Lecture 1, Week 1

Definition
Samples
Merits
Demerits
Structure and framework
Policy decisions and attributes
Levels of policy
Hierarchy of objectives, strategy and strategic managers

1
Attribute of policy Decisions
1) require top management decision
2)
3)
4)
5)
6)

2
Levels of policy
Corporate level: board of directors,
CEO & administration [Highest]
Business level: business and
corporate managers [Middle]
Functional level: Product,
geographic, and functional area
managers [Lowest]

3
Ex. 1.2 Alternative Strategic Management
Structures

4
Hierarchy of Objectives and Strategy

5
Key tasks of business policy
1) mission
2) internal analysis
3) external environment
4) Analyze the company’s options by
matching its resources with the external
environment
5) Identify the most desirable options in
light of the mission

6
Task cont.’
6) long-term objectives and grand strategies
7) Annual objectives and short-term
strategies that are compatible with long-
term objectives and grand strategies
8) Execute the strategic choices
9) Evaluate the success of the strategic
process for future decision making

7
State the components of the policy model

Company Mission Internal Analysis

External Analysis
Long-Term Objectives
Short-Term Objectives
Strategic Control & Continuous
Improvement
Strategic Analysis & Choice
Generic & Grand Strategies
Action Plans & Functional
Tactics

8
Key Terms
• Adaptive mode • Grand strategies
• Company mission • Long-term objectives
• Continuous improvement • Planning mode

• Dynamic • Policies

• Entrepreneurial mode • Processes

• Feedback • Short-term objectives

• Stakeholders
• Formality
• Strategic control
• Functional tactics
• Strategic management
• Generic strategies
• Strategy