Orientation

On the requirements contained in the syllabus

 ● Introduction to Strategic Management and Business Policy
● Basic Concept of Strategic Management
● Corporate Governance
Topics ● Ethics and Social Responsibility in the Strategic Management
● Definition of Business Policy
Business ● The scope or spheres within which decisions can be taken by the
subordinates in an organization
Policy
 1) Specific
2) Clear
3) Reliable/Uniform
Features of 4) Appropriate
Business 5) Simple
Policy 6) Inclusive/Comprehensive
7) Flexible
8) Stable
 ● Policy is a blueprint of the organizational activities which are
repetitive/routine in nature. While strategy is concerned with
those organizational decisions which have not been dealt/faced
before in same form.
● Policy formulation is responsibility of top level management.
While strategy formulation is basically done by middle level
management.
Policy vs ● Policy deals with routine/daily activities essential for effective
Strategy and efficient running of an organization. While strategy deals
with strategic decisions.
● Policy is concerned with both thought and actions. While
strategy is concerned mostly with action.
● A policy is what is, or what is not done. While a strategy is the
methodology used to achieve a target as prescribed by a policy.
Procedure ● Indicates certain steps to carry out a particular work.
Policy vs
Procedure
Strategic ● The means by which organizational managers seek to bolster the
success of their businesses via a series of competitive maneuvers
Management
 ● Phase 1) Basic Financial Planning
Evolution of ● Phase 2) Fore-cast based planning
Strategic ● Phase 3) Externally Oriented Planning
Management ● Phase 4) Strategic Management
 1) Environmental scanning
Basic Model of 2) Strategy Formulation
Strategic 3) Strategy Implementation
Planning 4) Evaluation and Control
Environmenta ● The process of gathering information about events and their
relationships within an organization's internal and external
l Scanning environments
Corporate
● An organization's obligation to consider the interests of their
Social customers, employees, shareholders, communities, and the
ecology and to consider the social and environmental
Responsibility consequences of their business activities.
(CSR)
 ● A mechanism established to allow different parties to contribute
Corporate capital, expertise, and labour for their mutual benefit the investor
or shareholder participates in the profits of the enterprise without
Governance taking responsibility for the operations.
 1) Economic Social Responsibility
2) Ethical Social Responsibility
Types of CSR 3) Legal Social Responsibility
4) Philanthropic Social Responsibility
Five
Important
Issues of
1) Social Responsibility to the Stakeholders
Ethics and
2) Transparency
Social 3) Independence
Responsibility 4) Respect
in the 5) Fairness and Truthfulness
Strategic
Planning
Process
 ● Refers to factors that allow a company to produce goods or
services better or more cheaply than its rivals
Competitive
● Cost Advantage
Advantage ● When a business provides the same products and services as
its competitors
 ● The cost advantage experienced by a firm when it increases its
level of output
Economies of ● Types
Scale ● Internal
● External
Porter’s Five ● A model that identifies and analyzes five competitive forces that
shape every industry and helps determine an industry's
Forces weaknesses and strengths
1)
● Refers to the number of competitors and their ability to undercut a
Competition company
in the Industry
2) Potential of
New Entrants
● Explains how a company's power is also affected by the force of
Into an new entrants into its market
Industry
3) Power of ● Addresses how easily suppliers can drive up the cost of inputs
Suppliers
4) Power of ● The ability that customers have to drive prices lower or their level
of power.
Customers
5) Threat of ● Substitute goods or services that can be used in place of a
company's products or services pose a threat
Substitutes
Logo Quiz