Subject: Business Strategy

Class: V sem.
Session-1.
Chapter-1: Introduction to Strategic Management.
Meaning and Importance of SM.
Business: A business is defined as an organization or enterprising entity
engaged in commercial, industrial, or professional activities. ... The term
"business" also refers to the organized efforts and activities of
individuals to produce and sell goods and services for profit.
Strategy: a plan of action designed to achieve a long-term or overall
aim. Ex: A plan to win
• Business strategy: A business strategy refers to the actions and
decisions that a company takes to reach its business goals and be
competitive in its industry. It defines what the business needs to do to
reach its goals, which can help guide the decision-making process for
hiring and resource allocation.
• Strategic Management: Strategic management is the ongoing
planning, monitoring, analysis and assessment of all necessities an
organization needs to meet its goals and objectives. Changes in
business environments will require organizations to constantly assess
their strategies for success.
• Vision statement: A vision statement is a company's road map, indicating what
the company wants to become by setting a defined direction for the company's
growth. Vision statements undergo minimal revisions during the life of a
business, unlike operational goals which may be updated from year-to-year.
• Mission Statement: A mission statement is a short statement of why an
organization exists, what its overall goal is, identifying the goal of its operations:
what kind of product or service it provides, its primary customers or market, and
its geographical region of operation.
• Strategic Sweet Spot: is that space in which you are able to satisfy customer
needs better, cheaper and differently from your competitors.
• Business Policy: Business policies are the guidelines developed by an
organization to govern its actions.
• Business Aim: An aim is where the business wants to go in the future, its
goals. It is a statement of purpose, e.g. we want to grow the business into
Europe.
• Business goals: Business goals are goals that a business anticipates
accomplishing in a set period of time.
• Business Objectives: Business objectives are the specific and measurable
results companies hope to maintain as their organization grows.
• Business target: A target market refers to a group of potential customers
to whom a company wants to sell its products and services.
• Ethics: moral principles that govern a person's behaviour or the conducting
of an activity.
• Business Ethics: Business ethics is the study of
appropriate business policies and practices regarding potentially
controversial subjects including corporate governance, insider trading,
bribery, discrimination, corporate social responsibility, and fiduciary
responsibilities.
• Morals: standards of behaviour; principles of right and wrong.
• Core Values: Core values are the fundamental beliefs of a person or
organization. These guiding principles dictate behaviour and can help
people understand the difference between right and wrong. Core
values also help companies to determine if they are on the right path and
fulfilling their goals by creating an unwavering guide.
• Business Organization: The term business organization describes
how businesses are structured and how their structure helps them meet
their goals. In general, businesses are designed to focus on either
generating profit or improving society. ... The basic categories of business
organization are sole proprietorship, partnership, and corporation.
• Organizational Culture: Organizational culture is defined as the underlying
beliefs, assumptions, values and ways of interacting that contribute to the
unique social and psychological environment of an organization.
• Organizational Structure: An organizational structure is a system that
outlines how certain activities are directed in order to achieve the goals of
an organization. These activities can include rules, roles, and
responsibilities. The organizational structure also determines how
information flows between levels within the company.
• Stake holders: A stakeholder is any person, organization, social group, or
society at large that has a stake in the business. Thus, stakeholders can
be internal or external to the business. A stake is a vital interest in the
business or its activities. ... Be both affected by a business and affect a
business.Ex. Shareholders, employees,customers, suppliers, society.
• Business Model: a plan for the successful operation of a business,
identifying sources of revenue, the intended customer base, products,
and details of financing.
• Business model canvas: The Business Model Canvas is
a business tool used to visualise all the building blocks when you want to
start a business, including customers, route to market, value proposition
and finance.
Session-2: Need and Importance of SM.
Strategic management is an essential component of businesses.
Strategic management entails evaluating business goals, the
organisation's vision and objectives as well as the future plans. In
addition, a strategic management process is employed to ensure that
the business runs effectively and efficiently.
Session-3: Components of SM
• Important Components of strategic management:
• Establishment of Vision, Mission, and Goals.
• SWOT (strengths, weaknesses, opportunities, and threats), TOWS,
PESTEL analysis.
•
• Strategy Formulation.
• Strategy Implementation.
• Strategy Evaluation.
• 1.Strategy Formulation: Strategy formulation is the process by which an
organization chooses the most appropriate courses of action to achieve its
defined goals. This process is essential to an organization's success, because it
provides a framework for the actions that will lead to the anticipated results.
• Here are 10 steps which guide you in deciding the strategy of your company.
Steps 1 to 5 mainly involve internal or external research as well as very long
term strategy making (Strategies made in the first 5 steps affect the whole
life cycle of the company)
• Step 6 to 10 involve decision making based on the research as well as the
decisions taken for the company in the previous steps. The last steps are more
inclined towards implementation.
• A vision statement (crisp and to the point) is a must for developing a strategy. Exploring and deciding
on the vision of the company gives you clarity on the main objectives of the company.
• 2) Mission Statement :This mission statement would actually determine the methodology of the
company in reaching its vision, its purposes and its philosophy behind its goals.
• 3) Define the company profile :The company profile needs to be comprehensive which further clears
the goals of the organization. What would be the strengths of the company, capabilities,
management. In essence mention everything you can about the company. This helps in transparency
while deciding the strategy.
• 4) Study the External environment: PEST/PESTEL analysis: Political, Economical, Sociological,
Technical, Environmental and Legal.
• an in depth study on external environment is necessary and the same should be mentioned in the
strategy report.
• 5) The 5th step involves matching all three – Mission statement, Company profile and the external
environment such that they are in sync to achieve the vision of the company.
• 6) Deciding the actions for accomplishing the mission of the organization
• 7) Selecting long term strategies which will be most effective
• 8) Deciding on short term strategies arising from the long- term ones such that
these short- term strategies too are in sync with the mission and vision statement
• 9) Deciding the budget and resource allocation according to the short -term
strategy
• 10) Implementation of the strategies along with pre decided review system along
with measures to maintain control.
• Following these 10 steps of deciding on a strategy, you get – A vision statement, a
mission statement, long term strategies, short term strategies, budget and
resource allocation and finally implementation along with review plans.
• 2. Strategy Implementation: Strategy implementation is a process
that puts plans and strategies into action to reach desired goals.
The strategic plan itself is a written document that details the steps
and processes needed to reach plan goals, and includes feedback and
progress reports to ensure that the plan is on track.
• Process of Strategy Implementation
• Building an organization, that possess the capability to put the strategies into
action successfully.
• Supplying resources, in sufficient quantity, to strategy-essential activities.
• Developing policies which encourage strategy.
• Such policies and programs are employed which helps in continuous improvement.
• Combining the reward structure, for achieving the results.
• Using strategic leadership.
• The process of strategy implementation has an important role to play in the
company’s success. The process takes places after environmental scanning, SWOT
analyses and ascertaining the strategic issues.
• 3. Strategy Evaluation: Strategy evaluation means collecting information about
how well the strategic plan is progressing. Strategic Evaluation is defined as the
process of determining the effectiveness of a given strategy in achieving the
organizational objectives and taking corrective action wherever required.
• The process of Strategy Evaluation consists of following steps-
• Fixing benchmark of performance
• Measurement of performance :
• Analyzing Variance/Gap analysis :
• Taking Corrective Action :
•
Session-4: Levels of Strategic Planning:

• Meaning: Strategic planning is the process of documenting and

establishing a direction of business—by assessing both where you are
and where you're going. The strategic plan gives you a place to record
your mission, vision, and values, as well as your long-term goals and
the action plans you'll use to reach them.
•
• In most of the organizations there are three levels of strategies:
corporate, business and functional levels.
• a. Corporate level, b. Business Unit level, c. Functional level.
• 1.Corporate Level Strategy. ... Corporate level strategy is the top of
the planning pyramid. It is the main purpose of your business. Think
of corporate level strategy as the destination toward which your
business is moving. That destination affects all the strategies and
decisions in every other part of your business.
• So, for example, if your business has reached market saturation and
you need to diversify to survive, your corporate level strategy would
be to spread to new markets. That becomes the guiding force for
everything your business does from now on.
• 2.Business Unit Level Strategy. ... When a company produces one
product or a set of products so closely related that they belong to the
same industry, we can think of strategic planning at the business unit
level or Strategic Business Units (SBUs).
•
• 3.Functional Level Strategy (Departmental Level or
Operational Strategy): Functional level strategies are the actions and
goals assigned to various departments that support your
business level strategy and corporate level strategy.
These strategies specify the outcomes you want to see achieved from
the daily operations of specific departments (or functions) of your
business. Functional areas as finance, marketing, operations-
operations, HR and IT.
•
Session-4: Evaluation of Strategic
Management
• Strategic Evaluation is defined as the process of determining the
effectiveness of a given strategy in achieving the organizational
objectives and taking corrective action wherever required. Strategy
evaluation is the final step of strategy management process.
• Strategic evaluation is an important tool for assessing how well your
business has performed, relative to its goals. It's an important way to
reflect on achievements and shortcomings, and is also useful for re-
examining the goals themselves, which may have been set at a
different time, under different circumstances.
• Steps in Strategic Evaluation:
• Determine what to evaluate and control.
• Set standards.
• Measure performance.
• Compare performance.
• Analyze deviations-gap analysis.
• Decide if corrective action is needed.
•
• Tools of strategic evaluation: list of 10 essential tools for strategy analysis:

1. SWOT: The SWOT is the most basic form of strategic analysis. Simply list the organisation's Strengths, Weaknesses,
Opportunities and Threats.

2. Porter's Value Chain: The value chain is a simple (graphical) method for identifying and describing a firm's main
functions and understanding how they contribute to value creation.

3. The Strategy Canvas: The Strategy Canvas was popularised in the book "Blue Ocean Strategy". You can use it to
understand how a firm differentiates itself from its competition.

4. The Business Model Canvas: It is a very effective way of describing the key components of a business model. You
can use it as the starting point for strategic analysis as well as for exploring alternative business models.

5. PESTEL: The PESTEL framework is useful for ensuring that you consider a broad range of possible sources of
opportunities and threats. The letters represent the Political, Economic, Social (or Socio-
economic), Technological, Environmental and Legal opportunities and threats in the firm's environment.
• 6. McKinsey 7S:
• The McKinsey 7S is useful for ensuring that you consider all aspects of the organisation when identifying its strengths and weaknesses. The 7 ‘S’
stand for: Structure, Systems, Style, Staff, Skills, Strategy and Shared Values.

7. Porter's 5 Forces:
• Porter's 5 Forces model is another framework for identifying threats and opportunities within the firm's environment. It considers the bargaining
position of suppliers and customers (including distributors), the threat of new entrants and substitutes, as well as competitive factors within the
industry itself.

8. Pareto Analysis:
• A Pareto Analysis is based on the maxim that 20% of the products, services, customers or distribution deliver 80% of the profits. A Pareto chart is
a useful visualisation for showing this. However, its accuracy depends on the reliability of your cost allocation system.

9. BCG Matrix:
• You can apply the BCG Matrix to any business with more than one product or service line, or more than one customer segment. Plot the market
share against the market growth rate for each product, service or customer segment. Then consider strategic options based on their relative
position on the chart.
10. Scenario Analysis:
• The future is inherently uncertain. Fortunately, good business strategy only requires you to be able to anticipate the future. You don't need to be
able to predict it. Scenario Analysis is a tool to help you to anticipate multiple different futures. This allows you to construct your strategy around
the premise that you can't be sure which, if indeed any, of them will come to pass.
Chapter-2: Strategic Management Process
Session-5: The Process of SM.
• Strategic Process: Strategy is a process. Developing a strategy for
business, is to develop a process to guide an organisation to a successful
future.
• 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.
• Strategic management process has following four steps:
• 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.
• 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.
• 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.
• 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.

Strategic management is an ongoing process. each

component interacts with the other components and
that this interaction often happens in chorus.
Session-6: Strategic Decision Making:

• Decision Making: Decision making is the process of making choices by

identifying a decision, gathering information, and assessing alternative
resolutions. Using a step-by-step decision-making process can help you make
more deliberate, thoughtful decisions by organizing relevant information and
defining alternatives.
• Choosing the best alternative. The result of the decision taken now will be
seen in future.
• Strategic decision-making is the process of charting a course based on long-
term goals and a longer- term vision. By clarifying your company's big picture
aims, you'll have the opportunity to align your shorter- term plans with this
deeper, broader mission – giving your operations clarity and consistency.
• Strategic Decision Making Process: Making Strategic Decisions - 5 Steps for
Success
• 1. Define the Problem -
• 2. Gather Information - Seek information on how and why the problem occurred:
• Stakeholders: Talk to individuals or groups affected by the problem
• 3. Develop and Evaluate Options - Generate a wide range of options:
• 4. Choose the Best Action - Select the option that best meets the decision
objective:
• 5. Implement and Monitor the Decision - Develop a plan to implement and
monitor progress on the decision:
Session-7:Strategic Management Model:

• The strategic management model -- or strategic planning model, as it

is also known -- is a tool used by managers to plan and implement
business strategies. Although there are variations of the strategic
management model, most are divided into six stages. Understanding
these six stages will help managers to create and implement
strategies in their own firms.
• Mission
• Objectives
• Situation Analysis
• Strategy Formulation
• Application/implementation
• Control
• The control stage is the final step in the strategic management model. The purpose
of this stage is to make adaptations to the strategy after the implementation.
Often, the environment and even firm objectives will change. This step is used to
recognize this and make adjustments to the firm strategies to adapt to these
changes.
Session-7: Advantages and Limitations of SM Model

• Advantages of SM Model:
• 1. Financial benefits:
• 2. Guide to organisational activities:
• 3. Competitive advantage:
• 4. Minimise risk:
• 5. Beneficial for companies with long gestation gap:
• 6. Promotes motivation and innovation:
• 7. Optimum utilisation of resources:
7. Limitations of SM Model

• 1. Lack of knowledge:
• 2. Interdependence of units:
• 3. Managerial perception:
• 4. Financial considerations:
• These limitations are by and large, conceptual and can be overcome
through rational, systematic and scientific planning. Researchers have
proved that companies which make strategic plans outperform those
which do not do so.
Chapter-3: Company Mission and Vision
Session-8: Vision and Mission Statements:
• Vision statement: A vision statement is a company's road map, indicating what
the company wants to become by setting a defined direction for the company's
growth. Vision statements undergo minimal revisions during the life of a
business, unlike operational goals which may be updated from year-to-year.
• Every new business or organization begins with an idea. Behind the idea is a
vision of what the organization could be if they have the right structure, the right
leadership, adequate funding, and a group of people that believe in the vision.
The vision speaks to the organization’s purpose and why it’s important for the
organization to exist.
• All types of organizations, including for-profit companies, non-profits, charities,
and other groups use vision statements to guide them with their important work.
They need to be clear on what role the vision will serve in the organization.
• Every vision starts with a visionary leader who is able to create mental
and verbal pictures of desirable future states. It’s also important for
visionary leaders to share their vision with their partners including
customers, suppliers, and employees.
• The vision statement is the basis for everything else they do.
Employees look to the vision statement for long-term direction. A
vision statement caters to the characteristics and lifestyle of the
customers they serve as well as the market conditions.
• a vision statement is a written document that describes where an
organization is going and what it will look like when it gets there.
• Examples: Vision Statements:
• SYMBIOSIS UNIVERSITY: Promoting international understanding
through quality education
• IFHE is to emerge as an Institution of Excellence known for research,
teaching and practice.
• Harvard University: “To develop leaders who will one day make a
global difference.”
• Maruti Suzuki: The leader in the Indian Automobile Industry Creating
Customer Delight and Share holder's wealth; A pride of India”
• Honda : “to serve people worldwide with the joy of expanding their life's
potential – Lead the advancement of mobility and enable people everywhere
in the world to improve their daily lives.”
•
• Toyota: “Toyota will lead the way to the future of mobility, enriching lives
around the world with the safest and most responsible ways of moving
people.”
• Harley Davidson :“To fulfil dreams through the experiences of motorcycling.”
• Disney:“To make people happy.”
• Sony:“To be the most comprehensive entertainment company in the world.”
• CitiBank: “To be the most competent, profitable and innovative financial organization in the
world.”
• Nestle: “To bring consumers safe, high quality foods that provide optimal nutrition.”
• L’Oreal:“Offering all women and men worldwide the best of cosmetics innovation in terms of
quality, efficacy and safety.”
• Samsung: “To lead the digital convergence movement.”
• Amazon:“To be the world’s most customer-centric company.”
• Walmart:“To become the worldwide leader of all retailing.”
• Nike: “To bring inspiration and innovation to every athlete in the world.”
• IKEA: “Create better everyday lives for as many people as possible.”
• Mission Statement: A mission statement is a short statement of why
an organization exists, what its overall goal is, identifying the goal of
its operations: what kind of product or service it provides, its primary
customers or market, and its geographical region of operation.
Vision-Mission Difference
Comparison Chart

BASIS FOR MISSION VISION

COMPARISO STATEMENT STATEMENT
N
Meaning A statement A short
that statement
describes that depicts
the the
company's company's
objectives aspiration
and its for the
approach to future
reach those position of
objectives the
company.

What it is? Cause Effect

Talks about Present Future
Shows Where we Where we
are at wants to be?
present?
Term Short term Long term
Purpose To inform To inspire
Which comes first: vision/mission
• Actually neither – purpose comes first, followed by vision and
mission. Corporate purpose or “why we exist” should be at the core
of an organization’s guiding statements.
Session-9: Social Responsibility.

• Social responsibility is an ethical framework and suggests that an

individual, has an obligation to act for the benefit of society at
large. Social responsibility is a duty every individual has to perform so
as to maintain a balance between the economy and the ecosystems.
• Social responsibility in business, also known as corporate social
responsibility (CSR), pertains to people and organizations behaving
and conducting business ethically and with sensitivity towards social,
cultural, economic, and environmental issues. Striving for social
responsibility helps individuals, organizations, and governments have
a positive impact on development, business, and society.
• The purpose of corporate social responsibility is to give back to the community, take part
in philanthropic causes, and provide positive social value. Businesses are increasingly
turning to CSR to make a difference and build a positive brand around their company.
• Benefits of Corporate Social Responsibility
• Smart business decisions are not just a matter of counting short-term dollars and cents.
Wise decision makers consider the future impact of today’s choices on people, on the
community, and on customers and their opinions.
• While business results, investment, free enterprise, and other traditional economic forces
continue to drive industry, organizations’ reputations and their ability to compete
effectively around the world depend on them integrating social responsibility efforts into
decision making and performance improvement.
• The four types of Corporate Social Responsibility are philanthropy,
environment conservation, diversity and labour practices, and
volunteerism.
• Corporate social responsibility
• Corporate social responsibility is a type of international private
business self-regulation that aims to contribute to societal goals of a
philanthropic, activist, or charitable nature by engaging in or
supporting volunteering or ethically-oriented practices
•
Session-10: Stake holders approach to Social
Responsibility
• A stakeholder is a party that has an interest in a company and can either
affect or be affected by the business. The primary stakeholders in a typical
corporation are its investors, employees, customers and suppliers.
•
• Stakeholders (SHs) play a key role in the decision making process of those
firms when they decide to engage in CSR(Corporate Social
Responsibility) projects. ... This choice can affect the economic
development of a community, a region and a country, depending on the
size of the CSR project. 1. Philanthropic CSR refers to charitable
donations of money..
• The stakeholder approach indicates that a business is not
only responsible to its owners but also has obligations to
various stakeholders, such as employees, customers, business
partners, government and non-governmental organizations [8, 17].
The social approach is a broader view on CSR.
Session-11: Guidelines for a Social
Responsible firm:
• The CSR Policy should normally cover following core elements:
• Care for all Stakeholders: ...
• Ethical functioning: ...
• Respect for Workers' Rights and Welfare: ...
• Respect for Human Rights: ...
• Respect for Environment: ...
• Activities for Social and Inclusive Development:
•
•
Chapter-4:
Analysis of Business Environment: Session-12
• Remote Environment Planning: PESTEL Factors
• Political
• Economical
• Societal
• Technical
• Environmental
• Legal.
Session:13-Environmental Scanning:
Porter’s Five Forces Model
• 1. Threat from substitute products(some times cheap substitutes)
• 2. Rivalry from existing competitors
• 3. Threat from entry of new firms and new technology
• 4. Buyer’s bargaining power
• 5. Supplier’s bargaining power.
Session:14
Structural Analysis & Industry Definition:
• Business Organization Structure:
• An organizational structure is a system that outlines how
certain activities are directed in order to achieve the goals of
an organization.
• These activities can include rules, roles, and responsibilities.
The organizational structure also determines how information
flows between levels within the company.
Key Elements of organizational Structures:

• 7 key elements of organizational structure:

departmentalization, chain of command, span of
control, centralization or decentralization, work
specialization and the degree of formalization.
Each of these elements affects how workers engage with each
other, management and their jobs in order to achieve the
employer's goals.
Types of Organizational Structures:

• Traditional organizational structures come in four general types

• – functional,
• divisional,
• matrix and
• flat –
• but with the rise of the digital marketplace, decentralized, team-
based org structures are disrupting old business models.
Organizational Chart:

• An organizational chart, also called organigram or

organogram, is a diagram that shows the structure
of an organization and the relationships and relative ranks of
its parts and positions/jobs.
Organizational structural Analysis:

• A company's organizational structure determines how it

approaches operating the business.
• Studying the different characteristics of the company and
determining how it is organized, you can compare structures,
examine weaknesses and identify strengths.
Industry Definition:

• An industry is a group of companies/firms that are related

based on their primary business activities. In modern
economies, there are dozens of industry classifications, which
are typically grouped into larger categories called sectors.
• Ex: Textile industry; Automobile Industry; Banking Industry; Film
Industry; Pharma Industry…….
Session:15
Designing Opportunistic Strategies:
• Opportunistic Strategies: Taking advantage of situation that arises.
• Ex: Finding business and Investment opportunities during Covid crisis..
• As the name indicates, such strategies seek to profit opportunistically
from
• fundamental themes,
• inefficiencies and
• dislocations in the financial markets at
a macro, market sector, stock specific factor, or even
exchange level.
Designing Opportunistic Strategies
• Strategic thinking: Provides the clues about the
path/direction we should go.
• Enables to create unique value for the
customers.
• To position themselves in the part of the
industry that was less explored to the
competition forces.
Design thinking is to start with customer
keeping in mind. More functional.
Problem finding and solving.
Tools and methods used to create and
growth of demand, market…
Designing opportunistic strategies
• 1. Disruptive insights(once costly technology made cheaper and
available to all): Research and opportunities—keeping you ahead of
the others.
• Future Vision: Direction and Experience concept—identifying
problems and finding solutions.
• Experience Roadmap: Business Transformation, roadmap for future.
• Experience design: Solutions and Prototyping (developing and testing
a new product, device, c
• Vehicle, weapon etc…).
• Implementation: Making it Happen.
• ‘Experience is Every Thing’.
• opportunistic strategies: Strategic opportunism is
about taking advantage of a situation that
positions you favorably to exploit it and make
some short term gains for the business without
disadvantaging its long term / strategic interests"
Session:16
Formulation of Strategy:
• Strategy Formulation Strategy is a broad plan developed by an
organization to take it from where it is to where it wants to be.
• A well-designed strategy will help an organization reach its maximum
level of effectiveness in reaching its goals while constantly allowing it
to monitor its environment to adapt the strategy as necessary.
• Strategy Formulation is the process of developing the strategy. And the
process by which an organization chooses the most appropriate
courses of action to achieve.
Formulation of Strategy
• PPT Slides
• 10,
• 11,
• 12
 Chapter-5:Session -17
Value of Systematic Internal Assessment:

Analysis of Internal Environment

• An internal assessment is an essential part of an organization’s strategic plan
• A strategic plan is the key tool for growing an organization, it is a critical analysis
and assessment of strengths and weaknesses, opportunities and threats in relation to
the internal and external environmental factors affecting an entity. It is simply referred to as
‘SWOT analysis’.
• It involves a systematic analysis of the internal strengths and weaknesses of a business firm
(financial, technological, and managerial) and of the external opportunities and threats in the
firm’s environment like changes in the markets, laws, technology and the ...market share, sales,
profitability, excellence in service, etc.
Session-18:
Strategy and Internal Analysis

• An internal analysis helps the company decision-makers

accurately identify areas for growth or revision to form a
practical business strategy or business plan. ... SWOT
analysis: A SWOT (Strengths, Weaknesses, Opportunities and
Threats) analysis helps to give companies a broad overview of
all internal functions.
• An internal analysis examines your
organization's internal environment in order to assess its
resources, competencies, and competitive advantages.
Performing an internal analysis allows you to identify the
strengths and weaknesses of your organization.
• Why is an internal analysis important?
• Internal analyses help business leaders identify ways in which they
can improve company functions. A few of the most important reasons
to conduct an internal analysis include identifying:
• Company strengths
• Structural weaknesses
• Business opportunities
• Possible threats
• Viability in the marketplace
• How to conduct an internal analysis
• Follow these steps to perform an effective internal analysis and improve
company functionality:
1.Set your objective
2.Choose a framework
3.Conduct research
4.Follow the framework
5.Set your priorities
6.Apply the findings
• A strategic framework A strategic framework is a structured
method used to define how a project or initiative supports the key
objectives of stakeholders. There are four components to a strategic
framework:
• Business objective. What will the project or initiative achieve?
• Approach. How will that achievement be realized?
• Measurement. How will achievement be measured and reported?
• Target. What is the forecasted improvement that will define success?
• . ... A strong framework is aspirational, designed to inspire
stakeholders and demonstrate how the organization is working
towards their vision, purpose, or goals.
• McKensey 7 S Frame work: Structure, System, Strategy,
Skills, Staff, Style, Shared Values.
• Inter related and mutually supportive.
Types of Frame Works of an Organization: Leadership Theory.

• 1. Structural: Power/Authority distribution, Relationships—whom to

report etc
• 2. HR: Staff needs
• 3.Political: Power Conflicts
• 4. Symbolic: Inspiration,
 Difference between function, department and process:

Session:19
Analyzing Departments and Functions:
Session:19
Analyzing Functions and Departments

• 7 Functions of
Management: Planning, Organising, Staffing, Directing, Con
trolling, Co-Ordination and Co-Operation.
• Departments: Departments represent sections of your
company that you want to examine individually. These sections
can be: The business units of your company (such as
Accounts/Finance, Production/Operation, Marketing
administration, or human resources, Research &Development.),
or. They can be organized around specific business activities
(such as welding, service, or machining)
Session-20
Analysing Management-The Human side of Enterprise
• The Human Side of Enterprise, McGregor identified an
approach of creating an environment within which employees are
motivated via authoritative direction and control or integration and
self-control, which he called theory X and theory Y, respectively.
• The concept of Theory X and Theory Y was developed by social
psychologist Douglas McGregor. It describes two contrasting
sets of assumptions that managers make about their
people: Theory X – people dislike work, have little ambition, and
are unwilling to take responsibility. Opposite is Theory Y
•.
Session-21
Quantitative Approach for Evaluating Internal Factors;
• Quantitative data are data that can be measured and assigned
a numerical value. ... For example, quantitative evaluation can
be based on comparing the number of people who answer one
way versus another in a survey. Or, the quantitative data can
be secondary data, which is data taken from already existing
sources.
• Internal Factor Evaluation (IFE) matrix is a strategic
management tool for auditing or evaluating major strengths
and weaknesses in functional areas of a business. IFE matrix
also provides a basis for identifying
and evaluating relationships among those areas.
Chapter-6: Organizational Culture
Session-22
Meaning of Culture-Culture and Organization:
• Culture:Culture is a word for the 'way of life' of groups of
people, meaning the way they do things. ... Excellence of taste
in the fine arts and humanities, also known as high culture. An
integrated pattern of human knowledge, belief, and behavior.
The outlook, attitudes, values, morals, goals, and customs
shared by a society.
• Customs, laws, dress, architectural style, social standards,
religious beliefs, and traditions are all examples of
cultural elements. Since 2010, Culture is considered the
Fourth Pillar of Sustainable Development by UNESCO.
Organization and Culture
• Organizational culture is the collection of values,
expectations, and practices that guide and inform the actions of
all team members. Think of it as the collection of traits that
make your company what it is.
• Based on these parameters, the framework
breaks organizational cultures into four distinct quadrants
or cultural types: The Clan Culture, the Adhocracy Culture,
the Market Culture, and the Hierarchy Culture.
• Clan cultures have a friendly, collaborative culture and can be
compared to a large family—i.e., a clan—where people have a
lot in common. Strong bonds of loyalty, tradition, and
commonality generally form. Examples of companies that may
have a clan culture include Google, Zappos, or Tom's of Maine
• An adhocracy, in a business context, is a
corporate culture based on the ability to adapt quickly to
changing conditions. ... In a more general
sense, adhocracy contrasts with bureaucracy, which is
characterized by inflexibility and a rigid adherence to rules
• A market culture is a culture in which the goal is to get down to
business, get work done, and achieve results. This is often a
competitive environment, even among coworkers. The purpose of
being at work in a company with this type of culture is to make as
much profit and capture as much market share as possible.
• A hierarchical corporate culture is an organizational model based
on clearly defined corporate levels and structures. Hierarchy is a
type of organizational structure in which items are ranked according
to levels of importance. ... Market cultures, which are corporate
environments that emphasize competition.
Session-23
Culture&Strategy Creation:Culture&Org Structure
• Culture and Strategy: Creating a strategy and a strategically
focused culture takes time and effort. Strategic leaders need
to demonstrate patient resolve and show their support as their
teams change their beliefs and learn to formulate and execute
new strategic initiatives.
• Strategy offers a formal logic for the company's goals and
orients people around them. Culture expresses goals through
values and beliefs and guides activity through shared
assumptions and group norms. Strategy provides clarity and
focus for collective action and decision making.
• Culture and organization structure:Organizational structure refers
to the norms, rules, policies formed by the company to achieve
the objectives. Organizational Culture includes the value,
behaviour and attitudes of the employees. Both of these are
equally important for the success of the organization.
• Organizational culture generates its impact on organizational
structure both through its design and its implementation. ...
The culture creates a frame of reference in which
the organization management's considerations and reasoning
circulate in the process of decision-making concerning
the organizational structure model.
Session-24:Culture and Style of Management:

• 1. Authoritarian management styles

• The authoritarian management style involves managing through clear
direction and control. It is also sometimes referred to as the autocratic or
directive management style. Authoritarian managers typically assert strong
authority, have total decision-making power, and expect unquestioned
obedience.
• 2. Visionary management styles
• The visionary management style is also sometimes called inspirational,
charismatic, strategic, transformational, or authoritative. Visionary managers
focus on conveying the overall vision of the company, department, or project
to their team.
• 3. Transactional management styles
• Transactional management style focuses on using positive rewards such as incentives,
bonuses, and stock options to motivate employees to improve their performance. For
instance, transactional managers may rely on piece-work pay to incentivize their
employees to produce more. Similarly, they may structure quarterly or annual
bonuses around employee performance.
• 4. 4. Servant Leadership management styles
• This management style is also sometimes called coaching, training, or mentoring.
• A servant management style focuses on supporting your employees. Managers who
embrace this style spend their time, coaching, mentoring, and supporting their team.
They see their role as one of an adviser or coach rather than a dictator or rule
enforcer.
• 5. Pacesetting management styles
• Pacesetting management style embodies leading from the front of the
pack. As a manager, you provide instructions and set a work pace, and
then expect your employees to follow in your footsteps.
• 6. Democratic management styles
• A democratic management style is also sometimes referred to as
consultative, consensus, participative, collaborative, or affiliative
style. This style is based on the philosophy that two heads are
better than one and that everyone deserves to have a say, no matter
what their position or title.
• 7. Laissez-Faire management styles
• The laissez-faire management style emphasizes employee freedom.
Laissez-faire originates from French and directly translates to “let do”
in English. In other words, laissez-faire managers let their employees
do what they will, with little to no interference.
Determinants of Organizational Culture:
• Factors Determining Organizational Culture
• Founder's values and beliefs.
• Policies.
• Wages.
• Benefits.
• Incentives.
• Management Style.
• Treatment of Staff.
Organizational culture and power

• In an organisation with a power culture, power is held by just

a few individuals whose influence spreads throughout
the organisation. There are few rules and regulations in
a power culture. What those with power decide is what
happens.
Session—25:Aspects and levels of culture
• One of the basic tenets of culture is that it consists of levels and
sublevels. It is useful to think about culture in terms of five basic
levels: national, regional, organizational, team, and individual.
Within each of these levels are tangible and intangible sublevels
of culture.
• Change of Culture: Culture is made up of customs, attitudes, and
beliefs that are unique to each group of people. ... New
philosophical ideas and technological advances can lead
to cultural change. Cultural change can also occur through
diffusion, when contact with other cultures and ideas are
transferred.
• 6 Reasons Cultures Change, and 3 Ways Leaders Can
Respond
• A new CEO.
• A merger or acquisition.
• A spin-off from a parent company.
• Changing customer requirements.
• A disruptive change in the market the company serves.
• Globalization.
Session-25:Culture and Values
Cultural influence on Organizational life:
• Values guide decision-making and a sense of what's important
and what's right. Culture is the collection of business practices,
processes, and interactions that make up the work
environment. ... They are the uncompromising core principles that
the company is willing to live and die by, the rules of the game.
• Cultural influence on Organizational Life: organizational
culture greatly influences employee behavior. ... The results of
the study indicate that organizational culture mainly impacts
motivation, promotes individual learning, affects communication,
and improves organizational values, group decision making and
solving conflicts.
Chapter-7: Mergers, Acquisitions & Joint Ventures.
Session-26: Rationale for Mergers and Acquisitions:
• Mergers: A merger is an agreement that unites two existing
companies into one new company.
• main types of merger are
• horizontal mergers which increase market share,
• vertical mergers which exploit existing synergies
• and concentric mergers which expand the product offering.
• Conglomerate mergers:
• Horizontal mergers are common in industries with fewer firms, as
competition tends to be higher and the synergies and potential
gains in market share are much greater for merging firms in such
an industry. A merger between Coca-Cola and the Pepsi beverage
division, for example, would be horizontal in nature.
• Vertical Mergers:vertical merger is when two or more companies
who are in different stages of a supply chain in the production of
common products or services. For example, Company A is a
manufacturer of handbags and Company B supplies the leather
and C company supplies zipps, buttons etc. that is used to make
these handbags.
• Concentric mergers:concentric mergers happen when a
company merges with another company that sells products to
the same customers, though they sell different products, making
them indirect competitors.
• Ex: Supplies to University, Hospital, Restaurant, Function/event,
Cars Manufacturing company etc..
• A conglomerate has a large number of diversified businesses.
Tata Group is one of the world's most diversified businesses and
a great example of a conglomerate. Another is Samsung – the
electronics giant also makes military hardware, apartments,
ships and Samsung also operates a Korean amusement park.
• Conglomerate Merger:"any merger that is not horizontal or
vertical; in general, it is the combination of firms in different
industries or firms operating in different geographic areas".
Conglomerate mergers can serve various purposes, including
extending corporate territories and extending a product range
• Congeneric merger: A type of merger where two companies are in
the same or related industries but do not offer the same products.
Ex: Dairy for milk and milk products and sweet shops using dairy
products as raw materials.In a congeneric merger, the companies
may share similar distribution channels, providing synergies for
the merger.
• Acquisitions:the act of acquiring or gaining possession:
the acquisition of real estate. something acquired; addition:
public excitement about the museum's recent acquisitions. the
purchase of one business enterprise by another:
the acquisition of a rival corporation;mergers and acquisitions.
• Joint Ventures: A joint venture (JV) is a business arrangement in
which two or more parties agree to pool their resources for the
purpose of accomplishing a specific task. This task can be a
new project or any other business activity. ... However,
the venture is its own entity, separate from the participants'
other business interests.
Session-26:Rationale for Mergers and Acquisitions

• 1. Economies of Scale:
• 2. Operating Economies:
• 3. Synergy:
• 4. Growth:
• 5. Diversification:
• 6. Utilisation of Tax Shields:
• 7. Increase in Value:
• 8. Eliminations of Competition:
• 9. Better Financial Planning:
• 10. Economic Necessity:
Reasons for failure of Mergers and Acquisitions

• Inaccurate Data and Valuation Mistakes

• Insufficient Owner Involvement. ...
• Integration Obstacles. ...
• Resource Limitations. ...
• Unexpected Economic Factors. ...
• Lack of Planning and Strategy.
Session-27: Reasons for international Mergers and
Acquisitions
1.Mergers and acquisitions can come with various tax
advantages. ...
2.New possibilities offered by a new market. ...
3.Obtaining easier access to a skilled labor force. ...
4.You can diversify your portfolio. ...
5.Buying or merging with another company is usually cheaper. ...
6.Better access to a larger market.
Session-28:Rationale for Joint Ventures

• Spreading Costs
• Opening Access to Financial Resources –
• Connection to Technological Resources –.
• Improving Access to New Markets
• Help Economies of Scale –
• Strategic Move Against Competition
• Synergistic Reasons –
• Share and Improve Technology and Skills –Diversification
 Session-28:Why Joint Ventures Fail?

• Lack of a proper Joint Venture Agreement. The importance of

a proper JV Agreement cannot be emphasized enough. ...
• Lack of finance. ...
• Control issues. ...
• Compatibility. ...
• Unrealistic expectations.
Chapter-8: Analysis of Choice
session:29-Criteria for Evaluating Strategic Alternatives
• Suitability, Feasibility, Acceptability
• Strategic alternatives must be able to create growth opportunities
with high return of investment.
• The four strategic alternatives from least to most risky are market
penetration, market development, product development and
diversification. Companies can pursue one or all of the options in
order to reach maximum sales and profits.
Porter’s Generic Strategy:
• Low Cost Strategy: Capture the market with low pricing, discounts
etc..Ex:Dmart, Wall Mart
• Differentiation Strategy: Capture the market with a big difference in
your product/Service. Ex: iPhone, iMax, Maruti Suzuki cars,Activa,
Pulla Reddy Sweets, Emirates air lines, SONY, Surf, Coca-Cola, L'Oréal
etc.
• Focus Strategy: Capture the market with product/service for a
particular segment of consumers. Ex: Jhonson&Jhonson baby
products.
Session-30:Strategic Analysis at Corporate level

• At the highest level, corporate strategy focuses on how to

manage resources, risk and return across a firm.
• types of Corporate Level Strategy – 4 Major Types:
Stability Strategy,
• Expansion Strategy,
• Retrenchment
• Divestment Strategy and
• Combination Strategy.
• Stability strategy:Stability Strategy is a
corporate strategy where a company concentrates on
maintaining its current market position.
• Expansion Strategy: The Expansion Strategy is adopted by
an organization when it attempts to achieve a high growth as
compared to its past achievements.
• Retrenchment :A strategy used by corporations to reduce the
diversity or the overall size of the operations of the company.
• Divestment is a form of retrenchment strategy used by
businesses when they downsize the scope of their business
activities. Divestment usually involves eliminating a portion of a
business. Firms may elect to sell, close, or spin-off
a strategic business unit, major operating division, or product
line.
• Combination Strategy:Combination Strategies Combination
strategies are used by a firm when: Its main strategic decisions
focus on the conscious use of several
grand strategies (expansion, stability, retrenchment) at the same
time(simultaneously)
Expansion Strategy
• examples of corporate strategies include the horizontal
integration, the vertical integration, and the global
product strategy, i.e. when multinational companies sell a
homogenous product around the globe.
• Horizontal integration is the process of a company increasing
production of goods or services at the same part of the supply
chain. A company may do this via internal expansion,
acquisition or merger. The process can lead to monopoly if a
company captures the vast majority of the market for that
product or service.
• Vertical integration is a strategy whereby a company owns or
controls its suppliers, distributors or retail locations to control its
value or supply chain. Vertical integration benefits companies
by allowing them to control process, reduce costs and improve
efficiencies.
Session-31:Strategic Analysis at Business unit level:

• At the business unit level, strategy is formulated to convert

the corporate vision into reality.
• At the functional level, strategy is formulated to realize
the business unit level goals and objectives using the
strengths and capabilities of your organization.
Session-32:Behavioural
considerations affecting strategic choice
• The behavioral considerations that influence strategic
choice include: the impact of past strategy,
• managerial attitude toward risk,
• competitive reaction,
• degree of firm's external dependence,
• values and preferences of owners and/or managers,
• and internal politics.
Session-33:Contingency approach to strategic
approach
• The contingency approach is a management theory that
suggests the most appropriate style of management is
dependent on the context of the situation.
• adopting a single, rigid style is inefficient in the long term.
Chapter-9:
Session-34:Long term Objectives &Strategy Formulation:

• Need of Objectives: Objectives are the mileposts to

guide you and your employees on the way to building
the business. Objectives are important because they
convert visions into clear-cut measurable targets.
Employees are very clear as to what they are expected
to achieve and when.
Session-35:Nature &Levels
of Objectives
• Nature of Objectives:(1) be related directly to the goal; (2) be clear, concise,
and understandable; (3) be stated in terms of results; (4) begin with an action
verb; (5) specify a date for accomplishment; and (6) be measurable.
• Levels of Objectives:The three levels of objectives are usually tied in with the
three levels of Managment within an Organisation.
•
Strategic

• Intermediate

• Operational
• Strategic
These are the long term plans or the "Big Picture" goal of an Organisation
and are usually the concern of Senior Managment, for example they will
decide where the Company wants to be in 5-10 years time. An objective is
what is set to accomplish the goal. This is where Organisations implement a
Strategic Plan which details timeframes and goals for the Company usually
over 3-5 years and is updated annually or bi-annually. Strategic or forward
planning - where you need or want to go. How do you get there? Start with a
Mission: Why do we exist? To acheive a Mission you need a Vision: Our aim,
what do we want to achieve? How will we look to others?You will need a set
of values, these are the beliefs, ethics or standards that will determine how
you are seen by customers, shareholders, business partners etc
• Intermediate
These are the short term plans i.e. within the Financial Year,
these are the reposnsibilty of Middle Management. When
setting these objectives they will take into account the Strategic
objectives of the Organisation.
Operational
These are Daily, Weekly or Monthly targets and these are
derived from the Intermediate objectives.
Session-36:Strategy to operate hierarchy of objectives

• Hierarchy of strategies describes a layout and relations of

corporate strategy and sub-strategies of the organization.
Individual strategies are arranged hierarchically and logically
consistent at the level of vision, mission, goals and metrics
• The hierarchy has four types of objectives: policy, strategic,
project, and input and they are grouped into three levels:
policy, strategic, and operational.
Session-37
Grand Strategies
• A grand strategy states the means that will be used to achieve
long-term objectives. Examples of business grand strategies
that can be customized for a specific firm include: market
concentration, market development, product development,
innovation, horizontal integration, divestiture, and liquidation.
Sesion-38
Setting long term strategies
• Long-term plans include the overall goals of the company set
four or five years in the future and usually are based on
reaching the medium-term targets. Planning in this way helps
you complete short-term tasks while keeping longer-term
goals in mind.
• Long-term goals are important for a successful career. A long-
term goal is something you want to accomplish in the future. ...
For example, your long-term goal might be to complete all of
your CIVILS exams. This could take several years of going to
school and studying.
Chapter-10
Session:39. Strategy implementation and monitoring
• Identification of annual objectives: Annual
objectives are specific, measurable statements
of what a business is expected to achieve within
an annual period. These are usually one part or
phase of the organization's longer-term goals, for
example, the first year objectives of a three-year
growth strategy.
Developing functional strategies
• A company needs a functional strategy for
every major functional activity. Functional
strategies must be developed in the following
areas: finance, marketing, production/operations,
R&D, and personnel. The primary role of
a functional strategy is to support the
company's overall business strategy.
Session-40
Organizational Structural considerations
• An organization structure is the way in which the tasks and
sub-tasks required to. implement a strategy are arranged. The
implementation of strategies would require the. performance of
tasks.
• Elements of organizational structure are; (1) design jobs,
(2) departmentalization, (3) establish reporting relationships,
(3) distribute authority, (5) coordinating activities, and (6)
differentiating among positions.
Session-41
Corporate resource planning
• Enterprise resource planning (ERP) is a process used by
companies to manage and integrate the important parts of
their businesses. Many ERP software applications are
important to companies because they help them
implement resource planning by integrating all of the
processes needed to run their companies with a single
system. An ERP software system can also integrate
planning, purchasing inventory, sales, marketing, finance,
human resources, and more.
Functional resource planning
• his may include departments such as sales and marketing, and
call center support, as well as functions such as customer
interaction data, sales pipeline management, lead prioritization
and customer retention.
Session-42:Allocation of resources, controls

• Resource allocation is the process of assigning

and scheduling available resources in the most
effective and economical manner. Projects will
always need resources and resources are
scarce. The task therefore lies with the project
manager to determine the proper timing of
those resources within the project schedule.
Strategic Controls
• Strategic control is the process used by organizations
to control the formation and execution of strategic plans; it is a
specialised form of management control, and differs from other
forms of management control (in particular from operational control)
in respects of its need to handle uncertainty and ambiguity.
• The four steps of control are:
1.Establishing Performance Standards.
2.Measuring the Actual Performance.
3.Comparing Actual Performance to the Standards.
4.Taking Corrective Action.
Session-43
Operational control system
• Operational control systems are designed
to ensure that day-to-day actions are
consistent with established plans and
objectives. It focuses on events in a recent
period. Operational control systems are
derived from the requirements of the
management control system.
Reward system
• Employee reward systems refer to
programs set up by a company
to reward performance and motivate
employees on individual and/or group levels.
They are normally considered separate from
salary but may be monetary in nature or
otherwise have a cost to the company.
Crisis Management

• Crisis management is the process by which an organization

deals with a disruptive and unexpected event that threatens to
harm the organization or its stakeholders.
• Crisis management can be divided into three phases: (1) pre-
crisis, (2) crisis response, and (3) post-crisis. The pre-crisis
phase is concerned with prevention and preparation. The crisis
response phase is when management must actually respond to
a crisis.
Chapter-11
Session-44: Business Strategy –Road Ahead
• A roadmap is a strategic plan that defines a goal or desired
outcome and includes the major steps or milestones needed to
reach it. ... Indeed, businesses all over the world use our web-
based roadmap software to create their organizations' marketing
plan, IT strategy, and others.
• Value chain:the process or activities by which a company adds
value to an article, including production, marketing, and the
provision of after-sales service.
• the process or activities by which a company adds value to an
article, including production, marketing, and the provision of after-
sales service.
• the process or activities by which a company adds value to an article, including
production, marketing, and the provision of after-sales service.
• Value chain analysis: Value chain analysis is a strategy tool used to analyze
internal firm activities. Its goal is to recognize, which activities are the most
valuable (i.e. are the source of cost or differentiation advantage) to the firm and
which ones could be improved to provide competitive advantage.
• Value chain analysis is a strategy tool used to analyze internal firm activities. Its
goal is to recognize, which activities are the most valuable (i.e. are the source of
cost or differentiation advantage) to the firm and which ones could be improved to
provide competitive advantage.
• value chain-buyer value: Value is the total amount (i.e. total revenue) that buyers
are willing to pay for a firm's product. The difference between the total value and
the total cost performing all of the firm's activities provides the margin..
Porter’s Value chain Analysis:

• The primary activities of Michael Porter's value chain are

inbound logistics, operations, outbound logistics, marketing and
sales, and service. The goal of the five sets of activities is to
create value that exceeds the cost of conducting that activity,
therefore generating a higher profit.May 26, 2019
Session-45:Competitve scope&Value chain

• Competitive scope influences the competitive advantage by

shaping the structure and economics of the value chain. It has
different dimensions such as segment scope, vertical scope,
geographic scope, and industry scope. ... The value chain can
also be used for designing the departmental structure of a firm.
Value chain-industry structure

• Value chain & industry structure:The value chain disaggregates a firm

into its strategically relevant activities in order to understand the
behavior of costs and the existing and potential sources of
differentiation. A firm gains advantage by performing these
strategically important activities more cheaply or better than its
competitors. Every firm is a collection of activities that are performed
to design, produce, deliver, market and support its product. All these
activities can be represented using a value chain. A firm’s value chain
and the way it performs individual activities are a reflection of its
history, its strategy, its approach to implementing its strategy, and the
underlying economics of the activities themselves.
Session-46: value chain&org structure
• The importance of organizational structure is that it orders
your organization to deliver value to a market.
Your organization's value chain is the sequence of high-level
operations that represents your core value-creating process. It is
the translation of competitive strategy into activity.
• Change of strategy:Strategic change is the movement of a
company away from its present state toward some desired future
state to increase its competitive advantage. It is an approach to
bringing about congruence among the
organization's strategy structure and human resource systems
and the larger environment.
• Organizational change and forces:nternal forces of change arise
from inside the organization and relate to the internal
functioning of the organization. They might include low
performance, low satisfaction, conflict, or the introduction of a
new mission, new leadership.
• Types of Organizational Change. There
are three main categories of change: business process re-
engineering, technological change, and incremental change
Session-47: Change management, Types of change, Resistance to change

• Change management:Change management is the process, tools

and techniques to manage the people side of change to
achieve the required business outcome. Change
management incorporates the organizational tools that can be
utilized to help individuals make successful personal transitions
resulting in the adoption and realization of change.
• Types of change:
Session-47:Types of change

• Happened Change. This kind of change is unpredictable in

nature and is usually takes place due to the impact of the external
factors. ...
• Reactive Change. ... Changes which take place in response to
an event or a chain of various events can be termed as
Reactive Change. Most of the organizations indulge in reactive
change. This kind of change usually occurs when there is an
increase or decrease in the demand for company’s products
or services. It can also be a response to a problematic
situation or a crisis which an organization may be faced with
• Anticipatory Change. .. If a change is implemented with prior anticipation
of the happening of an event or a chain of events, it is called as anticipatory
change. Organizations may either tune in or reorient themselves as an
anticipatory measure to face the environmental pressures. .
• Planned Change. ... Planned change is also regarded as the developmental
change which is implemented with the objective of improving the present
ways of operation and to achieve the pre-defined goals.
• introduction of employee welfare measures, changes in the incentive
system, introduction of new products and technologies, organizational
restructuring, team building, enhancing employee communication as well
as technical expertise fall under the category of Planned Change.
• Incremental Change. .. Change which is implemented at the
micro level, units or subunits can be regarded as
incremental change. Incremental changes are introduced or
implemented gradually and are adaptive in nature.
• Operational Change. ... This kind of change becomes a
requirement or the need when an organization is faced with
competitive pressures as a result of which the focus is laid
more on quality improvement or improvement in the
delivery of services for an edge over the competitors.
• Strategic Change. ... Strategic Change is usually implemented
at the organizational level, which may affect the various
components of an organization and also the organizational
strategy. A change in the management style in an
organization could be considered as an example of strategic
change
• Directional Change: Directional change can also become
imperative when an organization lacks the capability of
implementing/executing the current strategy effectively or
during the circumstances when a strategic change is
required.
• Fundamental Change
• Fundamental Change essentially involves the redefinition of
organizational vision/mission. This may be required during
extremely volatile circumstances like volatility in the
business environment, failure of the leadership, a decline in
productivity as well as the overall turnover or problems with
the morale of the employee.
• Total Change
• A Total Change involves change in the organizational vision and striking
a harmonious alignment with the organizational strategy, employee
morale and commitment as well as with the business performance.
Total Change becomes a requirement during those circumstances when
an organization is faced with many criticalities such as long-term
business failure, incongruence between the employee and
organizational values, failure of leaders/management in anticipating the
realities of business environment or the growing competitive pressures
and concentration of power in the hands of few. A new organizational
vision along with major strategic changes as well as complete
organizational surgery can be the only solution at this point of time.
• Resistance to change:People generally find it convenient to continue
doing something as they have always been doing. Making them learn
something new is difficult.
• Changes always bring about alterations in a person’s duties, powers,
and influence. Hence, the people to whom such changes will affect
negatively will always resist.
• People who are adamant on maintaining customs instead of taking
risks and doing new things will always resist changes. This can
happen either due to their insecurities or lack of creativity and will.
Session-48:Strategies for implementation of
change
1.Plan Carefully. ...
2.Be as Transparent as Possible. ...
3.Tell the Truth. ...
4.Communicate. ...
5.Create a Roadmap. ...
6.Provide Training. ...
7.Invite Participation. ...
8.Don't Expect to Implement Change Overnight.
Role of strategist for global competitiveness
• The fundamental goal of strategic management is to increase an
organization's competitiveness in the marketplace. Medium-term and
long-term strategies should always be focused on gaining an
advantage over competitors, and there are countless ways to gain such
advantages. Short-term goals are often more internally focused
(quarterly revenue goals, for example), and can be less "strategic" in
the true sense of the word. A key to increasing competitiveness is
having all of the information needed to accurately assess competitors'
positions in the marketplace, and using that information to spot gaps
and opportunities to gain advantages.