Program Semester Subject Code Subject Name Unit Number

: MBA : IV : MB0052 : Strategic Management & Business Policy :1

Unit Title
Lecture Number Lecture Title

: Strategies
:1 : Strategies

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Unit-1 Strategies

Strategic management and business policy

Objectives:
The objectives of this lecture are to: Explain the importance and scope of strategy. Recognise the function of business and SMART goals. Differentiate between the goals and objectives of the organisation. Describe the strategic intent using vision & mission statements. Explain the competencies and success factors in strategic decision making.

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Unit-1 Strategies

Lecture Outline

Introduction Fundamentals of strategy Concepts and nature of strategy Scope and importance of strategy Objectives of business Difference between goals and objectives of business Strategic intent through vision & mission statements Core competencies & critical success factors in business Summary Check your learning Activity

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Unit-1 Strategies

Introduction

Strategy involves incorporation of organisational activities Strategy sets apart the scarce resources within its environment to meet the organisational goals Strategy supports the organisations to achieve its future goals Without a reliable strategy, business cannot progress

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Fundamentals of strategy
The fundamentals of strategy is to:
Define the vision and mission of organisation

Guide the organisation to achieve long term goal

Meet up with the expectations of market and stakeholders Concentrate on priority issues to be successful in long term Enhance the position of organisation in market

Prepare and implement strategic goals through strategic management

Incorporate levels of strategies - Corporate, Business and Operational strategy

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Concepts and nature of strategy

The concepts of strategy are:
A plan to channel a course of action

An elementary way to measure an organisation's performance

A pattern to improve the performance A scheme to overcome competition

The nature of strategy is to:

Capture the new opportunities and to adopt to the norms and systems
in organisations Provide structure for guiding a project

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Scope and importance of strategies

The Scope of strategy are as follows:
To introduce a mission and develop an overall strategy for an organisation

To study and evaluate external environment

SWOT analysis To increase resources and facilities To estimate and manage the targets

The importance of strategy are as follows:

It provides a clear idea of the objectives It is important for the long term survival of an organisation It provides opportunity to grow and increase revenue

It predicts the behavior of customers, competitors and employees

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Objectives of Business
The objectives are as follows: Survival Profit maximisation

Sales growth
Setting goals - SMART Adopting tactics

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Difference between goals and objectives of business

Goals
Are long term

Are general intentions with broad outcome

Are intangible Are abstract Cannot be validated

Objectives
Are temporary Are accurate statements with definite outcome Are substantial Are concrete Can be validated

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Strategic intent through vision and mission statements

STRATEGIC intent defines goals of an organisation It motivates employees to work as a team

It describes the purpose of an organisation

VISION AND MISSION Vision defines purpose and principles in terms of values of an organisation. It is a skeleton of strategic planning

Mission describes capabilities and reason for existence of

an oraganisation

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Core competencies & critical success factors in business

Core competencies are skills critical to achieve a competitive

advantage for a business

It comprises essential skills like adding value to products and services

Critical Success Factors (CSF) identifies and lists key factors to be concentrated upon in an organisation

CSF concentrates on key factors like industry, environment, strategic

and temporal

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Summary

Adopting strategic planning helps organisations to grow Objectives of strategy concentrates on survival of the fittest law Goals and objectives are two different prospectives of success in business Strategic intent defines the aim of vision and mission of an organisation Core competencies adds values to products and services CSF identifies key success factors in an organisation

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Unit-1 Strategies

Check Your Learning

1. What is strategy? achieves its future objectives. 2. What is SWOT analysis ? weaknesses, opportunities and threats. 3. What is CSF? an organisation to be successful.

Ans: Strategy is the method by which an organisation systematically

Ans: SWOT is a method used for assessment. It stands for strengths,

Ans: CSF is Critical Success Factors which identifies the key features for

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Unit-1 Strategies

Activity

A manufacturing company is planning to implement a new process to produce products. Assume that you are the project manager. Research and report to the management the steps involved in implementing the strategy.

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