CHAPTER -01

STRATEGIC MANAGEMENT
COMPILED BY- CANOTESCOMMUNITY
(MUKUND CHAUDHARY-6299068892)
GUIDED BY- CA MEETA MANGAL
Strategy : plan of action designed to achieve desired result. Strategies are
means of achieving organisational goals and objective.
Management : getting work done by others
Q. Define Strategic management.
* Managerial process of forming a strategic Vision
* Setting Objectives and goals
*Crafting/formulation of a strategy
*Implementation/execution of strategy
*Evaluation and control

1.Corporate level/strategic level-formulation of strategy so, organisation can

achieve the goal.
Effective people formulate sound strategy.
Ineffective people formulate strategy with errors and flaws.
2.Business level/divisonal level/management level
3.Functional level/operatonal level-implement the strategy
Efficient people will do excellent implementation
Inefficient people will do weak implementation
Q. Relationship between strategy formulation and strategy implementation

Change in strategy- redesign

Change in implementation- readjustment
Square B - it is an identical situation where a company has succeeded in
designing sound strategy as well as excellent implementation
Square A- here the company has formulated a very competitive strategy but
showing difficulty in implementation. once the implementation difficulties are
solved the company can move from square A to square B.
Following are factors which can affect implementation
1.Lack of experience
2.Lack of resources
3.Missing leadership
Square D- Here, strategy formulation is with errors but company is showing
excellent implementation skills. in this situation first thing we must do is to
redesign their strategy before readjusting their implementation skills.
Square C- here the company have not succeeded in coming up with sound
strategy formulation and in addition are bad at implementation also. Their
path to success goes through redesign of strategy and readjustment of
implementation.
CORRECT/ INCORRECT
Q. sound strategy and excellent implementation guarantees sure and shot
success
Ans: incorrect, nobody can guarantee success as organisational environment is
dynamic and it is not feasible to accurately predict the future environmental
conditions.

Q. Relationship between Efficiency and Effectiveness.

Or
Relationship between operational management and strategic management

Cell 1: organisation in cell 1 is well placed and thrives.

Cell 2: It is the worst place to be then cell 4
An organisation in cell 4 or cell 2 will die unless it establishes some strategic
directions.

Q. Difference between strategy formulation and strategy implementation

Business environment
1. Analysis of environment
Q. Define corporate strategy.
Corporate strategy is a gameplan management is using
1.to achieve organisational objectives
2.of having position in market
3.by conducting operation
4. so as to attract and satisfy customer
5. to compete successfully.
Q. What are characteristics of corporate strategy?
1. Flexible and dynamic
2. strategy deploys limited organisational resources in the best possible
manner
3. strategy helps in reducing organisational uncertainty and complexities
4. strategy ensure right fit is achieved between firm and environment
5. strategy are formulated at corporate, divisional, functional level.
6. strategy is not substitute for sound, alert, and responsible management.
-strategy can never be perfect and flawless
-even in sound strategy allowances are made for possible miscalculation and
unanticipated events.
7. strategy is partly proactive (well prepared in advance) and partly reactive
(acting as per the situation).

A company’s strategy is blend of

a) proactive actions on the part of manager to improve company’s market
position and financial position
b) as needed reaction to unanticipated development and fresh market
conditions, things happen that cannot be fully anticipated or planned for.

Q. What are the important benefit of strategic management?

a) survival and growth –
strategic management is must for survival and growth of company.
As per Charles Darwin survival of fittest
b) more proactive instead of reactive –
organisations are able to analyse and take actions instead of being mere
spectators.
c) helps organisation in strategic decision making
d) futuristic and visionary –
it helps organisation to face the future and act as a pathfinder to various
business opportunities.
e) corporate defence mechanism –
strategic management serves as corporate defence mechanism against
mistakes and pitfalls.it helps organisation to avoid costly mistakes in product,
market choice or investments.
f) helps in evolving core competency and competitive advantage –
core competency is unique strength which may not be shared by others. core
competency is source of competitive advantage
competitive advantage it means having an edge over its competitors.

Q. What are the limitations of strategic management?

a) Environment is highly complex and turbulent : due to complexity and
turbulence organisation estimate about its future shape may go wrong and
jeopardise ( put into a situation in which there is danger) all strategic plans.
b) Organisation spends a lot of time in a preparing and communicating the
strategy that may affect daily operation and negatively impact the routine
business.
c) It is costly process strategic management adds a lot of expenses to the
organisation experts need to be engage efforts are made for analysing of
external and internal environment formulate strategy and properly implement
this can be really costly for organisation.
Q. what do you understand by strategic management model?

1.Strategic management model is widely accepted and comprehensive.

Like other model of management does not guarantee sure-shot success.
It represents a clear and practical approach for formulating, implementing &
evaluating strategies.
2.it is dynamic and continuous process
A change in any one of the major component in the model can change any or
all other components.
Strategic management model should be performed on continuous basis not
just at end of year or semi-annually.

Q. What are the stages of strategic management?

there are five stages
Stage 1: developing a strategic vision and formulation office statement of
mission goals and objectives
Stage 2: environmental and organisational analysis
environment of a firm consists of (PESTLE) & (COMICS). Management must
systematically analyse the environment to know opportunity and threats
Organisational analysis involves review of financial resources technology
resources production capacity etc. this will help us to know organisations
strength and weakness

Stage 3: formulation of strategy the first stage in strategy formulation is

developing alternatives in light of SWOT analysis second step is the deep
analysis of all the alternative for the purpose of choosing the best one which
will serve as strategy of firm
stage 4: implementation of strategy
-it is operation oriented
-most demanding and time consuming
Stage 5: strategy evaluation and control
the final stage of static management process is
-evaluating the company’s progress
- accessing the impact of new external development
-and making corrective adjustment is the
-trigger point for deciding whether to continue or change companies reason
objective and implementation method.

Q. What should be done by a manager to convert strategic plans into action

and results?
1. motivate people
2. build and strengthen company's competency and capabilities
3. create a strategic supportive climate (corporate culture)
4. meet or beat performance target

Q. What are the principal aspect of a strategy execution process?

1. developing budget
2. staffing the organisation with the needed skills and expertise
3. best known practice use bast known practice to perform core business
activities
4. information and operating system- installing information and operating
system to carry out strategic roles day in and day out
5. motivation: motivating people to achieve the objective energetically
6. corporate culture- creating a corporate culture and work climate supporting
in successful strategy implementation and execution
7. leadership exerting internal leadership to implement strategy smoothly.
leaders should be aware of hurdles or weaknesses of organisation and see that
they are addressed and rectified quickly.

Q. levels of organisation
Ans: 3 levels of organisation -corporate, business, operational

Q. What do you mean by corporate level management and discuss its roles?
Corporate level consists of CEO and other senior executive.
they occupy the apex of decision making.
role of corporate level manager
1. to see the development of strategy for the whole organisation
2. define mission and goal of the company
3. determine what business we should be in
4. allocating resources among different businesses
5. formulating a strategy that span (each and every) individual businesses
6. providing leadership
7. they are link you can people who oversee the development of firm and
those who owns it(shareholders)
8. They are guardians of shareholders wealth

Q. What do you mean by business level of management?

1. a business unit is the self-contained division with its own functional
departments like finance, purchase, production etc
2. their role is to translate the general statement of intention and direction
that comes from corporate level into concrete strategy for individual business

Q. Explain functional level of management

1. Functional level manager are responsible for specific business function such
as human resource, purchase, production etc.
2. Functional managers provide information to business and corporate level
general manager to formula realistic and at attainable strategies
3. As they are closed to customer them is generate important ideas that
subsequently become major strategy of company
4. They have great responsibility of implementing the strategy formulated by
corporate and business level people.

Q. Define entrepreneur.
An entrepreneur is one who
-initiates and innovates a concept
-recognises and utilises opportunity
-arranges and co-ordinate resources such as man material machine and money
- faces risk and uncertainty established a start-up company
- add value to product or service

Q. Define intrapreneur
intrapreneur is nothing but an entrepreneur who operates within the
boundaries of an organisation.
he is an employee of a large organisation who is vested with authority of
initiating creativity and innovation in companies product services workflows
and systems
Q. Difference between entrepreneur and intrapreneur
Q. Role of strategic management in NPOs
-NPOs also have purpose vision and mission
-they also work with in the environment forces and need to manage
strategically to accomplish their objectives
-just strategic management is required to give direction focus and Lead to
efficient utilisation of resources they also need to have and manage funds and
other resources as NPOs are totally dependent on outside financing and mainly
for this strategic management provides an excellent vehicle for developing and
justifying request for needed financial support.

Q. Discuss briefly the use of strategic management techniques in educational

institution
-they should join hands with industries to make graduates more employable
-introduction of computer and internet technology
-student can access lectures anytime and chat at fixed time with professor
-online college degrees which is threat to traditional colleges and universities
-getting better name and recognition
- adapting different strategies for attracting students
-appointing and retaining quality faculty for teaching and nuturing responsible
citizens

Q. Briefly discuss strategic management techniques in medical organisations

-diagnosis and treatment of chronic diseases
-hospitals are beginning to bring services to patient as much as bringing patient
to the hospital
-door to door collection of samples
-user friendly ambulatory services
- Renewed and deep collaboration with physicians
- backward integration strategies for hospitals like acquiring ambulance
services waste disposal services and diagnostic services