File Name: business policy and strategy notes .zip
System Dynamics pp Cite as. A strategy may also define the organization structure, systems, and policies which implement the strategy.
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Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization. It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made. Business policy also deals with acquisition of resources with which organizational goals can be achieved.
Strategies are formulated at all these levels because single strategy is not only inadequate but also insufficient. These different levels of strategic decision making and strategic formulation in any organization include corporate-level, business-level and functional-level.
The Top level or corporate-level, which is a Board of Directors and the Chief Executive officer, is responsible for the organization's financial performance and other non-financial goals like its image and social responsibilities. It takes major strategic decisions and formulates corporate level strategies.
These corporate-level strategies basically involve taking decisions about allocation of resources among different businesses of the organization, transferring resources from one set of business to other and also managing and nurturing a portfolio of business in such a way that the overall corporate objectives are achieved.
Such as ITC a cigarette company diversified into the hotel industry. Bombay Dyeing, a textile organization took decision to enter into the readymade garment business. The corporate level strategies decide the investment portfolio of an organization.
The middle level or business-level is the level, which includes business managers and corporate managers. Strategies formed at this level are comprehensive plans providing objectives for SBUs, allocation of resources and coordination of the SBUs for optimal performance. At this level the strategies decided at corporate level, are translated into concrete objectives and strategies for individual business. At this level the courses of action are adopted by an organization for each of its business separately to serve particular customer group or groups, for providing value to the customers by satisfying their needs.
At business level an organization decides that it would take which route to achieve its corporate objectives. Whether it would be a cost leader, be different from others or focus at a particular market. For example Moser Baer India fulfilled corporate objectives by selecting to be a low cost leader in CD manufacturing.
Also Philips India Ltd. To have better strategic planning, business products can be grouped into strategically-related business units known as SBU, so that they are manageable.
Operational Functional How will strategy be executed? In mid 's, according to the nature of business the planning was done through Adhoc policy making. As many businesses had just started operations and were mostly in a single product line, there arose a need for policy making. As companies grew they expanded their products and they catered to more customers and which in turn increased their geographical coverage.
The expansion brought in complexity and lot of changes in the external environment. Hence there was a need to integrate functional areas.
This integration was brought about by framing policies to guide managerial action. Especially after II World War there was more complexity and significant changes in the environment. Competition increased with many companies entering into the market. Policy making and functional area integration was not sufficient for the complex needs of a business.
As the organization became large and the layers of management increased alongwith were environment al uncertainties, basic financial planning and foreast based planning became insufficient. As the only focused on operational control. Strategic planning develops increasing responsiveness to markets and competition by trying to think strategically, later Strategic management evolved which seeks a competitive advantage and a successful future by managing all resources.
Thus the evolution of the strategic management includes a consideration of strategy implementation and evaluation and control, in addition to the emphasis on the strategic planning. GeneralElectric, one of the pioneers of the strategic planning, led the transition from the strategic planning to strategic management during the s. By the s, most corporations around the world had also begun the conversion to strategic management.
A part of strategic management has now evolved to the point that its primary value is to help the organization operate successfully in dynamic, complex environment. To be competitive in dynamic environment, corporations have to become less bureaucratic and more flexible. In stable environments such as those that have existed in the past, a competitive strategy simply involved defining a competitive position and then defending it.
Organizations must develop strategic flexibility: the ability to shift from one dominant strategy to another. Strategic flexibility demands a long term commitment to the development and nurturing of critical resources.
It also demands that the company become a learning organization It means an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behaviour to reflect new knowledge and insights.
Learning organizations avoid stability through continuous self-examinations and experimentations. People at all levels, not just top the management, need to be involved in strategic management: scanning the environment for critical information, suggesting changes to strategies and programs to take advantage of environmental shifts, and working with others to continuously improve work methods, procedures and evaluation techniques.
At Xerox, for example, all employees have been trained in small-group activities and problem solving techniques. They are expected to use the techniques at all meetings and at all levels. The evolution of Business policy to strategic management summaried below:Exbibit 3 : Evolution of Business Policy and Stategic Management Strategic Planning ProcessThe strategic management process means defining the organization's strategy.
It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises its competitors; and fixes goals to meet all the present and future competitors and then reassesses each strategy. A good strategic management process will help any organization to improve and to gain more profits.
Every organization should know that performance of the management process is very important. There is a big difference between planning and performing. The organization will be successful only if it follows all the stages of the strategic management process. Strategic management process has following four stepsa Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes.
It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it. After conducting environment scanning, managers formulate corporate, business and functional strategies.
Strategy implementation includes designing the organization's structure, distributing resources, developing decision making process, and managing human resources. Evaluation makes sure that the organizational strategy as well as its implementation meets the organizational objectives. It can also cause an organization to define itself too narrowly.
Despite a substantial body of work establishing the strategic influence of middle managers, the belief in a simple link between top management team characteristics and performance, has persisted.
The role of the strategist in the strategy process has been implied in terms of 'crafting' strategy. In strategic management, strategist plays a major role because a process of strategic management involves careful consideration on the part of strategist. Strategists are key person involved in strategic management process. They are individuals or groups who are primarily involved in the formulation, implementation and evolution of strategy.
They perform key activities related to various aspects of strategic management. In an organization different persons at different key positions can play a major role in it. All these individuals such as members of the board of directors, chief executive officer, corporate planning staff, entrepreneur etc are strategist and their roles are as follows: 1 Role of Board of DirectorsThe Board of Directors of any organization is responsible for the governance of it.
The Board of Directors is a body of elected or appointed members who jointly oversee the activities of a company or an organization. The board makes decisions on shareholders' behalf. Most importantly, the board of directors should be a fair representation of both management and shareholders' interests.
The Board of Directors play different roles in different types of organization. Some of their major roles are as follows: i To guide senior management in setting and achieving corporate level objectives. SBU-level strategy formulation and implementation are the chief responsibilities of the SBU-level executives. Their major roles in strategic management are as follows: i Articulates strategic vision and provides leadership.
It helps the management in strategy formulation, implementation and evaluation. For example, Essar Steel had a corporate planning cell which helps in planning and developing diversification and growth plans for it. Several roles played by the corporate planning staff in strategic management are as follows:i Supporting role in strategic management. These consultants may be individuals, academicians, consultancy organizations, specialising in strategic management.
There are various advantages of hiring these consultants such as -cost effectiveness, specialists' services, unbiased and objective opinions. They perform various strategic roles required to render the services. They do not play any active role in strategy formulation, but they play a significant role in strategy implementation. Some of their roles in strategic management are as follows:i Involved in implementation of functional strategy.
It involves four significant steps i. All the successful business enterprises today constantly take in new information about their markets, customers, and operating environments. Then management uses that knowledge and data to shape new strategic directions, to reorganize how they respond to marketplace demands, and to ensure that their views regarding all aspects of the business are fresh and viable.
Johnson and Scholes have defined strategy as: "… the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". The above definition centers on the following key points:It is important to realize that achieving the narrow intentions is a pre-requisite for achieving the broader intentions, and therefore, there needs to be a careful alignment between these various levels of intentions; for example 'quality leads to profitability' in case of any manufacturing concern.
In a case where such alignment is lacking, it is possible that the organization and its employees indulge in wastage of time and efforts to pursue a particular set of narrow objectives that do not necessarily take them towards their intended state of the future for example, focusing excessively on quality and manufacturing a product that is so expensive and unaffordable, at the cost of profitability.
Therefore, it is the broader intentions that define the specific milestones the short-term intentions that the organization needs to cross in order to reach the long-term intent. From strategy formulation point of view, an organization must define 'why' it exists, 'how' it justifies that existence, and 'when' it justifies the reasons for that existence.
The answer to these questions lies in the organization's vision, mission, business definition, objectives, goals and plans.
Strategic Alternatives are developed to sets direction in which human and material resources of business will be applied for a greater chance of achieving selected goals. The strategy is a comprehensive concept and, for this reason, it is often used in different ways. But this difference creates a major problem when some writers focus on both the endpoints mission, goals, objectives and the means of achieving them policies and plans , but the others emphasize the means only rather than the ends in the strategic process. Strategy, as has already been said, refers to the determination of the purpose or mission and the basic long-term objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary to achieve these aims. They provide a broad boundary within which decisions should fall.
Corporate strategy, the overall plan for a diversified company, is both the darling and the stepchild of contemporary management practice—the darling because CEOs have been obsessed with diversification since the early s, the stepchild because almost no consensus exists about what corporate strategy is, much less about how a company should formulate it. A diversified […]. A diversified company has two levels of strategy: business unit or competitive strategy and corporate or companywide strategy. Competitive strategy concerns how to create competitive advantage in each of the businesses in which a company competes. Corporate strategy concerns two different questions: what businesses the corporation should be in and how the corporate office should manage the array of business units.
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Unit IV Major business strategies Stability growth retrenchment disinvestment mixed strategies. Unit V Society and business business Social audit. It is the major economic activity in any society.
Кроме того, она понимала, что времени почти не оставалось. Стратмор сидел наверху с береттой в руке. Он перечитал свою записку и положил на пол возле .
ГЛАВА 101 Дэвид Беккер никогда не держал в руках оружия. Сейчас ему пришлось это сделать. Скрюченное тело Халохота темнело на тускло освещенной лестнице Гиральды.
Стратмор покачал головой, отказываясь верить тому, что услышал. - Не может быть, чтобы Грег Хейл был гарантом затеи Танкадо. Это полный абсурд. Танкадо ни за что не доверился бы Хейлу. - Коммандер, - напомнила Сьюзан, - Хейл однажды уже чуть не угробил нас - с Попрыгунчиком. Танкадо имел основания ему верить.
Businesses need to implement sound strategies to succeed. Those strategies form part of an overall management and business policy that guide the business in.
- Он жестом попросил ее возобновить поиск. - Но пока этого не произошло, мы в цейтноте. Сьюзан открыла рот, желая сказать, что она все понимает, но ее слова были заглушены внезапным пронзительным звуком. Тишина шифровалки взорвалась сигналом тревоги, доносившимся из служебного помещения ТРАНСТЕКСТА. Сьюзан и Стратмор в недоумении посмотрели друг на друга.
Значит, она слышала звук выстрела Хейла, а не коммандера. Как в тумане она приблизилась к бездыханному телу. Очевидно, Хейл сумел высвободиться. Провода от принтера лежали. Должно быть, я оставила беретту на диване, - подумала. Кровь, вытекающая из головы, в голубоватом свечении казалась черной.
Причина такой секретности проста: правительство не может допустить массовой истерии. Никто не знает, как поведет себя общество, узнав, что группы фундаменталистов дважды за прошлый год угрожали ядерным объектам, расположенным на территории США. Ядерное нападение было, однако, не единственной угрозой.
Затем наступила тишина. Мгновение спустя, словно в дешевом фильме ужасов, свет в ванной начал медленно гаснуть. Затем ярко вспыхнул и выключился .
- Каким же образом вы выполните обещание об эксклюзивном… - Не волнуйтесь, - спокойно ответил американец. - Эксклюзивные права у вас. Это я гарантирую. Как только найдется недостающая копия ключа, Цифровая крепость - ваша. - Но с ключа могут снять копию.
Ее прозрачный куполообразный потолок в центральной части поднимался на 120 футов. Купол из плексигласа имел ячеистую структуру - защитную паутину, способную выдержать взрыв силой в две мегатонны. Солнечные лучи, проходя сквозь этот экран, покрывали стены нежным кружевным узором. Крошечные частички пыли, пленницы мощной системы деионизации купола, простодушно устремлялись вверх широкой спиралью.
Стратмор сразу заметил изумление, мелькнувшее в ее глазах, и взволнованно изложил свой план: - Если бы я получил ключ, то смог бы взломать наш экземпляр Цифровой крепости и внести нужные изменения… - Черный ход, - сказала Сьюзан, мгновенно забыв о том, что Стратмор ей лгал. Она все поняла. - Вроде Попрыгунчика.
Concept based notes. Business Policy and Strategic. Management. MBA. Dr Tripti Vijaywargia. Dept. of Commerce and Management. Biyani Institute of Science.Amarante M. 10.05.2021 at 09:37
Management. Learning Objectives. ♢ Learn what business policy and strategy is all about. ♢ Know the framework and importance of strategic management.Mandel L. 15.05.2021 at 07:32
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