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Program : MBA
Semester : IV
Subject Code : MB0052
Subject Name : Strategic Management & Business Policy
Unit Number : 1
Unit Title : Strategies
Lecture Number : 1
Lecture Title : Strategies
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Unit-1 Strategies

Strategic management and business
policy
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Objectives:
The objectives of this lecture are to:
- Explain the importance and scope of strategy.
- Recognise the function of business and SMART goals.
- Differentiate between the goals and objectives of the organisation.
- Describe the strategic intent using vision & mission statements.
- Explain the competencies and success factors in strategic decision
making.
C o n f I d e n t I a l
Unit-1 Strategies

Lecture Outline
- Introduction
- Fundamentals of strategy
- Concepts and nature of strategy
- Scope and importance of strategy
- Objectives of business
- Difference between goals and objectives of business
- Strategic intent through vision & mission statements
- Core competencies & critical success factors in business
- Summary
- Check your learning
- Activity
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Unit-1 Strategies

Introduction
- Strategy involves incorporation of organisational activities
- Strategy sets apart the scarce resources within its environment to
meet the organisational goals
- Strategy supports the organisations to achieve its future goals
- Without a reliable strategy, business cannot progress
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Unit-1 Strategies

Fundamentals of strategy
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The fundamentals of strategy is to:
- Define the vision and mission of organisation
- Guide the organisation to achieve long term goal
- Meet up with the expectations of market and stakeholders
- Concentrate on priority issues to be successful in long term
- Enhance the position of organisation in market
- Prepare and implement strategic goals through strategic management
- Incorporate levels of strategies - Corporate, Business and Operational
strategy
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Unit-1 Strategies
Concepts and nature of strategy
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The concepts of strategy are:
- A plan to channel a course of action
- An elementary way to measure an organisation's performance
- A pattern to improve the performance
- A scheme to overcome competition
The nature of strategy is to:
- Capture the new opportunities and to adopt to the norms and systems
in organisations
- Provide structure for guiding a project
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Unit-1 Strategies

Scope and importance of strategies
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The Scope of strategy are as follows:
-To introduce a mission and develop an overall strategy for an organisation
-To study and evaluate external environment
-SWOT analysis
-To increase resources and facilities
-To estimate and manage the targets
The importance of strategy are as follows:
-It provides a clear idea of the objectives
-It is important for the long term survival of an organisation
-It provides opportunity to grow and increase revenue
-It predicts the behavior of customers, competitors and employees
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Unit-1 Strategies
Objectives of Business
The objectives are as follows:
- Survival
- Profit maximisation
- Sales growth
- Setting goals - SMART
- Adopting tactics
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Unit-1 Strategies
Difference between goals and
objectives of business
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Goals
Are long term
Are general intentions with broad outcome
Are intangible
Are abstract
Cannot be validated
Objectives
Are temporary
Are accurate statements with definite outcome
Are substantial
Are concrete
Can be validated
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Unit-1 Strategies

Strategic intent through vision and
mission statements
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- STRATEGIC intent defines goals of an organisation
- It motivates employees to work as a team
- It describes the purpose of an organisation
VISION AND MISSION
'ision defines purpose and principles in terms of values of
an organisation. It is a skeleton of strategic planning
Mission describes capabilities and reason for existence of
an oraganisation
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Unit-1 Strategies
Core competencies & critical success
factors in business
- Core competencies are skills critical to achieve a competitive
advantage for a business
- It comprises essential skills like adding value to products and services
- Critical Success Factors (CSF) identifies and lists key factors to be
concentrated upon in an organisation
- CSF concentrates on key factors like industry, environment, strategic
and temporal
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Unit-1 Strategies

Summary
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-Adopting strategic planning helps organisations to grow
-Objectives of strategy concentrates on survival of the fittest law
-Goals and objectives are two different prospectives of success in business
-Strategic intent defines the aim of vision and mission of an organisation
-Core competencies adds values to products and services
-CSF identifies key success factors in an organisation
C o n f I d e n t I a l
Unit-1 Strategies

Check Your Learning
. What is strategy?
Ans: Strategy is the method by which an organisation systematically
achieves its future objectives.
2. What is SWOT analysis ?
Ans: SWOT is a method used for assessment. It stands for strengths,
weaknesses, opportunities and threats.
3. What is CSF?
Ans: CSF is Critical Success Factors which identifies the key features for
an organisation to be successful.
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Unit-1 Strategies
Activity
A manufacturing company is planning to implement a new process to
produce products. Assume that you are the project manager. Research
and report to the management the steps involved in implementing the
strategy.
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