Contents

Chapter 1: ORGANIZATIONAL MISSION, VISION, OBJECTIVES AND VALUES 1

Organizational Mission and its Importantance 1

Charactereristucs of a Mission Statement 2

Evaluating Mission Statement 5

Organizational Vision: its Importantance and benefits 6

Qualities of an Effective Vision Statement 7

Organizational Objectives 10

Organizational Values 11

Chapter 2: POLICY AND STRATEGY 12

The Nature of Business Policy 12

Features of Business Policy 12

Importance of Business Policy 13

Strategy 14

Types of Strategy 16

The Nature of Strategic Management 17

Strategic Management Process 17

Strategic Management Benefits 19

Chapter 3: PRICING STRATEGY 20

Chapter 4: EXTERNAL ENVIRONMENT ANALYSIS 23

Environmental Analysis 23

The Industry Organizational View 23

Five Step Process of the I/O Model 24

Social Factors that Affect Business 25

Five Forces Model Analysis 31

Strategic Group Mapping 32

Task Environment 33

Strategic Forecasting Tools qnd Techniques 34

Chapter 5: INTERNAL ENVIRONMENT ANALYSIS 35

The Resource Based View 35

Types of Organizational Resources 36

Intellectual Property as an Important Resource 37

Value, Rarity, Imitability and Organization (VRIO) Framework 39

Key Functional Areas in the Internal Environment 41

The Basic Functions of Management 42

Management Information System 47

Value Chain Analysis 48

Chapter 6: STRATEGIES IN ACTION 49

Integration Strategies 49

Market Penetration 50

Diversification Strategies 51
 Fiver Generic Strategies by Porter 52

Means for Achieving Strategies 53

Chapter 7: STRATEGY ANALYSIS AND CHOICE 55

The Input Stage 55

The Matching Stage 57

The Decision Stage 60

Politics of Strategy Choice 60

Role of Governance in Strategy Choice 61

Chapter 8: STRATEGY IMPLEMENTATION 62

Policies 62

Resource Allocation 63

Conflict Management 63

Matching Structure and Strategy 64

Functional Areas and Strategy Implementation 65

Cross-functional Implications of Strategy Implementation 66

Chapter 9: STRATEGY, REVUEW, EVALUATION AND CONTROL 67

The Strategy Evaluation Process 67

Reviewing bases of Strategy 68

Measuring Company Performance 68

The Balanced Scorecard 68

Characteristics of an Effective Evaluation System 69

Contingency Planning 70
 Challenges in Strategic Management 70

Chapter 10: STRATEGIC PERFORMANCE MEASUREMENT 72

Decentralization and Segment Reporting 72

Strategic Business Units (SBUs) and their Evaluation 72

Financial and Non-Financial Performance Measures 73

Chapter 11: FINANCIAL STATEMENT ANALYSIS 74

Activities & Assignment 80

Prelims Assignment No.1 80

Midterms - Assignment No. 1 81

Midterms - Seatwork No. 2 82

Finals - Assignment No. 1 83