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What would be the role of manager in this age? Introduction: The term strategic management has been traditionally used. New title such as business policy, corporate strategy and policy, corporate policies is essentially and extensively used which means more less the same concept. Evolution of Strategic Management: 1) In early 1920’s and 1930’s the managers used day-to-day planning methods to perform any task. 2) To anticipate the future, they tried using tools like preparation of budgets and control systems like capital budgeting and management by objectives. 3) The techniques were unable to emphasize the future adequately. 4) The next step was they tried using long range planning which was replaced by strategic planning and later by strategic management. 5) In mid 1930’s, according to the nature of business the planning was done during Adhoc policy making. 6) As many businesses had just started operations and were mostly in a single product line, there arose a need for policy making. 7) As companies grew they expanded their products and they catered to more customer and which in turn increased their geographical coverage.
8) The expansion brought in complexity and lot of changes in the external
environment. Hence there was a need to integrate functional areas.
9) This integration was brought about by framing policies to guide managerial
Policies helped to have pre-defined set of actions, which helped people to make decision. 11) Policymaking was the owner’s prime responsibility. 12) Due to increase in the environment changes, in 1930’s and 40’s policy formulation replaced ad-hoc policy making, which led to emphasis shifted to the integration of functional areas in this rapidly changing environment. 13) Especially after II World War there was more complexity and significant changes in the environment. 14) Competition increased with many companies entering into the market. 15) Policy making and functional area integration was not sufficient for the complex needs of a business.
ROLE OF STRATEGIC MANAGEMENT: 1) Due to increase in the competition, in 1960’s there was a demand for critical look at the bane corrupt of business. 2) The environment played an important role in the business. 3) The relationship of business with the environment lead to the concept of strategy. 4) In early sixties, this helped the management to manage between the business and the environment. 5) In early eighties, as many companies were globalised which lead to the competition of the rivals access the world. 6) Japanese companies along with other Asian companies unleashed a force across the world and posed a threat for the US and European companies, which led to the current thinking. 7) Strategic management focused on 2 aspects: • Strategic process of business. • Responsibilities of strategic management. 8) Unlike others, in this phase the role of senior management is vital and of utmost importance. Their role was important in decision-making like a) Whether a company promotes a joint venture/new decision. b) Decides to go for an expansion. c) Takes other important actions. 8) All these actions and decision had a long-term impact on the company and its future operations, which was the result of senior management decision-making. 9) Strategic management is both about the present and future course of action, which was the prime responsibility senior management. Strategic Management is I. The study of function and responsibilities of senior management II. A crucial problem that affects success in total enterprise. III. The decision that determine the direction of the organization and shape of its future IV. Identity and molding of its character V. Mobilisation and their allocation of the resources. Hence as managers had variety of choices, decisions were based on the circumstances, which would take the company in specified directions.
i) Managers should possess high ethical standards in business and focus on social responsibility.IMPORTANCE AND ROLE OF MANAGERS IN STRATEGIC MANAGEMENT: I. management managers should create capability for imitating and manage things through leadership and should possess qualities like patience. e) Managers need to provide speed responses to environmental changes through informational systems and organizational process. Here are few steps Indian managers need to do. For people. managers should foresee the future and track changes in customer expectation. a senior manager can understand the complex inter linkages operating within the organisation and 3 . They should know to deal with global managers. By having generalistic approach. corporate governance is becoming important which manager may have to practice. which is changing the face of business. logic reasoning is required for proper decision-making. Managers need to begin by gaining an understanding of the business environment and to in control. c) To have/take a strategic perspective. II. g) Managers should learn to deal with confused and complex situations. It helps to understand and make sense of complex interaction in various areas of management. f) As corporates are becoming more integrated with the public life. IV. business protocols and market conditions. To be successful in the business one should possess/have holistic approach and should know to integrate the knowledge gained in various functional area of management. Strategic management integrates the knowledge and experience gained in various functional areas. III. managers should have the courage in decision-making to make unconventional decisions. Conclusion Thus we can say the purpose of strategic management is manifold. d) Successful companies depend on people. a) They should know to manage and understand information technology. commitment and perseverance. b) As public and common investors own and more companies managers need to acquire skills to maximize shareholder value. It helps in understanding how policies are formulated and in creating appreciation of complexities of environment that the senior management faces in policy formulation. Intuitive. h) In complex and certain situations.
4. Whether to undertake expansions/diversification To be focused/ broad based How to chart a turn around Ensuring stability/should we go in for disinvestments etc 2. benchmark the best practices. outsource aggressively. The word strategy means “ THE ART OF GENERAL ”. An establishment and successful company would start to face new threats in the environment. What is strategy? At what levels is it formulated? INTRODUCTION: To understand the process of strategic management the concept should be understood and controlled. The term strategy is derived from the Greek word “STRATEGOS” Generalship. According to Alfred chandler the determination of basic long-term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources for carrying out these goals. Managers must make companies flexible. William Gluck defines strategy as “a unified. This is called strategy. 4 . new opportunities may emerge and be identified. To make use of these opportunities. These are called “ strategies “. Before making a decision managers have to look into the course of deciding since Strategy involves situations like a) b) c) d) e) How to face the competition. develop core competencies. For a company to survive and to be successful strategy is one of the most significant concepts to emerge in the field of management. comprehension and integrated plan designed to assure that the basic objectives of the enterprises are achieved”.should have systematic approach in decision-making in relation with the changes which takes place in the environment. as distinct from governing its deployment. respond rapidly. the actions it had been following in the past. 6. It has to rethink the course of action it has been following. Q2. the company might fundamentally rethink and reason the ways and means. 3. With such rethinking and environment analysis. STRATEGY: 1. This is due to its success and emergence of new competitors. 5. Michael Porter views strategy as the “ core of general management is strategy”. Based on the studies and views by various experts and management gurus Strategy in business has taken various connotations. The actual direction of military force.
CORPORATE LEVEL FUNCTIONAL LEVEL STRTEGIES [CORPORATE] SBU1 SBU2 SBU3 (SBU LEVEL) FUNCTIONAL LEVEL STRATEGIES 5 . 10. Growth is achieved by deepening strategy. In order to segregate different units each performing a common set of activities. It is about the trade off between its different activities and creating a fit among these activities. 2. many companies are organized on the basis of operating divisions/decisions. It is concerned with the resource available today and those that will be required for the future plan of action. 9. It can become good and not better. when it would like to reach from its current position.Infact should know how to play new roles everyday. 7. LEVELS OF STRATEGY: 1. the company will organize itself in the form of strategic business units (SBU’s). These are known as strategic business units.e. 8. When a company performs different business/ has portfolio of products. Hyper competition is a common phenomenon that rivals copy very fast. Strategy is the future plan of action. 11. If company focus is only on operational effectiveness. Overemphasis on growth leads to the dilutions of strategy. Strategy is long term. which relates to the companies activities and its mission/vision i. Strategy rests on unique activities –“ The essence of strategy is in the activities – choosing to perform things differently and to perform different activities than rivals”. Companies can outperform rivals only if it can establish a difference it can preserve and deliver greater value at a reasonable cost.
Some of them may be common & some unique to the target markets. finance. Functional level strategies exist at both corporate and SBU level. 2) It’s how the company perceives itself in its role towards the society/ even countries in terms of vision/ mission statement/ a set of needs that strives to fulfill corporate level strategies are then derived from the societal strategy. production etc 6 . Marketing Strategy could be subdivided into sales Strategies for different segments & markets. It should contribute to the functional objectives of marketing function.e. pricing. 1) A relatively smaller company may require a strategy at a level higher than corporate level. what the company as a whole. operational level strategies. Strategies needs should be in align with the company objective. To ensure things there would need to have co-ordination of different business of the SBU’s. 7) For most companies strategies plans are made at 3 levels. Smaller area that provides objectives for a specific function in that SBU environment are marketing. It covers the various strategies performed by different SBU’s. a) FUNCTIONAL STRATEGY b) SOCIETAL STRATEGY c) OPERATIONAL STRATEGY Societal Strategy: Larger Companies like conglometers with multiple business in different countries needs larger level strategy.g. 6) Resources should be allocated to each SBU and broad level functional strategies. 5) CORPORATE LEVEL STRATEGY: It’s a broad level strategy and all its plan of actions is at corporate level i. operation etc. E. one step down the functional level. finance. These are interlinked with other strategies at functional level like those of finance.e. productions etc. production. distribution etc. FUNCTIONAL STRATEGY: As the SBU level deals with a relatively. It has to be aligned and integrated. Operational Level Strategy: In the dynamic environment & due to the complexities of business strategies are needed to be set at lower levels i. There are more specific & has a defined scope.3) Strategies are looked at Corporate level SBU level 4) There exists a difference at functional levels like marketing.
Functional Strategies operate under SBU Level.U Level are put in to action under the corporate level strategy. Operational Level is derived from functional level strategies Conclusion: These are the levels at which strategies are formulated 7 .B.MISSION/VISION LEVEL CORPORATE LEVEL FUNCTIONAL LEVEL STRTEGIES [CORPORATE] SBU1 SBU2 SBU3 (SBU LEVEL) FUNCTIONAL LEVEL STRATEGIES OPERATIONAL LEVEL Corporate level is divided from the societal level strategy of a corporation S.
8 . a personal related factors are important in decision-making. On what Criteria a company should make its decision. The concept of incrementalism. 7. Issues in Strategic Decision Making 1. but often there is a task in decisions which could be Individual Vs Group decision making. 6. 2. 3. a company has to set its objectives which serves as main bench mark. 4. The concept of Maximization. Decisions are not taken individually. The concept of satisfying. There will be a difference between the individual and group decision-making. When it comes to Strategic decision making point of view there would be proper evaluation & then exercising a choice from various available alternative resource. 3 Major Criteria in decision Making are a. 9. Professionals on the B. Hence decision ma y differs as person change.O. Senior management plays n important role in Strategic Management. Creativity in decision-making is required when there is a complete situation & the Decision taken must be original & different.3) What are the Issues in Strategic Decision Making? Explain the role of Various Strategies. 5. Generally decision-making process is logical and there will be rationality in decision-making. They are the link between the company and the environment. perspectives & provide guidance. They are the owners/ shareholders/ lenders. The Company act and other laws blind them and their actions & they sometimes do get involved in operational issues. Role of Board Of Directors: Board of Directors is the supreme Authority in a company. Decision requires judgments. for evaluation of the efficiency & effectiveness of the decision making process. c. 8.D help to get new ideas. They are the ones who direct and responsible for the governance of the company. b. Various Roles of Strategic Management. which leads to attain the objectives in a best possible way. While making a decision the company might have different people at different periods of time. There could be variability in decision-making based on the situation & Circumstances. Based on the concept chosen the strategic decisions will differ.
E. 9 . He is the leader.O as they would look after Strategic Management a responsible of certain areas / parts of terms.E. They are more on the implementation role. Role of Corporate Planning Staff: It provides administrative support tools and techniques and is a Co-ordinate function. Role of Middle Level Managers: They form an important link in strategizing & Implementation. Role of SBU – Level Executives: They Co-ordinate with other SBU’s & with Senior Management.O: Chief Executive Officer is the most important Strategist and responsible for all aspects from formulations/Implementation to review of Strategic Management. A Company can promote the entrepreneurial spirit and this can be internal attitude of an organization. They are more focused on their product / burners line. Role of Consultant: Often Consultants may be hired for a specified new business or Expertise even to get an unbiased opinion on the business & the Strategy. Role of Senior Management: They are answerable to B. They are not actively involved in formulation of Strategies and they are developed to be the future management. They provide a sense of direction and are active in implementation.O.Directors & The C. motivator & Builder who forms a link between company and the board of directors and responsible for managing the external environment and its relationship. Conclusion: These are the issues in strategic decision-making and the role in Strategic Management.Role of C. Role Of Entrepreneur: They are independent in thought and action and they set / start up a new business.
and of continuing importance to the total organization. COMPANY VISION &MISSION/ REQUIREMENTS OF MAJOR STOCK HOLDERS STRATEGIC INTENT EXTENAL & INTERNAL ANALYSIS / SWOT ENVIRONMENT ANALYSIS DEFINE STRENGTHS/WEAKNESS/ CORE COMPENTENCIES GENERATE STRATEGIC ALTENATIVES/ EVALUATE & SELECT IMPLEMENT/ FEEDBACK/CONTROL 10 . which are vital. 2) According to Hofer it’s the process. establish strategic decision create strategies that are intended to help achieve establish goals & execute there strategies achieve Establish goals and execute there Strategies all in an effort to satisfy key organizational stake holders.4) What is Strategic Management Process? Explain each step briefly. renewal & growth with the development of strategies. Here are few definitions of Strategic Management Process. 1) According to Glueck it’s a stream of decisions and actions that lead to the development of an effective strategy/ Strategies to help achieve Corporate Strategies. 4) Sharplin defines as the formulation & implementation of plans and Carrying out activities related to the matters. which deals with fundamental Organisational. Structures and Systems necessary to achieve such renewal and growth and with the organizational systems needed to effectively manage the strategy formulation and implementation process. 3) Ansoff defines it as “ The Systematic approach & important responsibility of general management to position and relate the firm to its environment in a way that will assure its Continued Success and make it secure from surprises”. 5) According to Harrison & St John – Strategic Management is the process through which organization learn from their internal & external environment.
it gives rise to opportunities which can be exploited or it may give rise to threats which can weaken / cause problem to the organization. which leads to the formulation of Strategy/ Set of Strategies & managing thru Organisational System for the achievement of Vision. They are tough needs extraordinary commitment and effort. It is classified into: Audaclous Goals: These are the goals that the company would like to achieve. 2) It gives the Strategic Advantage. SWOT Analysis: External & Internal Analysis: 1. It’s an unborn capacity. 2) Company Mission is what the Company is and why it exists 3) James Parras & James Collins divides Vision/Mission into 2 Parts. It is the character of an organization. Mission Goals and Objectives. this would not change for a longer time even it were disadvantage. Conditions & influences outside the organizations. which needs to fulfill two conditions. Core Values : what it believes in. STRENGTHS/WEAKNESS/CORE COMPETENCIES Strengths: it’s always in relation to the environment. 11 . Company Vision / Mission 1) Company Vision is What a Company Wishes to become or aspire to be. 1) Requirement for success. The External Environment is made up of all the Factors.From the above block diagram it states that Strategic Management is a process. Core Purpose: Existence of Organization and that goes far behind Envisioned Future: Are the goals to be reached. 2. Vivid Description: These Goals are put into words that evoke a picture of what it would be like to achieve the Audaclous Goals. Vision/ Mission Core Ideology Core Values Core Purpose Audaclous Goals Vivid Description Envisioned Future Core Ideology: Is the unchanging part of organization.
E. Superior research where new products & Innovations are required. Implement / Feedback/ Control Implementation is the responsibility of CEO. It gives strategic disadvantage to the Organisation. it develops a fine art of Competition with its rules. it could gain more than the Competitor. 12 . It means that there is a proper evaluation and exercing a choice from various alternative available resources in such a way it may lead to the achievement of company’s objective. This capacity of exercing turns them to core competencies.g. He is responsible from implementation to review of Strategic Management. using these competencies exceeding well. E. Core Competencies: Is developed over a period of time.g. General Strategic Alternatives / Evaluate & Select. Weakness: It’s something required for success is missing/inherent inadequacy.It has strengths more than the competitor. Over dependence on a single product line in a mature market.
Strategic Intent is something more than the unfettered ambition. 13 . Stretch leads to leverage. One has to make use of Innovation and resources. It’s not a soft target.Which means equal blame & credit for both operating levels & top management. Commitment and bit of luck to achieve the target. rather than focusing at the resourcefulness of Competition & their pace at which they are building competencies one has to focus on existing position.5) Explain Strategic intent. 8) There must be a balance between resources as a Constrain Vs Resource as leverage so as to reduce risk. stretch leverage & Fit. that may have led to future. “ What must we do differently next year to get closer to our strategic intent?” 5) Most companies look at change and innovations in isolation 6) Innovations come from everywhere & top Management role is to add value to it. innovation & top Management directs it. 4) The Important thing that a company asks for is not “How Well Next Year be different”? But they ask. 10) Since the current capabilities & resources are not------. 9) It implies a seryable stretch for an organization.it will force inventiveness and the management will keep on involving challenges and they give time to digest one challenge before launching another. According to Prahlad & Gray It forsee’s a desired leadership position and establishes the criteria the organization will chart it’s progress. Former is done through building a balanced portfolio of cash generating and cash consuming business and in the latter a well balanced and sufficiently broad portfolio/ collection of advantages is assured. Introduction: for an effective strategic intent one has to develop effective strategy. 12) Companies with good strategic intent know the importance of documenting failure but instead of blame fixing and nailing people they are more interested in the management reasons and the orthodoxy. 11) One important parameter is reciprocal responsibility . 3) It requires personal effort. 1) Stretch: To Achieve strategic intent one has to stretch forward and has to look at the resourcefulness instead of looking at resources. 7) Strategic intent leaves room for creativity. 2) It Captures the essence of winning & is stable over time.
Strategic fit is conservative and seems to be more realistic but u may not be aware of the potential. Instead of allotting the competitors blindly & taking their head companies must leverage the resources. Fit: Strategic fit is the traditional way of looking at strategy. sustaining that obsession is in quest for global leadership.Leverage: Refers to concentrating on the resources to achieve strategic intent.g. 14 . learning. Canon wanted to beat Xerox. accumulating. Under stretch & leverage Strategic extent could be impossible. experiences & Competencies in a manner to meet the aspirations by stretching the scarce resource that an organizational resource to the environment. It’s an obsession to an organization & it is to win at all levels of the organization. idealistic but under fit strategic something far beyond possibilities and look at the potential possibilities. Thus Strategic intent is what the organization strives for e. Conclusion.
which it is being set. b) An organization sets a combination of goals. shareholders. These Goals must be clear and unambiguous.. g) Objectives are invariably Quantitative and provide clear measures and standards for performance. d) Objectives are set in a way that what the organisation has to achieve for its employees. 15 . and Financial & Non Financial. c) On an organizational level goals are broad in nature and they could set goals on turnover. d) Goals should be limited. challenging but controllable. Goals: Goal – Target a) It’s a target that a company wants to achieve in a future period of time. manageable. Customer satisfaction. c) Objectives make the goals operational and tend to Quantitative in specifications. o) Since its in relation with the environment it needs to check whether they are fulfilling the needs of customers. customers etc. Objectives: a) Objectives are the ends that specify how the goals shall be achieved. returns on assets/equity. and long term & should be linked & consistent. actionable. specific.. f) They are framed in line with the vision/mission of the organization and it helps to pursue them. profits. e) Objectives are in relation with the environment. h) It helps to see whether the Organisation is in right track or not. i) Objectives should be concrete. l) While setting objectives these are the factors to be evaluated. otherwise it may lead to confusion & Contradictions. market share. e) Goals may be Qualitative. j) It must be measurable. They are the brains of Strategic Decision Making. m) There need to be multiplicity of objectives.6) Write a detailed note on Goals and Objectives. Quantitative. Employee satisfaction. medium term. n) It should be formulated at different time frames like short term. and clear& Consistent with each other. It should not be either too narrow or too broad. b) They are concrete and specific and they are in contrast with the goals. which might be Qualitatively. share holders etc. k) There must be co-relation with other objectives. Quantitative in specification. and understandable & should have clearly defined time frame. It should be specific at the level.
The Efficiency of the company comes at the expenses of the efficiency of the company as a whole. and nature of competition keeps changing. 3) The factors in environment may affect the company and visa versa. factors & influences under which someone/something exist. Hence goals & objectives are set for the accomplishment of an organization. Market growth. customer demand. Environment : The Environment of an organization is the aggregate/total of all conditions events that influences itself & it’s Surroundings. 1) Environment – Changes: According to Michael Hommer and James Chapey. 4) It has a great impact on the company. But in today’s world. 1) 2) 3) 4) 5) 6) 7) 8) An Organisation must be flexible enough to adjust quickly with this changing environment. non-competitive. inefficient and losing money because they are not able to adjust themselves with the changing environment. In 1776 Adam Smith described in his book. Few Companies are rigid. nothing is constant or predictable & these principles don’t work. 2) The dynamic & has relationships with each other.” The Principle of division of labour for increasing the productivity and there by reducing the cost of goods. It requires co-operation & Co-ordination within the organization. American Companies became best in the world after applying the principles. It includes both internal and external objects. “The Wealth of Nations. including policies & lower relationship.p) It should be In reality with the organizational resources and internal constraints. the rate of technological change. The three forces that drives company are Customers Competition & Change. 16 . Conclusion: Thus an organization is set up to make Prompt and Accurate decision. 7) What is Environment ? How is it Changing? Introduction : Environment means the surrounding.
Earlier the company could get into market with an acceptable product/service at the best price would go to sell. Hence the companies need to move fast in pace with the changing environment otherwise it’s difficult to move. These days customers come with more specifications and they demand for customized products and they want individual attention.Customers : Earlier days. They offer good quality of products at lesser price and consumers prefer such products. goes high quality and best service becomes standard of all the competitors. which offers these at best price. The Company. But these days customers prefer high quality at lowest price. Hence customers have upper hands these days. It’s difficult for an organization to survive in the long run unless they satisfy customers needs. CONCLUSION: In today’s environment nothing is constant and predictable hence for a company to survive in the long run. 17 . Customers had little choice they used to buy the product that was offered to them. Changes : Changes has become both pervasive and persistent because companies face a greater competitors and each one introduces a product and service innovation to the market with the globalisation of the economy. the competition rises. Competition : As many companies emerges. it has to satisfy customer needs and cope with the changes in the environment at a faster rate.
It leads to competition where weakness can be used to gain more due to inherent limitation / constraint/inadequacy. which can be accomplished.Q8) Explain the process of SWOT analysis? Elaborate what you would study in the environment? INTRODUCTION The external environment is made of factors. 2) Lack of capabilities for the development of new product. conditions that influences outside the organization. which becomes threat to the organization. It gives strategic disadvantage and something that required for success is missing. OPPORTUNITY: can be accomplished and can help to consolidate and strengthen the organization. or it may cause problems to the organization. Innovation and new products are required for superior research and development facilities.It is an inherent inadequacy that is again in relation to the environment. S – Strength W – Weakness O. SWOT ANALYSIS: The internal environment refers to all factors within the control of and within the organization. which is potentially risky for a company during the time of crisis.1) In a mature market over dependence on a single product line. The external environment gives rise to opportunities. It’s a favorable condition for an organization in its environment.g.g. For an organization to be a success it requires strength and it gives strategic advantage to gain more than the competition. These factors may impart strengths that can be utilised by the organization or cause weakness. E.Opportunity T – Threats Strength: –It is an inherent capacity that is in relation to the environment. 18 . E. Weakness: .
threat. E. Due to better GDP growth a company provides increase in demand for the products/services. weaknesses important for existence. Business ethics after scams. It helps in strengthening its position. greater transparency. growth and profitability of an organization. stricted auditing norms. Due to opening up of economy. offers stiff competition to the existing companies in an industry. strength.g. THREATS: when the opportunities are not utilized properly it can cause problem to the to the organization which causes threat. 19 .g.g. 3) Issues: are the current concerns that arise in response to events and trends. nuclear families etc. which are stronger and has good resources. It causes risk/damage to an organization. Like corporate governance. Environment to be studied 1) Events: Is some specific occurrence that takes place in different environmental sectors. They are he course of action along which events take place like global warming. A systematic approach and understanding the environment is SWOT analysis all about. CONCLUSION An understanding of both internal and external environment in terms of opportunities. 4) Expectations: are the demands made by interested groups in light of their concern. It is unfavorable condition for the organization.E. E. Pollution Control. the emergence of multinational companies.g. Bilateral agreement between 2 countries in which the company is operating and facing competition from local companies. E. 2) Trends: is the way the environment is shaping up.
e. 2) Synergy – Total (is greater) sum of the parts. collective learning and coordination of diverse production skills and deep involvement and commitment to work and delivery of value across all levels and functions. 8) Root is akin to “Core Competence”. fruits are the end product. 9) Core competence is communication. 5) Core competencies have joined greater currency and popularity as per C.K Prahaled and Gary Hamel. What are the core competencies and organization capabilities? CORE COMPENTENCIES: 1) An organization with its resources and the capacity of converting the resources in to outputs and the behaviour of there (i. 12) Building competencies are not sharing costs by SBU’ (or) out pending rivals on R and D 20 . 4) It’s a fine art of competing with its rivals over a period of time and it uses these competencies to exceed well. 10) Core competencies are the glue that binds existing business and guide market entries instead of market attractiveness.Q9.e provides potential access to wide variety of markets and significant contributions to the benefit of the end product difficult for competitors to imitate. In terms of organizational competencies it manifest themselves in advantages over competition. What are not easily visible and apparent – are the core products and leaves. 7) A diversified company is like a large tree. 3) Competencies develop over a period of time. It’s a portfolio of products/services/different business. which their combined lead to synergistic effects. The capability of using these competencies to exceed well turns them into core competence. capability and resources) develops certain strength and weakness. 11) Core competencies can be identified by conducting 3 tests i. 6) In short run competencies for a company is derived from the price performance and in longer run it’s the ability to build at lower cost and speedily than others. flowers.
and Information Management & General Management. General Management methods & Techniques. Price Place & Promotion related factors how it generates systematically. Product. usage. The retrieval. bench marking. Factors that lead to information management capability are integrative. 4) Organisational capability includes Financial. organizational & employees Characteristics. 13) ORGANISATIONAL CAPABILITY: It’s the inherent capacity of an organization to use its strengths and overcome weakness to exploit opportunities and face threats in the external environment. their cost & availability. Acquisition. Factors leading to personal Capability are industrial & personnel relations. Operations. Comparative analysis. Factors influencing personal capability are R & D System.By not building competencies in emerging markets you may lose the chance of competing in existing markets. Marketing. Factor governing marketing capability are the from P’s i. Personnel. Comprehensive Analysis using new tools Balance score card/key factor making. 1) Financial Capability: 1) 2) 3) 4) 5) 6) Source of Funds – How well the company can raise funds. transmission & dissemination of information. processing. industrial norms. It’s important to maintain the competencies even it not active in the market.e. 2) It’s comparable & it’s very difficult to measure the capability of an organization. 1) 2) 3) 4) Value Chair Analysis Qualitative & Quantitative analysis both financial non financial. synthesis. production & Control Systems. To carry at the organizational study internal analysis tools can be used as mentioned below. systematic & supportive factors. 21 . Management & use of funds – how optimally it utilizes the funds where and how they are used. 3) Strategist would like to know what capacity exist within the organization & what potentials should be developed so that opportunities can be exploited & how it can face threats.
Q.Conclusion: These are the factors that influence them.10) 22 .