Management Control and

Information Systems
Chapter 7:
Strategies, Goals and Objectives

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

1
School (IBS) Hyderabad
Strategies, Goals and Objectives
Strategy vs. Competition:

‘Strategy’ and ‘Competition’ are not interrelated , but

when viewed through the dictionary meaning of the
word ‘strategy’, an obvious connection is made with
the words ‘enemy’ and ‘rivals’.

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

2
School (IBS) Hyderabad
 Strategies, Goals and Objectives
In business terms, this rivalry is nothing but
competition.

Business strategy is, therefore, a well-thought-out

systematic plan of action for survival and success,
formulated by due consideration of the possible
position, and defensive and offensive moves of the
competitors vis-à-vis the company.

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

3
School (IBS) Hyderabad
Strategies, Goals and Objectives
Strategy Formulation

A firm develops its strategies by matching its core

competence with industry opportunities.

Two sets of analysis of the environment in the micro –

and macro - level will indicate external ‘opportunities’
and ‘threats’, while internal analysis of ‘strengths’ and
weakness’ will reveal core competence.
Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business
4
School (IBS) Hyderabad
Strategies, Goals and Objectives
Strategy Formulation

In big organization, strategy is formulated at two

levels, that is

a) Corporate level
b) Business unit level

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

5
School (IBS) Hyderabad
Strategies, Goals and Objectives
Environmental Analysis Internal Analysis

Opportunities and Threats Strengths and Weaknesses

Fit internal competence with external opportunities

Strengths and Weaknesses

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

6
School (IBS) Hyderabad
 Strategies, Goals and Objectives

Strategy Organization level

Key Success Issues Strategy Options
Level involved

Are we in the right mix Single industry

of industries? Related
Corporate diversification
Corporate Office
Level Which industries or Unrelated
sub-industries should diversification
we be in?

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

7
School (IBS) Hyderabad
 Strategies, Goals and Objectives

Strategy Strategy
Key Success Issues Organization level involved
Level Options
What should be the mission Build
Business of the business unit? Hold Corporate Office and
unit Level Harvest Business Unit Manager
Divest

Low Cost
How should the business Differentiati
Business Unit Manager
unit compete to realize its on
mission?

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

8
School (IBS) Hyderabad
Goals of the organization
Economic Goals
Social Goals

Economic Goals:
a. Profit and profitability
b. Earnings per Share
c. Share holder’s Value
d. Market Share

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

9
School (IBS) Hyderabad
Goals of the organization
Social Goals

Corporate social responsibility (CSR)

Infosys Foundation

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

10
School (IBS) Hyderabad
Strategies, Goals and Objectives

Thank You

Dr. Ajay Prasad Adepu, Assistant Professor ICFAI Business

11
School (IBS) Hyderabad