1. Business policy and strategic Management
Strategy and Strategic Management
Strategic intent- Vision, Mission, goals and objectives
SWOT Analysis
Environmental appraisal
Organizational Appraisal
Corporate level strategy
Business level strategy
Strategic Analysis and choice
Porter’s competitive Analysis
Value chain Analysis

2. Need of BPSA
Enormous change is taking place in Business Environment both internal and external.
Competition is almost cut throat in all sectors
Considering the changes and competition organization need t formulate the strategies an polices which will help them to survive in the market.
Crunch of the resources required for the business. Need strategies to utilize the resources at optimum level.

3. Business policy
“Guidelines which business need to follow considering the impact of internal and external environmental factors.”
Importance
For learning the course
For understanding the business environment
For Understanding the organization
For personnel Development

4. Purpose of Business Policy
To integrate the knowledge gained in various functional areas of Management
To adopt a generalist approach to problem solving
To understand the complex interlink ages operating within an organization

5. Strategy
Definitions
The determination of the basic long term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary for carrying out these goals
The unified , comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved.

6. Different Levels of Strategy
Corporate office
SBU A
SBU B
Personnel
Production
Finance
SBU C
Corporate level Strategies
Business unit Level Strategies
Functional Level Strategies

7. Strategic Management Definitions
A stream of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives…….Glueck
The process which deals with the fundamental organizational renewal and growth with the development of strategy, structure , and system necessary to achieve such renewal and growth, and with the organizational system needed to effectively manage the strategy formulation and implementation processes……Hofer and others

8. Strategic Implementation Strategic Evaluation
Strategic Management Process
Establishing Strategic Intent
( Vision, Mission, Goals and Objectives)
Formulation of Strategies
( Environmental Appraisal, Organizational Appraisal)
( SWOT Analysis Porters competitive Analysis, value Chain)
Strategic Analysis and Choice
(BCG matrix, Nine cell Matrix, Experience Curve
Industry Analysis, Competitive Analysis
Strategic Implementation
Strategic Evaluation

9. grand strategies
Stability
explanations
Retrenchment

11. Strategies and tactics
Strategic Intent
Vision
Mission
Goals
Objectives
Strategies and tactics

12. vision “ to be in the future” Description of something in the future
Mental perception of the kind of environment organization aspires to create within a broad time of horizon and the underlying conditions for the actualization of this perception

13. Benefits of Vision Inspiring and exhilarating
Helps to create shared sense of purpose
Vision which is unique, competitive an original make sense in the marketplace.
Foster risk taking and experimentation
Foster long term thinking
Clear the objectives of the organization

14. Process on Envisioning
Core Ideology
Envisioned future
Tata Steel
“ Tata steel enters the mew millennium with the confidence of a learning, knowledge based and happy organization. We will establish ourselves as a supplier of choice by delighting our customer with our service and our product”

15. Mission what is our business? what to do? What should it be?
Definition
“Essential purpose of the organization ,concerning particularly why it is in existence, the nature of the business it is in, and the customers it seeks to serve and satisfy

16. Characteristics of a Mission Statement
It should be feasible
It should be precise
It should be clear
It should be motivating
It should be distinctive
It should indicate major component of strategy
It should indicate how objectives are to be accomplished.

17. United Trust of India
Mission: “To keep the common man in sharper focus, to encourage saving and investment habits among them.”

18. Goals And Objectives Goals
Goals denote what an organization hopes to accomplish in a future period of time. This is stated broadly
Objectives
These are the ends that specify how goals shall be achieved
Objectives makes the goals operational
Objective need to be stated in quantity
They are measurable and comparable

19. Role of objectives
I t defines he orgnisation’s relationship with the environment
It helps to pursue its vision and mission
Provides the base of strategic decision making
It provides the standards for the performance appraisal

20. Characteristics of objectives
objectives should be understandable
objectives should be concrete and specific
objectives should be related to a time frame
objectives should be measurable and controllable
objectives should be challenging
objectives should be correlated with each other
objectives should be set within constraint

21. Issues in objective setting
Specificity
Multiplicity
Periodicity
Variability
Reality
Quality

22. What objective are set Market standing Innovation Productivity
Physical and financial resources
Profitability
Manager performance and development
Worker performance and attitude
Public responsibility

23. How objectives formulated
The forces in the environment
Realities of enterprise’s resources
The value system of top executives
Awareness of the management

24. Examples of Objectives
Corporate level
1.to Increase the profit level by 5 % at the end of two year
Business Unit level
1.to Increase the profit level of the unit by 10 % at the end of two year
Functional level
To increase the sales of product by 12 % by the end of two year
To reduce the manpower cost by 15% of the last year

25. Critical Success Factor(CSF)
The factors which are crucial for organizational success
Toothpaste: four qualities-form, flavour,foam and freshness
Shoe: High manufacturing qualities, cost efficiency, sophisticated retailing.
Automobile: High technology- mileage, low maintains
“Key success factors”