce impact firm strategy and examine the fit between e-commerce development method and corporation strategy. We tested for the effect of three types of e-commerce development methods on strategy and found significant effects of e-commerce on strategy implementation. The findings from our study suggest that while firms face many challenges in crafting strategies, it is critical to think of the role of e-commerce. The greater the impact of e-commerce on firm strategy, the more significant is application of e-commerce.

SMART
Characteristics of Good Objectives

by Phil Bartle, PhD

Workshop Handout

An objective is more specific than a goal; in what ways? A Good Objective is SMART

In preparing a project design, and when writing a proposal (for approval or for requesting funds), the goals of the project are stated. The goal is easily defined as the solution to the problem that has been identified. The problem with such a "goal" is that it is too general; it is not easy to obtain consensus as to when it has been reached. That is why, when preparing project documents, a distinction is made between a "goal" and an "objective." An objective is derived from a goal, has the same intention as a goal, but it is more specific, quantifiable and verifiable than the goal. Let us say that the problem identified by community members is "Lack of clean drinking water." The solution to that problem, the goal, then is "To bring clean drinking water to the community." You can demonstrate to the group the vagueness of this goal by going out of the room and returning with a single glass of water, showing it to them. "OK, here is some water. I have brought it to the community.

Now, is the project complete? Have we achieved the goal?" Of course they might laugh or say that it was obvious that they did not mean only a glass of water when they said, "To bring clean drinking water to the community." Your reply is then that the project design or proposal must be very specific about each objective, so that there can be no room for different interpretations. Remember, every objective must start with the word , "To." An easy way to remember the characteristics of a good objective, is the acronym, "SMART." It stands for "Specific, Measurable, Achievable, Realistic and Time-Bound."

S pecific M easurable A chievable R ealistic T ime-Bound

When identifying objectives as part of an exercise in preparing a project design or proposal, use the SMART acronym as a check list, to see if the objective is a good objective. (Making sure each objective begins with the word, "To.") The objectives must be derived from, and consistent with, the intention of the identified goals. The objectives of a project should be "SMART." They should be:

S pecific: clear about what, where, when, and how the situation
will be changed;

M easurable: able to quantify the targets and benefits;

A chievable: able to attain the objectives

(knowing the resources and capacities at the disposal of the community);

R ealistic: able to obtain the level of change reflected in the

objective; and

T ime bound: stating the time period in which they will each be
accomplished.