RAYAT COLLEGE OF LAW,

RAILMAJRA.

BUSINESS MANAGEMENT
PROJECT
TOPIC: ANALYSE NEED FOR STRATEGIC
CHANGE OF MANAGEMENT IN GROWING
COMPANIES

Submitted to: Submitted by:

MS. ARCHANA SAMRIDHI CHHABRA
B.COM LLB( SECTION C)
R.NO- 16630
 ACKNOWLEDGEMENT

First of all, I would like to thank Almighty God for giving me the
strength to complete my assigned work on time and with efficiency.
Then my teacher Ms. Archana deserves a special thanks for assigning
me with this project. It was a great experience which enhanced my
knowledge and experience. Then I would like to thank the department
for providing such opportunities. Last but not the least I would thank my
parents and friends for their immense cooperation.
 WHAT IS STRATEGIC MANAGEMENT?

Strategic management is the management of an organization’s resources to achieve

its goals and objectives. Strategic management involves setting objectives,
analyzing the competitive environment, analyzing the internal organization,
evaluating strategies, and ensuring that management rolls out the strategies across
the organization.

UNDERSTANDING STRATEGIC MANAGEMENT

Strategic management is divided into several schools of thought. A prescriptive
approach to strategic management outlines how strategies should be developed,
while a descriptive approach focuses on how strategies should be put into practice.
These schools differ on whether strategies are developed through an analytic
process, in which all threats and opportunities are accounted for, or are more like
general guiding principles to be applied.

Business culture, the skills and competencies of employees, and organizational

structure are all important factors that influence how an organization can achieve
its stated objectives. Inflexible companies may find it difficult to succeed in a
changing business environment. Creating a barrier between the development of
strategies and their implementation can make it difficult for managers to determine
whether objectives have been efficiently met.

Strategic management extends to internal and external communication practices as

well as to tracking, which ensures that the company meets goals as defined in its
strategic management plan.
While an organization’s upper management is ultimately responsible for its
strategy, the strategies themselves are often sparked by actions and ideas from
lower-level managers and employees. An organization may have several
employees devoted to strategy rather than relying on the chief executive officer
(CEO) for guidance.

Because of this reality, organization leaders focus on learning from past strategies
and examining the environment at large. The collective knowledge is then used to
develop future strategies and to guide the behavior of employees to ensure that the
entire organization is moving forward. For these reasons, effective strategic
management requires both an inward and outward perspective.

Example of Strategic Management

For example, a for-profit technical college wishes to increase enrollment of new
students and graduation of enrolled students over the next three years. The purpose
is to make the college known as the best buy for a student's money among five for-
profit technical colleges in the region, with a goal of increasing revenue.

In the above case, strategic management means ensuring that the school has funds
to create high-tech classrooms and hire the most qualified instructors. The college
also invests in marketing and recruitment and implements student retention
strategies. The college’s leadership assesses whether its goals have been achieved
on a periodic basis.

STRATEGIC MANAGEMENT FACILITATES

ACCOMPLISHMENT OF MISSION
Strategic management embraces a set of decisions, actions and
interactions which help in designing an effective strategic network to
facilitate the accomplishment of enterprise mission. In other words, it
can be stated that strategic management emphasizes innovative strategic
programme, looks for changes in programme, identifies the potential for
changes and makes critical appraisal of programme of attaining
enterprise mission.

KEY TAKEAWAYS

 Companies, universities, nonprofits, and other organizations can use

strategic management as a way to make goals and meet objectives.
 Flexible companies may find it easier to make changes to their structure and
plans, while inflexible companies may chafe at a changing environment.
 A strategic manager may oversee strategic management plans and devise
ways for organizations to meet their benchmark goals.

Special Considerations
Making companies able to compete is the purpose of strategic management. To
that end, putting strategic management plans into practice is the most important
aspect of the planning itself. Plans in practice involve identifying benchmarks,
realigning resources—financial and human—and putting leadership resources in
place to oversee the creation, sale, and deployment of products and services.

The strategic management process means defining the organization’s strategy. It is

also defined as the process by which managers make a choice of a set of strategies
for the organization that will enable it to achieve better performance.

Strategic management is a continuous process that appraises the business and

industries in which the organization is involved; appraises it’s competitors; and
fixes goals to meet all the present and future competitor’s and then reassesses each
strategy.

In business Environment, company has to undergo different kind of changes.

These changes occur due to internal issues of company or advancement of
technology. Change denotes to cope development of touching from an
unacceptable present state to a preferred state (Beckhard and Dyer, 1983).
Currently, organizations obtain benefit from strategic change, so they must adjust
themselves with new condition if they want have profits. The challenge for
managers in current business climate is learning to manage change successfully.

To stay competitive in the long term, enterprises are required to assume compound
changes with increasing speed, effectiveness and success (Arnaboldi and Azzone,
2005). Strategic change is described as "changes in the content of a firm's strategy
as defined by its scope, resource deployments, competitive advantages, and
synergy" (Hofer and Schendel 1978).

Managers who are responsible for strategic change must consider some issues.
First of all, they have to consider the culture and behaviours of workforce. It is
understandable that changing something that people used to it for a long time is not
easy to change. Another factor is that when talking about a strategic change there
must be good consideration about context compatibility between the change and
organization. Lynch (2008) argues that in order "to manage strategic change, it is
important to understand what is driving the process"

Strategic management process has following four steps:

1. 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.

2. Strategy 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.

3. 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.

4. Strategy 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.

These components are steps that are carried, in chronological order, when creating
a new strategic management plan. Present businesses that have already created a
strategic management plan will revert to these steps as per the situation’s
requirement, so as to make essential changes.
 Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized that

each component interacts with the other components and that this interaction often
happens in chorus.

NEED FOR STRATEGIC MANAGEMENT

Anybody who is concerned or bothered about the overall functioning of an
enterprise must know the importance of strategic management. A lot has been said
and written about it. Here we are crystallizing some of the important thoughts.

1. TO KEEP PACE WITH CHANGING ENVIRONMENT:

Modern corporations are operating in a highly dynamic environment, which is

ever changing, constraining and uncertain. They are in a continuous flux of threats
and opportunities. Therefore, the most pressing problem of a modem organization
is to find out the ways for its survival in a highly volatile and turbulent
environment. In such circumstances to keep business going, strategic management
is the need of the hour, as by exploring opportunities and minimizing threats, it
helps the business to achieve an optimum level of efficiency.

Most of the leading American corporations and a few Indian business houses today
have utilized strategic management in profitably exploiting business opportunities.

2. TO BOOST EMPLOYEES EFFICIENCY:

It is a common observation that employees carry out their tasks effectively if they
have a clear role perception. The firms embracing strategic management, as a rule,
clearly define what to do, when to do, how to do and who is to do it. As such the
employees are in a position to carry out their tasks effectively. In fact, strategic
management by gearing up employees’ efficiency makes things to happen which
would not otherwise take place.

3. TO FURNISH A STRONG BASE FOR UNIFIED DECISION MAKING:

As strategic management focuses on the determination of the major organizational
objectives, by “identifying the things to be achieved,” it furnishes a strong base for
unified decision-making. Consequently, not only the enterprise, but its various sub-
units are also immensely benefited.

4. DIRECTION

The strategic management process involves determining the company mission,

vision and objectives. The mission is the company's business, a vision statement
defines where the company would like to be in the long term and the objectives are
used to measure company progress. The strategic management process crafts a
strategy that shows leaders how to reach the desired future state and devises
mechanisms to ensure the implementation and revision of the strategy based on
changing circumstances.

5.MARKET SHARE

Smaller companies typically have a smaller market share and income. The smaller
market share makes it more important to cater to the customers’ tastes. Strategic
management constantly surveys customer preferences and translates them into
actionable information for the company. Market share is threatened by competitors
constantly, and strategic management helps craft appropriate tactics to defend or
expand market share.

6.ENTREPRENEURSHIP
Entrepreneurship drives individuals, groups or companies to look for innovative
ways to compete. With increasing pace of competition, today's novel product will
soon be obsolete, so companies need to break away from the familiar and search
for innovative products and services. Strategic thinking is the innovative aspect of
strategic management. It encourages the adoption of a long-term perspective and
the ability to capitalize on unanticipated opportunities.