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1. Formulation 2. Implementation 3. Evaluation
Stages of Strategic management
Strategy FORMULATION issues include: Deciding what new business to enter What business to abandon How to allocate resources Whether to expend or diversify Whether to merge or to form a JV
Strategy Implementation Issues include:
Developing a strategy supportive culture Creating an effective organizational structure Redirecting market effort Developing and utilizing information system Linking employee compensation to organizational performance
Strategy evaluation issues include:
Measuring performance Reviewing external and internal factor that are bases for the current strategies Taking corrective action for future
Strategic management model
The New Economic Reforms in India
Total departure from earlier Industrial policy (IPR of 1956) It led Indian business to a dynamic and turbulent environment. Following are the two major category in economic reform: Liberalization measures Macro-economic reforms and structural adjustments
New Industrial policy B. New trade policy New industrial policies include:4. Liberalization of industrial licensing 5. FERA Liberalization 6. MRTP Liberalization 7. Curtailment of public sector
Liberalization of industrial licensing
Delicensing Decontrol Deregulation Broad banding Abolition of registration( abolition of DGTD & CCI&E)
Liberalization of foreign investment. Automatic clearance for foreign equity up to 51 percent in 34 high priority industries, only condition: the total equity of the existing company and the foreign equity must come through payment of foreign exchange Liberalization of technology import.
Abolition of threshold asset limit No MRTP clearance for expansion and mergers
Curtailment of the role of Public sector
Only Eight core industries remained reserved for the public sector Preview of BIFR (Board for industrial and financial reconstruction) extended to the public sector.
New Trade Policy
Lowering import tariffs (30% less in almost all goods) Abolition of import licenses. More open EXIM policy (tariff and exchange rates as an instrument) Convertibility of rupees ( dual exchange rate system/partial convertibility ) Encouragement to FI (abolition of export duties, cheaper and sustainable growth of export) Integrating India's economy with the