Business Policy &

Strategy
Instructor : Katherine Molina
Strategic Management

 is the process in which an organization develops and implements plans that

espouse the goals and objectives of an organization.
 consist of analysis, decisions and actions an organization undertakes in order
to create competitive advantage
Competitive advantage

is what makes an entity's goods or

services superior to all of a customer's other
choices.
 Stages of Strategic Management
Stage 1 : Strategy Formulation

 Isthe process of developing the strategy.

And the process by which an organization
chooses the most appropriate courses of
action to achieve its defined goals.

 Provide framework for the action that

lead to the anticipated results
 Stages of Strategic Management
Stage 2 : Strategy Implementation

Action stage
Mobilizing employees and
managers to put formulated
strategies into action
Most difficult stage in strategic
management
 Stages of Strategic Management
Stage 3 : Strategy Evaluation

 Final stage

 Allstrategy are subject to future

modification because internal and
external factors are continuously changing
Three fundamental strategy evaluation
activities

1. Review external and Internal factors

that are basis of current change

2. Measuring performance

3. Taking corrective actions

Levels of Strategy
Corporate – Level Strategy

ROLE : Define the goals, determine the

business direction. Attempt to exploit the
firm’s distinct competencies.

- Allocate resources among business units

- Provide leadership for the entire
organization
Business- level Strategy

 ROLE : translate the general

statements of direction and intent
from the top into concrete strategies.
Determine how firm will compete in
the selected market arena. They
strive to identify and secure the most
promising market segment
Functional-level Strategy

ROLE : responsible for a specific

business operations. The
department address such issues
on efficiency and effectiveness of
production, marketing and
management system, quality of
customer service