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Business Strategy

BBA (202)

ASSIGNMENT

WINTER 2014-2015

RISHAB VATS (BBA 2)

ROLL NO. : - 1405010610

Q1. Explain the following

(a) Functions of Business Strategy

(b) Strategic Analysis

Ans: (a) Functions of Business Strategies

1. Vision formulation
The vision of the organization combines 3 basic elements-the
organisation’s reason for existence, its core values and the
huge but achievable goals, which the organisation has set for
itself in the future. It needs to be descriptive and reachable. The
vision statement spells out the core purpose of the company.
2. Knowledge of mission
Mission is board-based and seeks to create an image of the
country on the basis of its core values. The mission statement
of the company on the basis of its core values, beliefs and
philosophy of the company.
3. Setting of objective
An objective is the end result of what the firm wants to achieve
in the long run. It helps to provide direction, co-ordination and
motivation for its members to pursue the benchmarks or
success. Objectives help to keep the organization on the right
track.
4. Goal definition
Goals are close-ended. They are specific and concise. Goals
can be short-term, medium-term or long-term. They must be
measureable, achievable, related and time bound. The
achievement of goals indicates that the organization is
proceeding along the right course of growth.

Q2. Define strategic management. What are the causes for failure of
Strategic Management?

Ans: Definition of Strategic Management

Strategy is an action that managers take to attain one or more of the


organisation’s goals. Strategic can also be defined as “A general
direction, set for the company and its various components to achieve
a desires state in the future. Strategic results from the detailed
planning process”.

Causes for failure of Strategic Management

a) Strategic management is always based on certain


fundamental premises. If these premises do not hold good,
the strategy or the plans based on them would be unrealistic
or ineffective.
b) Strategic management is only a means to achieve the
corporate goals. So, if there is lack of realism it will be
reflected in the strategic. In other words, we should always
remember to be realistic while framing our mission statement
or declaring our objectives and not highly optimistic.
c) Many a time, the young Managers try to be over-ambitious
and start dreaming of success over night by adopting
strategic management techniques. This results in failure to
reach the goals set and causes frustration.
d) Sometimes, the management may be always chanting the
‘mantra’ of strategic management and overlook or ignore
several lucrative opportunities and thereby fail.
e) Failure in implementing the strategy effectively will end up in
producing poor result. Let us remember the plight of a
patient who has not taken the best medicine prescribed for
his illness grumbling about the sickness.
f) Strategic planning requires high level of caliber, experience
and knowledge with the best vision. If people do not have
adequate experience, expertise and commitment, the
business organization may not succeed.
g) Often people complain about the cost associated with
planning and implementing, ignoring the benefits derived in
the medium and long term.

Q3. Write short notes on the following

(a) Core competencies and their importance


(b) Strategic leadership

Ans: (a) Core competencies and their importance

Core competency has been defined as “The collective


learning and coordination skills behind the firm’s product
lines”. The core competencies of an organisation led to the
development of core products, which in turn, can be used for
personalization of products for ends users. Core competencies
are also essential to succeed in global market. When the core
competencies are matched with the market opportunities, new
businesses are created. By combining and matching core
competencies to market opportunities, multiple business units
together so as to form a comprehensive to market portfolio.

(b) Strategic leadership

Strategic leadership refers to those leaders who are


responsible for the creation as well as the implementation of the
strategic vision of the organisation. A strategic leader has to be
effective on both the analytical and the human dimensions of
the organisation. He should be capable of understanding the
aspects of business as well as the minds of his employees. The
challenge faced by the strategic leader is not just the question
of adopting the winning strategy but also to ensure that the
employees are motivated to understand and execute the
strategy.