Q No 1.

There are a number of features that separate strategic management and decision making from other types of managerial activity. Highlight at least five features in this regard and provide detail. Strategy Strategy is an action that managers take to attain one or more of the organizations goals. Strategy can also be defined as ! general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process". ! strategy is all about integrating organizational activities and utilizing and allocating the scarce resources #ithin the organizational environment so as to meet the present ob$ectives. %hile planning a strategy it is essential to consider that decisions are not taken in a vaccum and that any act taken by a firm is likely to be met by a reaction from those affected& competitors& customers& employees or suppliers. Strategy can also be defined as kno#ledge of the goals& the uncertainty of events and the need to take into consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization that sho#s its ob$ectives and goals& reduces the key policies& and plans for achieving these goals& and defines the business the company is to carry on& the type of economic and human organization it #ants to be& and the contribution it plans to make to its shareholders& customers and society at large. Features of Strategy 1. Strategy is Significant because it is not possible to foresee the future. %ithout a perfect foresight& the firms must be ready to deal #ith the uncertain events #hich constitute the business environment. '. Strategy deals #ith long term developments rather than routine operations& i.e. it deals #ith probability of innovations or ne# products& ne# methods of productions& or ne# markets to be developed in future. (. Strategy is created to take into account the probable behavior of customers and competitors. Strategies dealing #ith employees #ill predict the employee behavior. The strategy statement of a firm sets the firms long)term strategic direction and broad policy directions. *t gives the firm a clear sense of direction and a blueprint for the firms activities for the upcoming years. The main constituents of a strategic statement are as follo#s+ 1. Strategic Intent

!n organizations strategic intent is the purpose that it e,ists and #hy it #ill continue to e,ist& providing it maintains a competitive advantage. Strategic intent gives a picture about #hat an organization must get into immediately in order to achieve the companys vision. *t motivates the people. *t clarifies the vision of the vision of the company. Strategic intent helps management to emphasize and concentrate on the priorities. Strategic intent is& nothing but& the influencing of an organizations resource potential and core competencies to achieve #hat at first may seem to be unachievable goals in the competitive environment. ! #ell e,pressed strategic intent should guide-steer the development of strategic intent or the setting of goals and ob$ectives that re.uire that all of organizations competencies be controlled to ma,imum value. Strategic intent includes directing organizations attention on the need of #inning/ inspiring people by telling them that the targets are valuable/ encouraging individual and team participation as #ell as contribution/ and utilizing intent to direct allocation of resources. Strategic intent differs from strategic fit in a #ay that #hile strategic fit deals #ith harmonizing available resources and potentials to the e,ternal environment& strategic intent emphasizes on building ne# resources and potentials so as to create and e,ploit future opportunities. 2. Mission Statement

0ission statement is the statement of the role by #hich an organization intends to serve its stakeholders. *t describes #hy an organization is operating and thus provides a frame#ork #ithin #hich strategies are formulated. *t describes #hat the organization does 1i.e.& present capabilities2& #ho all it serves 1i.e.& stakeholders2 and #hat makes an organization uni.ue 1i.e.& reason for e,istence2. ! mission statement differentiates an organization from others by e,plaining its broad scope of activities& its products& and technologies it uses to achieve its goals and ob$ectives. *t talks about an organizations present 1i.e.& about #here #e are"2. 3or instance& 0icrosofts mission is to help people and businesses throughout the #orld to realize their full potential. %al)0arts mission is To give ordinary folk the chance to buy the same thing as rich people." 0ission statements al#ays e,ist at top level of an organization& but may also be made for various organizational levels. 4hief e,ecutive plays a significant role in formulation of mission statement. 5nce the mission statement is formulated& it serves the organization in long run& but it may become ambiguous #ith organizational gro#th and innovations. *n todays dynamic and competitive environment& mission may need to be redefined. Ho#ever& care must be taken that the redefined mission statement should have original fundamentals-components. 0ission statement has three main components)a statement of mission or vision of the company& a statement of the core values that shape the acts and behaviour of the employees& and a statement of the goals and ob$ectives. a2 0ission must be feasible and attainable. *t should be possible to achieve it. b2 0ission should be clear enough so that any action can be taken. c2 *t should be inspiring for the management& staff and society at large. d2 *t should be precise enough& i.e.& it should be neither too broad nor too narro#. e2 *t should be uni.ue and distinctive to leave an impact in everyones mind. f2 *t should be analytical&i.e.& it should analyze the key components of the strategy. g2 *t should be credible& i.e.& all stakeholders should be able to believe it. 3. Vision

! vision statement identifies #here the organization #ants or intends to be in future or #here it should be to best meet the needs of the stakeholders. *t describes dreams and aspirations for future. 3or instance& 0icrosofts vision is to empo#er people through great soft#are& any time& any place& or any device." %al) 0arts vision is to become #orld#ide leader in retailing. ! vision is the potential to vie# things ahead of themselves. *t ans#ers the .uestion #here #e #ant to be". *t gives us a reminder about #hat #e attempt to develop. ! vision statement is for the organization and its members& unlike the mission statement #hich is for the customers-clients. *t contributes in effective decision making as #ell as effective business planning. *t incorporates a shared understanding about the nature and aim of the organization and utilizes this understanding to direct and guide the organization to#ards a better purpose. *t describes that on achieving the mission& ho# the organizational future #ould appear to be. !n effective vision statement must have follo#ing features) a2 *t must be unambiguous. b2 *t must be clear. c2 *t must harmonize #ith organizations culture and values. d2 The dreams and aspirations must be rational-realistic. e2 6ision statements should be shorter so that they are easier to memorize. *n order to realize the vision& it must be deeply instilled in the organization& being o#ned and shared by everyone involved in the organization. 4. Goals and Objecti es

! goal is a desired future state or ob$ective that an organization tries to achieve. 7oals specify in particular #hat must be done if an organization is to attain mission or vision. 7oals make mission more prominent and concrete. They co)ordinate and integrate various functional and departmental areas in an organization. %ell made goals have follo#ing features) a2 These are precise and measurable. b2 These look after critical and significant issues. c2 These are realistic and challenging. d2 These must be achieved #ithin a specific time frame. e2 These include both financial as #ell as non)financial components. Q No '. The Strategic 0anagement and 8lanning 4ycle 1S0842 represents the process and flo# of activities that an organization undertakes to build its strategic positioning. 9,plain an understanding of the function and composition of the Strategic 0anagement and 8lanning 4ycle in detail. Strategic Management !lanning !rocess The strategic management process means defining the organizations strategy. *t is also defined as the process by #hich managers make a choice of a set of strategies for the organization that #ill enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in #hich the organization is involved/ appraises its competitors/ and fi,es goals to meet all the present and future competitors and then reassesses each strategy. Strategic management "rocess #as follo$ing four ste"s% 1. &n ironmental Scanning) 9nvironmental scanning refers to a process of collecting& scrutinizing and providing information for strategic purposes. *t helps in analyzing the internal and e,ternal factors influencing an organization. !fter e,ecuting the environmental analysis process& management should evaluate it on a continuous basis and strive to improve it. '. Strategy Formulation) Strategy formulation is the process of deciding best course of action for accomplishing organizational ob$ectives and hence achieving organizational purpose. !fter conducting environment scanning& managers formulate corporate& business and functional strategies. (. Strategy Im"lementation) Strategy implementation implies making the strategy #ork as intended or putting the organizations chosen strategy into action. Strategy implementation includes designing the organizations structure& distributing resources& developing decision making process& and managing human resources. :. Strategy & aluation) Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are+ appraising internal and e,ternal factors that are the root of present strategies& measuring performance& and taking remedial - corrective actions. 9valuation makes sure that the organizational strategy as #ell as its implementation meets the organizational ob$ectives. These components are steps that are carried& in chronological order& #hen creating a ne# strategic management plan. 8resent businesses that have already created a strategic management plan #ill revert to these steps as per the situations re.uirement& so as to make essential changes. Strategic Management and !lanning 'ycle ;Strategic planning is the process of deciding on the goals of the organization and the strategies for attaining these goals.;

Strategies are guidelines for deciding the appropriate actions for attaining the organization<s goals. The essential difference bet#een strategic planning and management control is that the strategic planning process is unsystematic. Strategic control occurs in three #ays. 3irst& strategic planning is itself a form of control. Second& strategic plans are converted into reality not only by their influence on the management control activity but also by the key decisions regarding allocation of resources. Third& #hile capital budgeting systems can respond to re.uests for resources that are consistent #ith the accepted strategic plan& the period bet#een formal& comprehensive strategic planning e,ercises can give rise to unanticipated changes in the environment or une,pected internal crises. !nthony vie#s management planning and control as the processes by #hich 1. organizational ob$ectives are achieved and '. the use of resources is made effective and efficient. ;0anagement control is the process by #hich managers influence other members of the organization to implement the organization<s strategies.; 0anagement control decisions are made #ithin the guidance established by strategic planning. 0anagement control is a systematic process. *t is done by managers at all levels/ it is done on regular basis/ it involves the #hole organization/ and it involves a large amount of personal interaction and relatively less $udgment. There are t#o some#hat different types of management control activities+ 112 the management control of operating activities& and 1'2 the control of operational pro$ects. 8rocess for operating activities has four phases+ programming& budget preparation& e,ecution& and evaluation. !rogramming is the process of deciding on the ma$or programs that the organization #ill undertake to implement its strategies and the appro,imate amount of resources that #ill be devoted to each. (udget "re"aration. !n operating budget is the organization<s financial plan for a specific period& usually one year. &)ecution and e aluation. =uring the year managers e,ecute the program or part of a program for #hich they are responsible. >eports on responsibility centers sho# both budgeted and actual information. They are used as a basis for control. The process of evaluation is a comparison of actual amounts #ith the amounts that should be e,pected of actual circumstances.

1.

&n ironmental Scanning

5rganizational environment consists of both e,ternal and internal factors. 9nvironment must be scanned so as to determine development and forecasts of factors that #ill influence organizational success. 9nvironmental scanning refers to possession and utilization of information about occasions& patterns& trends& and relationships #ithin an organizations internal and e,ternal environment. *t helps the managers to decide the future path of the organization. Scanning must identify the threats and opportunities e,isting in the environment. %hile strategy formulation& an organization must take advantage of the opportunities and minimize the threats. ! threat for one organization may be an opportunity for another. *nternal analysis of the environment is the first step of environment scanning. 5rganizations should observe the internal organizational environment. This includes employee interaction #ith other employees& employee

interaction #ith management& manager interaction #ith other managers& and management interaction #ith shareholders& access to natural resources& brand a#areness& organizational structure& main staff& operational potential& etc. %hile in e,ternal analysis& three correlated environment should be studied and analyzed immediate - industry environment national environment broader socio)economic environment - macro)environment 2. Strategy Formulation !rocess

Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and ob$ectives and thereby achieving the organizational vision. The process of strategy formulation basically involves si, main steps. Though these steps do not follo# a rigid chronological order& ho#ever they are very rational and can be easily follo#ed in this order. Setting 5rganizations ob$ectives ) The key component of any strategy statement is to set the long)term ob$ectives of the organization. *t is kno#n that strategy is generally a medium for realization of organizational ob$ectives. 5b$ectives stress the state of being there #hereas Strategy stresses upon the process of reaching there. Strategy includes both the fi,ation of ob$ectives as #ell the medium to be used to realize those ob$ectives. Thus& strategy is a #ider term #hich believes in the manner of deployment of resources so as to achieve the ob$ectives. %hile fi,ing the organizational ob$ectives& it is essential that the factors #hich influence the selection of ob$ectives must be analyzed before the selection of ob$ectives. 5nce the ob$ectives and the factors influencing strategic decisions have been determined& it is easy to take strategic decisions. 9valuating the 5rganizational 9nvironment ) The ne,t step is to evaluate the general economic and industrial environment in #hich the organization operates. This includes a revie# of the organizations competitive position. *t is essential to conduct a .ualitative and .uantitative revie# of an organizations e,isting product line. The purpose of such a revie# is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their o#n strengths and #eaknesses as #ell as their competitors strengths and #eaknesses. !fter identifying its strengths and #eaknesses& an organization must keep a track of competitors moves and actions so as to discover probable opportunities of threats to its market or supply sources. 3. Strategy Im"lementation

Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and ob$ectives. Strategy implementation is also defined as the manner in #hich an organization should develop& utilize& and amalgamate organizational structure& control systems& and culture to follo# strategies that lead to competitive advantage and a better performance. 5rganizational structure allocates special value developing tasks and roles to the employees and states ho# these tasks and roles can be correlated so as ma,imize efficiency& .uality& and customer satisfaction)the pillars of competitive advantage. ?ut& organizational structure is not sufficient in itself to motivate the employees. !n organizational control system is also re.uired. This control system e.uips managers #ith motivational incentives for employees as #ell as feedback on employees and organizational performance.

5rganizational culture refers to the specialized collection of values& attitudes& norms and beliefs shared by organizational members and groups. 3oll#oing are the main steps in implementing a strategy+ =eveloping an organization having potential of carrying out strategy successfully. =isbursement of abundant resources to strategy)essential activities. 4reating strategy)encouraging policies. 9mploying best policies and programs for constant improvement. @inking re#ard structure to accomplishment of results. 0aking use of strategic leadership. 4. Strategy & aluation !rocess

Strategy 9valuation is as significant as strategy formulation because it thro#s light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in todays dynamic #orld #ith socio)economic& political and technological innovations. Strategic 9valuation is the final phase of strategic management. The significance of strategy evaluation lies in its capacity to co)ordinate the task performed by managers& groups& departments etc& through control of performance. Strategic 9valuation is significant because of various factors such as ) developing inputs for ne# strategic planning& the urge for feedback& appraisal and re#ard& development of the strategic management process& $udging the validity of strategic choice etc. The process of Strategy 9valuation consists of follo#ing steps) Fi)ing benc#mar* of "erformance ) %hile fi,ing the benchmark& strategists encounter .uestions such as ) #hat benchmarks to set& ho# to set them and ho# to e,press them. *n order to determine the benchmark performance to be set& it is essential to discover the special re.uirements for performing the main task. The performance indicator that best identify and e,press the special re.uirements might then be determined to be used for evaluation. The organization can use both .uantitative and .ualitative criteria for comprehensive assessment of performance. Quantitative criteria includes determination of net profit& >5*& earning per share& cost of production& rate of employee turnover etc. !mong the Qualitative factors are sub$ective evaluation of factors such as ) skills and competencies& risk taking potential& fle,ibility etc. Measurement of "erformance ) The standard performance is a bench mark #ith #hich the actual performance is to be compared. The reporting and communication system help in measuring the performance. *f appropriate means are available for measuring the performance and if the standards are set in the right manner& strategy evaluation becomes easier. ?ut various factors such as managers contribution are difficult to measure. Similarly divisional performance is sometimes difficult to measure as compared to individual performance. Thus& variable ob$ectives must be created against #hich measurement of performance can be done. The measurement must be done at right time else evaluation #ill not meet its purpose. 3or measuring the performance& financial statements like ) balance sheet& profit and loss account must be prepared on an annual basis.

+naly,ing Variance ) %hile measuring the actual performance and comparing it #ith standard performance there may be variances #hich must be analyzed. The strategists must mention the degree of tolerance limits bet#een #hich the variance bet#een actual and standard performance may be accepted. The positive deviation indicates a better performance but it is .uite unusual e,ceeding the target al#ays. The negative deviation is an issue of concern because it indicates a shortfall in performance. Thus in this case the strategists must discover the causes of deviation and must take corrective action to overcome it. -a*ing 'orrecti e +ction ) 5nce the deviation in performance is identified& it is essential to plan for a corrective action. *f the performance is consistently less than the desired performance& the strategists must carry a detailed analysis of the factors responsible for such performance. *f the strategists discover that the organizational potential does not match #ith the performance re.uirements& then the standards must be lo#ered. !nother rare and drastic corrective action is reformulating the strategy #hich re.uires going back to the process of strategic management& reframing of plans according to ne# resource allocation trend and conse.uent means going to the beginning point of strategic management process.

Q No (. !ll elements of the Strategic 9.uation" must integrate and interface #ith each other. Significant changes in any one key element re.uire that the e.uation be reconfigured as a #hole. Aou are re.uired to+ 1a2 =ra# the strategic e.uation of your organization 1b2 4hange the vision and mission of your organization and sho# the impact of these changes on strategic e.uation.

To be a source of sustained competitive advantage& a firms capabilities must be distinctive. 3or capabilities to be distinctive& three conditions must be met+ 1. The capabilities must be valuable. They must actually be the source of competitive advantage in the form of either cost leadership or differentiation/ that is& they must enable the firm to do things and behave in #ays that lead to higher sales& lo#er costs& or higher margins 1price2. %hile this condition may appear obvious& firms often cling to capabilities that #ere once& but are no longer& valuable. '. The capabilities must be rare. 3or a capability to be a source of competitive advantage it must have attributes and characteristics that are not commonly found in firms. *f everybodys got it& it is not #orth much. (. The capabilities must be imperfectly imitable. 3irms #ithout these capabilities must not be readily able 1in terms of time and cost2 to copy the capabilities of the successful firm. Strategic capabilities can be categorized as follo#s+ -ec#nological 'a"abilitiesBthe kno#)ho# implicit #ithin products& processes& physical plant and facilities& and peoples skills and e,perience. .uman 'a"abilitiesBthe skills& style& attitudes& and behavior of organizational members. Cltimately& all capabilities are embodied in& or e,ercised through& human skills. Organi,ational 'a"abilitiesBthe structures& systems& and norms of behavior that guide and coordinate the behavior of the members of the organization to#ards the achievement of task outcomes. ! useful #ay of thinking about these capabilities is provided by the concept ;organizational culture;Bthe organizations shared and learned beliefs and values& and the behaviors and artifacts that reflect and reaffirm those beliefs and values. Managerial and /eaders#i" 'a"abilities0the abilities to create& coordinate& and change economic technological& organizational& and human capabilities. @eadership capabilities determine the preference for certain types of action 1vision& commitment& and strategies2& and the ability to translate these strategies into action. Q No :. 5rganizations and their management processes can be grouped into a unified system of relationships #here each part interacts to construct and maintain a total outcome that can be a product or service etc. %hat you think& the strategy should be modeled at the macro or at the micro levelD =iscuss #ith evidences from local environment.

Micro &n ironment The micro environment& as the name suggests& is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers& customers and local stakeholders& including local government agencies or regulatory bodies. The micro environment can generally be considered the local environment #here the business operates and the business o#ner is likely to be some#hat a#are of the impacts that they are faced #ith. Macro &n ironment The macro)environment includes those things that may impact small businesses but #hich are outside of their control. *t is the larger& e,ternal environment #ithin #hich businesses operate from an industry or economic standpoint. Micro /e el Strategies for Successful Garment &)"orts by +li 1 'o !chieving success in 7arment e,ports apart from the re.uirement of good .uality of garments and timely delivery& many other factors are also to be considered. Strategic long term planning or short term planning is re.uired for overall success. Eeeping the 8akistan te,tile and garment sector scenario in mind& the strategies for #in)#in situation for e,ports are framed. The greatest advantage of *ndia is that& it has its o#n source of fabrics like cotton& khadi& silk& #ool and synthetic fibres. !lso the #ide variety of handicrafts and craftsmanship is an added advantage. This country has the capacity to steer clear competitiveness at an international level. 4ertain 0icro level strategies have been framed in order to achieve success in garment e,ports #hich are as follo#s+ Maintenance of fabric 2uality The most important aspect for achieving success in garment e,port is the sustaining the fabric .uality. There are many .uality control procedures follo#ed for inspection of the fabric right from the stage of #eaving& processing& garmenting and finishing of the garments. Thus such type of .uality check #hen done at each and every step of manufacturing of the garments& it #ould certainly ensure fabric of high .uality. Manufacturing and "roduct 2uality $arranty ?y adopting advanced soft#are business solutions like 4!=)4!0 in garment manufacturing difficulties in patterning or in development of certain products can be overcome. These soft#are are of great use and help garment e,porters to enhance businesses. 5ne more thing related to this aspect is to proportionate the ratio of supervisors to the number of laborers& this #ould ensure better supervision .uality. The supervisors should be #ell trained and have complete kno#)ho# about their #ork. 3rom designing to final finished garments taking care of these things #ould ultimately result into manufacturing and product .uality assurance. !roduct ariations To maintain the interest and competitiveness it is important to present product diversification in the garments to be e,ported. There are many #ays to add the element of ne#ness to your collection like introducing range of garment collection season)#ise i.e. spring)summer collection& autumn)#inter collection& etc. !lso variety could be added in terms of segmenting the garments like night#ear& evening #ear& corporate clothing& lingerie& casual #ear& etc. Managing t#e lead time !s the saying says time is money& the time taken from order taken to delivery of goods should be minimized in order to reduce the total lead time. *t is important to improve the element of time in order management as it gives the opportunity to the manufacturer to provide timely delivery of garments during the season& and also enhances the competitive edge of the e,porter in international market. 3e elo"ment of !a*istan designs and fabrics

8akistan fabrics& designs and prints are catching the attention of designers all over the #orld. This can be used as an added advantage by the *ndian garment e,porters. 7arment e,porters of 8aistan in alliance #ith designers of 8akistan itself or designers abroad could successfully promote the usage of 8akistan fabrics and handicrafts. Selection of a""ro"riate c#annels !fter the garment of high .uality is made& it is also essential that it reaches the target buyers& sellers and customers. 3or that it is mandatory to select appropriate channels through #hich they can be #ell marketed. 0any times despite of having goods of high .uality& lack of proper selection of distribution channel hampers the e,port profit. (randing ?rand a#areness is very essential to create a niche in international market. >etail as #ell as #holesale garment e,porters re.uire branding of their company. This strategy of branding has benefited many e,porters as it helps in improving the garment .uality and increase the level of pricing. ?randing helps in identification of the company and it is a kno#n thing that people generally go for established brands. Increasing s*ill and tec#nical e)"ertise *f constant technological up)gradation is conducted& keeping in par #ith the international market& then it #ould definitely increase the cost benefits. Therefore there is a need to invest in garment manufacturing technologies& #hich #ould ultimately improve the production level and .uality of garments. !lso it is very important to uphold the technical kno#)ho# and skills of the labors #orking in garment facilities. 5n)the)$ob training is a good medium for it. Skilled labors #ould ultimately lead to increased good .uality of production 4no$ledge and information of mar*et5fas#ion 1 trends Eno#ledge and information have become essential tools for successful business undertakings. !ccess to the relevant information helps to survive in the international competition. The e,porters should have kno#ledge of fabrics& market trend& costs of accessories& production costs& labor costs& etc. The e,porters should keep themselves abreast of the garment market and latest fashion trends. =ue to fast changing international scenario of this sector& use of online information sources is also very beneficial. Therefore use of computers and its services are essential and provide that e,tra edge to your business. Q No F. Select different industrial landscapes and identify the similarities and differences bet#een them B for e,ample& by the type and number of competitors/ industry structure/ number and variety of products& entry and e,it barriers/ distribution and supply chains/ e,tent of horizontal and vertical integration etc. Tabulate your ans#er for better understanding