Strategic Management MSMSR/BBA/601 (Core) - PowerPoint Presentation

1. Strategic ManagementMSMSR/BBA/601 (Core)Dr. Akshita Sharma Asst. Prof. (MSMSR)MATS University, Pandri, Raipur (C.G.)Strategic Management MSMSR/BBA/601 (Core)1

2. Text BooksC.N. Sonttakke, Strategic Management, Kalyani PublicationSubbarao, Business Policy and Strategic Management, HPH.Dr. Aswathappa, Business Environment for Strategic Management, Tata McGraw Hill.Charles W.L Hill and Gareth R. Jones, Strategic Management an Integrated Approach, CengageLearningAzhar Kazmi, Business Policy and Strategic Management, Tata McGraw HillC. AppaRao; Strategic Management and Business Policy, Excel Books.Ghosh P.K., Business Policy and Strategic Planning and Management, Tata McGraw Hill.Pillai, Strategic Management,Lawerence, Business Policy and Strategic Management, Tata McGraw Hill.Sathyashekar : Business Policy and Strategic Management, I.K International Publishing House Pvt. Ltd.Strategic Management MSMSR/BBA/601 (Core)2

3. MODULE IIntroduction to Strategic Management- Introduction, Meaning and Definition, Need, Process of Strategic Management, Strategic Decision Making, Strategic Management ApproachesStrategic Management MSMSR/BBA/601 (Core)3

4. Module ContentS. noTopicsPage no. 1Introduction, Meaning and Definition of Strategic Management2Need of Strategic Management3Process of Strategic Management4Strategic Decision Making5Strategic Management ApproachesStrategic Management MSMSR/BBA/601 (Core)4

5. Introduction, Meaning and Definition of Strategic Management The concept of strategy The concept of strategy in business has been borrowed from military science and sports where it implies out- maneuvering the opponent. The term strategy began to be used in business with increase in competition and complexity of business operations. A strategy is an administrative course of action designed to achieve success in the face of difficulties. It is a plan for meeting challenges posed by the activities of competitors and environmental forces. Strategy is the complex plan for bringing the organization from a given state to a desired position in a future period of time. For example, if management anticipates price-cut by competitors, it may decide upon a strategy of launching an advertising campaign to educate the customers and to convince them of the superiority of its products. Strategic Management MSMSR/BBA/601 (Core)5

6. Nature of strategy  Strategy is a contingent plan as it is designed to meet the demands of a difficult situation.  Strategy provides direction in which human and physical resources will be deployed for achieving organizational goals in the face of environmental pressure and constraints.  Strategy relates an organization to its external environment. Strategic decisions are primarily concerned with expected trends in the market, changes in government policy, technological developments etc. Strategy is an interpretative plan formulated to give meaning to other plans in the light of specific situations.Strategic Management MSMSR/BBA/601 (Core)6

7. Introduction, Meaning and Definition of Strategic Management Strategy determines the direction in which the organization is going in relation to its environment. It is the process of defining intentions and allocating or matching resources to opportunities and needs, thus achieving a strategic fit between them. Business strategy is concerned with achieving competitive advantage.  The effective development and implementation of strategy depends on the strategic capability of the organization, which will include the ability not only to formulate strategic goals but also to develop and implement strategic plans through the process of strategic management.  A strategy gives direction to diverse activities, even though the conditions under which the activities are carried out are rapidly changing. Strategic Management MSMSR/BBA/601 (Core)7

8. Introduction, Meaning and Definition of Strategic Management The strategy describes the way that the organization will pursue its goals, given the changing environment and the resource capabilities of the organization.  It provides an understanding of how the organization plans to compete.  It is the determination and evaluation of alternatives available to an organization in achieving its objectives and mission and the selection of appropriate alternatives to be pursued.  It is the fundamental pattern of present and planned objectives, resource deployments, and interactions of a firm with markets, competitors and other environmental factors. Strategic Management MSMSR/BBA/601 (Core)8

9. A good strategy should specify;  What is to be accomplished  Where, i.e., which product/markets it will focus on  How i.e., which resources and activities will be allocated to each product/market to meet environmental opportunities and threats and to gain a competitive advantage Strategic Management MSMSR/BBA/601 (Core)9

10. Introduction, Meaning and Definition of Strategic ManagementDefinition; Strategic management is the process by which top management determines the long-term direction of the organization by ensuring that careful formulation, implementation and continuous evaluation of strategy take place. Strategic Management MSMSR/BBA/601 (Core)10

11. Components of strategy 1. Scope; refers to the breadth of a firm’s strategic domain i.e., the number and types of industries, product lines, and markets it competes in or plans to enter. 2. Goals and objectives; these specify desires such as volume growth, profit contribution or return on investment over a specified period. 3. Resource deployment; strategy should specify how resources are to be obtained and allocated across businesses, product/markets, financial departments, and activities.. Strategic Management MSMSR/BBA/601 (Core)11

12. Components of strategy 4. Identification of a sustainable competitive advantage; it refers to examining the market opportunities in each business and product-market and the firm’s distinctive competencies or strengths relative to competitors. 5. Synergy; this exists when the firm’s businesses, products, markets, resource deployments and competencies complement one another i.e., the whole becomes greater than the sum of its parts( 2+2=5) Strategies can be classified into corporate, business-unit and functional strategies. Strategic Management MSMSR/BBA/601 (Core)12

13. Strategic ManagementStrategic management is the process by which top management determines the long-term direction of the organization by ensuring that careful formulation, implementation and continuous evaluation of strategy take place. The strategic management process The process can be broken down into three phases;  Strategy formulation  Strategy implementation  Strategy control Strategic Management MSMSR/BBA/601 (Core)13

14. The strategic management process Strategy formulation involves;  Defining the organization’s guiding philosophy & purpose or mission.  Establishing long-term objectives in order to achieve the mission.  Selecting the strategy to achieve the objectives. Strategy implementation involves;  Establishing short-range objectives, budgets and functional strategies to achieve the strategy. Strategic Management MSMSR/BBA/601 (Core)14

15. The strategic management process Strategy control involves the following;  Establishing standards of performance.  Monitoring progress in executing the strategy.  Initiating corrective actions to ensure commitment to the implementation of the strategy. Strategic Management MSMSR/BBA/601 (Core)15

16. Needs of strategic management  It provides the organization with consistency of action i.e. helps ensure that all organizational units are working toward the same objectives (direction).  The process forces managers to be more proactive and conscious of their environments i.e. to be future oriented.  It provides opportunity to involve different levels of management, encourage the commitment of participating managers and reducing resistance to proposed change. Strategic Management MSMSR/BBA/601 (Core)16

17. Process of Strategic ManagementStrategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy.Strategic management process has following four steps:Environmental Scanning- 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.Strategic Management MSMSR/BBA/601 (Core)17

18. Process of Strategic ManagementStrategy Formulation- Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies.Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and managing human resources.Strategic Management MSMSR/BBA/601 (Core)18

19. Process of Strategic ManagementStrategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial/corrective actions. Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives.Strategic Management MSMSR/BBA/601 (Core)19

20. Strategic decision-makingIt is a process of understanding the interaction of decisions and their impact upon the organization to gain an advantage. Wrong decisions taken at the wrong time, may result in catastrophic consequences. In other words, the power of strategic thinking lies in combining the power of the right decision with the right time.To remain competitive and survive, organizations must make decisions that will maximize short-term results and minimize long-term risks. Strategic decision-making uncovers the future possibilities for a company and those options that can be implemented to achieve success. Strategic and data-driven strategies are gaining trends in the business world.Strategic Management MSMSR/BBA/601 (Core)20

21. Strategic decision-makingThe process of strategic decision-making combines the five basic steps of the decision-making process with the concepts of opportunity, threat, countervailing factors, and risk. The process of strategic decision-making is the lifeblood of your organization. As a business owner, it’s your responsibility to make decisions that will help your company survive, grow and thrive.Strategic Decision Making: Reasons and Its ImportanceThe organization must perform better in the future whether the present is better or worse. It is necessary to make strategic decisions to overcome the obstacles that come in the way of the organization’s progress.Strategic Management MSMSR/BBA/601 (Core)21

22. Why Strategic decision-making is the most essential thing for an organization?An important step in all organizations. This process facilitates organizational learning to take place, improve performance and organizational outcomes and reduce the probability of strategic failure or competition. It provides business intelligence reports for organizations to study and predict the future trendsA skill and it’s important to learn it and practice. Strategic decision-making is an essential skill for today’s leaders. It’s not a skill that should be picked up and used once or twice and then forgotten. Strategic decision-making can provide your organization with a competitive advantage, and it’s important to maintain your strategic decision-making skills and continue to develop them over time.Strategic Management MSMSR/BBA/601 (Core)22

23. Why Strategic decision-making is the most essential thing for an organization?One of the most important activities any organization can carry out. Strategic decisions are decisions that require a high degree of responsibility and focus on long-term objectives. They need a lot of knowledge about many things including the processes, systems, and policies. In addition to that, decisions need to be planned before they are carried out. Power BI visuals is one such tools which is secured and loaded with options for making better and smarter decisions.Also involves the process of implementation. Strategic decision-making is all about making the right decisions at the right time. Strategic Management MSMSR/BBA/601 (Core)23

24. Why Strategic decision-making is the most essential thing for an organization?This is the process of making a decision and then implementing that decision. Decision-making is not about making a decision, and then not acting on it. Implementation is the process of actually doing the work. A key tool to drive business growth. It is the way to find out what is the best way of achieving a business objective and what the risks are. This is why organizations should have a decision-making process that includes a well-defined set of policies and rules which are adhered to by all. You can also use different data analytics tools and data discovery tools for helping you taking better decisions.Strategic Management MSMSR/BBA/601 (Core)24

25. Assignment Q.1.Write Short Note on:-Strategic ManagementComponents of strategy.Q.2. Define process of strategy management.Q.3. Explain Strategic Decision making.25

26. MODULE IIEnvironmental Appraisal- The concept of Environment, The Company and its Environment, Porter’s Five Forces Model, Scanning the Environment, Technological, Social, Cultural, Demographic, Political, Legal and Other Environments Forces, Internal Analysis, Competitive Advantage, Value Chain Analysis, SWOT Analysis. Strategic Management MSMSR/BBA/601 (Core)26

27. Environmental AppraisalThere are numerous factors that affect the organisation and its operations. These factors can influence the organisation in both positive as well as negative ways. Identifying the issues and challenges existing in the external environment is extremely important for an organisation. In order to identify the factors in external environment, an appraisal process of the industry's environment is necessary. Environmental appraisal facilitates the managers with the ability to study the competitive structure and competitive position of the organisation along with the position of its competitors.By analyzing and appraising the external environment, the existing opportunities and threats can be identified. It is the responsibility of the managers to avoid the threats and to reap the benefits from the opportunities in the market. Strategic Management MSMSR/BBA/601 (Core)27

28. Environmental AppraisalEnvironmental appraisal also helps the managers in analyzing the effects of globalization on the level of competition within a particular industry.It is well-known that business environment never remains stable rather keeps on changing rapidly. As the businesses grows and expands, the changes in external environment compels the organisations to make efficient strategies to deal with the contingency situations. Environmental appraisal also allows an organisation to study the steps taken by competitors in the market. By appraising the external environment the companies can improve their internal capabilities and strengths for adapting to the changes in the external. environment.Strategic Management MSMSR/BBA/601 (Core)28

29. Definition of Environmental AppraisalAccording to Abell :"Environmental appraisal is the identification, measurement, and assessment of environmental impacts".Strategic Management MSMSR/BBA/601 (Core)29

30. Levels/Components of Environmental  AppraisalBy analyzing the external environment of a business the marketers are able to identify and highlight the opportunities from the threats and strengths from the weaknesses. The factors which are not dependent on organisation and their existence is not based on the activities of the organisation are called as external factors. While strengths and weaknesses are internal. Opportunities and threats are external and are not in control of the organisation. Opportunities are those situations that the organisations can use to their advantage. While threats are those negative situations that if not tackled promptly can harm the well-being of the organisation. Analyzing the external environment requires analyzing following areas :Strategic Management MSMSR/BBA/601 (Core)30

31. Levels/Components of Environmental  Appraisal1) Environmental Scanning :  In environmental scanning the broad environmental factors are analysed and studied. These factors are not a part of the organization's internal environment and hence are uncontrollable in nature. These factors influence the businesses in a significant manner. These factors are a part of the macro environment or the general environment. The common macro environmental factors are economic, political, legal, technological, social, etc.Strategic Management MSMSR/BBA/601 (Core)31

32. Levels/Components of Environmental  Appraisal2) Industry Analysis :  Industry analysis is a tool which is used to assess the degree of competition and complexity within a particular industry. With the help of industry analysis, the marketers study and scrutinize the macro environmental factors that influence a particular industry. Industrial analysis helps the strategic leaders formulate various strategies to neutralize the threats and reap the benefits from the opportunities. Various environmental forces to be studied in the industry analysis are the bargaining power of buyers and suppliers, position of business and competitors and threats of new entrants as well as the substitutes within the industry.Strategic Management MSMSR/BBA/601 (Core)32

33. Levels/Components of Environmental  Appraisal3) Competitive Analysis :  While appraising the external environment, it is very important to analyse the strengths and weaknesses of the existing and probable competitors. It helps the organisation to formulate the strategies required to survive and succeed in the highly competitive environment. It also outlines the strategies adopted by the competitors. The influence of competition is directly proportional to the degree of concentration in the industry, i.e., if the concentration of the industry is high, the influence of competition is high, and vice versa. Competitive analysis helps the organisations in identifying threats and opportunities by providing defensive and offensive strategic moves.Strategic Management MSMSR/BBA/601 (Core)33

34. Process of Environmental AppraisalThe process of environmental appraisal includes the following steps :1) Understand Nature of Environment :- Before starting the environmental appraisal, the strategists must understand the nature, i.e., the volatility of external environment. The volatility here implies to the changes in the environment. To understand the nature of environment, the strategic leaders need to answer following questions : Is the environment stable or dynamic? In which ways does the environment change?Are the changes identifiable?Answering these questions would help in deciding the future course of actions.Strategic Management MSMSR/BBA/601 (Core)34

35. Process of Environmental Appraisal2) Analyze the Past Influences of Environmental Factors : - Once, the nature of external environment is identified, the next step is to identify the factors that have influenced the performance of organisation in the past. Analyzing these factors will help in planning and formulating strategies to handle future scenarios.3) Identify Critical Competitive Forces : The next step is to identify the key competitive forces existing within the industry with the help of structural analysis. This step helps to analyze the organization's current position, the bargaining power of buyers and suppliers, the new entrants in the industry, and the existing competitors of the organisation.Strategic Management MSMSR/BBA/601 (Core)35

36. Process of Environmental Appraisal4) Analyze the Strategic Position :  In this step, the managers analyse the strategic position of the organisation in relation to its competitors in terms of resources, customers, etc. To identify and analyse the strategic position of an organisation, following ways should be adopted: Growth/Share analysisAttractiveness analysisStrategic group analysisStudy of market segments and market powerCompetitor analysis5) Identify the Opportunities and Threats : - Identify the opportunities and threats prevailing in the environment. Formulate efficient strategies to reap the benefits from the opportunities so that the threats can be neutralized. The selection of strategy and effective utilization of selected resources in an effective manner is crucial for this stage.Strategic Management MSMSR/BBA/601 (Core)36

37. The concept of EnvironmentThe environment is a major source of change. Some firms become victims of this change while others use it to their advantage. The purpose of environmental analysis is to enable the firm to turn change to its advantage by being proactive. Characteristics of the environment are;  It is unique to every organization.  It is constantly changing.  One level is controllable while the other (remote-PESTEL) is uncontrollable.  It is a source of Opportunities, Threats, Strengths & Weaknesses. Environmental analysis can be divided into two major steps; a. Defining; determining the relevant environmental forces. b. Scanning & forecasting; collecting information concerning the defined environment. Strategic Management MSMSR/BBA/601 (Core)37

38. The Company and its EnvironmentUnderstanding the environment that surrounds an organization is important to the executives in charge of the organizations. There are several reasons for this. First, the environment provides resources that an organization needs in order to create goods and services. In the 17th century, British poet John Donne famously noted that “no man is an island.” Similarly, it is accurate to say that no organization is self-sufficient. As the human body must consume oxygen, food, and water, an organization needs to take in resources such as labor, money, and raw materials from outside its boundaries. Subway, for example, simply would cease to exist without the contributions of the franchisees that operate its stores, the suppliers that provide food and other necessary inputs, and the customers who provide Subway with money through purchasing its products. An organization cannot survive without the support of its environment.Strategic Management MSMSR/BBA/601 (Core)38

39. The Company and its EnvironmentSecond, the environment is a source of opportunities and threats for an organization. Opportunities are events and trends that create chances to improve an organization’s performance level. In the late 1990s, for example, Jared Fogle’s growing fame created an opportunity for Subway to position itself as a healthy alternative to traditional fast-food restaurants. Threats are events and trends that may undermine an organization’s performance. Subway faces a threat from some upstart restaurant chains. Saladworks, for example, offers a variety of salads that contain fewer than 500 calories. Noodles and Company offers a variety of sandwiches, pasta dishes, and salads that contain fewer than 400 calories. These two firms are much smaller than Subway, but they could grow to become substantial threats to Subway’s positioning as a healthy eatery.Strategic Management MSMSR/BBA/601 (Core)39

40. The Company and its EnvironmentExecutives must also realize that virtually any environmental trend or event is likely to create opportunities for some organizations and threats for others. This is true even in extreme cases. In addition to horrible human death and suffering, the March 2011 earthquake and tsunami in Japan devastated many organizations, ranging from small businesses that were simply wiped out to corporate giants such as Toyota whose manufacturing capabilities were undermined. As odd as it may seem, however, these tragic events also opened up significant opportunities for other organizations. The rebuilding of infrastructure and dwellings requires concrete, steel, and other materials. Japanese concrete manufacturers, steelmakers, and construction companies are likely to be very busy in the years ahead.Strategic Management MSMSR/BBA/601 (Core)40

41. The Company and its EnvironmentThird, the environment shapes the various strategic decisions that executives make as they attempt to lead their organizations to success. The environment often places important constraints on an organization’s goals, for example. A firm that sets a goal of increasing annual sales by 50 percent might struggle to achieve this goal during an economic recession or if several new competitors enter its business. Environmental conditions also need to be taken into account when examining whether to start doing business in a new country, whether to acquire another company, and whether to launch an innovative product, to name just a few.Strategic Management MSMSR/BBA/601 (Core)41

42. Porter's Five Forces modelPorter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently used to identify an industry's structure to determine corporate strategy.Porter's model can be applied to any segment of the economy to understand the level of competition within the industry and enhance a company's long-term profitability. The Five Forces model is named after Harvard Business School professor, Michael E. Porter.Strategic Management MSMSR/BBA/601 (Core)42

43. Porter's Five Forces modelPorter's 5 forces are:Competition in the industryPotential of new entrants into the industryPower of suppliersPower of customersThreat of substitute productsStrategic Management MSMSR/BBA/601 (Core)43

44. 1. Competition in the IndustryThe first of the Five Forces refers to the number of competitors and their ability to undercut a company. The larger the number of competitors, along with the number of equivalent products and services they offer, the lesser the power of a company.Suppliers and buyers seek out a company's competition if they are able to offer a better deal or lower prices. Conversely, when competitive rivalry is low, a company has greater power to charge higher prices and set the terms of deals to achieve higher sales and profits.Competitors are many  They are roughly equal in size  Industry growth is slow, leading to fights for market share  The product lacks differentiation or switching costs  Fixed costs are high and the product is perishable  Exit barriers are high. Strategic Management MSMSR/BBA/601 (Core)44

45. 2. Potential of New Entrants Into an IndustryA company's power is also affected by the force of new entrants into its market. The less time and money it costs for a competitor to enter a company's market and be an effective competitor, the more an established company's position could be significantly weakened.An industry with strong barriers to entry is ideal for existing companies within that industry since the company would be able to charge higher prices and negotiate better terms.Strategic Management MSMSR/BBA/601 (Core)45

46. 3. Power of SuppliersThe next factor in the Porter model addresses how easily suppliers can drive up the cost of inputs. It is affected by the number of suppliers of key inputs of a good or service, how unique these inputs are, and how much it would cost a company to switch to another supplier. The fewer suppliers to an industry, the more a company would depend on a supplier.As a result, the supplier has more power and can drive up input costs and push for other advantages in trade. On the other hand, when there are many suppliers or low switching costs between rival suppliers, a company can keep its input costs lower and enhance its profits. It is made up of a few firms  There are few or no substitute products  The product is unique or differentiated  There exists supplier switching costs  It can integrate forward to produce the industry’s product. Strategic Management MSMSR/BBA/601 (Core)46

47. 4. Power of CustomersThe ability that customers have to drive prices lower or their level of power is one of the Five Forces. It is affected by how many buyers or customers a company has, how significant each customer is, and how much it would cost a company to find new customers or markets for its output.A smaller and more powerful client base means that each customer has more power to negotiate for lower prices and better deals. A company that has many, smaller, independent customers will have an easier time charging higher prices to increase profitability. The buyers are few and they buy in large volumes  The product is not differentiated, is substitutable and there are other alternative suppliers.  The buyer has little switching costs  The buyer can integrate backward to make the industry’s product. Strategic Management MSMSR/BBA/601 (Core)47

48. 5. Threat of SubstitutesThe last of the Five Forces focuses on substitutes. Substitute goods or services that can be used in place of a company's products or services pose a threat. Companies that produce goods or services for which there are no close substitutes will have more power to increase prices and lock in favorable terms. When close substitutes are available, customers will have the option to forgo buying a company's product, and a company's power can be weakened.Understanding Porter's Five Forces and how they apply to an industry, can enable a company to adjust its business strategy to better use its resources to generate higher earnings for its investors.Strategic Management MSMSR/BBA/601 (Core)48

49. What Are Some Drawbacks of Porter's Five Forces?The Five Forces model has some drawbacks, including that it is backward-looking, making its findings mostly relevant only in the short term; that limitation is compounded by the impact of globalization. Another big drawback is the tendency to try to use the five forces to analyze an individual company, versus a broad industry, which is how the framework was intended. Also problematic is that the framework is structured so that each company is placed in one industry group when some companies straddle several. Another issue includes the need to assess all five forces equally when some industries aren't as heavily impacted by all five.What's the Difference Between Porter's Five Forces and SWOT Analysis?Porter's 5 Forces and SWOT (strengths, weaknesses, opportunities, & threats) analysis are both tools used to analyze and make strategic decisions. Companies, analysts, and investors use Porter's 5 Forces to analyze the competitive environment within an industry, while they tend to use a SWOT analysis to look more deeply within an organization to analyze its internal potential.Strategic Management MSMSR/BBA/601 (Core)49

50. Scanning the EnvironmentEnvironmental scanning is a process of gathering information about the events and their relationship with the internal and external environment of the organization. The primary aim of environmental scanning is to find out the future prospects of business organization. As a significant resource to the management, the Environmental Scanning Committee enables the management to make decisions from fundamental analysis of historical events to estimate future events. The committee also helps in creating action plans to address these upcoming events, analyzing action plans and arranging appropriate resources for those plans, and putting management in contact with fellow employees with the knowledge set to provide quality data for decision making.Environmental Scanning Definition - The process of collecting, evaluating, and delivering information for a strategic purpose is defined as environmental scanning. The process of environmental scanning requires both accurate and personalized data on the business environment in which the organization is operating or considering entering.Strategic Management MSMSR/BBA/601 (Core)50

51. What are the Characteristics of Environmental Scanning?The characteristics of environmental scanning are as follows: Continuous Process- The analysis of the environment is a continuous process rather than being sporadic. The rapidly changing environment has to be captured continuously to be on track.Exploratory Process- Scanning is an exploratory process that keeps monitoring the environment to bring out the possibilities and unknown dimensions of the future. It stresses the fact that “What could happen” and not ”What will happen”.Dynamic Process- Environmental scanning is not static. It is a dynamic process and depends on changing situations.Holistic View- Environmental Scanning focuses on the complete view of the environment rather than viewing it partially.Strategic Management MSMSR/BBA/601 (Core)51

52. Components of Environmental ScanningInternal Environmental Components- The components that lie within the organization are internal components and changes in these affect the general performance of the organization. Human resources, capital resources and technological resources are some of the internal environmental components.External Environmental Components: The components that fall outside the business organization are called external environmental components. Although the components lie outside the organization, they still affect the organizational activities. The external components can be divided into micro environmental components, and macro environmental components. Micro environmental components include competitors, consumers, markets, suppliers, organizations, etc. Macro environmental components include political, legal, economical, cultural, demographic, and technological factors.   Strategic Management MSMSR/BBA/601 (Core)52

53. Techniques of Environmental ScanningSWOT Analysis- SWOT analysis is an acronym for Strengths, Weaknesses, opportunities and threats analysis of the environment. Strengths and weaknesses are considered as internal factors whereas opportunities and threats are external factors. These factors determine the course of action to ensure the growth of the business.PEST Analysis- PEST stands for Political, economic, social, and technological analysis of the environment. It deals with the external macro-environment.ETOP- ETOP stands for the Environmental Threat Opportunity Profile. It helps an organization to analyze the impact of the environment based on threats and opportunities.QUEST- QUEST stands for the Quick Environmental Scanning Technique. This technique is designed to analyze the environment quickly and inexpensively so that businesses can focus on critical issues that have to be addressed in a short span.Strategic Management MSMSR/BBA/601 (Core)53

54. Process of Environmental AnalysisScanning-  The process of analyzing the environment to spot the factors that may impact the business is known as Environmental Scanning. It alerts the enterprise to take suitable strategic decisions before it reaches a critical situation.Monitoring- The data is gathered from various sources and is utilized to monitor and find out the trends and patterns in the environment. The main sources of collecting data are spying, publication talks with customers, suppliers, dealers and employees.Forecasting- The process of estimating future events based on previously analyzed data is known as environmental forecasting.Assessment-  T In this stage, the environmental factors are assessed to identify whether they provide an opportunity for the business or pose a threat.Strategic Management MSMSR/BBA/601 (Core)54

55. Importance of Environmental ScanningGoal Accomplishment: The objectives of an organization cannot be fulfilled unless it adapts itself to environmental changes. One has to adjust the strategies to fit in the changing demands of the environment.Threats and Weakness Identification: For an organization to grow, it must minimize its threats and identify its weaknesses. This is made possible with the help of environmental scanning with which better strategies can be developed.tzFuture Forecast: Environmental changes are often unpredictable. An organization cannot anticipate all the future events but based on the analysis, it can make better strategic decisions in the future. Hence, environmental analysis helps to forecast the prospects of the business.Market Knowledge: Every organization must be aware of the ongoing changes in the market. If it fails to incorporate strategic changes due to changing demands, it will not be able to achieve its objectives.Focus on the Customer: Environmental scanning and analysis make an organization sensitive  to the changing needs and expectations of the customer.Opportunities Identification: With the analysis of the current environment, an organization will be able to identify the possible opportunities and take necessary steps. Strategic Management MSMSR/BBA/601 (Core)55

56. Limitations of Environmental ScanningOverloading of information may sometimes result in indecision. Hence it is not completely reliable.It does not forecast the future or eliminate uncertainties. Organizations may face unexpected events. However environmental scanning should aim at minimizing such threats to the business.It often makes an organization cautious and thereby delays decision making. It is better to have a strategic approach to analyze the environment and take decisions or actions on time.When the organizations rely completely on the analyzed information without data verification and accuracy, it may lead to deviation in the desired outcomes.Strategic Management MSMSR/BBA/601 (Core)56

57. Technological, Social, Cultural, Demographic, Political, Legal "PEST" or "Political, Economic, Social and Technological" analysis is one of the techniques of environment appraisal which provides a deep insight about the macro-environmental factors that affect the operations of a business. The level of importance given to these factors varies as per the industry in which a company works and the goods/services it deals in.Some strategists have increased the scope of this technique by adding two more factors into it, i.e., environmental and legal factors. Hence, the extended version of this technique is known as "PESTEL.Strategic Management MSMSR/BBA/601 (Core)57

58. Technological, Social, Cultural, Demographic, Political, Legal ". This technique has another variant known as "LONGPESTEL" or "Local, National, Global, Political, Economic, Social and Technological" analysis. This technique is used when the organisations are categorized as per the geographical basis. When these macro environmental factors are integrated with the external micro-environmental factors, then the analysis carried-out is SWOT analysisStrategic Management MSMSR/BBA/601 (Core)58

59. Factors Analysed in PEST AnalysisVarious factors that are analysed in PEST analysis are as follows :1) Political Factors :  Political factors are the laws, orders, and interventions made by the government in order to regulate the businesses. These regulations influence the operations of business in a significant way.2) Economic Factors :  Economic factors are the current and past patterns that exist in the country. These factors encompass the rate of economic growth, inflation, exchange rates, average income, etc., which heavily influence the money circulation and hence regulate the business activities.3) Social Factors : Social factors include all those factors that are related to the general public. These factors are closely knitted with the consumption by public, which influences the gross demand of products and services. These factors, involve the rate of population growth. literacy rate, employment, public safety, etc.4) Technological Factors :Technological factors are one of the prime factors that affect the business operations in the dynamic business environment. These factors involve arrival of new technology in market, automation of business processes, research and development projects, etc.Strategic Management MSMSR/BBA/601 (Core)59

60. Competitive AdvantageCompetitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival.Competitive advantages can be broken down into comparative advantages and differential advantages.Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins.A differential advantage is when a company's products are seen as both unique and of higher quality, relative to those of a competitor.Strategic Management MSMSR/BBA/601 (Core)60

61. Value Chain AnalysisValue chain analysis is a means of evaluating each of the activities in a company’s value chain to understand where opportunities for improvement lie.Conducting a value chain analysis prompts you to consider how each step adds or subtracts value from your final product or service. This, in turn, can help you realize some form of competitive advantage, such as:Cost reduction, by making each activity in the value chain more efficient and, therefore, less expensive.Product differentiation, by investing more time and resources into activities like research and development, design, or marketing that can help your product stand out. Typically, increasing the performance of one of the four secondary activities can benefit at least one of the primary activities.Strategic Management MSMSR/BBA/601 (Core)61

62. HOW TO CONDUCT A VALUE CHAIN ANALYSIS1. Identify Value Chain Activities- The first step in conducting a value chain analysis is to understand all of the primary and secondary activities that go into your product or service’s creation. If your company sells multiple products or services, it’s important to perform this process for each one.2. Determine the Cost and Value of Activities- Once the primary and secondary activities have been identified, the next step is to determine the value that each activity adds to the process, along with the costs involved.When thinking about the value created by activities, ask yourself: How does each increase the end user’s satisfaction or enjoyment? How does it create value for my firm? For example, does constructing the product out of certain materials make it more durable or luxurious for the user? Does including a certain feature make it more likely your firm will benefit from network effects and increased business?Similarly, it’s important to understand the costs associated with each step in the process. Depending on your situation, you may find that lowering expenses is an easy way to improve the value each transaction provides.Strategic Management MSMSR/BBA/601 (Core)62

63. HOW TO CONDUCT A VALUE CHAIN ANALYSIS3. Identify Opportunities for Competitive Advantage- Once you’ve compiled your value chain and understand the cost and value associated with each step, you can analyze it through the lens of whatever competitive advantage you’re trying to achieve.For example, if your primary goal is to reduce your firm’s costs, you should evaluate each piece of your value chain through the lens of reducing expenses. Which steps could be more efficient? Are there any that don’t create significant value and could be outsourced or eliminated to substantially reduce costs?Similarly, if your primary goal is to achieve product differentiation, which parts of your value chain offer the best opportunity to realize that goal? Would the value created justify the investment of additional resources?Using value chain analysis, you can uncover several opportunities for your firm, which can prove difficult to prioritize. It’s typically best to begin with improvements that take the least effort but offer the greatest return on investment.Strategic Management MSMSR/BBA/601 (Core)63

64. SWOT AnalysisAnother well-known technique for analyzing the internal and external environment of business is "SWOT" or "Strengths, Weaknesses, Opportunities and Threat" analysis. It is a simple tool that is helpful in studying the internal strength and weaknesses, and the external threats and opportunities of a company. SWOT analysis involves identifying the business objectives and defining the significant internal and external factors for achieving the identified objectives.The main aim of conducting a SWOT analysis is to help the business in protecting itself against the threats and to exploit the potential business opportunities. This analysis is essential for formulating strategies as is provides a base for strategy formulation. SWOT analysis helps in studying the overall soundness of the business.Components of SWOT Analysis1) Internal Factors :  The first two letters in the acronym S (strength) and W (weaknesses) refers to internal factors that are the resources available in the organisation. These factors may impart strengths which can be utilized to exploit the opportunities or become a cause of weaknesses of a strategic nature for the organisation.Strategic Management MSMSR/BBA/601 (Core)64

65. SWOT Analysisi) Strengths : These are the factors that provide competitive advantage to the organisation. These factors collectively may allow an organisation to bring change in an organisation. These factors can be different for different organisations. These can be resources, skills, etc. For example, Presence in global market & collaboration with reputed international firms,Tie-ups with internationally reputed manufacturers and exporters,Experience in tooling selectivity and metal cutting,Manufacturers certified with ISO 9001 certification.Strategic Management MSMSR/BBA/601 (Core)65

66. SWOT Analysisii) Weaknesses :  Weaknesses are the factors: that limit the growth of company or restrict the company from moving in a desired direction. These factors also hinder the organisation from achieving success through the internal capabilities. These factors vary as per the organisation. A weakness can be anything such as lack of resource, lack of market understanding, lack of fund, etc. For example,Inconsistencies in cash flow system,Lack of research facilities and use of out dated research data,Lack of latest technologies and no web presence,New firm and hence lack of goodwill. Strategic Management MSMSR/BBA/601 (Core)66

67. SWOT Analysis2) External Factors : External factors reside outside the organisation. These are of two types :i) Opportunities :  An opportunity is a major favorably situation in the firm's environment. The industry should build its production capacity to meet the upward moving demand, both for domestic and international markets. Opportunities are those factors which act as the favorable situations for the organisation. These situations encourage the organisation to grow more and earn more profits. For example,Loyal customers in market,High demand of certain products in a particular season, Poor substitutes available in the market, Obsolete technologies of the competitors.Strategic Management MSMSR/BBA/601 (Core)67

68. SWOT Analysisii) Threat :Threats are the external unfavorable conditions. They act as barrier for the organisation in achieving its desired market position. These factors also differ as per the organisation and the areas in which it operates. For example,Too many competitors of the similar product,Introduction of taxes or increase in tax rates, Recession in economy, Latest technology used by competitorsStrategic Management MSMSR/BBA/601 (Core)68

69. AssignmentQ.1. Make a SWOT analysis of any one company in the following sectors:-FMCG company,Steel & iron Company,Watch Industry,Q.2. Write short note on:-Value chain analysis,Competitive advantages.69

70. MODULE IIIStrategic Planning- Strategic Planning Process, Levels of Strategy, Corporate Level Strategy, Business Level Strategy and Functional Level Strategy, Strategic Alternatives, Stability Strategy, Expansion Strategy, Merger Strategy, Retrenchment Strategy, Restructure Strategy, Competitive Analysis. Strategic Management MSMSR/BBA/601 (Core)70

71. Strategic PlanningStrategic planning is a process in which an organization's leaders define their vision for the future and identify their organization's goals and objectives. The process includes establishing the sequence in which those goals should be realized so that the organization can reach its stated vision.Strategic planning typically represents mid- to long-term goals with a life span of three to five years, though it can go longer. This is different than business planning, which typically focuses on short-term, tactical goals, such as how a budget is divided up. The time covered by a business plan can range from several months to several years.The product of strategic planning is a strategic plan. It is often reflected in a plan document or other media. These plans can be easily shared, understood and followed by various people including employees, customers, business partners and investors.Organizations conduct strategic planning periodically to consider the effect of changing business, industry, legal and regulatory conditions. A strategic plan may be updated and revised at that time to reflect any strategic changes.Strategic Management MSMSR/BBA/601 (Core)71

72. Why is strategic planning important?Businesses need direction and organizational goals to work toward. Strategic planning offers that type of guidance. Essentially, a strategic plan is a roadmap to get to business goals. Without such guidance, there is no way to tell whether a business is on track to reach its goals.The following four aspects of strategy development are worth attention:The mission. Strategic planning starts with a mission that offers a company a sense of purpose and direction. The organization's mission statement describes who it is, what it does and where it wants to go. Missions are typically broad but actionable. For example, a business in the education industry might seek to be a leader in online virtual educational tools and services.Strategic Management MSMSR/BBA/601 (Core)72

73. Why is strategic planning important?The goals. Strategic planning involves selecting goals. Most planning uses SMART goals -- specific, measurable, achievable, realistic and time-bound -- or other objectively measurable goals. Measurable goals are important because they enable business leaders to determine how well the business is performing against goals and the overall mission. Goal setting for the fictitious educational business might include releasing the first version of a virtual classroom platform within two years or increasing sales of an existing tool by 30% in the next year.Alignment with short-term goals. Strategic planning relates directly to short-term, tactical business planning and can help business leaders with everyday decision-making that better aligns with business strategy. For the fictitious educational business, leaders might choose to make strategic investments in communication and collaboration technologies, such as virtual classroom software and services but decline opportunities to establish physical classroom facilities.Evaluation and revision. Strategic planning helps business leaders periodically evaluate progress against the plan and make changes or adjustments in response to changing conditions. For example, a business may seek a global presence, but legal and regulatory restrictions could emerge that affect its ability to operate in certain geographic regions. As result, business leaders might have to revise the strategic plan to redefine objectives or change progress metrics.Strategic Management MSMSR/BBA/601 (Core)73

74. What are the steps in the strategic planning process?There are myriad different ways to approach strategic planning depending on the type of business and the granularity required. Most strategic planning cycles can be summarized in these five steps:Identify. A strategic planning cycle starts with the determination of a business's current strategic position. This is where stakeholders use the existing strategic plan -- including the mission statement and long-term strategic goals -- to perform assessments of the business and its environment. These assessments can include a needs assessment or a SWOT (strengths, weaknesses, opportunities and threats) analysis to understand the state of the business and the path ahead.Prioritize. Next, strategic planners set objectives and initiatives that line up with the company mission and goals and will move the business toward achieving its goals. There may be many potential goals, so planning prioritizes the most important, relevant and urgent ones. Goals may include a consideration of resource requirements -- such as budgets and equipment -- and they often involve a timeline and business metrics or KPIs for measuring progress.Strategic Management MSMSR/BBA/601 (Core)74

75. What are the steps in the strategic planning process?Develop. This is the main thrust of strategic planning in which stakeholders collaborate to formulate the steps or tactics necessary to attain a stated strategic objective. This may involve creating numerous short-term tactical business plans that fit into the overarching strategy. Stakeholders involved in plan development use various tools such as a strategy map to help visualize and tweak the plan. Developing the plan may involve cost and opportunity tradeoffs that reflect business priorities. Developers may reject some initiatives if they don't support the long-term strategy.Implement. Once the strategic plan is developed, it's time to put it in motion. This requires clear communication across the organization to set responsibilities, make investments, adjust policies and processes, and establish measurement and reporting. Implementation typically includes strategic management with regular strategic reviews to ensure that plans stay on track.Update. A strategic plan is periodically reviewed and revised to adjust priorities and reevaluate goals as business conditions change and new opportunities emerge. Quick reviews of metrics can happen quarterly, and adjustments to the strategic plan can occur annually. Stakeholders may use balanced scorecards and other tools to assess performance against goals.Strategic Management MSMSR/BBA/601 (Core)75

76. How often should strategic planning be done?There are no uniform requirements to dictate the frequency of a strategic planning cycle. However, there are common approaches.Quarterly reviews. Once a quarter is usually a convenient time frame to revisit assumptions made in the planning process and gauge progress by checking metrics against the plan.Annual reviews. A yearly review lets business leaders assess metrics for the previous four quarters and make informed adjustments to the plan.Timetables are always subject to change. Timing should be flexible and tailored to the needs of a company. For example, a startup in a dynamic industry might revisit its strategic plan monthly. A mature business in a well-established industry might opt to revisit the plan less frequently.Strategic Management MSMSR/BBA/601 (Core)76

77. Types of strategic plansStrategic planning activities typically focus on three areas: business, corporate or functional. They break out as follows:Business. A business-centric strategic plan focuses on the competitive aspects of the organization creating competitive advantages and opportunities for growth. These plans adopt a mission evaluating the external business environment, setting goals, and allocating financial, human and technological resources to meet those goals. Strategic Management MSMSR/BBA/601 (Core)77

78. Types of strategic plansCorporate. A corporate-centric plan defines how the company works. It focuses on organizing and aligning the structure of the business, its policies and processes and its senior leadership to meet desired goals. For example, the management of a research and development skunk works might be structured to function dynamically and on an ad hoc basis. It would look different from the management team in finance or HR.Functional. Function-centric strategic plans fit within corporate-level strategies and provide a granular examination of specific departments or segments such as marketing, HR, finance and development. Functional plans focus on policy and process -- such as security and compliance -- while setting budgets and resource allocations.Strategic Management MSMSR/BBA/601 (Core)78

79. Strategic AlternativeThere are four main types of strategic alternatives that can be identified.Corporate level strategyBusiness level strategyFunctional level strategyOperational level strategyCorporate Level Strategy- Corporate level strategy can be defined as the long term goals and objectives of the organization that can create an impact on all the business units operating under one umbrella organization. If the company is a large group of companies with several sub-organizations under the mother company, the corporate level strategies is made for the long-term benefit of all the sub-organization.Strategic Management MSMSR/BBA/601 (Core)79

80. Corporate Level StrategyCorporate strategy defines the businesses and the market segments that the company will operate and customers they are targeting to acquire. The corporate-level strategies are planned by the top-level management in the group of companies. They created corporate-level strategies that are then passed down to the organizations under the main umbrella for the purpose of generating their own strategies aligned with the parent company.The corporate-level strategy provides a set of strategic alternatives from which the management of the organization chooses to continue and achieve in long run through the operations of the companies in several market sectors and possibly in several industries.Strategic Management MSMSR/BBA/601 (Core)80

81. Business-level strategyThe business-level strategies include all the actions and the way of approaching to face the competition of a company and the ways that the management of the organization addresses the strategic issues facing by the organization. Basically, it will describe the foundation on which the organization competes in the market. The business-level strategy is a unit level strategy created by the senior management of the business unit. This focuses on increasing the strength of the competitive position of the product or the service offered by the company while lining the strategies with the corporate-level strategies. Under the business strategy, the management of the organization is mainly focusing on developing the products, integration, innovation management, and diversifying the production in order to achieve a competitive advantage in the market. This can be achieved by focusing on different differentiation strategies such as cost reduction and niche market strategies.Strategic Management MSMSR/BBA/601 (Core)81

82. Functional level strategyFunctional level strategies are the objectives created by the different functions or divisions of an organization. Functional level strategies should be created in line with business-level strategies. Functional strategies can vary from department to department such a production strategy, marketing strategy, sales strategy, human resources strategy, and financial strategy. Some functional strategies are also named as departmental strategies as the functions are usually connected with each department of the organization. Functional level strategies are focused on developing the competence of the organization while providing necessary support to the business-level strategy to achieve success in the competition.Strategic Management MSMSR/BBA/601 (Core)82

83. Operational level strategyOperational level strategies are formulated in the small sections within a department. Since these are operating at the small operating units in an organization such as factories, or small territories. Operating managers/ field-level managers are responsible for developing operating strategies while being in line with the functional strategies.These identified strategic alternatives helps a business to align their activities with the organizational vision and mission.Strategic Management MSMSR/BBA/601 (Core)83

84. Expansion StrategyAn expansion strategy is synonymous with a growth strategy. A firm seeks to achieve faster growth, compete, achieve higher profits, grow a brand, capitalize on economies of scale, have greater impact, or occupy a larger market share. This may entail acquiring more market share through traditional competitive strategies, entering new markets, targeting new market segments, offering new produce or services, expanding or improving current operations. Below are common expansion strategies:Expansion through Concentration - This involves focusing resource allocation and operational efficiency on one or a select group of business units or core business functions. Concentration might include: penetrating an existing market with an existing value proposition; developing a new market by attracting new customers to an existing value proposition; developing a new value proposition to introduce in the existing market. The benefits of expansion through concentration is that it allows the firm to focus on areas where it already has operations and a level of competency. It is comfortable to avoid major changes in operations while employing existing knowledge. This type of strategy can be risky from the stand point of putting too many eggs in one basket. Changes in the market (price fluctuations, customer sentiment, new value propositions, etc.) may cause the strategy to be unsuccessful.Strategic Management MSMSR/BBA/601 (Core)84

85. Expansion StrategyExpansion through Diversification - This strategy involves diversifying the value offering of the company in one of two methods: 1) Concentric Diversification entails developing a new value proposition that are related to existing value propositions; or 2) Conglomerate Diversification entail entering into new markets (either with an existing value proposition or by combining with another industry competitor). This strategy generally reduces specific industry risks, such as an economic downturn. The profits of one value offering might offset losses in another business unit during difficult times.Expansion through Integration - Integration involves the consolidation of operational units anywhere along the value chain to create greater efficiency and produce economies of scale. Unlike other strategies, it does not involve making changes to existing markets or targeting new customer groups. There are two primary types of integration: 1) Vertical integration involves consolidation up or down the value chain. Forward vertical integration involves consolidating closer to the point at which value is delivered to the consumer. Backward vertical integration involves consolidating closer to the genesis of value (such as the point of manufacturing). Horizontal integration involves consolidating operations at the same point in the value chain. This consolidation may be between business units or by acquiring or combining with a competitors. Strategic Management MSMSR/BBA/601 (Core)85

86. Expansion StrategyExpansion through Cooperation - This strategy entails working closely with a competitor (while potentially still competing against them in the market). Working with the competitor provides both companies an advantage that trumps any advantage (or disadvantage caused to the competitor) from not working together. Working together will generally provide operational efficiency to one or both competitors or expand the market potential for one or both competitors. Working together may take the form of consolidation of business units (mergers or acquisitions), strategic alliance (affinity group or association), or joint venture (loose partnership-like alliance generally used to undertake a project or enter into foreign markets).Expansion through Internationalization - This method involves creating new markets for a value offering by looking outside of the immediate nation. Generally, this option is preferable when there is little room for expansion in domestic markets. Internationalization can be carried out through the following strategic approaches: 1) International Strategy - focusing on offering a value proposition in a foreign country without modification of differentiation; 2) Multi-domestic Strategy - involves modifying or differentiating a product to make it attractive or suitable to foreign markets; 3) Global Strategy - focuses on delivering the standardized value proposition in countries where there is a low cost structure for delivery; 4) Transnational Strategy - employs both a global and multi-domestic strategy by modifying or differentiating a product in foreign markets where there is a low cost structure that results in profits from delivering the value proposition.Strategic Management MSMSR/BBA/601 (Core)86

87. Merger StrategyMerger refers to a strategic process whereby two or more companies mutually form a new single legal venture. For example, in 2015, ketchup maker H.J. Heinz Co and Kraft Foods Group Inc merged their business to become Kraft Heinz Company, a leading global food and beverage firm.Strategic Management MSMSR/BBA/601 (Core)87

88. Retrenchment StrategyA redemption strategy seeks to restructure, sell or otherwise divest a business unit. The purpose is to reduce costs, streamline operations, or stabilize cash flow. The three primary types of retrenchment strategy are:Turnaround Strategy - This is a restructuring strategy. It calls for realigning operations to be more cost efficient or profitable. It often comes in response to an ineffective strategy causing harm to the company. Divestment Strategy - This means reducing operations or completing divesting (getting rid of) a business unit. Generally, the operational unit will be losing money or not fit with the companies core operational objectives. Some the drivers of this strategy are negative cash flows, sustained losses, poor business integration, better alternative use of assets, the value proposition is becoming obsolete, rising costs, or small (non-growing) market share. The firm may now allocate resources to a more profitable or appropriately aligned business unit. Generally, a divestment comes after a turnaround strategy has proved ineffective. Liquidation Strategy - A liquidation strategy is similar to a divestment. It focuses on selling specific assets or shutting down business units. Unlike divestment, which seeks to streamline operations and focus resource allocation, liquidation sees a business unit as a loss or failure. Scenarios leading to a liquidation strategy include: extensive losses, lack of profitability, failure of a current strategy, obsolete assets, or technology, ineffective processes, obsolete value proposition, poor management, or lack of integration of the business unit. Strategic Management MSMSR/BBA/601 (Core)88

89. Restructure StrategyAn organizational restructuring strategy involves redesigning operations and management reporting structures to address and correct the operational issues that led to a company's distressed position.What are the three types of restructuring strategies?The three types of restructuring strategies: downsizing, downscoping, and leveraged buyouts.Strategic Management MSMSR/BBA/601 (Core)89

90. Competitive AnalysisCompetitive analysis is a strategy that involves researching major competitors to gain insight into their products, sales, and marketing tactics. Implementing stronger business strategies, warding off competitors, and capturing market share are just a few benefits of conducting a competitive market analysis.A competitive analysis can help you learn the ins and outs of how your competition works, and identify potential opportunities where you can out-perform them. It also enables you to stay atop of industry trends and ensure your product is consistently meeting and exceeding industry standards.Let's dive into a few more benefits of conducting competitive analyses:Helps you identify your product's unique value proposition and what makes your product different from the competitors', which can inform future marketing efforts.Strategic Management MSMSR/BBA/601 (Core)90

91. Competitive AnalysisEnables you to identify what your competitor is doing right. This information is critical for staying relevant and ensuring both your product and your marketing campaigns are outperforming industry standards.Tells you where your competitors are falling short — which helps you identify areas of opportunities in the marketplace, and test out new, unique marketing strategies they haven't taken advantage of.Learn through customer reviews what's missing in a competitor's product, and consider how you might add features to your own product to meet those needs.Provides you with a benchmark against which you can measure your growth.Strategic Management MSMSR/BBA/601 (Core)91

92. AssignmentQ.1. Write short note on:-ExpansionMerge strategy.Q.2. What is corporate level strategy? 92

93. MODULE IVImplementation of Strategy -Aspects of Strategy Implementation, Project and Procedural Implementation, Structural Implementation, Structural Considerations, Organizational Design and Change, Organizational Systems. Behavioral Implementation, Leadership Implementation, Corporate CultureStrategic Management MSMSR/BBA/601 (Core)93

94. Strategy ImplementationDefinition: Strategy Implementation refers to the execution of the plans and strategies, so as to accomplish the long-term goals of the organization. It converts the opted strategy into the moves and actions of the organisation to achieve the objectives.Simply put, strategy implementation is the technique through which the firm develops, utilizes and integrates its structure, culture, resources, people and control system to follow the strategies to have the edge over other competitors in the market.Strategy Implementation is the fourth stage of the Strategic Management process, the other three being a determination of strategic mission, vision and objectives, environmental and organizational analysis, and formulating the strategy. It is followed by Strategic Evaluation and Control.Strategic Management MSMSR/BBA/601 (Core)94

95. Process of Strategy ImplementationBuilding an organization, that possess the capability to put the strategies into action successfully.Supplying resources, in sufficient quantity, to strategy-essential activities.Developing policies which encourage strategy.Such policies and programs are employed which helps in continuous improvement.Combining the reward structure, for achieving the results.Using strategic leadership.The process of strategy implementation has an important role to play in the company’s success. The process takes places after environmental scanning, SWOT analyses and ascertaining the strategic issues.Strategic Management MSMSR/BBA/601 (Core)95

96. Prerequisites of Strategy ImplementationInstitutionalization of Strategy: First of all the strategy is to be institutionalized, in the sense that the one who framed it should promote or defend it in front of the members, because it may be undermined.Developing proper organizational climate: Organizational climate implies the components of the internal environment, that includes the cooperation, development of personnel, the degree of commitment and determination, efficiency, etc., which converts the purpose into results.Formulation of operating plans: Operating plans refers to the action plans, decisions and the programs, that take place regularly, in different parts of the company. If they are framed to indicate the proposed strategic results, they assist in attaining the objectives of the organization by concentrating on the factors which are significant.Developing proper organizational structure: Organization structure implies the way in which different parts of the organisation are linked together. It highlights the relationships between various designations, positions and roles. To implement a strategy, the structure is to be designed as per the requirements of the strategy.Strategic Management MSMSR/BBA/601 (Core)96

97. Periodic Review of Strategy:Review of the strategy is to be taken at regular intervals so as to identify whether the strategy so implemented is relevant to the purpose of the organisation. As the organization operates in a dynamic environment, which may change anytime, so it is essential to take a review, to know if it can fulfill the needs of the organization.Even the best-formulated strategies fail if they are not implemented in an appropriate manner. Further, it should be kept in mind that, if there is an alignment between strategy and other elements like resource allocation, organizational structure, work climate, culture, process and reward structure, then only the effective implementation is possible.Strategic Management MSMSR/BBA/601 (Core)97

98. Aspects of Strategy ImplementationCreating budgets which provide sufficient resources to those activities which are relevant to the strategic success of the business.Supplying the organization with skilled and experienced staff.Conforming that the policies and procedures of the organisation assist in the successful execution of the strategies.Leading practices are to be employed for carrying out key business functions.Setting up an information and communication system, that facilitate the workforce of the organisation, to perform their roles effectively.Developing a favorable work climate and culture, for proper implementation of the strategy.Strategy implementation is the time-taking part of the overall process, as it puts the formulated plans into actions and desired results.Strategic Management MSMSR/BBA/601 (Core)98

99. Project implementationProject implementation : “A one shot, time limited, goal oriented, major undertaking, requiring the commitment of varied skills and resources”. Procedural implementation: Strategy implementation also requires executing the strategy, based on the rules, regulations and procedures formulated by the government. Resources allocation: Resource allocation is the process of allocation organizational resources to various divisions, department, and strategic business units(SBUs) Methods for resource allocation are: 1. B.C.G. matrix 2. budgeting systems Organizational structures and strategies: Companies build structures for their organizations based on their strategies. Functional policies:Strategic Management MSMSR/BBA/601 (Core)99

100. Project implementationCoordination across functional units takes place, once the strategy of the company is decided; modification functional policies may become necessary to meet the demands of the new business. Behavioral implementation: Behavioral implementation deals with those aspects of strategy implementation that have impact on behavior of people in the organizations. RESOURCE ALLOCATION Procurement resources: Finance is generally considered to be the primary source: it is used for the creation and maintenance of other resources. Strategic Management MSMSR/BBA/601 (Core)100

101. Project implementationFACTORS AFFECTING RESOURCING ALLOCATION: Objectives of the organization Preference of dominant strategistsInternal politicsExternal influences DIFFICULTES IN RESOURCE ALLOCATION Scarcity of resources Import restrictions Human resources Departmental power politicsStrategic Management MSMSR/BBA/601 (Core)101

102. Structural ImplementationStructural implementation is in fact an ongoing process of matching the structure of an organization with its strategy. Whenever there is a mismatch between the two, changes in structure have to be made. Otherwise strategy implementation becomes difficult and performance suffers.ANALYSING STRATEGIC CHANGE The strategist should ascertain how much transformation the organisation will need to undergo before the implementation of the strategy may be successful .Different methods call for varying changes to the nature, size, and business process. For instance, a stability plan has the least impact on the current business and organisation. Similar to this, a new pricing strategy solely impacts the marketing team and makes a small number of adjustments to regular business operations. In reality, the joint venture strategy causes significantorganisational changes, including the replacement of the current organizational structure with a more adaptable, cross-functional organizational structure based on teamwork, new production methods, technology, new markets, and market practices, the omission of existing products, and the addition of new products and/or servicesStrategic Management MSMSR/BBA/601 (Core)102

103. Structural ImplementationFrom no change in strategy to a total and radical overhaul of the project process, organizational mission, objectives, and organizational structure, there can be a continuum of strategic change. Paul Peter and Samuel C. Certocategorise strategy change into five distinct phases. They are organizational redirection, routine strategy change, small-scale strategy change, radical strategy change, and stable strategy. Stable Approach A stable strategy is one that maintains stability across the board for the company. As a result, the approach from the preceding planning period must mostly be continued. It calls for managing the company and carrying out the same duties with the same abilities. Monitoring the actions is necessary for the stability strategy's successful implementation in order to make sure the goals are met. Strategic Management MSMSR/BBA/601 (Core)103

104. Structural Implementation The effective completion of the objectives will be aided by the learning from prior experiences (experiences curve effects).Routine Strategy Modification company aims to attract customers during a routine strategy change by making predictable, routine changes to the techniques. A few examples of the modifications in strategy are: updating packaging, changing pricing strategies, switching distributors, altering distribution channels and methodologies, etc. To properly implement the strategies, managers must integrate and coordinate the actions with numerous agencies and intermediaries. The strategists should coordinate all internal firm efforts in a same manner. For instance, lowering the price will increase the demand for the goods. In order to enhance production, the capacities of distribution channels, and distributors, the strategist should coordinate the actions of the marketing department and the production department. For this plan to be implemented successfully, large modifications and efforts are not necessary.Strategic Management MSMSR/BBA/601 (Core)104

105. Structural ImplementationOffering new items to new markets within the same general product class is part of the limited strategy change. Despite being brand-new, products fall within the same broad category. As a result, the managers must carry out a variety of new tasks. These operations involve creating the new products, buying novel inputs and machinery, manufacturing the new products, setting up novel market intermediaries (if required), novel market channels, and similar things. Radical Strategy Change: This strategy calls for a significant change for the company. When a company employs strategies like mergers and acquisitions in the same core industry, a dramatic strategy change is required. The integration of the two companies into one firm is complicated by these.Strategic Management MSMSR/BBA/601 (Core)105

106. Structural Considerations Structural Considerations An organization structure is the way in which the tasks and sub-tasks required to implement a strategy are arranged. The implementation of strategies would require the performance of tasks. Some of these tasks are related to the formulation and implementation of programmes and projects. Any organization, as it grows in size and diversity, moves from a simple to a complex organizational form. Organizational too follow a life cycle consisting of the introduction, growth, maturity, and decline phases. The life cycle of organizations could be divided into four stages that are not distinct and may overlap. Stage I organizations are small-scale enterprises usually managed by a single person who is the entrepreneur-owner-manager. These organizations are characterized by the simplicity of objectives, operations, and management. The form of the organization is also simple and could be termed as entrepreneurial. The strategies adopted are generally of the expansion type. Strategic Management MSMSR/BBA/601 (Core)106

107. Structural Considerations Stage II organizations are bigger than Stage I organizations in terms of size and have a wider scope of operations. They are characterized by functional specialization or process orientation. The organizational form is simple functional (typically divided into the finance, marketing, operations, and personnel departments) or process-oriented (divided into process-based departments arranged in a particular sequence according to the technology employed). The strategies adopted may range from stability to expansion. Stage III organizations are large and widely scattered organizations generally having units or plants at different places. Each division is semi-autonomous and linked to the headquarters but functionally independent. The divisions may have a simple functional form depending on their particular needs. The strategies adopted may be either stability or expansion. Stage IV organizations are the most complex. They are generally large multi-plant, multi-product organizations that result from the adoption of related and unrelated diversification strategies. The organizational form is divisional. The corporate headquarters assume the responsibility of providing strategic direction and policy guidelines through the formulation of corporate-level strategies. The divisions (which may be companies, profit centre's or SBUs) formulate their business-level strategies and may adopt Stage I , II or III type of structuresStrategic Management MSMSR/BBA/601 (Core)107

108. Organizational Design and ChangeThe organizational design practice is focused on diagnosing and redesigning the structure of an organization, including related processes, people, information and skills in such a way that it facilitates the workflow that establishes its mission, as well as its strategic and operational plan.Thus, this practice includes the evaluation of organizational effectiveness as one that allows to diagnose whether the organizational model produces the results for which it has been created.However, it is equally vital to have a change management process that acts effectively. A well structured process of change can achieve the support and commitments necessary to travel the road, identifying obstacles and preparing scenarios for variations thereof.From the initial communication process to completion, TMC has accompanied various organizations to walk the path of organizational change in scenarios of varying difficultyStrategic Management MSMSR/BBA/601 (Core)108

109. Here are seven basic types of organizational structure: (1) functional, (2) divisional by geographic area, (3) divisional by product, (4) divisional by customer, (5) divisional by process, (6) strategic business unit (SBU), and (7) matrix.Strategic Management MSMSR/BBA/601 (Core)109Organizational Systems

110. Behavioral ImplementationSuccessful strategy preparation does not assure the effective implementation of the same. To implement strategy effectively the organisation needs discipline, motivation and hard work from all the employees in the organisation. There needs to be goal congruence in the efforts of the employees. Managers have to play a very critical role in the implementation of strategy. They need to see if the resources of the organisation are aligned properly and the critical aspects of organisation like leadership, power and culture are managed properly so that the employees work in a united manner in the realization of the company's objectives. Behavioural Implementation in Strategic Management Organisations which exist in relatively stable and predictable industries have a tendency of building up tall structures. Such structures are characterized by many hierarchy levels and narrow spans of control. On the other hand companies which exist in dynamic and volatile industries tend to adopt a very flat structure and managers have very wide span of control. a functional structure organisations are aligned on functional lines such as finance, manufacturing, personnel, R&D etc. Employees in functional organisations perform set tasks. Strategic Management MSMSR/BBA/601 (Core)110

111. Behavioral Implementation As these organisations grow, they adopt a 'product divisional structure. This allows the organisation flexibility in terms on product focus, co-ordination, development of general managers, bottom line responsibilities etc.When organisations are multi-product and multi plant, they adopt a "geographic divisional structure". This helps them in meeting the needs of customers belonging to different geographical areas. With the addition of new product lines, the multi-divisional structure is favored by companies as it gives more independence and flexibility to divisional managers .Sometimes growth is responsible for accepting the SBU structure by an organisation, particularly when the organisation is big and diversified, where different divisions with related products, technologies, market, or mission statement, can be shared to form a strategic business unit. Behavioural implementation is concerned with those features of strategy implementation that is concerned with the behaviour of individuals in organisations.Strategic Management MSMSR/BBA/601 (Core)111

112. Leadership ImplementationStrategic leadership is the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary. Multifunctional in nature, strategic leadership involves managing through others, managing an entire organization rather than a functional subunit, and coping with change that continues to increase in the global economy. Strategic leaders must learn how to effectively influence human behavior, often in uncertain environments. By word or by personal example, and through their ability to envision the future, effective strategic leaders meaningfully influence the behaviors, thoughts, and feelings of those with whom they work. The work of strategic leaders is demanding, challenging, and requires balancing short-term performance outcomes with long-term performance goals. Regardless of how long (or short) they remain in their positions, strategic leaders (and most prominently CEOs) affect a firm’s performance.Strategic Management MSMSR/BBA/601 (Core)112

113. Corporate CultureCorporate culture refers to the values, beliefs, and behaviors that determine how a company's employees and management interact, perform, and handle business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people that the company hires.A company's culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of employees and clients, client satisfaction, and every other aspect of operations.Strategic Management MSMSR/BBA/601 (Core)113

114. Corporate CultureThere are a variety of terms that relate to companies affected by multiple cultures, especially in the wake of globalization and the increased international interaction of today's business environment. These include:Cross-culture refers to people from different backgrounds interacting in the business environment.Culture shock refers to the confusion or anxiety people experience when conducting business in a society other than their own.Reverse culture shock is often experienced by people who spend lengthy time abroad for business and have difficulty readjusting upon their return.Companies often devote substantial resources and effort to create positive cross-culture experiences and to facilitate a more cohesive and productive corporate culture.Strategic Management MSMSR/BBA/601 (Core)114

115. Importance of Corporate CultureA carefully considered, even innovative, corporate culture can elevate companies above their competitors and support long-lasting success. Such a culture can:Provide for a positive workplace environmentCreate an engaged, enthusiastic, and motivated workforceAttract high-value employeesReduce turnoverDrive and improve performance quality and productivityResult in favorable business resultsUnderpin a company's longevityStrengthen return on investment (ROI)Provide an implacable competitive advantageClarify for employees the goals of their positions, departments, and a company overallContribute to the diversification of the workforceStrategic Management MSMSR/BBA/601 (Core)115

116. Types of Corporate CultureClan Culture- Clan cultures are about teamwork and collaboration. In such a culture, those in management function as enthusiastic mentors who provide guidance to subordinates. Good relationships, encouragement, trust, and participation are key aspects. The contribution potential of every employee is a component of a clan culture. Also, clan culture can easily adapt to change and implement needed action quickly.Adhocracy Culture- Adhocracy culture creates an entrepreneurial workplace in which executives and employees function as innovators and risk-takers. In this flexible environment, agile thinking is nurtured. Employees are encouraged to pursue their aspirational ideas and take action to achieve results that can advance company goals. New and unconventional products and services are the main outcome of the adhocracy culture.Strategic Management MSMSR/BBA/601 (Core)116

117. Types of Corporate CultureMarket Culture- Market culture is focused on meeting specific targets and bottom line goals. This culture creates a working environment that's competitive and demanding. Management is most interested in business results. Employees are encouraged to work hard and "get the job done" to enhance a company's market presence, profits, and stock price. While employees may feel stressed in such a workplace, they can also feel enthusiastic and excited about their work.Hierarchy Culture- A hierarchy culture is a traditional corporate culture that functions according to a company's executive, management, and staff organizational structure. That is, it follows the chain of command from top down, where executives oversee employees and their work efforts to meet specific goals. The hierarchy culture prizes stability and conventional methods of operation The work environment can be seen as more rigid than some other cultures but employees can clearly understand their roles and objectives. They may also feel a sense of security because of the more conservative approach to running a company.Strategic Management MSMSR/BBA/601 (Core)117

118. ASSIGNMENTQ.1.Write a short note on Implementation of Strategy.Q.2. Explain Organizational Systems. 118

119. MODULE VStrategy Evaluation -Strategy Evaluation and Control, Operational Control, Overview of Management, Focus on Key Result Areas.119Strategic Management MSMSR/BBA/601 (Core)

120. Strategy Evaluation and ControlStrategic evaluation and control is the process of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective actions whenever required. Control can be exercised through formulation of contingency strategies and a crisis management team. There can be the following types of control:• Operational control: It is aimed at allocation and use of organization resources through evaluation of performance of organizational units, divisions, SBU;’s to assess their contribution in achieving organizational objectives.• Strategic control: It takes into account the changing assumptions that determine a strategy, continually evaluate the strategy as it is being implemented and take the necessary steps to adjust the strategy to the new requirements.Strategic Management MSMSR/BBA/601 (Core)120

121. The four basic type of strategic control are:• Premise control: It identifies the key assumption and keeps track of any change in them to assess its impact on strategy and implementation. The goal is to find if the assumptions are still valid or not. It is generally handled by the corporate planning staff considering the environmental and organizational factors• Implementation control: It includes evaluating plans, programs, projects to see if they guide the organization to achieve predetermined organizational objectives or not. It consists of identification and monitoring of strategic thrusts.• Strategic surveillance: It aims at generalized control. It is designed to monitor a broad range of events inside and outside the organization that are likely to threaten the course of the firm. Organizational learning and knowledge management system capture the information for strategic surveillance.• Special alert control: It is a rapid response or immediate reassessment of strategy in the light of sudden and unexpected events. It can be contingency strategies and a crisis management teamStrategic Management MSMSR/BBA/601 (Core)121Strategy Evaluation and Control

122. Setting standards of performance Measurement of performance Analyzing variances Taking corrective actionsSTEP 1.Setting standards of performance: It must focus on question like:• What standards should be set?• How should the standards be set?• In what terms should these standards be expressed? The firm must identify the areas of operational efficiency in terms of people, process, productivity and pace. Standards set must be related to key management tasks. The special requirement for performance of these tasks must be studied. It can be expresses in terms of performance indicators. The criteria for setting standards may be qualitative or quantitative. Therefore standards can be set keeping in mind past achievement compare performance with industry average or major competitors. Factors such as capabilities of a firm core competencies risk bearing ability strategic clarity and flexibility and workability must also be considered.Strategic Management MSMSR/BBA/601 (Core)122STRATEGIC EVALUATION PROCESS:

123. STEP 2.Measurement of performance: Standards of performance act as a benchmark in evaluating the actual performance. Operationally it is done through accounting, reporting and communication system. The key areas which must be kept in mind are difficulty in measurement, timing of measurement (critical points) and periodicity in measurement (task schedule).STEP 3.Analyzing variances: The two main tasks are noting deviations and finding the cause of deviations.• When actual performance is equal to budgeted performance tolerance limit must be set.• When actual performance is greater than budgeted performance one must check the validity of standard and efficiency of management.• When actual performance is less than budgeted performance we must pinpoint the areas where performance is low and take corrective action. The cause of deviations may be:• External or internal• Random or expected• Temporary or permanent The two main questions to focus upon are:• Are the strategies still valid?• Does the organization have the capacity to responds to the changes needed?Strategic Management MSMSR/BBA/601 (Core)123Strategy Evaluation and Control

124. STEP 4.Taking corrective actions: It consists of the following:• Checking of performance: It includes in depth analysis and diagnosis of the factors that might b responsible for bad performance.• Checking of standards: It results in lowering or elevation of standards according to the conditions.• Reformulate strategies, plans, objectives: Giving a fresh start to the strategic management process.IMPORTANCE OF STRATRGIC EVALUATION AND CONTROL:• There is a need for feedback, appraisal and reward• To check on the validity of strategic choice• Congruence between decisions and intended strategy• Creating inputs for new strategic planningStrategic Management MSMSR/BBA/601 (Core)124Strategy Evaluation and Control

125. In contrast to the large amount of data and extended time frame required for strategic controls to take effect, operational controls monitor and evaluate day-to- day functions to correct any problems as soon as possible. Operational controls may be either manual or automated, and can involve people, processes, and technology. When successful, they flag potential risks, identify misalignments between plans and actions, and effectively implement changes to stay on course with your strategy. For example, if there are technical malfunctions or performance is below expectations, operational control processes can initiate a course correction quickly. This could include updating an IT system or retraining particular employees, respectively. Or, imagine a factory that produces widgets. If the number of widgets drops below expectations or the error rate rises above expectations, a process control alert should be triggered to make the proper operational change. Strategic control, on the other hand, might then evaluate whether your hiring criteria and employee on boarding processes need adjustment in order to achieve your strategy. Strategic Management MSMSR/BBA/601 (Core)125THE DIFFERENCE BETWEEN OPERATIONAL AND STRATEGIC CONTROL PROCESSES

126. STRATEGIC CONTROL TECHNIQUES:There are four primary types of strategic control: 1. Premise Control: Every organization creates a strategy based on certain assumptions, or premises. As such, premise control is designed to continually and systematically verify whether those assumptions, which are foundational to your strategy, are still true. These are typically environmental (e.g. economic or political shifts) or industry- specific (e.g. new competitors) variables. The sooner you discover a false premise, the sooner you can adjust the aspects of your strategy that it affects. In reality, you can’t review every single strategic premise, so focus on those most likely to change or have a major impact on your strategy. 2. Implementation Control: This type of control is a step-by-step assessment of implementation activities. It focuses on the incremental actions and phases of strategic implementation, and monitors events and results as they unfold. Is each action or project happening as planned? Are the proper resources and funds being allocated for each step? This process continually questions the basic direction of your strategy to ensure it’s the right one. There are two subcategories of implementation control: 126

127. STRATEGIC CONTROL TECHNIQUES:• Reviewing Milestones: During strategic planning, you likely identified important points in the implementation process. When these milestones are reached, your organization will reassess the strategy and its relevance. Milestones could be based on timeframes, such as the end of a quarter, or on significant actions, such as large budget or resource allocations. Implementation control can also take place via operational control systems, like budgets, schedules, and key performance indicators. 3. Special Alert Control: When something unexpected happens, a special alert control is mobilized. This is a reactive process, designed to execute a fast and thorough strategy assessment in the wake of an extreme event that impacts an organization. The event could be anything from a natural disaster or product recall to a competitor acquisition. In some cases, a special alert control calls for the formation of a crisis team—usually comprising members of the strategic planning and leadership teams—and in others, it merely means activating a predetermined contingency plan.127

128. STRATEGIC CONTROL TECHNIQUES:4. Strategic Surveillance Control: Strategic surveillance is a broader information scan. Its purpose is to identify overlooked factors both inside and outside the company that might impact your strategy. This process ideally covers any “ground” that might be missed by the more focused tactics of premise and implementation control. Your surveillance could encompass industry publications, online or social mentions, industry trends, conference activities, etc128

129. Operational ControlOperational control involves control over intermediate-term operations and processes but not business strategies. Operational control systems ensure that activities are consistent with established plans. Mid-level management uses operational controls for intermediate-term decisions, typically over one to two years.Strategic Management MSMSR/BBA/601 (Core)129

130. Overview of ManagementOverview Strategy evaluation is the process by which the management assesses how well a chosen strategy has been implemented and how successful or otherwise the strategy is. To simply put, strategy evaluation entails reviewing and appraising the strategy implementation process and measuring organizational performanceStrategic Management MSMSR/BBA/601 (Core)130

131. Focus on Key Result AreasKey Result Areas or KRAs are the strategic internal or external sectors where the business strives to realize strong positive outcomes to achieve its development goals and move towards fulfilling its vision. Each piece of work comprises three to five critical tasks. These essential jobs on which employees, departments and, organisations need to focus are the key result areas. For instance, a management consultant is responsible for several activities. They –Coordinate with clients to arrange meetings Understand their clients’ problems and decide how to cater to their needs Collect and analyze clients and their industries Devise an adequate plan of action for the clients’ business Communicate and coordinate with their teammates and other departments Draft emails and proposals for internal and external communication Present solutions and the final plan to the client Contribute to the white papers produced by their company Contribute to the business development activities of their companyStrategic Management MSMSR/BBA/601 (Core)131

132. ASSIGNMENTQ.1. Explain Strategy Evaluation.Q.2. Discuss Strategy Control.Strategic Management MSMSR/BBA/601 (Core)132

133. Thank YOUStrategic Management MSMSR/BBA/601 (Core)133