Strategic Management PPTs Unit 1 & 2

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC MANAGEMENT
Course No 301
Paper No. XVIII
MBA III SEMESTER

University Examination 50 Marks
Short Answer 10; Descriptive 20; Case 20
Internal Assessment 50 Marks

Tutorial 10; Test 20; Seminar 20
Total 100 Marks

Objectives:
To equip the students with analytical tools for
scanning the business environment in the
dynamic era.
The students will be benefited by acquiring new
ways and means of developing strategic decision
making skills.
Unit VI- Cases on the above Topics
Dr.N.C.Dhande SRTM University

Nanded,
nishika.dhan@gmail.com
MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

MANAGEMENT
Course No 301
Paper No. XVIII
Unit I
Business policy- Evolution, meaning, concept and
definition.
Concept of Corporate Strategy,
Importance of strategic management, Competitive
advantages,
Strategy planning & decisions,
Strategic management process- Model-VisionMission,
Business definition- Goals & ObjectivesBalanced Scored card approach to Objectivessetting
key performance indicators,
Strategic Management
different
perspectives.
Dr.N.C.Dhande
SRTM University
Nanded, nishika.dhan@gmail.com

MANAGEMENT
Course No 301
Paper No. XVIII
Business policy- Evolution, meaning, concept and

definition
Business Policy defines the scope or spheres
within which decisions can be taken by the
subordinates in an organization. It permits the
lower level management to deal with the
problems and issues without consulting top level
management every time for decisions.
Business policies are the guidelines developed by
an organization to govern its actions.
They define the limits within which decisions
must be made. Business policy also deals with
acquisition of resources with which organizational
goals can be achieved.
It is the study of
the roles and responsibilities of
top level management,
the significant3 issues

MANAGEMENT
Course No 301
Paper No. XVIII
Features of Business Policy

An effective business policy must have following featuresSpecific- Policy should be specific/definite. If it is uncertain, then the
implementation will become difficult.
Clear- Policy must be unambiguous. It should avoid use of jargons
and connotations. There should be no misunderstandings in following
the policy.
Reliable/Uniform- Policy must be uniform enough so that it can be
efficiently followed by the subordinates.
Appropriate- Policy should be appropriate to the present
organizational goal.
Simple- A policy should be simple and easily understood by all in
the organization.
Inclusive/Comprehensive- In order to have a wide scope, a policy
must be comprehensive.
Flexible- Policy should be flexible in operation/application. This does
not imply that a policy should be altered always, but it should be
wide in scope so as to ensure that the line managers use them in
repetitive/routine scenarios.
Stable- Policy should be stable else it will lead to indecisiveness and
University
uncertainty in minds of Dr.N.C.Dhande
those whoSRTM
look
into it for guidance.
4

MANAGEMENT
Course No 301
Paper No. XVIII
Difference between Policy and Strategy

The term policy should not be considered as synonymous to
the term strategy.
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.
Policy formulation is responsibility of top level
management. While strategy formulation is basically done
by middle level management.
Policy deals with routine/daily activities essential for
effective and efficient running of an organization. While
strategy deals with strategic decisions.
Policy is concerned with both thought and actions. While
strategy is concerned mostly with action.
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.
5

MANAGEMENT
Course No 301
Paper No. XVIII
Concept of Corporate Strategy
The word strategy is derived from the Greek word stratgos;

stratus (meaning army) and ago (meaning leading/moving).
Strategy is an action that managers take to attain one or more of the
organizations goals. Strategy can also be defined as A general
direction set for the company and its various components to achieve a
desired state in the future. Strategy results from the detailed strategic
planning process.
A strategy is all about integrating organizational activities and utilizing
and allocating the scarce resources within the organizational
environment so as to meet the present objectives. While planning a
strategy it is essential to consider that decisions are not taken in a
vacuum and that any act taken by a firm is likely to be met by a
reaction from those affected, competitors, customers, employees or
suppliers.
Strategy can also be defined as knowledge of the goals, the
uncertainty of events and the need to take into consideration the
likely or actual behavior of others. Strategy is the blueprint of
decisions in an organization that shows its objectives and goals,
reduces the key policies, and plans for achieving these goals, and
Dr.N.C.Dhande
SRTM
defines the business the
company
is University
to carry on, the type
of economic
6
and human organization it wants to be, and the contribution it plans to
MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC MANAGEMENT

Course No 301
Paper No. XVIII
Features of Strategy
Strategy is Significant because it is not possible to foresee
the future. Without a perfect foresight, the firms must be
ready to deal with the uncertain events which constitute
the business environment.
Strategy deals with long term developments rather than
routine operations, i.e. it deals with probability of
innovations or new products, new methods of productions,
or new markets to be developed in future.
Strategy is created to take into account the probable
behavior of customers and competitors. Strategies dealing
with employees will predict the employee behavior.
Strategy is a well defined roadmap of an
organization. It defines the overall mission, vision and
direction of an organization. The objective of a strategy is to
maximize an organizations strengths and to minimize the
strengths of the competitors.
SRTM University
Strategy, in short, Dr.N.C.Dhande
bridges the
gap between where
we are
7

MANAGEMENT
Course No 301
Paper No. XVIII
Strategy as the determinant of the long-term

goals of the enterprise. - Chandler
Strategy as the pattern of objectives, purposes, or
goals and plans for achieving these goals. Andrews
Strategy as the common thread among a firms
activities. Ansof
Strategy is a pattern in a stream of actions over
time. Mintzberg.
Strategies contain goals, policies, and action
sequences.
Strategies develop around a few key concepts.
Strategies deal with the unpredictable and the
8
unknowable. Nanded, nishika.dhan@gmail.com

MANAGEMENT
Course No 301
Paper No. XVIII
Plan
5 P of strategy
Ploy
Perspective
Pattern
Position

MANAGEMENT
Course No 301
Paper No. XVIII
Different Kinds
Kinds of
of Strategy
Strategy
Different
Deliberate
Realized
Strategy
Intended Strategy
Unrealized
Strategy
Emergent
Strategy
10

MANAGEMENT
Course No 301
Paper No. XVIII
Military Axioms
Axioms on
on Effective
Effective Strategy
Strategy
Military
Have clear, decisive objectives.

Maintain the initiative.
Concentrate resources.
Be flexible.
Have coordinated and committed
leadership.
Achieve surprise.
Have an element of security.
11
13

MANAGEMENT
Course No 301
Paper No. XVIII
The beliefs and values shared by people

who work in an organisation
How people behave with each other
How people behave with customers/clients
How people view their relationship with
stakeholders
Peoples responses to energy use, community
involvement, absence, work ethic, etc.
How the organisation behaves to its employees
training, professional development, etc.

12

MANAGEMENT
Course No 301
Paper No. XVIII
Vision where the organisation wants to

go in the future
Mission Statement summary of the
beliefs of the organisation and where it is
now
The Vision
Communicating to all staff where the
organisation is going and where
it intends to be in the future
Allows the firm to set goals
Aims and Objectives:

Aims long term target
Objectives the way in which you are going
to achieve the aim
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MANAGEMENT
Course No 301
Paper No. XVIII
Strategic Planning
Once the direction is identified:
Analyse position
Develop and introduce strategy
Evaluate:
Evaluation is constant and the results of
the evaluation feed back
into the vision

14

MANAGEMENT
Course No 301
Paper No. XVIII
Strategic Planning
First Stage of Strategic

Planning may involve:
Futures Thinking
Thinking about what the
business might need to
do 1020 years ahead
Strategic Intents
Thinking about key
strategic themes
that will inform
decision making
The thicker the planning

document, the more useless
it will be
Taking time to think and reflect

may be more important than many
businesses allow time for!
Copyright: Intuitives, http://www.sxc.hu
(Brent Davies: 1999)


MANAGEMENT
Course No 301
Paper No. XVIII
Analysis: SWOT
Strengths identifying existing
organisational strengths
Weaknesses identifying existing
organisational weaknesses
Opportunities what market
opportunities might there be for the
organisation to exploit?
Threats where might the threats
to the future success come from?
16

MANAGEMENT
Course No 301
Paper No. XVIII
Analysis: PEST
Political: local, national and international
political developments how will they
affect the organisation and in what way/s?
Economic: what are the main economic
issues both nationally and internationally
that might affect the organisation?
Social: what are the developing social
trends that may impact on how the
organisation operates and what will they
mean for future planning?
Technological: changing technology can
impact on competitive
advantage
17 very

MANAGEMENT
Course No 301
Paper No. XVIII
Examples:
Growth of China and India as manufacturing centres

Concern over treatment of workers and the
environment in less developed countries who may be
suppliers
The future direction of the interest rate, consumer
spending, etc.
The changing age structure of the population
The popularity of fads like the Atkins Diet
The move towards greater political regulation of
business
The effect of more bureaucracy in the labour market
Political instability, social unrest ( TATA NANO)
Enviromental concerns over Mining VEDANT?

Jaitapur atomic plant Maharashtra, Mumbai Airport?
18

MANAGEMENT
Course No 301
Paper No. XVIII
5 Forces
Developed by Michael Porter: forces that shape and

influence the industry or market the organisation
operates in.
Strength of Barriers to Entry - how easy is it
for new rivals to enter the industry?
Extent of rivalry between firms how competitive
is the existing market?
Supplier power the greater the power, the less
control the organisation has on the supply of its inputs.
Buyer power how much power do customers
in the industry have?
Threat from substitutes what alternative products
and services are there and what is the extent
of the threat they pose?
19

MANAGEMENT
Course No 301
Paper No. XVIII
Assignment
Apply PEST analysis to a business sector in and
around your town
Apply 5 forces analysis to a business you know

Apply SWOT for a new entrant business in an
established market
THANKS.

20

Strategic Management PPTs Unit 1 &amp; 2

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MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC MANAGEMENT

Paper No. XVIII

MBA III SEMESTER

Internal Assessment 50 Marks

Total 100 Marks

Unit VI- Cases on the above Topics

Dr.N.C.Dhande SRTM University

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Business policy- Evolution, meaning, concept and

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Features of Business Policy

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Difference between Policy and Strategy

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Concept of Corporate Strategy

The word strategy is derived from the Greek word stratgos;

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC MANAGEMENT

Paper No. XVIII

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Strategy as the determinant of the long-term

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Have clear, decisive objectives.

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

The beliefs and values shared by people

Dr.N.C.Dhande SRTM University

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Vision where the organisation wants to

Aims and Objectives:

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Dr.N.C.Dhande SRTM University

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

First Stage of Strategic

The thicker the planning

Taking time to think and reflect

(Brent Davies: 1999)

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Growth of China and India as manufacturing centres

Enviromental concerns over Mining VEDANT?

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Developed by Michael Porter: forces that shape and

MBA III SEMESTER : BUSINESS POLICY AND STRATEGIC

Paper No. XVIII

Strategic Management PPTs Unit 1 & 2

Strategic Management PPTs Unit 1 & 2