Components of Mission

statement
 Stages of Strategic
management
1. Formulation
2. Implementation
3. Evaluation
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

1 4 5 6 7
8

Formulation Evaluation
Implementation
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:
4. Liberalization measures
5. Macro-economic reforms and
structural adjustments
 Liberalization measures
A. 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)
 FERA Liberalization
 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.
 MRTP Liberalization
 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