PES Institute of Technology

Strategic Management Assignment-1

Submitted to: Prof Murali Murthy By: Pooja H Shah (Roll no 3)

allocation of resources among different operations within that functional area. minimizing its impact on the environment and promoting strength in the local economy. A grocery store might have the mission of making profit while providing the best food to customers. yarns. The fundamental concept in SBU is to identify the discrete independent product/market segments served by an organization. and a variety of petrochemical products. A business' mission encompasses its overall purpose.  Corporate strategy is not the sum total of business strategies of the corporation but it deals with different subject matter. relates to a single functional operation and the activities involved therein. a SBU is created for each such segment. What are the different levels of strategy? Strategy may operate at different levels of an organization –    Corporate level Business level Functional level Corporate Level: Corporate level strategy occupies the highest level of strategic decision-making and covers actions dealing with the objective of the firm. Business level: Business-level strategy is – applicable in those organizations. For each product group. core values and long-term goals. Functional strategy deals with relatively restricted plan providing objectives for specific function. The nature of strategic decisions tends to be value-oriented. Top management of the organization makes such decisions.7. and marketing channel differs. Reliance Industries Limited operates in textile fabrics. which have different businesses-and each business is treated as strategic business unit (SBU). encouraging customers to bring their own grocery bags. Since each product/market segment has a distinct environment. . conceptual and less concrete than decisions at the business or functional level. For example. the nature of market in terms of customers. While the corporation is concerned with and has impact on business strategy. the former is concerned with the shape and balancing of growth and renewal rather than in market execution Functional Level: Functional strategy. fibers. Decisions at this level within the organization are often described as tactical. Such decisions are guided and constrained by some overall strategic considerations. 8. advertising in local newspapers and buying recycled product packaging materials. Bring out the relationship between a company’s strategy and its business model. The company's strategy might involve buying products from local food producers. Business Strategy The term "business strategy" describes the methods a business uses achieve its mission and objectives. as is suggested by the title. acquisition and allocation of resources and coordination of strategies of various SBUs for optimal performance. A business’ strategy includes how it deals with the opportunities and threats it faces. competition.

such as making a profit. . Business models can vary greatly from one company to another. Strategic management process has following four steps: 1. if website does not make enough revenue from advertisements to make profit.Environmental scanning refers to a process of collecting. and managing human resources. Strategy Implementation. distributing resources. such as selling T-shirts and other goods though an online store. 9. 3. and fixes goals to meet all the present and future competitor’s and then reassesses each strategy. After executing the environmental analysis process. delivers value to consumers and collects revenue from customers to make a profit. For example. A local grocery store's business model might involve buying food at wholesale prices and selling it to end consumers at a higher price to make profit. Strategy Evaluation. A business model describes the rationale of how an organization creates. A company can change its business model over time as a part of its profit-making strategy. The process of business model construction is part of business strategy. managers formulate corporate. Strategy Formulation. A website might have a business model based on providing video content to customers and generating revenue through advertisements placed on the site. managers might decide implement a new business model. It helps in analyzing the internal and external factors influencing an organization. social. management should evaluate it on a continuous basis and strive to improve it. Strategic management is a continuous process that appraises the business and industries in which the organization is involved. scrutinizing and providing information for strategic purposes.Strategy evaluation is the final step of strategy management process. How They Are Related A company's business model is a part of its business' overall strategy: It is the nuts and bolts behind how the company plans to achieve its goals. Explain the strategic management process. appraises it’s competitors. as a strategy to boost profit. Environmental Scanning. After conducting environment scanning. The strategic management process means defining the organization’s strategy.Business Model A company's business model describes the basic means by which it creates value. developing decision making process. The 2. or other forms of value). 4. business and functional strategies. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. and captures value (economic.Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. delivers. Strategy implementation includes designing the organization’s structure.

key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies. measuring performance. and taking remedial / corrective actions. Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives. Components of Strategic Management Process .

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