ASSIGNMENT A

Q1. How do you differentiate between strategy and strategic management? What is your
understanding of Policy? Write down source definitions of strategic management.
Strategy is defined as the unified plan designed to achieve goals and objectives. This plan is
conducted after understanding the environment and system. Strategy is the process of providing
a trick so as to reach the destination with saving in time, cost, resources and energy. Strategy is
all about providing a course of action and every strategy is how to beat the competition. Strategy
is all about providing a right set of tools and techniques to make sure that the process of success
is well defined. Strategy is a tool in every initiative we take up with. It starts with proper
understanding o environment and creating a strategy requires providing a option for
understanding the decision and providing solutions for each of the type. Strategies are done at
corporate, business and functional level.
The term strategy is derived from Greek word Strategos which means Generalship i.e. The
science or art of planning and directing large scale military movements and operations. In
business parlance strategy may be defined a stream if management decisions that determine the
purpose and direction if the enterprise. These management decisions serve as a route may to
guide the enterprise towards its desired destination as specified in its mission statement.
Example of strategic decisions include:(i)
(ii)
(iii)
(iv)
(v)

Financing if business
Pricing if products to gain competitive advantage in the market place
Diversification, acquisition and divestment
Retrenchment of employees
Recognition if trade unions etc

Strategy is the directions and scope of an organization over the long term which achieve
advantages for the organization through its configuration if resources within a changing
environment, to meet the need of market and to fulfill stake holder expectations.
Strategic Management: It is all about creating a mission understanding, the environment
analyzing the environment institutionalizing the strategy, controlling and evaluating, whereas
institutionalizing means way if doing a practice and uses. Strategic Management requires a
proper way if evaluating and controlling by use of various types if strategies defined strategic
management as a stream of decisions and actions which leads to the development of an effective
strategy or strategies to help achieve corporate objectives.
Policy: The implementation of strategy requires development of functional policies. These
provide direction to middle management on how best to make use if the resources allocated.
They guide middle managers in devising operational plans and tactics to make the strategy work.
Policy is only guide to action. It does not provide prescription on how to handle specific
situations like introduction of specific products or dismissal of a particular worker. Policy is the
general guidelines which help managers to make certain choices. Policies are developed to
ensure that strategic decisions are implemented. It channelizes organizational efforts. It leads to

the achievement if goals, objectives, purpose and mission if the company. Firms environmental
factors, internal policies and power play, all affect the policy making process as the policies
decided will ultimately influence the distribution if resources. Also internal resistance to change,
coalition building and conflicts between units are likely to occur during the development of
policies. Specialists in each functional area develop plans and policies. The functional areas
have traditionally been classified as production, marketing, finance and personnel.
Strategic decision making is the most important functions if any manager. Strategic decision
making is the prominent task of the senior management. In the process of strategic mgt the basic
thrust of strategic decision making is to make a choice regarding the courses if action to adopt.
Thus, most aspects of strategy rest on strategic decision making. The fundamental strategic
decision relates to the choice of a mission. In other words, answers to questions.
What is our business? What will it be? And what should it be? Are the basic concerns in
strategic management? Finally, at the level if choosing the strategy, the senior managements
chooses from among a number of strategic alternative in order to adopt one specific course if
action which would make the company achieve its objective and realize its mission. Senior
management has to make important strategic decisions with regard to environmental threat and
opportunities, companys strength and weakness, resource allocation etc. Thus, strategic
decision making joins the cores of strategic management.
The characteristics of strategic decision
1. Strategic decisions are likely to be concerned with the long-term direction if an
organization.
2. Strategic decisions are normally about trying to achieve some advantage for the
organization over competition. For e.g. The merger was expected to give manager
advantage in the music industry to the extent that it could transformer the way in which
music was sold and distributed and how artists received payments. In other situations
advantage may be achieved in different ways and may also mean different things. For
e.g. In the public sector, strategic advantage can be thought of as providing better value
for money services than other providers thus attracting support and funding from the
government. Strategic decisions are sometimes conceived of, therefore, as the search if
effective positioning in relation to competition so as to achieve advantage.
3. Strategic decisions are likely to be concerned with the scope of an organizations activity.
The issue if scope of activity is fundamental to strategy because it concerns the way in
which those responsible for managing the organization conceive the organizations
boundaries. This could include important decisions about product range or geographical
coverage.
4. Strategic decisions are likely to affect operational decisions. They are extremely difficult,
complicated and, at times intriguing and enigmatic process specially in organization with
wide geographic scope such as multinational firms or in firms with wide ranges if
products and services. Strategic decisions can involve a high degree of uncertainty.

Definitions of strategic management Strategic management includes understanding the

strategic position of an organization, strategic choices for the future and tuning strategy into
action. It is also defined as a stream if decisions and actions which lead to the development of
an effective strategy or strategies to help achieve corporate objectives.
Hofer and others considered strategic management as the process which deals with fundamental
organizational renewal and growth with the development if strategies, structures and systems,
necessary to achieve renewal and growth within the organizational system needed to effectively
manage the strategic formulation and implementation process.
Strategic mgt can also be defined as the formulation and implementation of plans and carrying
out if activities related to the matters, which are if vital and continuing importance to the total
organization.

Q2. What is vision and mission? Enumerate its elements. Write down your companys
vision and mission statements and discuss whether they fit into your definitions. What are
goals and objectives? What are the main features of objectives? State factors affecting
objectives. Distinguish between official and operative objectives.
Vision It is desired future state on the aspiration if the organization.
Mission
The corporate mission statement describes the firms basic purpose i.e., why it
exists, how it sees itself, what it wishes to do, its beliefs and its long term aspirations. The
mission statement therefore informs everyone if the corporate vision and purpose, the firms core
values and its role in the society. It should also provide a good statement of the business
definition if the firm by specifying the products, functions and markets it expects to serve. A
clear business definition provides a better focus when top management considers various
strategic alternatives with respect to products, service or markets.
Examples of few mission statements include:1.

Tata Information System To be Indias most successful and most respected IT

Company.

2.

Ranbaxy To become $1 billion research based global pharmaceuticals company.

Mission can be defined as the overriding purpose in line with the values on expectations
of stakeholders.

Goals: These are the general statement of purpose.

Objectives: Objectives are the ends which the organization strives to achieve in order to fulfill its
mission. Examples are:1.
2.
3.
4.

Increase in the market share.

Growth in profits
Quality products or services to customers
Service to society.

Objectives should be specific, measurable, attainable and time bound. They provide standards
against which to measure organizational performance. When expressed in specific terms
objectives become goals. Objectives are open ended attributes whereas goals are closed ended
attributes. The objectives if a firm is formulated by the top management.
The following factors influence the formulation if objectives:1. The forces in the environment which are represented by the firms stockholders. These
comprise the owners, shareholders, governments, trade unions, competitors and suppliers.
2. The enterprises resources. Larger firms have nine resources to combat forces in the
environment.
3. The internal power relationship amongst the top managers. The extent of support
management enjoys if others in the organization e.g. Employees, stockholders etc will
determine the degree if influence.
4. The past objectives of the firm. These are generally taken as reference by top managers
to set current objective. The changes to the past objectives may be incremental in nature
depending on the competing claims presented by the stake holders.
Q3. What are the basic social obligations of a business organization? Do these conflicts with
the profit objective of the business? What is social audit? Analyze the mission and
objectives of your own organization. Evaluate and write down to what extent does the
organization follows social responsibility and its objectives?
Corporate social responsibility demands that firms behave as good citizen while pursuing
purely commercial goals. The firm should conduct themselves on the basis of certain
fundamental principles. Source of the commonly accepted principles are :1.
2.
3.
4.
5.
6.
7.

Concern for the quality of life including life at work.

Concern for the physical environment.
Fair reward for effort and enterprise.
Interest and involvement in activities of the wider community.
No mis-representation in advertising on fraudulent activities.
No unfair discrimination in hiring promotion or dismissal of employee.
Compliance with laws and established customs of the community.

Many large, profitable firms, however, opt to behave in socially responsible ways as co-operation
and support of the community is vital to their long term survival and commercial success.
Source of the benefits that accurse from such involvement are:1.
2.
3.
4.

Projection of a green image which is good for business and leads to higher soles.
Sponsorship of charitable and community events attracts valuable publicity.
Firms image as a good employer helps to attract and retain high caliber workers.
Use of energy conservation and anti pollution environmental methods leads to reduced
production.
5. Cost and increased corporate efficiency.

Q4. What is the concept of environment? Search the library and other sources of
information to predict the type of environment managers are likely to face ten years hence.
Analyze the environment scanning process in your own organization and evaluate how it
will face the environment which is fast developing as per your analysis above?
To a business firm environment means the sum total of conditions, events and influences that
surround and affect it.
The environment in which a business firm exists may either be internal or external. The internal
environment refers to all factors (players) within an organization which could provide strengths
or weaknesses of a strategic nature.
The players in the internal environment comprises if stakeholders i.e. Owners, share holders,
competitors etc, and the influences exerted by them.
The external environment on the other hand consists of various forces which may either present
an opportunity or pose a threat to the firm. Typically these external forces exist in the following
sectors: Political
Social
Demographic
Economic
Supplier
Technology
Physical.
Characteristics of environment

Environment is complex The environment consists of a number of factors, events,

conditions and influences accusing from different sources.
Environment is dynamic. - The environment is constantly changing in nature.
Environment is multifaceted - What shape and character the environment assumes
depends upon the perception of the observer.
Environmental scanning is normally carried out by means of a search of verbal and
written information, spying, forecasting, MIS etc.

The sources of verbal and written information include:

Mass media such as radio and television.

Firms documents, files, MIS, employees etc.

External agencies such as the government, trade associations, marketing

intermediaries, customers etc.

Formal studies by consultants, educational institution, markets research agencies etc.

Spying through services of professionals agencies, ones employees and former

employees of competition.
Secondary sources of information such newspapers, magazines, trade journal,
government publications etc.

A wide range of methods and techniques are used in conduct of environmental survey and
forecasting in strategic planning. As the main purpose of environmental survey is forecasting the
future state of environmental factors, most of the techniques are based on the statistical methods
used in forecasting.
Q5. Explain the role of SWOT analysis as the tool of facilitating strategic choice at the
business level. How is it similar/dissimilar to the grand strategy matrix and the matrix of
grand strategy clusters?
SWOT is the acronym for strengths, weakness, opportunities and threats. Typically strength
and weaknesses exists within the organization whereas opportunities and threats and normally
encountered in the external environment.
A few examples of areas where opportunities may be present are:1.
2.
3.
4.
5.
6.

International market.
mergers or acquisition of competing fairs.
Introduction of new production/ services.
Development of new markets on penetration of existing one.
Control of distribution network.
improvement of relation with suppliers

A few examples of areas where threats may emerge are;_

1.
2.
3.
4.
5.
6.

Competitions.
Governments legislations
Technical obsolescence.
Sudden changes in customer preferences
Over- dependence on main suppliers in margin customers.
Volatility in on collapse of the stock market.

A few examples of sources of strength and weakness existing within the form jerm are :1.
Customers relations.
2.
Production efficiency
3.
R &D skills. (e.g. New product development)
4.
Quality control and quality assurance.
5.
Distribution network.
6.
Advertising and sales promotions.
7.
Market researches facilities.
8.
Cash flow management.

9.
10.
11.

Organization culture.
Human resource potential.
Corporate image, social responsibility and brand equity.

SWOT ANALYSIS :- The two projects ETOP and SAP, can be merged and analyzed to narrow
down the strategic alternative to once which feasible.
By way of illustration of SWOT profile, of a hypothetical firm in the software business is show
as:ETPO sector impact
Government
Market
Supplier
Technological
International

SAP impact factor

Finance
Marketing
RAO
Personnel
management

ETOP profile of a Hypothetical firm

Based in the above information it may be such that the firm has definite strength in the functional
areas of corporate capabilities and resources. The environment shown the domestic market to be
sluggish. As government policies are favorable and international market shown potential, the
firm should intensify marketing efforts to attract orders from abroad. The expansion strategy
appears to offer a feasible approach competence and financial and personnel resources.
Firm may also consider suitable merger acquisitions, as a part of the expansion strategy, provided
substantial synergy benefits are likely to accrue. Any strategy formulated through the SWOT
analysis technique will depend on certain other factors as well. A strategy of expansion will only
be selected provided to management has an inclination for risk-taking. Prior to making a
strategic choice various subjective factors will need to be considered when analysis that emerge
from the SWOT analysis
ASSIGNMENT B
Q1. What is core competence? Explain with some examples. Can you list your companys
core competencies? What is organizational culture? Why is it important?
Core competencies are the basis upon which as organization achieves strategic advantage in
terms of activities, skills or know show which distinguish it from competition and provide value
to customers or clients. On the basis of its resources and behavior, an organization develops
certain strengths and weaknesses which when combined lead to synergistic effects. Such effects
manifest themselves in terms of organizational competencies. Competencies are special qualities

possessed by an organization that make them without and pressures of competition in the market
place. In other words, the net results of the strategic advantages and disadvantages that exist for
and organization determine its ability to compete with its revolts. Other terms frequently used as
being synonymous to competencies are unique resources, core capabilities, invisible assets
embedded knowledge, and so on. To identify a cone competence, Prahalad and Hamel prescribe
three tests:1. It should be able to provide potential access to a wide variety of markets
2. It should make a significant contribution to the perceived customers benefits of the era
product
3. It should be difficult for the competition to imitate for example Canons core competence lies in optics ,imaging and microprocessor controls
Sonys in miniaturization
Philips in optical media
3 ms in stick tape
Hondas in engine and power trains etc. The core- competencies of this cooperation have
enabled them to operate in diverse markets offering different products. In instance, canon
has entered into, and even dominates, diverse markets such as copies, laser printers,
cameras and image scanners.
Nandas if Escorts in light engineering,
Reliance industries in skillful project management and execution.
S Kumar in textile processing.
Kumar Mangalam Birla, of the AV Birla group, sees the groups core competencies in a
wide array of skills related to process industries, project management, operations, raw
material sourcing, distribution and logistics, setting up dealer networks commodity
branding, and raising finance at a competitive cost.
The idea of core competence is brilliant way to focus upon the latent strength of and organization
yet they cannot be taken for granted. Over reliance, on core-competence to the extent of
becoming prisoners of ones own excellence my result in strategic- myopia.
Core competency save a useful purpose if they are used to develop sustained strategic advantages
though building up organizational capability, which is such total of resource and behavior,
strength & weakness, synergistic efforts occurring in and the competence of any organization
Organizational culture: This is a dimension of climate that leaders help to develop. The culture
of an organization consists of customary ways of doing things and its members shared
perceptions of issues that affect the organization. A firms culture evolves gradually.
It affects:

Leadership styles

Individual perceptions of colleagues and situations.

Assumption about how work should be performed.

Attitudes towards what is right or wrong. Organizational culture may be innovative, conservative
or a mix to two. It creates norms of behavior, attitude, and perception, myths, feelings etc.To
change the existing culture of an organization may require injection of new staff, incentive
schemes for acceptance of new working methods, whole hearted management support of new
ideas etc. Organizational culture is the set of important assumption often unstated that
members of an organization share in common. There are major assumptions in common: beliefs
and values. Believes are assumption about reality and are divided and reinforced by experience.
Values are assumptions about ideals that are desirable and worth striving for. When beliefs and
values are shared in an organization, they create a corporate culture.
The manifestation of corporate culture in as an organization is evident in:Shared things (e.g., the way people dress)
Shared saying (e.g., lets get down to work)
Shared actions (e.g., a service oriented approach)
Share feeling (e.g., land work is not rewarded him)
These shared assumptions can help to decipher the composition of the corporate culture
of any organization
Culture is a strength that can also be a weakness. As a strength, culture can facilitate
communication, decision making and control, and create cooperation and commitment. As a
weakness, culture may obstruct the smooth implementation of strategy by creating resistance to
change. Politicized organizational environment, promoting bureaucracy in preference to
creativity and entrepreneurship and unwillingness to look outside the organization for best
practices.
There are three factions that seen to contribute to the building up of a strong culture there
are:

A founder or an influential leader was established desirable values.

A sincere and dedicated commitment to operate the business of the organization according to
the business of the organization according to the desirable value.
A genuine concern for the well being of the organizations stakeholders. Managerial
behavior arising out of corporate culture car either facilitates or obstructs the smooth
implementation of strategy. A major role of the leadership within an organization is to create
an appropriate strategy culture fit.

Q2 Explain the role of three behavioral considerations in strategy examination and chaise.
What are the advantages of centralization and decentralization? How does having
exceptionally competent people at lower levels in the organization facilitate
decentralization?
Glueck has defined Strategic choice as the decision to select from among the alto nature grand
strategies considered the strategy which will best meet the enterprises objective. Strategic
choice is an analytical as well as judgmental task. So performer the task the frail relies heavily
on its marketing research and marketing information systems. This is so because strategies
choice finally boils down to choice of products and markets that the fearing will play in. The
selection factions car is classified as objective and subjective factions. The objective factors
which are based our analytical technique are also referred to as rational normative is prescript
facts. The subjective factors, on the other hand, are qualitative in nature and based on personal
judgment. These factions are also referred to as intuitive or descriptor faction. The strategic
alternative generated are armload our basis of the objective and subjective selection faction.
Leadership Implementation: - Leaders are important to an organization as they help it cope
with change. They ensure that plans and policies formulated are implemented as planned. The
successful implementation of strategy chosen will need to be ensured by selecting the right
strategist in the right place at the right tire. The criteria employed will include such factors as
education, abilities, experience, temperament and personality. The farina must ensure the
strategy chosen and the CEO. So complete and grow in global market places joins must
concentrate on being creative and innovative and to achieve this they will need people centered
leaders not the old style authoritative managers.
Organization Development (OD): OD is an aspect if leadership implementation that involves
charge processes. It is defined as a large range effort to improve an organizations problemssoling and renewal processes through a more effective and collaborative management of
organization culture. To implement change consultants use a variety of techniques which include
survey feedback, confrontation meetings, team building selections, transactional analysis etc.
Must sewing has suggested there stages for overcoming resistance to change: Unfreezing: - resistance rid of existing practices and ides that stand in the way of change.
Awareness of the need and benefits of change can be introduced through the OD
techniques.
Changing:-Teaching employees to think and preformed differently.
Refreezing- Establishing new moors and standard practices. Refreezing involves the
consolidation and stabilization of the new change.
Corporate or core value are of paramount importance when building or lasting firm. These are
small set of guiding principle not to the comp outlined for financial gain or short their
expediency values run deep they are timeless guiding principles that drive the way a their
operates. Corporate values are the fundamental beliefs on which the farina is built. They are
the essence of a just identity. They are long lasting and serve as a beacon for firm to chain their

business course values and nouns and nouns are truly invisible and often an firms employees are
not very aware of their culture or the role they play in helping to maintain it.
However every fern does have its our culture and its own set of values sometimes these are not
clear to outsiders in ever to those within value drives business firm must articulate their values
clearly so that the stakeholders understand what the organization stands for.
Centralization:-The organization is dominated by either a very powerful individual or a
dominate small group strategic decisions and many operational Owen are made by the centre and
very few are devolved to other managers. Such an organizations ability to respond to
environmental change becomes limited. There is power culture in centralized organization
power culture is common in small entrepreneurial organization.
Decentralization- The organization is run by rules and laid down precedences. These
organizations resound slowly to change due to slow decision making process. it has role culture
which is common in traditional bureau races such as government departments. The task of
management in a role culture is to manage procedures.

Q3. Explain the relationship between renounce commitments to strategy activation? It is

said, People are not like other resources. Take a position and defend it. Distinguish
between Power and Politics?
It is said, People are not like other resources take a position and defend it Distinguish between
power and polities. Consisting of board of directors the CEO or managing director, and
executive committee could decide the requirements and distribute resources accordingly.
Top-Down approach - is usually adopted in an entrepreneurial mode of strategy implementation.
Bottom-Up approach - Resources are allocated after a process of aggregation from the operating
level.
Strategic budgeting - It is a mix of the above approaches and involves an iterative from of
strategic decision making between different levels of management. Besides the strategic budget,
there are several other means of resource allocation such as BCG matrix, PLC and so on.
Making a Strategic Budget:
Power is defined as the ability to influence others and power within an organization is derived
from five types of sources.
Reward Power arises from the ability of managers to reward positive outcomes.
Concise
Power arises from the ability of managers to penalize negative outcomes.
Legitimate Power arises from the ability of managers to use position to influence
behavior.
Referent Power arises from the ability of the managers to create a liking among
subordinates due to charisma or personality.

Expert Power arises from the managers competence, knowledge and expertise that is
acknowledged by others.

Strategists use one or nine of these power to influence the behavior of organizational members.
Politics is concerned with the use of power and relates to managing coalitions, consensus
building, and the creation of commitment to organizational purpose and mission. The nature of
organization itself creates the conditions for corporate politics to manifest itself. Corporate
politics is the carrying out of activities not prescribed by policies for the purpose of influencing
the distribution of advantages within the organization.
For everyone manger that considers corporate politics and the use of power as bad, there could
be another manager who feels that it is good. So, despite source well-meaning managers
shunning it, politics remains a part of the organization. Political considerations and use of
power, therefore, are a part of behavioral implementation by strategists. Politics is related to the
use of power but it is not similar to it. Politics and power may be thought of as a means for the
achievement of organizational objectives. They affect the way a strategy is formulated and
implemented.
ASSIGNMENT B
CASE STUDY
Question: It has been observed that WS industries strategic success has been the synergy
it was able to establish with its competencies to supply core components and its competitive
advantage in terms of price.
Yes, I agree with the view that WS industries strategic success has been the synergy it was able
to establish with its competencies to supply core-components and its competitive advantage in
terms of price? Since competing for end products like lightening conductors, surge arrestors and
capacitors was impossible on the multinationals home territory for WS industries. WS industry
adopted the strategy to join the competitors and make them partners instead of competing with
them. WS industry identified its core-competency which was their knowledge of the physical
and chemical process involved in mass production of electrical insulating porcelain, which was
their major strength. Insulators being labor intensive product, WS could often international
quality at competitive prices. WS industry decided to supply their core components to the
original equipment manufacturers and end users.
Mr. V Srinivasan, vice Chairman and Managing Director of the company, made personal visits to
companies in Europe, where he found that executive were open to the idea of buying insulators
from India, as they were faced with rising costs at home and WS represented the opportunity to
lower their production costs.

This strategy was successful and it was evident from the companys exports turnover. The
company repeated the performance in the US market after which the company entered into a
collaboration to set up a plant in Canada.

ASSIGNMENT C
Q1.

Yes

Q2.

Yes

Q3.

Yes

Q4.

Yes

Q5.

Yes

Q6.

Yes

Q7.

No

Q8.

Yes

Q9. No, Skills and abilities required will be mental ability, analytical ability, oral and written
communication skills.
Q10. SBU is Strategic Business Unit.
Q11.

Yes

Q12. Yes
Q13. No
Q14. Yes
Q15. No
Q16. No
Q17. Contingency strategy is required as backup in situations where the occurrence of an event
or its timing cannot be predicted.
Q18. No
Q19. Yes
Q20. Functional policies
Q21. No

Q22. Yes
Q23. No
Q24. Yes, the steps of strategic implementation are as follows.
Resource allocation
Leadership implementation
Structural implementation
Functional implementation
Behavioral implementation
Q25. Yes
Q26. No
Q27. Yes
Q28. Yes
Q29. Yes
Q30. Strategic control continually monitors strategy in the context of organizational and
environmental change and take necessary steps to adjust the strategy to the new requirements.
The two techniques used to evaluate strategic control are:(a)

Strategic momentum control and

(b)

Strategic leap control.

Q31. Operational Control is aimed at allocation and use of firms various resources. The
evaluation techniques for this type of control system are based on internal analysis neither than
environmental scanning. These include financial analysis ratio, budgetary control, MBO,
network techniques like PERT and CPM etc.
Q32. Strategic Review and Control
Q33. Yes
Q34. Yes
Q35. Performance gap is the gap between the expected outcomes of continuing with the
existing strategy and the desired outcomes which could result in the future if the new strategy
were to be implemented.
Q36. Yes

Q37. These are basic types of strategic controls.

Q38. No
Q39. Yes
Q40. Yes
Q41. Yes, Structure of a firm can influence its strategy formulation process.
Q42. Yes
Q43. Yes
Q44. No
Q45. Yes