CLASSIFICATION OF STRATEGIES AND
PLANS ● Long-term goals for your business
6 ELEMENTS OF A BUSINESS
STRATEGY
1. Vision and business objectives- business
strategy is intended to help you reach your
business objectives. With a vision for the
direction of the business, you can create clear
instructions in the business strategy for what
needs to be done and who is responsible for
completing each step.
2. Core values- business strategy guides top-
level executives, as well as departments, about
what should and should not be done, according
to the organization's core values. It helps
everyone stay on the same page and with the
same goals.
3. SWOT analysis- included in every business
strategy, as it allows the company to rely upon
its strengths and use them as an advantage. It
also makes the company aware of any
weaknesses or threats.
4. Tactics- Many business strategies articulate
the operational details for how the work should
be done in order to maximize efficiency.
5. Resource allocation plan- you will find the
required resources to complete the plan, how the
resources will be allocated and who is
responsible for doing so.
6. Measurement- includes a way to track the
company's output, evaluating how it is
performing in relation to the targets that were set
prior to launching the strategy.
5 CLASSIFICATION OF STRATEGY
1. Competitive Strategy- a plan that combines
the clout of the external situation. The
competitive strategy aims at gaining a
competitive advantage in the marketplace
against competitors.
2. Corporate Strategy- It draws up at the top
level by the senior management of a diversified
company. Such a strategy describes the
company’s overall corporate
3. Business Strategy- “The business strategy
consists of plans of action adopted to use a
company’s resources and distinctive
competencies to gain competitive advantages in
the market.”- M. A. Mannan
The components of business strategy are:
● Vision, mission, and values
strategy
● Financial objectives
4. Functional Strategy- approach that points up
a particular functional area of an organization.
Examples of functional strategy comprise
production strategy, marketing strategy, human
resource strategy, and financial strategy.
5. Operations Strategy- put across at the field
level, usually to achieve on-hand objectives. In
some companies, managers develop an
operations strategy for each set of annual goals
in the divisions. The components of operating
strategy are:
● Designing and positioning the
production system.
● Focusing on production or
manufacturing and service facilities.
● Designing and developing the product or
service.
PLANNING- about managing resources and
priorities in an organized way.
7 ELEMENTS OF BUSINESS PLAN
1. Executive summary- includes the mission
statement along with any information about the
company's leadership, employees, operations,
and location.
2. Company overview- identify the main
identity of your company. This includes history,
creator, events, timeline, etc.
3. Products and services- company can outline
the products and services it will offer, and may
also include pricing, product lifespan, and
benefits to the consumer.
4. Market analysis- plan will detail a company's
competition and how the company fits in the
industry, along with its relative strengths and
weaknesses.
5. Marketing strategy- how the company will
attract and keep its customer base and how it
intends to reach the consumer.
6. Financial planning- company's financial
planning and projections. Financial statements,
balance sheets, and other financial information
may be included for established businesses.
7. Budget- include costs related to staffing,
development, manufacturing, marketing, and
any other expenses related to the business.
ETHICS AND BUSINESS
Ethics- refer to the philosophical study of the
concepts of moral right and wrong and moral
good and bad
Morality- system of principles
and values concerning people's behavior, which
is generally accepted by a society or by
a particular group of people.
3 MODELS OF ETHICS
MORAL- Act of doing good and moral
IMMORAL- act of evil
AMORAL- act of being neutral
BUSINESS ETHICS- code of conduct imposed
on an employee of a certain profession
PERSONAL ETHICS- code of conduct that
govern an individual’s whole life
FACTORS AFFECTING ETHIC
Family, Friends, Politics, Religion, Self-Belief,
Social Media
ROLES OF ETHICS IN STRAT MANAGE.
Guidng Decision Making- provide a
framework for making decisions that align with
moral values and principles.
Reputation and Trust- strong ethical reputation
enhances an organization's brand and fosters
loyalty.
Increasing Innovation- can lead to new
products, services, and business models that can
help organizations to grow and succeed.
ETHICAL ISSUES STRAT MANAGE.
Corporate Governance- Ethical concerns can
arise in the structure and functioning of the
board of directors and executive leadership.
Environmental Impact- Failing to address
environmental sustainability can lead to
pollution, resource depletion, and climate
change, causing harm to the planet and future
generations.
STRATEGIC FORMULATION AND
IMPLEMENTATION
STRATEGY FORMULATION- process of
using available knowledge to document the
intended direction of a business.
LEVELS OF STRATEGY FORMULATION
CORPORATE LEVEL STRATEGY- It
focuses on what business you are going to enter
the market.
BUSINESS LEVEL STRATEGY- This level
answers the question of how you are going to
compete
FUNCTIONAL LEVEL STRATEGY- This
level concentrates on how an organization is
going to grow.
HOW TO IMPLEMENT STRATEGIC
FORMULATION AND
IMPLEMENTATION
MISSION AND VISION- provide a clear
direction and a sense of purpose for the
organization.
ENVIRONMENTAL ANALYSIS- Internal
analysis examines the organization's strengths,
weaknesses, resources, and capabilities.
External analysis assesses factors such as
market trends, competition, economic
conditions, technological advancements, and
regulatory changes.
SWOT ANALYSIS- SWOT analysis helps in
understanding the current position of the
organization and its potential direction.
SMART- These strategies can include market
expansion, product development, cost
leadership, differentiation, etc.
RESOURCE ALLOCATION- organization
has the necessary means to implement the
strategies effectively.
IMPLEMENTATION- requires effective
coordination, communication, and monitoring of
progress.
MONITORING AND EVALUATION- allows
for timely adjustments and ensures that the
organization stays on track toward its goals.
FEEDBACK AND ADAPTATION- Based on
the monitoring and evaluation, feedback is
collected, and necessary adaptations are made to
strategies.
ISSUES
NATURAL ISSUES- some natural issues that
can’t be anticipated like disasters, pandemics,
etc.
EMPLOYEES CONFLICT- some employees
are not getting along and some create issues
ADJUSTMENTS- you need to do something to
align yourself with company and you have to get
used to it.
STRATEGIC MANAGEMENT
STRATEGY- an action that managers take to
attain one or more of the organization's goals.
MANAGEMENT- coordination and
administration of tasks to achieve a goal. Such
administration activities include setting the
organization’s strategy and coordinating the
efforts of staff to accomplish these objectives
STRATEGIC MANAGEMENT- process of
setting goals, procedures, and objectives in order
to make a company or organization more
competitive.
TYPES OF PLAN
STRATEGIC PLAN
TACTICAL PLAN
OPERATIONAL PLAN
CONTINGENCY PLAN
STRATEGY FORMULATION- process of
choosing the most appropriate course of action
STRATEGY IMPLEMENTATION- decisions
that are made to install new strategy or reinforce
existing strategy
STRATEGY EVALUATION- know when and
why particular strategies are not working well
STRATEGY CONTROL- determine what to
control
THEORIES OF MANAGEMENT
AGENCY THEORY- stresses the underlying
important relationship between the shareholders
PROFIT MANAGEMENT THEORY- based
on the notion that a business organization’s main
objective is to maximize long term profit and
developing sustainable
TALENT MANAGEMENT THEORY- a
constant process that involves attracting and
retaining high-quality employees
BLUE MANAGEMENT THEORY- company
needs to reinvent because its identity is not
effective and irrelevant
RESOURCE BASED THEORY- resources
that are valuable, rare, difficult to imitate, and
non-substitutable best position a firm for long-
term success
SURVIVAL THEORY- centers on the concept
that organizations need
HUMAN RESOURCE BASED THEORY-
emphasizes the importance of the human
element in the process of strategy development
of organizations
CONTIGENCY THEORY- draws the idea that
there is no one or single best way or approach to
manage organizations
BALANCED SCORECARD THEORY-
strategic management performance metric used
to identify and improve various internal business
functions