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Program : MBA

Semester : IV

Subject Code : MB0052

Subject Name : Strategic Management & Business Policy

Unit Number : 1

Unit Title : Strategies

Lecture Number : 1

Lecture Title : Strategies

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Strategic management and businesspolicy

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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 decisionmaking.

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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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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

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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

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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

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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 andobjectives of business

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Goals

Are long term

Are general intentions with broad outcome

Are intangible

Are abstractCannot 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 andmission statements

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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 successfactors 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

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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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Check Your Learning

1. What is strategy?

Ans: Strategy is the method by which an organisation systematically

achieves its future objectives.

2. What is SWOT analysis ?

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

weaknesses, opportunities and threats.

3. What is CSF?

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

an organisation to be successful.

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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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