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INTRODUCTION TO STRATEGIC
MANAGEMENT
DEFINITION:-
A strategy is a unfied, comprehensive, and integrated
plan that relates the strategic advantages of the firm to
the challenges of the environment. It is designed to
ensure that the basic objectives of the enterprise are
achieved through proper execution by the organization.
MEANING:-

A logical starting in studying strategy formulation is a

comprehensive look at the nature of strategic management.
Hundreds of studies have attempted to understand the nature of
strategic management decisions. Fortunately, the results from
these studies are reasonably consistent.

The theme that follows through and ties four chapters of this part
together is effective the strategic management process requires
and understanding of what strategic managers do and how they
do works the way it does. In essence, strategic management is a
set of functions and processes. Effective strategic management is
knowing about these functions and processes and knowing when
and how to implement them.

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Introduction to Strategic Management, defines the scope of

strategic management and sets out concepts that are basic to a
working knowledge of this field.

The Nature and Value of Strategic Management:-

Emphasises the practical value of a strategic management

approach for a business organizations and reviews the actual
benefits for companies that have instituted strategic management.
This chapter also describes the evolution of strategic
management, and introduces the working models of the strategic
management process. The critical activities of strategic
management are then presented as a set of dimensions that can be
used to distinguish strategic decisions from other planning tasks
of the firm. The text introduces specific tools and techniques for
strategic analysis.

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INTRODUCTION TO COMPANY
Leo cosmetics is established in the year 1996. The founder of
this company is Mr. dayal dharmani. Initially the company started
only with the manufacturing of talc in the market. At starting the
transaction of talc was on small scale but after some months due
to new innovatives and marketing techniques there were increase
in demand in the market. They come up with different fragnance
in talc and cream products on large scale production. As compare
to other talcum companies.This company as a maximum ranges of
talcum in fragnances. They deal with approximately 15 different
fragnances and as compare with others cosmetics cream
companies.

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PROCESS
How they manage to produce the talc this involve steps in
it. Process require machines with human resources.
Firstly they purchase talcum powder in lots and also
different fragnance powder. For this brand standard
purpose they purchase readymade pvc material bottle for
the filling of talcum powder and this brand name stickers
for naming the bottle. Through the heating machine they
sticks up the printed
sticker on the bottle.
In this premises they
have mixing machine
which mix the
powder with the
different fragnance
and conveyor passes
this mixture for the further process of filling in the bottle.
After filling, they seal this talcum bottle with plastic caps.
Finally after packaging of the bottles, they distribute their
products in to packing bones in the market.

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SWOT ANALYSIS

STRENGTH:-

Strengths are the qualities that enable us to accomplish the organizations mission.
These are the basis on which continued success can be made and
continued/sustained. Strengths can be either tangible or intangible. These are what
you are well-versed in or what you have expertise in, the traits and qualities your
employees possess (individually and as a team) and the distinct features that give
your organization its consistency. Strengths are the beneficial aspects of the
organization or the capabilities of an organization, which includes human
competencies, process capabilities, financial resources, products and services,
customer goodwill and brand loyalty. Examples of organizational strengths are
huge financial resources, broad product line, no debt, committed employees, etc.

The industry we visit it shows the following strengths:-

Financial and human resources are proper manage in their premises which
help them for adequate production and sales of their products.
.
Goodwill of product is good in market. Customers are loyal to their products
due t0 their good quality at reasonable price.

The per unit of production is low but to enter in this business requires a
huge investments. So competitors entrance in the market is little difficult
with same cost and quality.

Coordination among workers and employees.

They work in a semi-automatic manner i.e. manual and automatic is used in

balance.

They access to huge distribution (including exports) through Agents

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Weakness:-

Weaknesses are the qualities that prevent us from accomplishing our mission
and achieving our full potential. These weaknesses deteriorate influences on
the organizational success and growth. Weaknesses are the factors which do
not meet the standards we feel they should meet. Weaknesses in an
organization may be depreciating machinery, insufficient research and
development facilities, narrow product range, poor decision-making, etc.
Weaknesses are controllable. They must be minimized and eliminated. For
instance - to overcome obsolete machinery, new machinery can be
purchased. Other examples of organizational weaknesses are huge debts,
high employee turnover, complex decision making process, narrow product
range, large wastage of raw materials, etc.

Certain drawbacks of leo cosmetics are as follows:-

There is lack of no. of workers needed to do appropriate work.

There is no personal/direct contact with customers.
No ecofriendly technique is used for making the product.
Due to the lack of skills in packaging, there is a wastage of materials
as well as products.
R&D facility is not properly used

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Opportunities:-

Opportunities are presented by the environment within which our organization

operates. These arise when an organization can take benefit of conditions in its
environment to plan and execute strategies that enable it to become more
profitable. Organizations can gain competitive advantage by making use of
opportunities. Organization should be careful and recognize the opportunities and
grasp them whenever they arise. Selecting the targets that will best serve the clients
while getting desired results is a difficult task. Opportunities may arise from
market, competition, industry/government and technology. Increasing demand for
telecommunications accompanied by deregulation is a great opportunity for new
firms to enter telecom sector and compete with existing firms for revenue.

Opportunities available in the industry:-

They have less margin of profit hence they provide products at the
reasonable prices as compare to the other companies(MNCs) and thats why
their sale increases on large scale.

They make improvement in their product in the period of 6 months.

They have power to export their products in the different parts of countries.

They launch different fragrance of talcum powder and creams.

Updating of parts in machine is done in regular interval of time.

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Threats

Threats arise when conditions in external environment jeopardize the reliability

and profitability of the organizations business. They compound the
vulnerability when they relate to the weaknesses. Threats are uncontrollable.
When a threat comes, the stability and survival can be at stake. Examples of
threats are - unrest among employees; ever changing technology; increasing
competition leading to excess capacity, price wars and reducing industry
profits; etc.

Industry may suffer from following threats:-

Fluctuation in price of raw material is affected due to change in the rate

of international currencies, as they purchase raw materials from outside
countries.
Entry of multinational companies in the market.
Changes in the government policies, rules and regulations have adverse
effects in the production.
Damages made to goods in transportations.
They lack advertising and marketing skills

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QUESTIONS

1. which product is company dealing with?

2. How does the company plan to raise the capital in order to increase
development?
3. How many people work in this company?
4. Is a company a partnership organisation?
5. Which type of facilities are provided by the company to the workers?
6. How the company organise the resources for production process?
7. Who are the persons who recruit employees?
8. How are employees motivated?
9. How the grievances and complaints of employees are solved?
10.What are your future plans for expansion of business?
11. Are you using modern eco friendly technologies?
12. What is a key role to build up customer relationship?
13. Does employees need a qualification to work in a company?
14. Which type of barriers that determine a firms ability to enter an
industry?
15. When the buyers purchase in large quantities is bargaining

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