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Business Environment
CA-IPCC

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Following is a sample excerpt from STRATEGIC MANAGEMENT - By CA K S Jolly
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TOPIC:
1 Introduction to Strategic Management
1.1 Strategic Management
A strategy is a set of decisions and actions that managers take to increase their companys performance relative
to rivals. If a companys strategy does result in superior performance, it is said to have a competitive advantage.
Strategic management includes:
environmental scanning (both external and internal),
strategy formulation (strategic or long-range planning),
strategy implementation, and
strategy evaluation & control.
The study of strategic management emphasizes the monitoring and evaluating of external opportunities and
threats in light of an organisations strengths and weaknesses.
1.2 Basic Model of Strategic Management:
Strategic management consists of four basic elements:
1. Environmental scanning - the monitoring, evaluating, and disseminating of information from the external
and internal environments to key people within the organisation.
2. Strategy formulation - the development of long-range plans for the effective management of environmental
opportunities and threats, in light of corporate strengths and weaknesses (SWOT).
3. Strategy implementation - a process by which strategies and policies are put into action through the
development of programs, budgets, and procedures.
4. Strategy evaluation and control - a process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired performance. Based on performance
results, management may need to make adjustments in its strategy formulation, in implementation, or in
both.






1
Business Environment
CA-IPCC

www.coursemateonline.com



+91 99887 12345