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STRATEGIC MANAGEMENT

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 STRATEGIC
MANAGEMENT
 STRATEGIC
MANAGEMENT

Dr. Anjaneya Sharma

Dr. Sony Hiremath
Dr. Usha S
Dr. B. Divya Priya
Dr. Abhishek

INDIA | UK | SWEDEN
STRATEGIC MANAGEMENT
by: Dr. Anjaneya Sharma, Dr. Sony Hiremath, Dr. Usha S, Dr. B. Divya
Priya, Dr. Abhishek
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ISBN: 978-93-94727-40-3
ISBN-10: 93-94727-40-X
DIP: 18.10.939472740X
DOI: 10.25215/939472740X
Price: ` 400
July, 2022 (First Edition)
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 SYLLABUS

Module I:
Introduction to strategic management:
Introduction, Concept of strategy-Meaning and definition of
strategy, need for strategy, characteristics of strategy, Strategy and
Tactics, levels of strategy, strategic management, nature of strategic
management, importance of strategic management, characteristics
of strategic management, process of strategic management,
participants in strategic management, advantages of strategic
management, limitations of strategic management.

Module II:
Strategic Intent and Strategic Formulation:
Strategic intent, Hierarchy of strategic intent Vision-Mission-Goals-
Objectives-Plans, Strategy formulation, Approaches to Strategy
formulation, Strategic business unit, Types of strategy– Stability
strategy-Growth strategy- Retrenchment strategy and Combination
strategy.

Module III:
Strategic Analysis:
Strategic analysis, Environmental Threats and Opportunity Profile
(ETOP), Organisational Capability Profile (OCP), Strategic
Advantage Profile (SAP), Corporate Portfolio Analysis (CPA),
BCG Growth Share Matrix, Synergy and Dyssynergy, SWOT and
TOWS analysis, GAP analysis.

Module IV:
Strategy Implementation:
Strategy implementation, Approaches to strategy implementation,
Inter-relationship between strategy formulation and
implementation, Model of Strategic Implementation, Project
implementation, Procedural implementation, Issues in strategy
implementation, Resource allocation.

Module V:
Strategic Evaluation and Control:
Strategic evaluation, Strategic control, Techniques of strategic
evaluation and Strategic control, Measurement of performance-
Analysing variances- Role of organizational systems in evaluation.
Strategic Management for non-profit organizations.
 CONTENTS

SR.NO. MODULE PAGE NO.

1 MODULE - I 1
INTRODUCTION TO STRATEGIC
MANAGEMENT

2 MODULE - II 23
STRATEGIC INTENT AND STRATEGIC
FORMULATION

3 MODULE - III 75
STRATEGIC ANALYSIS

4 MODULE - IV 97
STRATEGY IMPLEMENTATION

5 MODULE - V 141
STRATEGIC EVALUATION AND CONTROL

* REFERENCES 161
 MODULE - I | INTRODUCTION

MODULE - I
INTRODUCTION TO STRATEGIC
MANAGEMENT

A
manager's judgments and actions, taken together,
determine the firm's performance, which is another
definition of strategic management.
A SWOT analysis should be carried out by the management
in order to maximise the use of strengths, minimise the weaknesses
of the organisation, take advantage of opportunities presented by the
business environment, and avoid ignoring threats.
There is nothing more to strategic management than preparing
for both foreseeable and improbable events.
Using this method, strategists can define goals and work
toward achieving them. An organization's long-term strategy is
shaped by the decisions that are made and actions that are taken in
this area. It enables us to see where a company is headed.
Employees benefit from a broader perspective provided by
strategic.
Employees become more dependable, dedicated, and content
because they are able to identify with the goals of the company on a
personal level.
Strategic management is a rewarding and hard endeavour. It
determines a company's purpose, resources, and interactions with
the environment in which it operates. It also determines the firm's
future path. People, finances, manufacturing processes, and clients
all have a role in a strategy's implementation.
Strategic management can be defined as the process through
which an organisation determines its mission and develops the
strategies and tactics necessary to achieve it. The long-term success
of a company is determined by the decisions and activities of its

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 STRATEGIC MANAGEMENT

managers. It entails coming up with and putting into action plans to

help the organisation and its surroundings align in order to attain its
organisational goals. Traditional management will not be displaced
by strategic management in the long run.

CONCEPT OF STRATEGY
The military and athletics have influenced corporate strategy,
which is based on the idea of out-maneuvering the competition. As
rivalry and the complexity of corporate operations grew, the term
strategy was coined. It is a plan of action devised by an
organization's leadership in the face of adversity.

It's a strategy for dealing with threats from rivals and the
environment. For a company to achieve its goals, it must have a
well-thought-out strategy in place at all times. Management may opt
to start an advertising campaign to educate and persuade customers
of the superiority of its products if it expects competitors to lower
their prices.

MEANING AND DEFINITION OF STRATEGY

Management's blueprint for attaining the company's
objectives is known as a strategy. To put it another way, it's a broad
strategy for the organisation and its constituent elements to achieve
the desired future state, even in the face of unknown circumstances.
A company's capacity to achieve its goals is influenced by a variety
of factors, all of which are taken into account during the strategic

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 MODULE - I | INTRODUCTION

planning process that leads to the creation of a strategy. It's a set of

guidelines for how specific tasks in a company should be
completed, based on decisions made within that organisation. In
today's competitive market, businesses need a strategy like this to
stay ahead of the competition and get a competitive advantage.
In order to achieve one or more of the organization's
objectives, managers must implement a strategy. "A general
direction specified for the company and its numerous components to
achieve a desired condition in the future" is another way to describe
strategy. Strategies are created through an exhaustive process
known as strategic planning.

CHARACTERISTICS OF STRATEGY
Rather than focusing on day-to-day operations, strategy
focuses on long-term developments, such as the likelihood of new
products, new methods of production, or new markets being formed
in the future.
A company's strategy lays out the course it intends to take. It
identifies an organization's core values, goals, and strategy. To
achieve this, a company's strategy must focus on minimizing the
weaknesses of its rivals while maximizing the strengths of its own.
In a nutshell, strategy is a means of getting from "where we
are" to "where we want to be."

NEED OF STRATEGY
The correct strategy gives an organisation the direction it
needs to reach its goals, as well as the action plans necessary to
carry it out. It lays out a well defined strategy for achieving the
intended outcome in the future. The business is given a detailed plan
of action for accomplishing its objectives.
Recognize New Market Trends and Possibilities: It helps a
company recognise new market trends and potential future business
prospects. Changes in society, politics, technology, and client
preferences are all factors to consider while developing a strategy.
Once the changes in the market have been detected, strategies can

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 STRATEGIC MANAGEMENT

be developed to allow a company to adapt to these changes in the

future.
Outline Responsibilities: A company's strategy should clearly
define who is responsible for what in the company. Timelines for
achieving agreed-upon strategic outcomes were also established.
Communication and Commitment: Clarifying the vision and
accountabilities improves the organization's overall level of
communication and commitment A well-crafted strategic plan
unifies all aspect of a company's operations and encourages
employees at every level to get involved.
Resource Allocation: Regardless of the size of the company,
effective resource allocation is essential. It's imperative that a
company's long-term plans have a clear understanding of what
products, services, and markets will be a part of its future success.
As a result, the organization's resources are used to their full
potential.
Business enterprises benefit from having a clearly defined
decision-making framework provided by the strategy. It serves as a
point of reference for decisions, all of which must contribute to the
strategy's success. A company's daily tasks must be planned out in
advance on a regular basis. These plans are put into action in a
timely manner thanks to the proper strategy.
By establishing strategies, companies can get an advantage
over their rivals in the market place. Businesses are able to learn
more about themselves and have a better idea of where they're
headed thanks to new technology. In this manner, resources are
effectively employed and everything is carried out correctly,
resulting in maximum productivity for the company.

4
 MODULE - I | INTRODUCTION

FRAMEWORKS FOR STRATEGIC MANAGEMENT

Competitive Advantage
There are two ways in which a company might get a
competitive advantage over its rivals. Look at the company's market
position. Positioning in the market A company's capacity to
influence consumer perceptions of a brand or product in relation to
rivals is referred to as "market positioning." For the brand and
company, it's important to identify all of the company's competitive
advantages. Advantage in the Market A company's competitive edge
is the ability to surpass its rivals. Because of its greater margins, a
company is able to outperform its rivals.

Corporate Strategy and Portfolio Theory

Using the Modern Portfolio Theory, investors can allocate
assets in such a way that the expected return is maximised given a
certain amount of risk. Expected return on an investment is the
Investment returns are an unknown variable that have varied
probabilities associated with them. Companies can use Portfolio

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 STRATEGIC MANAGEMENT

Theory to compare the costs and benefits of different resource

placements for their business as a whole.

Core Competence
Reducing or outsourcing non-essential business activities is a
good strategy for businesses to pursue. An organization's ability to
do this allows it to provide the market and customers a product,
service, or point of view that is distinct and unmatched.

Experience Curve
The value-added proposition is expressed by the experience
curve, which states that when output increases by twofold, the
value-added In addition, Additional value added over and above the
original worth of a product is referred to as "Value Added." Product,
service, company, and management costs can all be reduced by a
consistent amount.

STRATEGIC DECISIONS
Strategic decisions are those that have to do with the whole
environment in which the company works, all of the resources and
people who make up the company, and how those two things work
together.

CHARACTERISTICS/FEATURES OF STRATEGIC DECISIONS

An organization's resources are at stake when it makes
strategic decisions. These choices may have to do with getting new
resources, putting others in order, or moving others around.
Strategic decisions are about putting the strengths and
weaknesses of an organization's resources in line with its threats and
opportunities.
Strategic decisions cover all the things that an organisation
does. It's all about how and what they want the organisation to be.
Strategic decisions involve big changes because an
organisation works in a world that is always changing.

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 MODULE - I | INTRODUCTION

Strategic decisions are the most important ones. They involve

a lot of risk and uncertainty because they are about the future.
Administrative and operational decisions are not the same as
strategic decisions. Administrative decisions are the everyday ones
that help or make it easier for strategic or operational decisions to be
made. Operational decisions are the technical ones that help put
strategic decisions into action. To cut costs is a strategic decision.
This is done by cutting the number of employees, which is an
operational decision. How we do this is an administrative decision.

STRATEGIES AND TACTICS

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 STRATEGIC MANAGEMENT

LEVELS OF STRATEGY

Corporate level strategy:

Senior management at the head of a multi-national firm
decides on corporate level strategies. For example, P&G is a
diversified firm because it includes the Square group, Partex, and
others. The long-term goals of the corporation are defined by the
company's corporate strategy, which influences all of the company's
business units. A company's numerous businesses and product lines
are reflected in this report. A company's market and business model
are the focus of these initiatives.

8
 MODULE - I | INTRODUCTION

Business level strategy:

Senior executives in each business unit formulate these plans.
Firms compete against each other on this basis. The goal of a
company's business strategy is to have a strong market position for
its goods and services.

Competitive and cooperative methods are included in this

category. A company's business strategy involves everything from
how to compete with other businesses, how to differentiate your
company from others, and how to gain new customers. It's a strategy
implemented by top-level executives to maximise the use of a
company's assets and obtain an edge over competitors in the market.

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 STRATEGIC MANAGEMENT

Functional level strategy:

The term "functional strategy" relates to the strategies of
distinct business units. It is also known as a departmental strategy
because each department is responsible for every aspect of the
company's operations. This approach concentrates on a single
functional area of the organisation, such as production, marketing,
and finance, or sales and customer service.. The purpose of a
functional strategy is to make the most efficient use of available
resources in order to meet the specific objectives of each business
units.

Operational level strategy:

The operational level strategy is developed by operating
managers or field-level managers in the operating units of a
corporation. These techniques focus on the translation of business
plans into actionable plans.. In order to achieve immediate goals,
operating managers work with their mid-level managers to develop
these strategies. For each set of annual goals, they are formed in
departments or divisions.

10
 MODULE - I | INTRODUCTION

STRATEGIC MANAGEMENT
Strategic management is the process of determining the
organization's goals and devising a strategy to attain them. These
managerial choices and actions are what ultimately decide the long-
term success of a company.
It entails coming up with and putting into action plans to help
the organisation and its surroundings align in order to attain its
organisational goals.
It is the process by which a corporation formulates and
implements plans to attain its goals through strategic management.
An organization's goal can be achieved through strategic
management, which include making, implementing, and evaluating
cross-functional choices.

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 STRATEGIC MANAGEMENT

When it comes to determining an organization's fundamental

long-term goals and objectives, strategic management is all about
deciding on action plans and allocating resources to achieve those
goals.
Decisions and actions that lead to an effective plan or
strategies for achieving business objectives are the result of strategic
management.
For a company to achieve its goal, "strategic management"
involves making, putting into action (and then assessing) cross-
functional decisions.
When it comes to a company's long-term goals, "strategic
management" is the process of making and implementing plans to
attain those goals.
"Strategic management entails analysing a company's
strategic position, making strategic choices for the future, and
putting strategy into action," according to the definition.
As a part of strategic management, an organization's analyses,
decisions, and actions are all geared at creating and maintaining
competitive advantages.

12
 MODULE - I | INTRODUCTION

NATURE OF STRATEGIC MANAGEMENT

Cross-functional decision-making is an art and science that
enables an organisation to achieve its goals.

Different from other parts of managerial work, strategic

planning has a distinct character. When it comes to operational
issues, a manager is most commonly called upon. The day-to-day
challenges he tackles include ensuring that goods are produced
efficiently, overseeing the effectiveness of a sales team, keeping
tabs on financial metrics, and coming up with new systems to
enhance the quality of the customer service experience.
A company's long-term survival and management goals are
the focus of strategic management.

CHARACTERISTICS OF STRATEGIC MANAGEMENT

A commitment from the top
There are several aspects to strategic management, and they
are all intertwined with one another. As a result, top management
must get involved.
Typically, only the highest levels of management have the
vision and authority to make the necessary resource allocations.

Large amounts of resources are needed.

Strategic management necessitates a long-term commitment
from the company. A significant amount of financial and human
capital is needed to do this.

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 STRATEGIC MANAGEMENT

For instance, the cost of acquiring and retaining a new

customer base would skyrocket if the company decided to expand
geographically.
Influence the long-term viability of a corporation
As soon as a company commits to a specific strategy, its
image and competitive advantage are inextricably linked to that
strategy; its long-term prosperity is dependent on it.

Future-oriented
Forecasts are part of strategic management, which deals with
what the managers expect. When making these kinds of decisions,
the focus is on developing estimates that will allow a company to
select the most promising strategic alternatives.
A company can only thrive in today's volatile market if it
adopts a proactive approach to change.

Repercussions that is multi-functional or multi-business in

nature
Strategic management has a wide range of ramifications
throughout the company. A wide range of key business components,
such as customer-mix and competitive focus and organisational
structure are affected by these changes.
All of these areas will be impacted by the decisions made on
the distribution or redistribution of duties and resources.

Decisions that are not generated by oneself.

The organisation must be able to make strategic decisions at
any moment, even if they are only made a few times a year or so.
Ansoff describes them as "non-self-generative decisions" for this
reason.

IMPORTANCE OF STRATEGIC MANAGEMENT

Requires less long-term planning because of the speed at
which things change, although proponents argue that firms can't
plan ahead that far. When things change, it might be tough to plan

14
 MODULE - I | INTRODUCTION

ahead of time. Firms, on the other hand, do not simply have to

respond to change; they can actively participate in or even initiate it.

Allowing for innovation in time, the company can also

diminish the desire for a product because it has been foreseen. In
addition, it aids in ensuring that opportunities are fully exploited.
This means that instead of making snap decisions in the heat
of the moment, an organisation can use strategic management to
plan ahead. It enables the company to take action early on in a new
trend and assess the lead time for effective management of that
trend.
Think about the future during strategic management.
Following the procedure, plans should be able to withstand
unexpected changes.
Those who oppose it argue that objectives must often be
imprecise and nonspecific, and that this is a problem for employers.
People work better when they know what is expected of them and
how the company plans to move forward.
Control and assessment are based on this information. Top
executives are required to have a cohesive point of view on strategic
issues and activities, which is ensured through strategic
management practises.

15
 STRATEGIC MANAGEMENT

The alternative opinion is that managers don't pay much heed

to research and the studies aren't done well. Research in Advancing
Although strategic management is currently frequently used, it
should be highlighted that it is not a new concept.
Businesses that use Strategic Management to their advantage
are more successful:
According to the counter-argument, there are many factors
that contribute to a company's success. A definitive study showing
that strategic management leads to improved performance is not
possible. According to several research, improved performance
leads to strategic planning.
Strategic planning has been shown to have little effect on
performance in various research and theories. In contrast, the vast
majority of research shows that formal planning is linked to
improved performance. To summarise, businesses that conduct
formal strategic planning are more likely to succeed than those that
don't.

STRATEGIC MANAGEMENT PROCESS

Environmental Scanning-
An organization's internal and external influences can be
better understood with the use of this tool. Management should
always assess and attempt to improve the environmental analysis
process once it has been completed.

Strategy Formulation-
The process of deciding on the best course of action to meet
the goals of the organisation and so achieve its purpose is known as
"strategic formulation." After undertaking an environmental scan,
managers develop corporate, business, and functional plans.

Strategy Implementation-
Putting an organization's selected strategy into action means
ensuring that it works as intended as part of the strategy
implementation process.

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 MODULE - I | INTRODUCTION

Strategy Evaluation-
In order to create a new strategic management plan, these
components must be completed in the correct order.

PARTICIPANTS IN STRATEGIC MANAGEMENT

Role of Board of Directors:
They are directly accountable to their shareholders because
they are acting as trustees of their money. As a result, the board
should be involved in strategic control directly. Although the board
does not take part in the day-to-day operation of the company, it
analyses the company's performance periodically in its meetings. As
a result, the board of directors' job is confined to overseeing long-
term elements of the company's operations.
Certain essential management practises have a substantial
impact on long-term survival, such as the overall financial
performance, the overall social concern and the overall
performance. In comparison to lower-level control reports, the
information provided by the board is succinct but thorough.

Role of Chief Executive:

An organization's overall success is the responsibility of the
chief executive officer (CEO). This means that he plays a critical
role in maintaining strategic control. Even though he isn't involved
in regular performance evaluation, which is left to other managers,
he concentrates his attention on major differences between planned
and actual performance that should be addressed. Management by
exception refers to how top-level managers identify and
communicate the signals that are most important and require their
immediate attention.

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 STRATEGIC MANAGEMENT

When it comes to day-to-day control, the position of the CEO

varies depending on the size of the firm. The CEO may care about
daily production and cost data in a smaller company, but in a large
one, they lose their significance from a management standpoint. As
a result, in large organisations, the CEO is more closely involved in
monitoring performance measures such as return on investment,
value contributed, and others.

Role of Other Managers:

In addition to the board of directors and CEO, other managers
play a role in strategic management. Middle- and lower-level
managers are included in this group.
They play a key part in strategic control in this way:
The primary goal of a finance manager is to determine the
difference between the company's projected and actual performance
in monetary terms. Finance and budgeting are used to accomplish
this.
It is the responsibility of each SBU to maintain overall
management over its own strategic business units. These executives
actually run their own businesses, but they report to the CEO of the
company from whom their bosses are looking for guidance.
Control of their respective functions and sub-units falls to
middle-level managers, most of whom are functional managers or
sub-unit managers. This group of managers is primarily responsible
for monitoring and reporting on the company's daily operations. A
production manager, for example, has a greater interest in
controlling the volume of production, the cost of production, the
quality of the finished product, etc.

ADVANTAGES OF STRATEGIC MANAGEMENT

Creating a better future:
Proactive and reactive activities are two different things. It's
impossible for a business to go on the offensive if it uses strategic
management techniques to guide its daily operations. Competitors
ought to be winners rather than victims of their circumstances.

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 MODULE - I | INTRODUCTION

It's impossible to anticipate every possible scenario, but if you

know that certain situations are likely, it's always a good idea to
have your weapons on hand.

Identifying strategic directions:

Simply stated, strategic management is the art and science of
defining the company's aims and objectives. The primary goal of
this management is to set realistic goals and objectives, which must
be aligned with the company's long-term vision.
Using strategic management, an organization's development
can be tracked and rewards given out based on that tracking and
payment.

Make Better business decisions:

It is critical to know the difference between a great idea and a
fantastic concept. With a clear vision of your firm, having a clear
objective and means for accomplishing the mission seems to be an
excellent strategy. You must be able to make faster and better
decisions.
The advantages of a strategic approach can be seen here.
When you select what kind of project you want to invest your
money in; how you want to invest your time, and how you plan to
utilise the time of your staff, it becomes a wonderful concept.
Financial and human resources will need to be addressed after
you have a clear idea about how much time each of your staff and
yourself will need to devote to the project.

Business Longevity:
The times they are a-changin', and dramatic shifts occur on a
daily basis. Those organisations that lack a solid foundation in the
sector has a difficult time surviving in today's fast-paced
marketplace.
That the company has a solid footing in the industry and that
it doesn't merely rely on luck and better chances or opportunities to
survive is ensured by strategic management. According to a number

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 STRATEGIC MANAGEMENT

of studies, businesses that don't adhere to strategic management will

only be around for five years.

Increasing market share and profitability:

To reach the right market, you'll need to have a firm grasp of
strategic management principles. Sales and marketing strategies will
be improved with the help of specialists. If you have a superior
distribution network, you may also make better business decisions
that lead to profit.

Avoiding competitive convergence:

As a result of this constant emphasis on the competition, the
majority of businesses have begun to copy their best practises. It's
becoming increasingly difficult to distinguish between the many
companies because of the intense competition.
Try to study the best practises of a company and develop a
distinct identity that will set you apart from the rest of the pack
through strategic management..

Financial benefits:
Over time, corporations that employ a strategy of strategic
management have shown to be more profitable than those that don't
adopt this approach.
Those companies that use strategic management have
tremendous control over their future because they apply the
appropriate approach of planning. It is because they have a budget
for future developments that these businesses have been around for
a lengthy period of time.

Non-financial benefits:
Strategic management also provides a number of financial and
non-financial benefits to companies. Companies that use strategic
management have an advantage over their competitors because they
are always prepared to deal with external dangers, according to the
experts.

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 MODULE - I | INTRODUCTION

They are able to survive the battle because they have a better
awareness of the competitor's strengths and weaknesses. This sets
the stage for long-term success and rewards for the organisation.
The ability to anticipate and resolve issues is a key element of
this management system. It also aids in the establishment of firm-
wide discipline across all internal and external business activities.

LIMITATIONS OF STRATEGIC MANAGEMENT

Complex process:
The implementation of strategic management necessitates a
great deal of patience and time on the part of management.
Strong leadership and well-structured resources are necessary
for effective strategic management.

Time-consuming process:
In order to successfully implement strategic management, top
management must devote sufficient time and effort to the project.
There is a lot of research, preparation, and communication required
by the managers to implement this new management style. These
long-term training and orientation programmes would have a
negative impact on the company's day-to-day operations.
A poor influence on day-to-day operations could have long-
term consequences for the business. Numerous concerns necessitate
daily attention, but they are neglected because the team is
preoccupied with studying strategic management in depth.
There could be a significant increase in attrition if the right
resolution of the difficulties is not done on time.

Tough implementation:
When we use the term strategic management, it appears to be
a massive and cumbersome word. However, it is also true that this
management approach is more difficult to apply than other
management methods. Perfect communication between the
company's employees and management is essential during the
implementation phase.

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 STRATEGIC MANAGEMENT

The manager will never be held accountable for any firm

processes if, for example, he or she was involved in strategic
planning but not in implementation.

Proper planning:
When we talk about management systems, we need to plan
meticulously. You can't just put things down on paper and forget
about them. This necessitates a well-thought-out strategy. In order
to accomplish this, you'll need a team.
So when you're implementing these kinds of processes, you'll
have to put aside some of your regular decision-making tasks.

STRATEGIC MANAGEMENT WORK

Strategic management entails determining the company's
goals, assessing the competition, examining the internal structure,
assessing current strategies, and ensuring that those strategies are
being executed throughout the organisation.
While higher management is accountable for implementing
plans, ideas, goals, and organisational issues can emerge from
anyone in the organisation.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

MODULE - II
STRATEGIC INTENT AND
STRATEGIC FORMULATION

W
ithin a given time frame, a company's strategic
intent is described as its goal for the future. Gary
Hamel and C.K. Prahalad popularised the term
strategic intent. Strategic intent is described as the rationale for an
organization's existence and the goals it seeks to achieve by these
authors. It provides insight into an organization's core values and
beliefs.

The organisation should take certain actions in order to attain

certain goals in the future. These goals can be short-term or long-
term in nature. There is a distinct difference between long-term and

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short-term goals. In order for an organisation to be successful, it is

critical that each member of staff grasp the strategic intent. Strategic
intent must be attainable and clear to be effective.
As the philosophical foundation for the strategic management
process, strategic intent might be considered. It reveals what an
organisation is trying to accomplish. It's a declaration that explains
how the organisation will go about achieving its vision over the long
term.
An organization's future goals and objectives can be gleaned
from its strategic intent. If you've ever wondered for yourself,
"What does our organisation strive towards?" There is an indication
of the company's long-term market position and the opportunity to
explore new avenues.
"These long-term goals and aims are referred to as "intent"
here, rather than "separated plans." A firm's strategic intent is
essential if it wants to pursue goals that it can't plan for. Separating
strategic intent (strategic orientation) from strategy planning or
strategy implementation is critical. In order to achieve long-term
objectives, a company's competitive advantage might be built up
layer by layer through strategic intent ", it's a good idea.
By definition, "Strategic purpose" refers to long-term goals
that reflect a company's ideal future position.
It's crucial to remember that the organization's strategic
objective should be shared by everyone. Employees may refer to it
as 'collective consciousness,' which suggests that the company has a
common goal. The goal of strategic intent is to describe a path that
must be followed in order to reach the overall common goal.

ATTRIBUTES OF STRATEGIC INTENT

In order for an organisation to achieve its goals, it must have a
clear understanding of where it wants to go and why. An end goal is
essential for every organisation. There should be a good reason for
these goals to exist. Strategic decisions should not be based on these
short-term motives because the business environment and market
are always changing. Otherwise, organisations' efforts would be

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

inconsistent and fail to achieve the intended future state. As a result,

the organisations involved should work together toward a common
goal that is both long-term and consistent. It is important for an
organisation to have a well-defined long-term strategy.
Sense of Discovery: This relates to the capacity to encourage
employees to think outside the box and come up with new ideas.
This is crucial because when the strategic objective is not
inspirational, employees are less motivated. Employees should be
encouraged to take on additional responsibilities and experiment
with innovative ideas if the organization's strategic goals are being
met. It should introduce new aspects to the organisation and come
up with new and better ways to accomplish them.

STRATEGIC INTENT HIERARCHY

Vision:
A company's future position is outlined in its vision. It
outlines the organization's desired destination. It is the company's

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vision and source of inspiration, serving as a foundation on which to

build its strategy. A glimpse of what the organisation hopes to
become in the future can be seen in the company's vision statement.
Everyone in the organisation must adhere to the company's mission.
Setting goals for a company is easier if you have a clear
picture of what you want to accomplish. The "strategic intent" of a
company is reflected in its vision, mission, and objectives, although
each has its own unique qualities and functions in strategic
management. Organizational vision can be characterised as a mental
image that depicts what the organisation could be like in the future
(Bennis and Nanus). What a corporation hopes to become in the
future might be depicted as "a wonderfully descriptive image." In
the eyes of the company's leadership, vision is a statement of the
company's long-term goals. Every company should have a long-
term strategy in place. As a result, a well-defined vision shapes the
company's identity as well as motivates management in a good way.
Key parts of a good vision have been outlined by numerous
authors.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

MISSION
What the company does, what it wants to achieve and how it
will get there are all outlined in the mission statement. It describes
why the company was founded. Its objective is to aid in the
comprehension of the company's mission by prospective
shareholders and investors. A company's "what business it
undertakes" can be identified with the use of a mission statement.
You can see where you are now and where you want to go using
this information.

"A long-term statement of purpose is what a mission

statement is." A well-articulated mission statement is vital for
creating goals and formulating strategies. A mission statement is a
statement that explains the organization's purpose or rationale for
being. What differentiates one company from another is its distinct
purpose and the scope of its operations, which can be defined in
terms of products and markets served by a well-crafted mission
statement. The company's business practises and employee
treatment are also a part of this document. To sum it up, the

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company's mission statement reflects the values and priorities of the

company's strategic decision-makers in terms of its product, market,
and technology focus. Mission statements are also known as a
statement of purpose, a declaration of philosophy, and so on. Fred
R. David points this out. In doing so, it indicates what an
organization's goals are and who it intends to serve. Describes a
company's mission and goals; customers; goods; markets;
philosophy; and technology. A mission statement answers a
fundamental question about the company: "What is our mission?"
Business Definition: Customers' needs, target audience, and
alternative technology are all addressed in this document. The
strategic business decisions can be made with the support of a
business definition. The definition of a company's business is also a
factor in the company's restructuring.
Business Model: It's no surprise that a business model is a
strategy for running a company efficiently, identifying potential
sources of revenue, identifying target customers, and securing
funding. Strategically, rival companies in the same industry employ
a distinct business plan.

Goals and Objectives:

For a variety of reasons, the phrase "goals" or "objectives"
might be used to mean different things. "goal" and "objective" are
often used interchangeably. Others like to distinguish between the
two terms. An open-ended expression of what one wishes to
accomplish, with no quantification of what is to be attained and no
time parameters for its completion, is called a goal.. Because it
doesn't specify how much profit the company wants to make (a
goal), "improved profitability" is only a goal, not an objective. As
the name suggests, objectives are the desired outcomes of a project.
They outline what has to be done, when, and how much it will cost.
An example of a target is "raise earnings by 10% over the last year."
As the foregoing illustrates, "goals" refer to the long-term objectives
that an organisation has set for itself. They symbolise the end result
of the work that is being done right now. A goal's "objectives" are

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

the means by which it will be attained. In this way, the aims are
operationalized via objectives. In contrast to broad goals, objectives
are particular and measurable. Objectives, on the other hand, tend to
be quantitative, measurable, and compared, even though goals might
be qualitative.
In order to accomplish its primary mission, an organisation
must set goals. The primary goal of goal-setting is to translate a
company's strategic vision and mission into measurable results. It is
only through the use of objectives that the success or failure of a
company can be measured.

PLAN
A plan binds the resources of a department, an organisation,
or an individual to a future course of action. So long as a hierarchy
is in place and goals are aligned, it is possible to achieve both lower
and upper levels at the same time. It's known as a "means-ends
chain" because lower-level goals lead to higher-level goals being
accomplished.

Strategic plan
Management can benefit greatly from the use of three distinct
sorts of plans: strategic, tactical, and operational in nature. When

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tactical goals are met, they serve as a springboard for achieving

larger-scale strategic goals. Additionally, managers should devise a
back-up strategy in the event that the first two don't work out.

Operational plans
An operational plan is a tool a management employs to carry
out the duties assigned to him or her by the position. Organizational
and tactical plans are supported by operational plans developed by
supervisors, team leaders and facilitators (see the next section).
Operational plans can be one-time plans or ongoing plans,
depending on their purpose.
Single‐use plans non-recurring or non-repeating activities.
When a one-time event occurs, such as a special sales promotion, it
is a one-time usage strategy since it focuses on the specifics of the
activity. It is a single-use plan since it identifies the sources and
amounts of money that will be coming in and how they will be
allocated to a particular project.
Continuing or ongoing plans Continual or continuous plans
are normally established once and remain useful for a long length of
time while undergoing regular updates and adjustments. Here are a
few examples of long-term strategies.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

Policy is a general set of rules that managers can refer to

whenever they are faced with difficult decisions. Policies are
generic statements that describe how a manager should endeavour to
perform everyday management duties. Human resources rules
typically cover things like hiring, firing, performance evaluations,
wage raises, and other forms of employee discipline, to name just a
few.
Procedure Step-by-step instructions for completing a task or
activity are provided in a method. As an example, most businesses
have established procedures for purchasing supplies and equipment.
A supervisor typically initiates this process by filling out a purchase
order. Subsequent levels of management must approve the
requisition. The purchasing department receives the authorised
requisition. With regard to the size of the purchase request, the
purchasing department can either place an order or solicit quotes
and/or bids from multiple vendors before making a final decision.
It's easier to deal with the same situation over and over again when
you have a consistent set of processes to follow.
Rule- Employees are told explicitly what they may and
cannot do via rules, which are statements. Workers' safety and
uniform treatment and behaviour are promoted by enforcing "do
this" and "doesn’t this" comments. Rules governing tardiness and
absenteeism, for example, allow supervisors to quickly and fairly
reprimand employees.

Tactical plans
Tactical plans are concerned with what lower-level troops
within each division must perform, how they must do it, and who is
in control at each level. Tactics are the mechanism through which a
plan can be put into action and succeed.

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Strategic plans deal with long-term goals, whereas tactical

plans focus on short-term objectives. Because these are short-term
goals, they usually last no more than a year. In contrast, long-term
goals can take many years or more. The task of narrowing down a
broad strategic vision to a set of particular tactical goals typically
falls to the middle management level.
While a departmental or divisional plan may focus on a single
area, a strategic plan considers the entire organisation as a whole,
rather than just one or two parts. The foundation of strategic
planning is an organization's purpose.
In order to get the company where it wants to go in the following
two, three, five, or even more years, strategic plans look into the future.
These plans necessitate cooperation among all levels of management
within the organisation since they require participation from several
levels. Organizational direction is set by top management, with plans
and strategies for achieving those goals developed at lower levels. For
lower-level planning, the framework provided by the strategic plan of
the entire organisation serves as a guide.

Contingency plans
Effective management requires a constant pursuit of
adaptability, flexibility, and mastery of changing conditions to be

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successful. Having a contingency plan in place is an essential part of

good management, which is why it's important to have all choices
open at all times.
Alternative strategies are identified as part of contingency
planning in case the original one fails due to changing conditions.
Keep in mind that even the most meticulously planned
alternate future scenarios can go horribly wrong for reasons beyond
the manager's control. Problems and occurrences that are out of the
ordinary are not uncommon. This could need a shift in strategy for
management. Preparing for the unexpected is the best strategy when
it comes to a project's success. Management can then create
alternate strategies to the current one and get them ready for use if
and when the situation necessitates it.

BENEFITS OF STRATEGIC PLANNING

Improved employer-employee communication
The strategic planning process relies heavily on effective
communication. Managers and staff are involved in the process,
which displays their commitment to the organization's aims.
In addition, strategic planning helps managers and staff
demonstrate their dedication to the organization's objectives. As a
result, they have a better understanding of what the company is
doing and why it does it. Employees are better able to connect their
performance to the company's success and their compensation when
the aims and objectives of the business are made tangible through
strategic planning. Because of this, the company's workers and
managers are encouraged to be more imaginative and creative,
which helps the business expand.

Empowers the people that work for the company.

Employees' perceptions of their contribution to the company's
overall performance are bolstered as a result of the increased
interaction and communication that occurs at every level of the
process. By decentralising the strategic planning process, lower-
level managers and people throughout the business should be

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involved in the process. Examples of this include the Walt Disney

Company's decision to abolish its own strategic planning
department in favour of delegating these responsibilities among its
several businesses.

STRATEGY FORMULATION
Strategic planning or long-term planning is a common term
for strategy formulation. This is essentially a method of analysis,
not of implementation. The process of formulating a company's
strategy involves determining the organization's mission, goals, and
policies. Analyzing the strategic factors, scanning the external and
internal environments, and developing, evaluating, and selecting the
best alternative strategy are all part of this process.
The process of formulating a company's strategy involves
determining the best ways to achieve the organization's goals and, as
a result, its mission. The development of a company's or
organization's long-term strategy is essential. It generates a set of
well-reasoned recommendations for revising the organization's
mission and goals, as well as the tactics for doing so. We're revising
the organization's current goals and strategies in an effort to make it
more effective. Although most competitive advantages are eroded
over time by the efforts of competitors, this includes the creation of
"sustainable" competitive advantages.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

When it comes to making decisions on how to achieve an

organization's goals and objectives, strategy formulation is an
important part of the process.
Setting Organizations’ objectives - The most important part
of any strategy statement is identifying the organization's long-term
goals. It is widely accepted that strategy serves as a vehicle for
achieving organisational goals. While the focus of objectives is on
the destination, the focus of strategy is on the journey to get there. A
strategy is a combination of both goals and methods for achieving
those goals. As a result, the term "strategy" encompasses a broader
range of concepts that focus on how resources are allocated in order
to attain specific goals.
Evaluating the Organizational Environment - The second
step is to examine the broad economic and industrial environment in
which the business operates. This includes a study of the company's
current competitive position. It is vital to undertake a qualitative and
quantitative review of a company’s existing product range. So that
management may identify their own and their competitors' strengths
and shortcomings, a review is needed to find out what variables are
vital for competitive success in the market.
Setting Quantitative Targets For some of the organization's
goals, the quantitative targets for those goals must be set in this step.
The purpose of this is to compare long-term clients with various
product zones or operating departments in order to evaluate their
contribution to the company's bottom line.

Aiming in context with the divisional plans

Strategic planning is done for each sub-unit based on the
contributions provided by each department or division or product
category within the organisation at this step. An in-depth knowledge
of macroeconomic patterns is needed for this.
Performance Analysis - Finding and assessing the
discrepancy between actual and expected performance is part of the
process of performing a performance analysis. Organizations are
required to do a critical assessment of their previous performance,

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current state, and desired future circumstances.. This in-depth

analysis reveals the extent to which the organization's current reality
differs significantly from its long-term goals. If current patterns
continue, the organisation makes an effort to predict its probable
future state.
Choice of Strategy- This is the final step in the process of
formulating a strategy. After taking into account the organization's
goals, strengths, potential, and constraints, as well as the external
opportunities, the optimal course of action is determined.

APPROACHES TO STRATEGY FORMULATION

Approach # 1. Intuition:
When making strategic judgments, the person making the
decision relies heavily on his or her intuition, hunches, inner
sensations, or "gut-feelings," as they are more commonly known.
The management's instincts are used to guide the strategy rather
than relying on a formal corporate planning structure and
methodology.
Precognition enthusiasts think strongly that he is capable of
foreseeing the future, particularly in instances where reliable data
are unavailable or inadequate. This is despite the fact that
precognition is subjective. It's likely that someone in a position of
authority was intentionally influenced by their prior experience,
education, and training when making this decision.
When it comes to making decisions from the basis of his
emotions, there isn't much of a fixed pattern to follow. He seemed to
have dealt with the issue and made a decision. Decision-makers who
fit this description tend to be activist, quick-thinking, and intuitive
when it comes to the details of any given scenario, thus they can
often come up with original solutions to even the most difficult
problems.
He relies significantly on intuition and personal experience,
yet he always tries to find a solution that is both logical and
practical. When it comes to spotting chances, he has a remarkable
ability to do so by pure conviction of belief and a willingness to take

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

risks. When it comes to creativity, intuition is more powerful than

analytical thinking.
India, like other countries in the Western and Eastern
hemispheres, has no shortage of visionaries. To name just a few,
there are the likes of JRD Tata, S L Kirlosker, B V Roa, G D Birla,
Keshub Mahindra, Dhruvad Ambani, G M Modi, R P Goenka,
Mafatlal and many others. The great-grandsons of India started their
businesses on the basis of their intuition rather than the results of
rigorous scientific research.
However, the disadvantages are as follows: i. Decisions may
go wrong if the hunch turns out to be incorrect; ii. No means are
available for substantiating the decision to the decider's peers; and
iii. Other basis for decision-making is undervalued.
If this creative and intuitive approach is coupled with logical
or scientific thinking, the results can be rather interesting. What
Henry Mintzberg stressed was the importance of this. I believe there
are some persons who possess both analytical and artistic qualities."
he says. It's risky to rely on only one: one can produce paralysis via
study, while the other can result in extinction through instinct.
Creative ideas must be tested analytically, but so must eyeball
analysis, which can be a form of creativity or intuition. Together,
they make up a healthy organisation."

Approach # 2. Muddling through or Disjointed Incrementalism:

An ad hoc approach is a muddled or disconnected
incrementalism. The term "ad-hoc" means "for a specific event
only," or "improvised." Ad hocism is a managerial style in which a
company's strategic cut-off point is reached only when the
opportunity presents itself. That is to say, the adhoc technique does
not involve any kind of foresight.
The judgments are made fast, ii. It isn't expensive in terms of
time, skill, and money, and iii. It isn't time-consuming or resource-
intensive. It's a good idea and the only approach to make decisions
when the future can't be predicted with any precision.

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Negative aspects of this strategy include: a lack of future-

gazing and intellectual exploration; a potential for personal bias to
influence the decision-making process; and, a violation of
management theory.

Approach # 3. Gap Analysis:

Slippage between the cup and the mouth is plain to see. That
is, a chasm exists between what was promised and what was
delivered. Various performance indicators, such as sales, profit
margins, and costs, can be compared over a predetermined period of
time, and as time passes, a discrepancy between actual and
predicted sales, profit margins, and costs is revealed. There could be
a variety of explanations for this discrepancy.
An investigation of the difference between target and actual
performance is known as gap analysis. This is done by looking at
the difference between target and actual performance, as well as
what other strategies can be used to close the gap.

To see that the gap between expected and actual performance

continues to increase after the first one and a half years, see the
above diagram. It is A1 A2 in the fifth year, and this gap continues
to widen after five years until a new strategy is implemented to
close the gap.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

Alternative courses of action that aim to achieve target profits,

sales, costs, and so on are identified and evaluated using gap
analysis. Alternative courses offer varying degrees of risk, as well.
With regard to pricing wars, for example, new product lines
and advertising campaigns are two different approaches to the same
goal. However, each approach has a different degree of risk.
A widening of the gap can be attributed to internal causes
such as business strategy and management policy and external
variables such as economic and political concerns.

Approach # 4. Capital Investment Appraisal:

This is the amount of money spent on capital projects that is
either sinking or being blocked the longest. That is to say, this
expenditure or investment is dead in the sense that it cannot be
recouped unless the company is replaced or it is shut down
completely. Capital expenditure or investment evaluation is
essential in order to prevent making the wrong investment decisions
that could lead to a financial disaster.
Cash outflows include expenditures on plant and machinery,
land and construction, the accompanying legal fees, as well as
working capital. 2.
Calculation of the time value of cash inflows and outflows.
Making cash withdrawals isn't difficult at all. The main issue
is figuring out how much money these assets will bring in over their
anticipated lifespans. They've come up with several different
evaluation systems, which can be categorised as either traditional or
modern.
Time worth of money is not taken into account in
conventional procedures however time value is taken into account in
modern methods. Payback and accounting rate of return are the
standard ways. Net present value, profitability index, and internal
rate of return are three popular current approaches. Every strategy is
worth noting.

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i. Boston Consulting Group Business Matrix:

This methodology, known as the Boston Consulting Group
Model or the Port-folio Planning Model, is a way to determine the
core principles of specific business segments. In order to allocate
each business to a certain strategy or sub-strategies, a thorough
examination of each product and market sector is required.
It entails the distribution of each business segment's share of
the total portfolio in accordance with the corporate perspective.
Strategic managers can use this approach to examine the firm's
products, businesses, or profit centres as distinct entities and
identify the cash-flow requirements for the many businesses in their
portfolio.

ii. GE Nine-Cell Planning Grid:

General Electric Company (GEC) in the United States has
worked with Mc Kinsey & Company in the United States to build a
nine-cell grid.

Two major differences separate the GE grid from the BCG

matrix:
(a) Instead of focusing solely on market share or growth, GE
Grid has evaluated a variety of variables when evaluating the
attractiveness of the industry and the health of its company.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

As opposed to BCG matrix, which only considers two degrees

of a dimension (high and low), GE grid takes into account three
degrees of a dimension (high, medium, and low).
Market share, profit margin, competitive position and
management calibre all play a role when it comes to measuring a
company's strength. On the basis of the strength and importance of
distinct criteria for success in an industry, these variables can be
measured.

.iii. The Industry Evolution Matrix:

The product/market Evolution Matrix is a name for this
industry evolution matrix. Charles Hofer offered a three-by-five
matrix or 15-cell matrix based on industry evolution as an upgrade
over the McKinsey Matrix for this analytical approach. As a result,
the business units are categorised based on their product/market
evolution and their competitive positioning.
Circles are used to symbolise industry size, while the shaded
areas show a company's market share.
Using the matrix's vertical axis, the five stages of
product/market evolution are shown as under

On the horizontal axis, the competitive position is divided into

three categories: good, medium, and poor. This diagram depicts
Charles Hofer's Matrix in all its glory.
The matrix depicts the relative position of several SBUs at
various points in their life cycle. When it comes to business A, there

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is a high potential question mark that needs to be matured because

of its strong competitive position in an embryonic stage.
As an emerging winner, business B has a strong competitive
position on the margins. An emerging business that has a bad
competitive position needs particular attention if it is to continue to
grow. It is possible for business D to turn out to be a winner in the
shakeout stage and advance to a stage that ensures profit.

iv. Directional Policy Matrix Model:

British chemical company Royal Dutch Shell invented what is
known as the DPM model, which has since become an acronym for
the full name. Strategic options for a corporation are determined by
a combination of two factors, namely business sector prospects and
its own competitive advantages.
Sub-categories are added to each parameter. Strong, average,
and weak degrees of competitiveness are each subdivided into three
categories: Attractive, middling, and unfavourable are the three
levels of business sector prospects.
As a result, it has three by three or nine areas to analyse.
Depending on where it falls in the matrix, a certain approach is
assigned to each sector or quadrant.

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 MODULE - II | DEFINITIONS OF STRATEGIC INTENT

v. Profit Impact of Market Strategy Model:

It's now time to learn about an alternative to the GE screening
grid analysis for business unit analysis. Marketing strategy's impact
on profits is another option (PIMS).
Based on a vast database of information about business
performance and other aspects that have been linked to business
performance, the Strategic Planning Institute (SPI) in Cambridge,
Massachusetts, developed an alternative tool.
Professor Sindney Schoerffler and his close associates have
been collecting and analysing data for over two decades as part of
the Strategic Planning Institute's research programme known as
PIMS. More than 2200 organisations or their SBUs are included in
the PIMS database, which is constantly being updated.
Nearly one hundred pieces of information were gathered from
each participating organisation, including descriptions of the market
environment, the level of competition, the business' strategy, and the
results of operations.
Company profiles should include estimates regarding the
"most likely" rates of change in sales, pricing, material costs, wages
and equipment expenses for the foreseeable future. Typically, this
data is collected over a period of one to four years, and five to 10
years.
In the PIMS Studies, the unit of analysis is the business area,
which should be stressed.
There are distinct product lines or profit centres within each
company that sell a specific set of products and services to an
identifiable group of customers, allowing for comparisons to be
made against well-defined competition and the separation of
revenues, operating costs, investments, and strategic plans to be
made with purpose. Each of these divisions, product lines, or profit
centres is a division within its parent company.
Depending on the circumstances, a company may opt to
provide information on a single product category or an entire
division including multiple different lines of business. It is more
likely that revenue, operational costs, investments, and strategic

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goals will be reported by division or business unit than by single

product market segments if there is a demand for substantial
separation. The following is a graph of the PIMS database's business
information.

vi. Arthur D. Little Company Matrix:

Using a 20 sector or a 4 by 5 matrix, Arthur D. Little
Company proposes portfolio analysis to link product life cycle
stages with competitive strength of firms. In a way, it's like Charles
Hofer engineered industry or market evolution. Business strength is
now measured on a five-point scale rather than the previous three.
The SBUs are divided into groups based on how well they do
business. This graph shows the SBU's strengths and weaknesses on
the vertical axis that is separated into five sections. On the
horizontal axis, the stages of the product's life cycle are divided into
four sections: embryonic, growth and maturity.
There are several strategic approaches for different businesses
based on their current location in the product life cycle and their
company strength. The 'build up' technique applies to SBUs with
products in the embryonic or growth stage, provided that the SBUs
have a favourable and solid business position.
The 'hold' approach is for SBUs with a favourable to
dominant business strength and a mature product. The 'harvest'
strategy is appropriate for SBUs with a declining product and a
strong or dominant business strength.
However, the 'divestment' plan is the sole option for any SBU
with weak business strength and an insufficient return on
investment. SBUs with weak business and product maturity can also
benefit from the same method.

STRATEGIC BUSINESS UNIT (SBU)

The term "strategic business unit" (SBU) refers to a division
of a major corporation that is run independently and has its own
mission, vision, and goals, all of which are distinct from those of the
rest of the corporation. While independent from the parent

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company's vision and mission, the division's long-term success

depends on them.
As the name implies, an SBU is a collection of related
businesses that are in charge of the overall planning for the group;
in other words, the corporation that conducts a wide range of
commercial activities classifies these diverse activities into a few
clearly defined divisions. A variety of enterprises may be analysed
and broken down as part of the project.

If you're looking for a specific product or brand to target a

specific group of clients or a certain geographic location, then you're
looking for a business division.

CHARACTERISTICS OF STRATEGIC BUSINESS UNIT

An independent company or a combination of comparable
companies that allows for independent planning.
Competition from within your own organisation.

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An executive who is responsible for the divisions strategic

planning and profitability.
There are strategic business units that focus on certain market
segments that demand production or management expertise that isn't
available within a parent company.

SBU is made up of operating units, each of which is an

independent firm. The highest corporate officer delegated the day-

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to-day operations and business unit strategy to the managers. A

corporate officer is responsible for developing and carrying out a
complete plan, as well as ensuring that the SBU is properly
managed by means of strategic and financial oversight.
As a result, a single strategic business unit is formed, with a
single senior executive in charge of all of the divisions within it.
The chief executive officer is in charge of the senior executive.
Strategic business units (SBUs) have three levels, with
corporate headquarters at the top, SBUs in the centre, and divisions
clustered by resemblance at the bottom. As a result, the SBU's
divisions are linked to one another but the SBU groups are separate.
In terms of strategy, each SBU is a distinct entity.
There is a single strategic business unit that is overseen by the
company's top executives. It emphasizes strategic planning rather
than operational control so that the SBU's various divisions can
adjust as quickly as possible to the changing business environment.

KEY PERFORMANCE INDICATOR (KPI)

Measures used by an organisation to identify and track its
progress toward long-term objectives are referred to as Key
Performance Indicators (KPIs).

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If the information is compared to the fixed and established

factors, it becomes more meaningful. An organization's Key
Performance Indicator (KPI) varies, such as:
A business's key performance indicator (KPI) is the
percentage of revenue generated by repeat customers.
A college or university's graduation rate is a key performance
indicator (KPI).
In a Customer Service Department of the Telecom Company,
a KPI is the percentage of customer calls that are answered in a day.
A Key Performance Indicator (KPI) is a metric that can be
used to assess whether an organization's strategic goals have been
met after doing an assessment of its mission, identifying key
stakeholders, and establishing targets (KPI).
There are multiple levels of KPIs used by organisations to
measure progress toward their goals, with the high-level KPI
focusing on overall performance, and the lower-level KPI focusing
on assessing progress toward departmental goals.

TYPES OF STRATEGY
A company's stability strategy is one that focuses on retaining
its present position in the market. Such a corporation concentrates
on their current product and market. Offering the same items to the
same customers, not launching new products, maintaining market
share, and more are all instances of this approach in action.
When a corporation is content with its current market position
or share of the market, it is likely to employ this tactic. It also
doesn't require any new resources for a company that employs this
method and works with its current employees. However, this
approach only works in a straightforward and predictable setting.
Customers, customer functions, and technological alternatives
are all taken into consideration when implementing the Stability
Strategy, which seeks to maintain the organization's current position
while focusing on incremental improvements through changes to
one or more business activities.

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It's common for tiny businesses or those that aren't doing well
in the market to stick to a "stability" approach, which means they're
not going to make any major changes to their business operations.
In addition, companies who are reluctant or unable to adapt to
change prefer the stability approach and do not explore other
alternatives

STABILITY STRATEGY

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WHY ANY COMPANY ADOPTS STABILITY STRATEGY?

Consolidating your business's position in an industry, or a
country's economic slump, could be the reason why you'd want to
accomplish this. As a result, it wants to save money rather than use
it to expand.
If a corporation has a large amount of debt or loans, it may
also choose to implement this plan instead of expanding. Such a
strategy would assure that a corporation has the money to pay both
interest and principle.
Industry maturity has been reached, and there is no room for
growth for this company any longer.
If the costs of expansion outweigh the benefits, then the
expansion is not worth it.
If the company's executives are satisfied with the current state
of the market and the level of profit realised, then yes.
It may also be favoured by managers who are more concerned
about risk than others.
After a merger, a corporation may also decide to implement
this method. Using this technique, the new company can get off to a
good start before the company begins making major adjustments.
Following a period of rapid expansion, a corporation may
benefit from implementing this method. Consolidating results and
resources in this manner allows the organisation to plan its next
steps.
In a depressed market, family-owned firms may decide to halt
down. They do this in order to maintain complete control over their
finances.

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TYPES OF STABILITY STRATEGY

NO-CHANGE STRATEGY
This stability strategy is used when a corporation wants to
retain its current business definition, as its name suggests. Simply
put, a no-change strategy is a company decision to do nothing new
and instead stick with the status quo.
No threats from competitors, no economic disturbances and
no changes in the firm's strengths and weaknesses may lead to a
decision to stay where you are in terms of your business.
Consequently, a company might decide to continue with its current
strategy by examining both the internal and external contexts.
A company's no-change approach does not suggest that the
company has not made a decision; rather, taking no decision can be
a decision in and of itself at times. It is important to distinguish
between companies that are passive and do not wish to change their
strategy and those that consciously opt to continue with their current
business definition by analysing both internal and external
situations.
The no-change strategy is commonly used by small and mid-
sized businesses that cater to a niche market with a narrow focus. As
long as new dangers don't arise that necessitate repositioning, this
method is appropriate.

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PROFIT STRATEGY
Using the Profit Strategy, a company seeks to keep its profits
as high as feasible. The company may cut costs, reduce investments,
raise pricing, boost productivity, or use any other strategy to address
the short-term issues.
Profits can be made when issues are only transitory and will
be resolved over time. Economic downturn or inflation, industry
slump, worst market circumstances, competitive pressures,
government policies, and the like are all possible causes of the
issues we're facing today.. For now, the firm uses artificial
procedures to deal with these issues and keep the business running
smoothly.
If the problem persists for an extended period of time, the
company's overall financial status will suffer. Selling land or
buildings or offsetting the losses of one division against the earnings
of another division might help corporations weather the storm
during a crisis. In addition, companies may provide outsourcing
services to other companies in need of them in exchange for the
opportunity to make some quick money.

PAUSE/PROCEED WITH CAUTION STRATEGY

When an organisation waits to see how the market responds
before adopting a full-fledged grand strategy, it follows the
Pause/Proceed with Caution method. As a result, a company that
has pursued a strict expansion plan would wait until the new
strategies had spread throughout the organisation before making the
next move.
The name "Pause/Proceed with Caution" says it all: it's a
strategy of stability used when an organisation waits to launch a
full-fledged grand strategy while keeping an eye on the market. It's
likely that a company that has closely followed the expansion
strategy will wait to observe how the new tactics are implemented at
lower levels of management before making a move forward.
The Pause/Proceed with Caution approach, like the Profit
Strategy, is a short-term strategy adopted by the companies.

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Although they are both important, the profit strategy aims to keep
the business profitable for as long as possible, even in the face of
temporary problems or more favourable conditions. The
Pause/Proceed with caution approach, on the other hand, is a
conscious decision by the company to postpone the strategic action
until the best chance presents itself. When it comes to strategy, then,
patience is key.
Manufacturers commonly utilise the pause/proceed with
caution technique when releasing new items to the market after
conducting extensive market research. It is more common in army
attacks, where the reconnaissance detachment moves ahead to
inspect the situation before the troops, who arrive in full force to
finally, attack the enemy.

COMBINATION STRATEGY
A combination of several major strategies (stability,
expansion, or retrenchment) is what is meant by the Combination
Strategy. To put it another way, a "combination strategy" refers to
an organization's deployment of many grand strategies
simultaneously or sequentially in various business units with the
goal of increasing overall efficiency.
The use of such a strategy is appropriate when an organisation
is broad and multifaceted, with various divisions operating in
various markets and pursuing various goals. For a better
understanding of the combination technique, consider the following
example:
A company that makes diapers for babies expands its product
line to include diapers for older children and adults in order to meet
the needs of both of these market niches at the same time
(Expansion). The company aims to shut down its baby wipes
division in order to focus more on diapers and allocate its resources
to the most profitable division (Retrenchment).
The company in the preceding example is attempting to raise
its overall performance by implementing all three major strategies.
It's imperative that the strategist use extreme caution while deciding

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on a combination strategy, as it requires close attention to both the

external environment and the unique challenges of each
organisation. It is possible to use the Combination technique both
simultaneously and sequentially.

RETRENCHMENT STRATEGY
In order to reduce costs and achieve a more solid financial
position, a firm may choose to implement the Retrenchment
Strategy.
According to the Retrenchment Strategy, a company's
commercial activity is reduced to a significant extent, either
individually or collectively, in the context of client groups, customer
functions, and technology alternatives.

ADVANTAGES
Even if there are many arguments against it, retrenchment is a
cost-effective technique for dealing with the immediate issues.

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A retrenchment procedure is used when the company has

invested a large amount of money in something that cannot be
recovered.
Nonetheless, retrenchment is the first step in repairing the
damage done before considering more effective methods of
recovery.
It's for this reason that cutting costs without negatively
impacting the organisation or firm is a smart business approach.
One of the best perks of retrenchment is the.
Obviously, the staff will be on their best behaviour once the
retrenchment has taken place. This will improve their performance.
It doesn't matter how dedicated an employee is, he or she will
always be vulnerable to a company's layoff plans.
Failure to meet expectations can be used as a weapon against
them. In order to avoid being singled out for their lack of effort,
employees are on their toes at all times.
Their best performance in a long time must be automatically
summoned.
Lack of good employees: Despite being thorough and fair in
application process, the screening process may not always yield
desirable results. In spite of all the efforts put forth to save the best
of employees, it is impossible to see through each and every person.
One or two of the company's most industrious employees are
lost in the commotion. As soon as the list is compiled, the firm
leaders have little control over who stays and who goes.
All those who have passed the screening will think you're
being unfair if you do this.
All the people who were fired so abruptly will be outraged at
the corporation, and they'll have to deal with the public backlash.
This is one area where the general public has an opinion on
what you do. To be honest, neither party can be held responsible for
the other's actions because both finding a better way to
accommodate your staff and enforcing retrenchment when
necessary are equally important.

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In order to improve its financial position, the company has the

option of restructuring or ceasing all business operations.
Retrenchment Strategies can be divided into three categories:

TURNAROUND STRATEGY
In the event that an organisation believes that a prior decision
was incorrect and must be reversed before it harms the company's
profitability, it may implement the Turnaround Strategy.
Simply said, a turnaround plan involves reversing a bad
decision and turning a loss-making business into a profit-making
business.
Now the question is, when should the company begin the
turnaround process? In order to ensure a company's long-term
viability, the indications listed below must be present. Among them:
Losses that don't stop
• Ineffective management
• Misguided business plans
• Consistently negative cash flows
• Low quality of functional management
• Declining market share
• Uncompetitive products and services
• High staff attrition rate

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A turnaround plan is also necessary due to a variety of

external factors, such as changes in government legislation or
saturated demand for the product, a threat from rival products, or
changes in client preferences.
Example: Dell is an excellent case study of a successful
turnaround. In the year 2006 It was stated that Dell would begin
selling its products directly in an effort to save money, however the
move backfired and the company lost a lot of money. Then, in 2007,
Dell stopped selling its computers directly to consumers and began
doing so exclusively through retail locations. Today, Dell is the
world's second-largest computer retailer.

DIVESTMENT STRATEGY
In the Divestment Strategy, a company's scope is reduced as
part of retrenchment. When a company sells or liquidates a piece of
a business, or one or more of its strategic business units or a major
division, it is considered to have followed the divestiture strategy.
The antithesis of an investment is a divestiture, in which the
company sells a piece of the business to raise money and pay off its
debt. Another approach used by corporations is to close down a less
profitable division and move resources to a more lucrative one.
A company only uses the divestment plan when the
turnaround strategy fails or is ignored by the enterprise. If the
following conditions are met, the company must implement a new
strategy:
Lack of integration between divisions; inability to afford
technological upgrades; inability to compete; large divisional losses;
difficulties in integrating the business within the company; better
investment alternatives; a lack of continuous negative cash flows
from one division; lack of technological upgrades; a small market
share; legal pressures.
The best example of a divestment strategy is Tata
Communications. For this reason, it has begun the process of selling
off its data centre assets.

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LIQUIDATION STRATEGY
In the end, the Liquidation Strategy is the most dreadful of the
company's options, as it involves selling off its assets and shutting
down the corporation.
In light of all of the negative implications, such as a sense of
failure, lost opportunities, a tarnished brand name, and potential job
losses, this is the final and most important option for companies
looking to cut costs.
If a company decides to go with a liquidation strategy, it may
have difficulty finding purchasers for its assets and may also not
receive appropriate compensation for the majority of its assets. The
following are signs that a company should use this approach:
As a result of the failure of the company's strategy
Poor management, outdated products and processes, declining
profitability, outdated technology, and a lack of integration among
divisions are all symptoms of a failing business.
The liquidation technique is more common in small
businesses, proprietorships, and partnerships than in larger
corporations. The liquidation plan is painful, but liquidating a
business that is losing money is a better option than maintaining its
operations and racking up further losses.

GROWTH STRATEGY
For example, management may aim on expanding the
company's manufacturing, marketing, or financial resources by
implementing a growth strategy.
The safest growth plan is one that maximises rewards while
minimising risk and unintended effects, especially in a dynamic
market.
The goal of the company's growth strategy is to lower
production costs per unit. Increasing the level of performance
expectations is a key component of growth plans.
When a company significantly broadens the reach of its client
groups, customer functions, and alternative technology, these tactics
are used.

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Growth strategy can be implemented through expansion,

vertical integration, diversification, merger, acquisition, and joint
venture.
All three situations have a common goal, but each has a
separate root problem that necessitates further investigation.

Types of Growth Strategies

Type # 1. Internal Growth Strategies:
Internal growth can be achieved by expanding operations
through diversification, capacity expansion, market growth plans,
etc.

These strategies are broadly classified as:

(a) Market Penetration Strategy:
It is a strategy for a company to focus its resources on the
expansion of existing products in existing markets. Intense growth
approach is the most typical version of this technique.

(b) Market Development Strategy:

This approach entails expanding the geographic reach of
already existing goods and services. Customers in related markets,
new means of distribution or changes in advertising and
promotional efforts are all ways in which existing items are
marketed.

(c) Product Development Strategy:

This approach involves expanding the market by making
significant changes to present items or by developing new, closely
comparable products that can be sold to existing customers through
well-established channels.

2. Integrative Growth Strategies:

An rise in sales, assets and earnings is the goal of the
integrative growth methods

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a) Horizontal Integration:
Horizontal integration occurs when two or more businesses
that operate in related industries join forces. A common method of
company growth is through the acquisition of other businesses in
the same industry. The practise of horizontal integration is used to
describe when a company buys or establishes a new business that
produces the same or similar goods and follows similar production
and marketing strategies. Synergy is achieved when two or more
firms (existing or newly founded) work together to produce higher
effectiveness and efficiency than the sum of their individual
contributions would have produced if they had functioned
separately.

(b) Vertical Integration:

There are many different types of vertical integrations, but
they all revolve on a single industry. Vertical integration is a term
used to describe the integration of many levels and stages within an
industry. Backward integration or forward integration are two types
of vertical integration.

I. Backward Integration:
Raw material providers are also affected by backward
integration. By diversifying into the provision of raw materials, a
corporation can expand backwards through vertical integration.
Reduced inventory, cheaper operational costs, increased economies
of scale and elimination of bottlenecks are just a few advantages of
this method.
Different stages of the manufacturing cycle within the same
industry are involved in this type of diversification. The quality of
raw materials, components, and other inputs can be guaranteed by
companies who use this technique.

II. Forward Integration:

For enterprises that eventually sell to consumers, this is an
example of downstream integration. Reduced distribution costs, a

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steady supply of products to the market, and higher or lower barriers

to entry are all goals of this type of diversification.
As the company moves forward, it moves toward the end
user. Diversification with forward linking can be seen in the
example of a cement manufacturing business undertaking civil
construction. Firms can have greater control over sales, distribution
networks, prices, and their competitive position through
differentiation and customer support when they implement forward
integration.

3. Diversification Growth Strategies:

Going into an operation that is either completely unconnected
to the current operations or partially linked is what it means to
diversify.
Before making the decision to diversify, it is important to
think about the following issues:
(a) Is it beneficial to the company?
(b) Is there a demand for our new product or service?
(c) Does the product or service have a good chance of success?
One must have a comprehensive understanding of the new
product/service, the technology, and markets before deciding on a
diversification strategy. Expanding a company's activities by adding
new markets, products, services, or production stages is done
through diversification techniques. For the corporation to penetrate
new markets, diversity is a necessary component of the strategy.
When a company's growth ambitions are so high that they
cannot be met within its current product/market scope,
diversification is used as a growth strategy. In order to reduce the
risk of a single section of the business failing, a company should
diversify its operations.
Diversification, on the other hand, reduces the likelihood that
the firm will be a dominant player in any given market. The term
"diversification" refers to a company's efforts to move away from its
current goods and markets simultaneously. A growing number of
companies are abandoning diversification initiatives because they

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find it increasingly difficult to handle a wide range of commercial

activities.

Type # 2. External Growth Strategies:

It is not uncommon for a firm to take over the operations of
another firm in order to expand its own business. For example, a
company could grow by merging with another company or taking
over a competitor. So-called 'inorganic growth' describes this type
of development. In order to quickly increase their market share,
profitability, and cash flows, companies typically seek external
growth techniques.

1. Merger:
Mergers are when two or more businesses combine together
to form a single entity. Absorption or consolidation are two options
for achieving this combination. When two or more businesses
merge into one, it is referred to as a merger. "A transaction where
two or more companies swap securities and only one company
survives" is a definition of merger.

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It is known as a'merger' when more than one company's

shareholders decide to pool their resources under a single entity.
When a new firm is formed as a result of a merger, this is referred to
as a "amalgamation.". 'Absorption' refers to the process through
which a company merges with another and loses its distinct identity.

2. Takeover:
Acquiring an ownership stake in an organisation and
becoming the sole decision-maker for the business is what most
people think of as a takeover. A takeover bid's primary goal is to
gain legal ownership of the company. Unless a merger occurs, the
company taken over remains a separate entity.
Because the company that is taken over retains its
independent identity, a takeover differs from a merger in that both
companies merge into a single corporate entity and at least one of
them loses its identity as a result.
An acquisition is distinct from a takeover because of the
willingness of the buyer and seller. 'Acquisition' is used when the
company being acquired is willing. It is described as 'takeover' if
there is no willingness.
If an individual, group, or company obtains control over the
management of a firm by acquiring equity shares with a majority
voting power, a takeover has occurred. A takeover is the purchasing

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of a company's voting stock in order to obtain control of the

company's assets and management.
It is theoretically required that the acquiring party acquires
more than 50% of the company's paid-up equity to gain full control.
As long as the remaining shareholders are fragmented and ill-
organized, they are unlikely to contest the control of the acquirer,
even if they have a lesser part of the company.
The financial institutions, banks, and mutual funds that own a
large stake in the company's capital may provide tacit support to the
acquisition. A takeover bid's primary goal is to gain legal control of
the target company.
Because of the lack of cooperation between buyer and seller,
buyers often resort to taking control of a company's stock without
providing any advance notice to its current management team. It is
common practise to acquire control of a closely held corporation by
purchasing other shareholders' shares.
If the corporation has a large number of shareholders, as in
the case of a publicly traded company, the shares can be purchased
on the open market. Takeovers are a global occurrence, and
companies with low stock prices and latent development potential
are the ones most likely to be taken over.
SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997, govern the takeovers. Direct or indirect, a
takeover is a corporate technique for gaining control of Target
Company's management. Taking control of the board of directors of
the target firm is important to the buyer because it allows for better
decision-making across the board. Raided companies are on the
watch for companies that have a lot of cash and a strong rate of
growth, but whose promoters have a minimal equity position.

2. Joint Venture:
Market penetration, risk/reward sharing, knowledge sharing
and joint product creation, and compliance with government laws
are all typical goals of joint ventures other advantages include

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political connections and access to distribution channels that may be

dependent on personal connections.
Ownership, control, the term of the agreement, pricing,
transfer of technology, and the talents and resources of the local
firm are all important considerations in a joint venture. The
following are some possible issues
Cooperative and competitive forces exist in joint ventures.
To optimize the joint venture's advantage, as well as the
partners' competitive position, is a strategic priority.
For the most part, all joint ventures have a contractual
agreement that provides joint control between the two or more
parties. It is not a joint venture if there are no formal agreements in
place to establish shared control. As part of the agreement, the joint
venturers have shared control.
In this way, no one venturer is able to exert complete control
over the operation. The partners involved in a joint venture may be
granted either protecting or participation rights. Co-venturers have
the right to protect their own interests in a joint venture only if their
interests are likely to be harmed.

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When two unconnected businesses join forces to form a new

company to engage in a specific economic activity, like the
production or marketing of a product, they are called joint ventures.
It is possible to organise a joint venture between a domestic
company and a foreign corporation in order to exchange information
and talents.
Technology transfer and worldwide market access can be
achieved through joint ventures between domestic and multinational
companies. Risk capital, technology, patent, trademark, and brand
names will be provided by the joint venture partners and will allow
both parties to reap the benefits to an agreed share.

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The increase of production capacity, the transfer of

technology and finance, and the penetration of the global market are
all benefits of joint ventures with multinational corporations.
Creating a joint venture is an important aspect of a company's long-
term strategy for diversifying its revenue streams, expanding into
new markets, and acquiring additional financial resources,
technological assets, patents, and brand names.

4. Strategic Alliances:
An "alliance" is described as a group of people working
together to achieve a common goal. In a strategic alliance, two or
more companies work together to accomplish a certain commercial
goal. Reduced costs, technology sharing, product development,
market access, readily available money, and risk-sharing are just
few of the reasons for forming strategic alliances.
In the energy, oil, and gas industries, the concept of "alliance"
is becoming increasingly important. The primary goal is to facilitate
the transfer of technology while accomplishing huge goals. Each
party's share of the rewards is proportional to their commitment to
achieving the goals. When two or more companies join a strategic
alliance to work toward a common goal, they do so while
maintaining their own identities.

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Joint ventures, franchising, supply agreements, purchase

agreements, distribution agreements, marketing agreements,
management contracts, technical service agreements, and licencing
of technology, patents, trademarks, and designs are common kinds
of strategic partnerships. Investment, infrastructure, decision-
making and risk-and-return sharing are some of the terms found in
the strategic alliance agreement.

Strategic Alliance
A strategic alliance is a form of cooperation arrangement
between diverse firms, such as joint research, formal joint ventures,
or involvement in minority shares. Strategic alliances in the modern
day are growing increasingly prevalent, and they have three
distinctive features:
First and foremost, they are usually between companies in
industrialized countries.
Rather than spreading existing items and technology, the
focus is often on developing new ones.
A non-equity arrangement in which the companies are
separated and autonomous is typically used for short-term
agreements.

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Technology exchange
Many strategic relationships have this as a primary goal. As a
result, many key discoveries and advancements in technology are built
on cross-industry and cross-disciplinary collaborations. A single
company's ability to carry out successful R&D is becoming increasingly
challenging as a result of this trend. Shorter product life cycles and the
necessity for many enterprises to innovate are other contributing factors.
Telecommunications, electronics, pharmaceuticals, information
technology, and specialty chemicals are just a few examples of areas
where large cooperation agreements have emerged.
A strategic alliance combines the synergy of the alliance
partners' talents. Strategic relationships are built on the foundations
of mutual respect and trust. Priorities and expectations must be
established amongst partners in order for an alliance to run
smoothly. Strategic alliances with rivals in crucial sectors rather
than direct competition are the goal of this strategy, which aims to
build long-term competitive advantage for the company.
In order to avoid resource fragmentation and duplication in
R&D/technology, organisations can boost resource productivity and
profitability through strategic collaborations. A strategic partnership
is a crucial instrument for serving customers in a world of rapidly
changing technologies, shifting consumer tastes and habits, rising
fixed costs, and increased protectionism.

ADVANTAGES OF A STRATEGIC ALLIANCE

An efficient technique to enter a new market quickly is
through the formation of a strategic alliance. Partnerships with other
companies in the market might help organisations reach their clients
more simply and avoid the initial difficulties of starting their own
business.
Companies can grow their sales and develop their business by
forming alliances with other companies, a process that is extremely
difficult for companies to accomplish on their own.

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Acquire new skills and technology: Businesses can benefit

from the expertise of others by acquiring new skills and
technologies.
Shared fixed costs and resources: In an alliance, organisations
share the business's fixed expenses and resources in order to
collaborate toward a common goal.
These creative products and services are advantageous to both
parties and help to increase earnings when two companies from very
different industries collaborate.
Increased reach and availability of products and services can
be achieved through business alliances because companies share
their resources, allowing them to build business ties with new
distribution channels and so increasing their reach and availability.
If a corporation wants to join the worldwide market, it is
usually a complicated and time-consuming process. The
establishment of a firm in a new country is made much simpler by
strategic agreements between two multinational corporations.
As a result of this partnership, both businesses benefit and
grow.
Strategic relationships with top companies enhance the
brand's reputation in the marketplace. Customers are more likely to
believe in a brand's claims if they are aware of the relationship
between the brand in question and another well-known one.

DISADVANTAGES OF A STRATEGIC ALLIANCE

In strategic partnerships, both companies are solely
responsible for their own operations and bear no responsibilities for
the activities of the other party. This leads to ineffective
management of the business relationship.
There is a risk of inadequate communication because of the
lack of connectivity between the companies involved. This might
lead to bad decisions, which can harm the company's reputation and
business in the market.

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Benefits are not distributed equally: Companies engaging in

the partnership do not have to get equal benefits. Occasionally, one
company receives more advantages than the other.
In some cases, a firm may not fulfil their end of the bargain,
resulting in the other company losing money.
In strategic alliances, the risk of failure increases since your
firm's reputation is also influenced by the activities of the
partnership company, even if you have done everything you can to
prevent it.
Likewise, your company's reputation and bottom line will
suffer if they fail miserably in their business operations.
When two companies from different parts of the world join
forces to form a strategic partnership, cultural and linguistic barriers
can arise. When organisations from different countries have diverse
work cultures, the differences might be even more pronounced.
Conflicts arise between the management and personnel of the
companies as a result of this. Another problem is that strategic
alliances fail because of language barriers.
Employees of alliance companies find it difficult to interact
effectively with one another because of a language barrier. For this
reason, employees are reluctant to forming strategic partnerships.
When two businesses with very different work cultures come
together to cooperate on a project, the likelihood of conflict
increases. Precautionary measures are often taken by companies in
order to avoid any potential conflicts that may arise in the future.
Unexpected events, however, can lead to conflict among the
companies' employees. This could cause the coalition to suffer
setbacks.
In a strategic partnership, you allow your partner access to
your internal business processes, which exposes your company to
risk. This puts you in a precarious position.
They can steal vital information and use it against you if you
partner has access to your computers and data, or they can get your
best staff to join their company by paying them more money.

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As a result, it is critical for corporations to keep an eye on

their alliance partners and not reveal too much information.
Even if a corporation isn't at fault, legal troubles can have a
negative impact on its reputation. Strategic alliance partners will be
held liable if one of them fails to supply the correct product.
In the event of a lawsuit, both partners will be held
accountable. In the event that you form an alliance with someone
who is dishonest, you may find yourself mired in legal matters
rather than gaining money from the partnership.
It is possible to have rapid access to valuable business
operations and technologies through franchising. In many countries,
it is a vital means of conducting business and provides a successful
blend of the advantages of major business with the motivation and
adaptability of small or medium-sized firms.

As a result of the vertical division of labour, large and small

companies can collaborate. There are numerous marketing and
distribution strategies for goods and services that fall under the

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umbrella of franchising. Franchises are becoming important as a

means of establishing connections between businesses on the
national and international levels in terms of technology, marketing,
and service.

FRANCHISING
Typically, two parties enter into a Franchise Agreement while
engaging in a franchise relationship. Using the franchisor's brand
name and selling its products or services is allowed under this
agreement by the franchise. To compensate the franchisor, the
franchisee must pay a fee.
These products and services can be sold by the franchisee,
who acts as a subsidiary of the parent firm. It may even sell these
items under its own brand name if it has the right to franchise.
The franchisor has the option of awarding franchising rights
to a single individual or a group of businesses. This means that only
one person can receive these rights, and he becomes the sole seller
of the franchisee's products in a given market or geographic area.
While the franchise gets access to the franchisor's product and
service offerings; the franchisor also gets access to the franchisee's
brand name and trade secrets. In some circumstances, it even
provides training and help.

FEATURES OF FRANCHISING
The franchisor gives the franchise permission to utilise its
intellectual property, such as patents and trademarks, under a
franchising agreement.
For his part, the franchisee pays a fee (royalty), and he may
even have to provide a portion of his profits to the franchisor.
Instead, the franchisor supplies the franchise with its products,
services, and expertise.
In the end, a franchise agreement is signed by both sides. This
agreement outlines the terms and circumstances that apply to the
franchise in general.

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ADVANTAGES TO FRANCHISORS
Franchising is a cost-effective approach to grow a business
without having to hire more staff. This is due to the fact that the
franchise bears all of the selling costs. This also aids in the
development of a company's brand, goodwill, and ability to attract
new clients.

ADVANTAGES TO FRANCHISEES
In order to build a business under the franchisor's well-known
brand name, a franchisee may turn to franchising. It is now possible
to anticipate his future success and minimise the danger of failure.
When it comes to training and assistance costs, franchisees do not
have to foot the bill, as the franchisor takes care of this. • Another
benefit is the opportunity for exclusive rights to sell a product in a
specific geographic area. As a result, franchisees will gain insight
into the inner workings of well-known corporations.

DISADVANTAGES FOR FRANCHISORS

The franchise has no control over the selling of its own items,
which is the most fundamental drawback. As a result, if the
franchisor fails to uphold high quality standards, it may damage its
own reputation.
As a result, the franchisee may even leak information about
the franchisor's business to its competitors. There are also continuing
expenditures associated with maintaining, assisting, and training
franchisees on the franchisor.

DISADVANTAGES FOR FRANCHISEES

As a first point, no franchise is in complete command of his
or her operations. Franchisor rules and regulations must always be
followed. One more drawback is that he's obligated to pay a
recurring fee to the franchisor. He may even be required to pay a
portion of his profits to the franchisor in some situations.

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MODULE - III
STRATEGIC ANALYSIS

A
n organization's business environment is analysed as
part of the strategic analysis process. It is vital to do
strategic analysis in order to construct strategic
planning for decision-making and the smooth operation of that
company. The organization's objectives or goals can be achieved
with the help of strategic planning.
Organizations must do strategic analyses on a regular basis in
order to identify areas that require improvement and those that are
already performing at a high level. Think about how beneficial
improvements can be introduced in order to keep an organisation
running smoothly.

An organization's mission and goals necessitate strategic

analysis. Strategic planning has been implemented in various stages
for years by all top organisations that are well-known for their
accomplishments. In order to achieve long-term goals, organisations

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must engage in a process of strategic planning that involves

systematic and ongoing resource allocation.

TYPES OF STRATEGIC ANALYSIS

Internal strategic analysis:
An internal analysis, as the name suggests, identifies the
positive and negative aspects of an organisation and the resources
that may be used to improve the company's public image. The
evaluation of the organization's performance is the starting point for
internal analysis. An organization's potential and growth capacity
are also considered during this process.
The examination of the company's strengths should be
market-oriented, with a focus on the customer. The company's
strengths make sense only if they assist it meet the needs of its
customers. When conducting an internal strategic analysis, one
should also be aware of the company's current and prospective
shortcomings and constraints.

SWOT analysis is a well-known method of conducting an in-

depth review of a company's strategic options. Your project's
strengths, opportunities, weaknesses, and dangers can all be

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uncovered by a well-executed strategic analysis that is used to

identify them.
Creating a long-term vision for your firm by doing a SWOT
analysis will assist you achieve this goal. Always keep an eye out
for changes in your company's surroundings and act accordingly. In
order to plan effectively, a firm must take into account the SWOT
concept. A variety of issues that may develop if a SWOT analysis is
not conducted systematically can be avoided by a thorough SWOT
study.

AMAZON SWOT ANALYSIS

1. Strengths of a company:
In order to get the best results, you need to take advantage of
the company's favourable traits. These are your strengths, and they
set you apart from the competition. It's likely that your business has
relied on the same resources and techniques for the past few years.

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Having access to these resources or strategies is also a plus. Being

aware of this kind of information will provide you an advantage
over your competition.

2. Business weakness:
Having only strengths and no flaws is basically unachievable
for an organisation or firm. Because of this, organisations need to
improve key aspects of their operations in order to compete in the
marketplace. Weaknesses in the business realm are what we refer to
as that. Organizations need to be aware of the foreseeable variables
and implement remedial measures in advance.

3. Threats to an organization:
In addition to positive aspects, there are likely to be negative
ones that can be studied. A risk management strategy must be put in
place to ensure that risks such as stronger brand value of the
competitors, better relationships with retailers and so on, don't have
an adverse influence on the company's growth. Also, to avoid
competitors taking advantage of the scenario, companies must
address challenges such as several players on the market with the
same items, a downturn in the economy, and stronger advertising of
the same product by competitors.

4. Opportunities for the company:

Recognize the areas in which you can improve. The first step
towards achieving success for a business is to understand the path it
must take. Maximize the positive effects of external forces on your
organisation. Take advantage of every opportunity that presents
itself.

External strategic analysis:

Following an internal study, the company needs to be aware
of external elements that could be a stumbling block to its success.
Knowing how the market works and what consumers do or don't
respond to can help them do this. As a standard external analysis,

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client happiness is measured. When it comes to doing an external

analysis, PESTLE is a popular choice. Using the PESTLE method,
the most common approach is a straightforward one.

An environmental scanning component of external strategic

analysis is called PESTLE analysis (Political, Economic, Social,
Legal, and Environmental). Ethics and demographics have been
added to the model. A macroenvironmental analysis provides an
overview of the many macroenvironmental aspects that the firm
must take into account when conducting a strategic analysis or
market research. As part of a PESTLE analysis, one can identify
concerns that are out of an organization's control, such as changes in
the political landscape that could affect regulations at any time.

The impact of each issue must be determined.

Recognize the significance of these concerns for the company.
Ascertain the likelihood of it happening.
Consider the possible consequences if the problem did occur.

Strengths of Strategic Analysis

An organization's internal beneficial traits that are under
control can be identified through strategic analysis. For example, if

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you know what factors contribute to positive performance, you can

reproduce the method wherever it is appropriate.
Internal and external resource strengths can be identified,
resulting in a greater competitive advantage.
It provides you with the internal components that add value or
provide your organisation a competitive advantage. One part of the
game plan is evident when you have a reasonable competitive
advantage over your rivals. The only thing that needs clarification is
how things aren't going the way the firm wants them to.
Weaknesses of Strategic Analysis
It's difficult to pick the greatest concept from a slew generated
through strategic research.
We spend so much time thinking about the big picture that we
neglect other important tasks like developing new products and
improving service quality within the firm.

ENVIRONMENTAL THREAT AND OPPORTUNITY

PROFILE (ЕТОР)
Systematic assessment of the environment is made possible
through the use of ETOP analysis, a management tool that analyses
environmental data and identifies threats and opportunities in
relation to one another.
For tactical or strategic reasons the process of acquiring,
processing and disseminating information is known as environment
scanning.
In the ETOP process, the environment is broken down into
many environmental sectors and each sector's impact on the
organisation is evaluated.

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Each of the different aspects within each industry that have an

impact on a company positively or negatively are clearly depicted in
ETOP's strategy.

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ORGANISATIONAL CAPABILITY PROFILE (OCP)

OCP is a description of a company's skills, knowledge, and
resources that enable it to deliver high-quality products and
services.
It is via the use of an organization's intangible, strategic assets
(OC) that it is able to complete tasks, carry out its business strategy,
and please its consumers.
For these abilities, there can be no single effort or external
blueprint to follow. Instead, they are cultivated and honed over time
through a variety of interactions within the company. Expertise,
activities, information, knowledge, procedures, processes, skills,

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systems, technologies, or unique adaptive characteristics can all be

included in the definition of an adaptive feature.
Strength and alignment of these assets form a company's
identity and distinguish it from competitors. Over time, each
organization's culture develops and incorporates these
characteristics, making it difficult for others to identify and imitate
them. Coke could sell its soft drink formula to another company, but
that company would not be able to replicate the same emotional
connection people have with Coke's soft drink.
The process of enhancing the capabilities of a company is not
complete without the inclusion of organisational capacity building
efforts.

Importance of organizational capabilities

The most successful and well-respected businesses have a
unique set of characteristics that set them apart from their rivals. It
is the capabilities of companies like Starbucks, Apple, and Disney
that are respected by the public, not the organisational structures

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themselves. They are trusted and relevant because of their ability to

innovate and adapt to the changing needs of customers.
Global business leaders from a wide range of industries were
polled and interviewed extensively by Boston Consulting Group
(BCG) to discover what it is that makes their company so
successful. The findings showed a strong link between
organisational competencies and success.
Businesses that have the correct combination of organisational
competencies are better able to serve and satisfy their consumers. In
order to succeed, organisations must be able to:
gaining an advantage over the competition – An
organization's unique products and services can better match client
needs when resources and information are efficiently managed. By
doing this, you can outperform your competitors and rise to the top
of your industry.
In order to better anticipate and plan for the new routes it
must take, an organisation that works to align with its employees,
customers, and evolving trends and markets should be able to better
adapt to change.
Investing in the development of an organization's skills helps
hone its strengths and establish its unique identity. Stability and the
best use of everyone's talents are enhanced when this intangible
value is harnessed. This is the best way to get the job done.

STRATEGIC ADVANTAGE PROFILE (SAP)

Strategic advantages (SAP) are a short statement that provides
an overview of the advantages and disadvantages in important areas
that are anticipated to affect the firm's operations in the future."

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A strategic profile is a snapshot of an organization's history,

its current products and services, and its future goals. In order to
establish the company's strategic profile, it is helpful to do a SWOT
analysis, which considers a company's strengths, weaknesses,
opportunities, and threats.

CORPORATE PORTFOLIO ANALYSIS (CPA)

Simply put, a Corporate Portfolio Analysis is a portfolio
analysis used in a variety of small to large corporations, including
those with multiple products and divisions.
Individual goods or businesses in the portfolio can be defined
as a set of approaches that help strategists make strategic judgments.
When a corporation is involved in more than one line of
business, it has a variety of strategic options from which to choose,
depending on the demands of the various portfolios. In order to
properly evaluate the company's many businesses, a corporate
portfolio study must be conducted.
When it comes to portfolio analysis, it's all about managing
the company's products and business units to maximise profits.

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Having a large number of products to choose from means that

they are likely all in various stages of development. There will be a
wide range of ages, from the newest to the oldest. All of your
products may not be ready at the same time for many companies. As
long as the company has certain goods that aren't expected to
expand much but are still making money consistently, it's fine to
have a mix of both. Indeed, the steady-earning products can be
utilised to fund the development of the products that are expected to
increase and profit in the future.

IMPORTANCE OF CORPORATE PORTFOLIO ANALYSIS

To evaluate the current portfolio of businesses, to decide how
SBU funding should be distributed, to add new products and
services, and to determine whether existing items should be retained
or removed, and so on.

BCG GROWTH SHARE MATRIX

Corporate planning tool, the BCG matrix (or growth-share
matrix) depicts a company's brand portfolio or SBUs in relation to

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their market share and growth rate on the horizontal and vertical
axes.
In order to assess the potential of a company's brand portfolio
and advise additional investment plans, a growth-share matrix
utilises relative market share and industry growth rate indicators.
The Boston Consulting Group developed the BCG matrix to
assess a company's brand portfolio's strategic position and
prospects. On the basis of sector attractiveness (the rate at which
that industry is growing) and competitive position, it categorises a
business portfolio into four groups (relative market share). To get a
sense of how profitable a company's portfolio might be, look at how
much money is needed to run each unit and how much money it
generates. It is the primary goal of the study to help the company
determine which brands it should invest in and which ones it should
sell.

Market Share.
Relative market share is one of the metrics used to assess a
company's overall portfolio. Higher profits are generated as a result
of a company's increased market share. To put it simply, a company
that produces more benefits from greater economies of scale and a

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steeper experience curve, which leads to larger profits. In spite of

this, it's important to keep in mind that lower production outputs and
lower market share can have the same benefits for some companies.

Market growth rate.

As more money is spent on investments in order to spur
further expansion, it is necessary to have a high growth rate in the
market. Cash-consuming business units that are expected to increase
or maintain market share in the future should only be invested in if
they have the potential to do so.

Four quadrants are used to categorise companies' brands:

The 4 Categories
Stars are items or businesses with rapid expansion and
substantial market share. Investments in these types of businesses
are often required in order for them to grow quickly. It's inevitable
that Stars will become Cash Cows when their growth slows.
Cash cows Low-growth yet high-share products or businesses
are known as "cash cows". Because they are well-established and
profitable SBUs, they require less investment to maintain their
market dominance. As a result, Income Cows generate a large
amount of cash that the corporation can utilise to fund the expansion
of other SBUs, such as Question Marks and Stars.

Question Marks.
Question Marks are Strategic Business Units with a low
market share, yet they are located in rapidly expanding markets.
Even if they wanted to increase their share, Question Marks would
need a lot of money. One day, if Question Marks are a hit, they will
be upgraded to Stars. We must not, however, ignore the possibility
that they will fail. So, management must carefully choose which
Question Marks will get the attention and investment they need to
become stars, and which other less promising ones will be phased
out.

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Dogs are a low-growth, low-share product and business. To

put it another way, Dogs are one of the least desirable business units
(SBU). They may still be able to support themselves financially.
There will be no big cash flow from Dogs, therefore the company
must phase them out as soon as they become unprofitable or when it
can utilise its resources to support other SBUs.
Frequently, a company's products or services begin with a
question mark. Their success will propel them forward and increase
their market share, making them overnight celebrities. Stars become
cash cows when the market is saturated and growth in the market
slows down. Last but not least, even the best Cash Cows eventually
turn into slobs towards the end of their useful lives.

SYNERGY
In business, synergy is the result of deliberately organising
oneself in such a way as to maximise collaboration and innovation.
Synergistic organisations do more as a whole than the sum of their
individual pieces could alone.

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The majority of companies in the world strive for synergy.

There's a lot of discussion in the boardrooms about how to improve
collaboration. Key account plans, product development
coordination, and the dissemination of best practises are all handled
by cross-business teams. For example, the value and performance of
a group of enterprises can be greater than that of the sum of their
parts. Mergers and acquisitions, strategic partnerships, joint
ventures, franchises, and other types of joint ventures are all
examples of synergy in action. When two different organisations
work together, they can create more value than they could on their
own, according to a common rationale. This is another way to put it:

1+ 1 = 3. When the total is more than the sum of its parts, we

say that we have achieved synergy. A drawback of synergy is that
many attempts to combine forces never go further than a few
required meetings. The actions of others appear for a brief period of
time, then gradually diminish. Others become long-term employees
of the company without ever accomplishing their original
objectives. It is referred to as a "learning experience" when a person
fails to achieve their goals. The search for synergy typically comes
at a significant opportunity cost. Managers' focus is diverted from
the core operations of their companies, and a flood of new
initiatives is released, some of which may or may not be beneficial

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to the company's bottom line. Programs like these might backfire,

affecting consumer and marketing relationships or employee
morale, depending on how they're implemented. Many synergy
initiatives, it is a basic reality, instead of creating or enhancing
value. Businesses look for synergy in all aspects of their operations.

SWOT ANALYSIS
Analysis of a business' competitive position and strategic
planning is done using SWOT (strengths, weaknesses, opportunities
and threats) analysis. The SWOT analysis considers both internal
and external elements, as well as the company's present and future
potential.
The purpose of a SWOT analysis is to provide an objective,
factual, and data-driven assessment of an organisation, a project, or
an industry's strengths and weaknesses. Preconceptions and grey
zones must be avoided in order to maintain the organization's
analysis as precise as possible. As a recommendation, rather than a
prescription, companies should follow it.

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Strengths
Having a strong brand, a dedicated client base, a healthy
financial sheet and innovative technology are all examples of an
organization's strengths. Hedge funds, for example, may have
created a proprietary trading technique that outperforms the market.
The company must then decide how to leverage these findings to
attract fresh investors..

Weaknesses
Weaknesses impede an organization's ability to operate at
peak efficiency. A bad brand, higher-than-average turnover, high
debt, an unsuitable supply chain, or a lack of cash are just a few
examples of areas where the company needs to improve in order to
remain competitive.

Opportunities
External elements that could help a business gain a
competitive advantage are referred to as opportunities. Increasing
sales and market share can be achieved, for example, through the
reduction of tariffs on automobile exports.

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Threats
In the context of an organisation, threats are things that could
cause harm. The crop yield of a wheat-producing enterprise, for
example, could be destroyed or reduced by a drought. Other
prevalent dangers include growing material costs, increased
competition, and a lack of available labour. So on and so forth.

TOWS MATRIX
Create, compare, decide, and access business plans using the
TOWS matrix. TROWSS is an acronym for Threats, Requirements,
Opportunities, and Weaknesses. It takes a look at a company from
the perspective of marketing and management. To many, the
distinction between SWOT and TOWS matrix is simply a
rearrangement of letters in each acronym. Though it isn't a
significant distinction, a TOWS matrix analysis places more
emphasis on the external environment than a SWOT matrix analysis
does on the internal environment (opportunities and threats).
An organization's external environment includes aspects such
as government policies and the nature of a market as well as
competition, shifting preferences, and varying prices. Processes, HR
rules, goals and objectives, fundamental values, and other aspects
make up an organization's internal environment. The TOWS matrix
in strategic management is based on the combination of an

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organization's internal weaknesses and strengths as well as its

external threats and opportunities.

TOWS MATRIX OF SONY

With the help of an example, you'll see that there are four
main tactics. They include:

STRENGTH AND OPPORTUNITY SO

An organization's SO or Maxi-Maxi strategy draws on its own
resources to make the most of the ones it has access to on the
outside.

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STRENGTHS AND THREATS ST

The st or maxi-mini approach makes the most of a company's
assets while minimising its vulnerabilities.

WEAKNESS AND OPPORTUNITY WO

It is the goal of the wo or mini-maxi strategy to reduce the
organization's flaws and maximise its opportunities. This approach
aims to strengthen weak points inside an organisation by taking use
of opportunities outside the organisation.

WEAKNESS AND THREATS WT

The mini-mini strategy, which is another name for the WT
approach, is aimed at reducing weaknesses and threats to a
minimum. Defending positions in the TOWS matrix are used by
corporations in difficult situations, as seen by an example of a
TOWS matrix.
To build a TOWS matrix in strategic management, these
strategies are written out in a 2x2 matrix by listing all characteristics
of strengths, weaknesses, threats, and opportunities.

GAP ANALYSIS
Using the scope of the task and possible solutions to close the
gap, Gap Analysis is a strategic tool for identifying where the
organisation stands in relation to its goals and what it expects to
achieve. Making a comparison between the current and prior
performance levels of an entity or a business unit is part of the
process.

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Gap Analysis is a method of determining the difference

between the optimal allocation and integration of resources and the
actual allocation. There is a thorough examination of the company's
strengths and weaknesses as well as its potential prospects and
threats. The following factors are taken into consideration when
deciding which alternative tactics to use:
Using a stability technique is the best option if the gap is
small. While retrenchment methods are appropriate when the gap is
huge because of the company's poor performance, expansion plans
are more appropriate when the gap is wide because of the company's
environmental potential.

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MODULE - IV
STRATEGY IMPLEMENTATION

T
he process by which a decided strategy is put into
effect is known as "strategic implementation." In
order to attain the organization's goals through
execution, strategies are merely a means. Due to the intertwined
nature of strategic planning and implementation, this is why.
A strategy's conception and implementation are intertwined,
but the skills and degrees of skills required for each are different. To
better understand their relationship, consider the forward and
backward linkages. Forward linkage refers to the relationship
between the parts of strategy formulation and the implementation of
that strategy.
Factors affecting implementation have an impact on the
formulation process as well. The term "backward linkage" refers to
this connection. Backward links are becoming less and less
important as time goes on. The connection between the formulation
and the implementation.
Implementation of strategies and plans is an essential
component in achieving an organization's long-term objectives. It
translates the chosen strategy into the company's plans and actions
in order to meet the goals.
When it comes to following through on company strategies,
strategy implementation is simply the process by which a business
builds out a company's infrastructure - including the people who
work there as well as the resources they have available - and
integrates it with its control system.

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A strategic plan's implementation includes all of the activities

and decisions that must be made in order to carry it out.
Implementation of goals, strategies, and policies through the
creation of programmes and budgets is what we mean when we say
"programme management." Defining strategy implementation as the
process through which a strategy is put into practise is a
straightforward approach to describe it.

FEATURES OF STRATEGY IMPLEMENTATION

Taking Initiative:
An actionable plan indicates that it is possible to implement it.
Different management procedures, such as planning and
organisation, assist turn a strategy into something that can be put
into practise. Management's duty extends beyond simply making
plans to include putting them into action.

Multifaceted Talents:
It means that the implementation of a strategy necessitates a
diverse set of abilities. The ability to implement a strategy in an
organisation requires extensive knowledge, mindset, and skills. In
the allocation of resources, creation of institutions, and formulation
of policies these abilities might be useful.

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Involvement of a large number of people:

As a result, top, middle, and lower management are all need
to be involved in putting the strategy into action. The middle
management must have a thorough understanding of the company's
strategy, which must be communicated from the top down. Keep in
mind that the middle management is heavily involved in putting the
strategy into action.

The scope is wide:

It necessitates a variety of administrative and managerial
tasks. Basically, every managerial action can be a part of the
strategy implementation process, as it has a broad reach.
Implementing a marketing strategy, for example, could entail
putting together a marketing budget, conducting market research,
creating an advertising and promotion strategy, testing the market,
releasing a product, and getting feedback from customers.

An integrated process
Refers to the notion that various strategy implementation
activities are interdependent. “Consequently, plan implementation is
a comprehensive and integrated undertaking. In the case of an
organization's promotional plan, for example, several actions are
interdependent and must be carried out in conjunction with each
other.

PROCESS OF STRATEGY IMPLEMENTATION

Creating a company with the ability to successfully
implement the strategies.
Supplying strategic-essential tasks with the resources they
need in adequate quantity.
Setting policies that support strategic thinking is the third
step.
Continuous improvement is aided by such policies and
programmes.

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The reward structure should be combined to achieve the

desired results.
Using a strategic leadership style.
The company's performance is heavily reliant on the
implementation of the company's plan. After doing an
environmental scan, a SWOT analysis, and determining the strategic
issues, the procedure begins.

PREREQUISITES OF STRATEGY IMPLEMENTATION

Because the plan may be undercut, the one who framed it
should support or defend it in front of the members, so as to ensure
its long-term success.
An organization's internal environment, which includes the
level of cooperation, development, and dedication and
determination among its employees as well as its ability to achieve
its stated goals, is referred to as its "organisational climate."
Formulation of operating plans: The action plans, choices, and
programmes that take place on a regular basis throughout the
organisation are referred to as "operating plans." If the proposed

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strategic outcomes are presented in this way, they help the

organisation achieve its goals by focusing on the important
variables.
• Creating an effective organisational structure: An
organization's structure refers to the connections between its many
sections. It shows the connections between various titles, roles, and
responsibilities. An organization's structure must be created in
accordance with the strategy's needs in order to implement it.
• Periodic Review of Strategy: The strategy should be
reviewed on a regular basis to see if it is still relevant to the
organization's goals. In order to determine if the organization's
requirements can be met in a dynamic environment where anything
can happen at any time, an evaluation is necessary.
It doesn't matter how well you plan a strategy, if it isn't
implemented correctly. The only way to effectively implement a
strategy is if it is aligned with other aspects such as resource
allocation, organisational structure, work climate and culture,
process and reward system.

ASPECTS OF STRATEGY IMPLEMENTATION

Maintaining appropriate resources for those tasks that are
critical to the success of a company's strategic plan.
• Providing the company with competent and knowledgeable
workers.
• Verifying that the organization's rules and processes support
the successful implementation of its strategies.
• Key business functions should be carried out using leading
practises.
• Establishing an information and communication system that
helps the employees of the organisation to accomplish their
duties successfully.
Creating a positive work environment and culture is essential
to the success of the approach.

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This is the most time-consuming component of the process, as

it involves turning the formulated plans into actual activities and
achieving the targeted outcomes.

DIFFERENT ASPECTS INVOLVED IN STRATEGY

IMPLEMENTATION
Almost every area of management studies may be found in
strategy implementation. Because of this, a strategist must bring a
wide range of knowledge, skills, attitudes, and abilities to their
work. Furthermore, the implementation duties challenge strategic
planners' capacity to allocate resources, develop structures and
systems as well as formulating functional policies, taking into
consideration the leadership style required as well as planning
operational effectiveness.
The organization's strategic plan recommends how to
implement the organization's strategies. Action cannot be taken only
on the basis of a strategy. Statements of purpose exist, and
implementation duties are there to bring them to fruition. As a
result, strategies need to be put into action. Each strategy generates
a slew of plans, and each of those plans generates an army of
programmers. Several initiatives are born out of each programme.
Budgets are used to fund projects.
Organizations rely on the administrative systems of policies,
procedures, rules, and regulations to help them carry out their work
and accomplish their various initiatives.
In the first place, strategy should lead to a detailed plan. It is
possible that numerous plans may be formed if stability techniques
are in place. A modernisation plan could be an example of this. A
variety of expansion plans will need to be devised if expansion
tactics have been put into place.
An expansion strategy could include the creation of a new
manufacturing facility to produce the same goods. In the same way,
new product development plans could result from diversification
tactics. Planned activities result in a variety of programmes.
'Programs,' as the title suggests, cover a wide range of elements

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necessary to put a strategy into action. Funds granted for the

implementation of plans are often used to support programmes.

FACTORS TO BE CONSIDERED IN STRATEGY

IMPLEMENTATION
There must be enough resources, including financial, human,
and material, to carry out the strategy in a timely and efficient
manner. Organizational resources identify and represent the
potential for strengthening and developing existing competencies
and new ones.

Allocation of resources:
The allocation of resources is involved with both the
identification of resource requirements and the deployment of those
resources in order to build the skills required to carry out specific
strategies. Resource allocation and mechanisms that connect various
tasks are often used to develop these competencies.
Managing resources in an organisation is difficult because
many major corporations are involved in multiple businesses. In
addition, most firms have three types of fundamental processes: a
process for building client relationships, a process for developing
new products, and a process for running the organization's
infrastructure and operations.
Discovering potential consumers and cultivating long-term
relationships with them is the goal of the customer relationship
management process. New products and services must be conceived
and then brought to market in a way that maximises their appeal.
Facilities for high-volume, repeated operational operations, such as
those involved in logistics and storage, manufacturing,
communication, etc. are all part of the infrastructure process.

Communication of strategy:
Strategic implementation involves a wide range of employees
at all levels of the organisation. It's possible that many of them
didn't even know what the strategy was when it was being

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developed. This demonstrates how critical it is to convey your plan

to others. All employees, even those who are not directly involved
in strategy execution, should be aware of the organization's future
intentions, as well as the changes affecting the organisation, why
these changes or strategies are being implemented, and what the
objectives and consequences are.
It is critical that employees have a sense of pride in being a
part of the company. Employee morale and motivation would be
negatively affected, and the plan would be resisted if such
communication was not provided.
To ensure a successful strategy implementation, it is critical
that the strategy be communicated effectively. Each member of the
organisation has a clear awareness of the organization's strategy. It
provides a connection between the individual's current task and the
broader direction of the organisation. This is a win-win situation for
everyone involved. As well as providing basic guidelines for
decision-making, it allows the individual to focus efforts on the
things that really matter.

Information System:
Decisions are made based on the input and raw materials
provided by information. Companies gain a competitive edge by
ensuring that the appropriate information is made available at the
right time to the right people within their organisations.
Communications, software, and computers have made major strides
in the last decade.
These have opened up whole new avenues for the speedy and
efficient exchange of knowledge and information. Investments in
information technology for the purpose of providing employees
with relevant information have generally paid off for the firms that
made them.
The function of information technology in the implementation
plan is critical. In order to determine if an organisation has fallen
short of its goals, it is necessary to look at the data collected and
analyse it. Strategic goals and success factors are established earlier

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in the plan. Deciding whether or not negative variances exist may be

an easy process, but figuring out what this data means may be more
difficult.
The breadth and significance of exceptions must be assessed
by decision-makers, a process significantly influenced by what they
deem justifiable circumstances. As well as helping with
implementation, the information system can be utilised in the
development of a strategy. In order to help a manager comprehend
and motivate his actions, an information system gives him with the
information he needs at the correct moment and in the right manner.

Organizational Change and Design:

Organizational design focuses on the organization's structure.
Analysis of roles and relationships is the goal, so that a
collaborative effort can be explicitly arranged to achieve certain
goals. An organization's growth is facilitated by the Design process.
Units and positions make up the structure of a system.
Relationships of authority and information flow between
various units and roles are involved. As a result, a more or less
formal structure can be defined and described through
organisational design. Organizing activities into logical and
systematic groups is known as the process of organisational design.
There must be an imbalance in the pattern or situation in order
for meaningful organisational change to take place. When a
company has been around for a long period of time, the people,
technology, and organisational structure adapt to each other. People
adapt to their occupations, workplaces, coworkers, bosses, and other
aspects of their lives.
Change can either be a result of an event or a result of a
purposeful decision. In order to prepare for any future issues, a
proactive shift must be prepared. It is possible for a reactive change
to be either an automatic or a planned response to changes in the
environment.
Taking into account current and future events and
environmental conditions.

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Objectives, goals, and strategies of the corporation are

examined in detail.
A review of the work that has been done and what remains to
be done in order for the organisation to meet its goal.
Decide over both horizontal and vertical dimensions.
From a communications perspective, span of management,
management levels and so on.
Groupings of activities, descriptions, specifications and so on
are included in the organisational structure.
Job Structure - Job design, job analysis, job description, and so on.
Organizational Climate - The ambiance of the workplace.
As a manager, you must have access to a workforce that is
knowledgeable and committed.

Organizational Structure:
It's not only strategy that's influenced by an organization's
structure. Many other aspects, like the stability of the environment
and the efficiency of work processes are also affected by it. As a
result, it is understandable that the implementation strategy places a
high value on structure. People working for a company can better
support and execute the organization's plan when they have a solid
structural foundation in place.
Social entities that are goal-oriented, purposefully structured,
and linked to the external world are known as organisations. The
work they do benefits the company's owners, clients, and employees
in equal measure. In order to achieve certain goals, they pull
together resources, whether those goals be to put a man on the
moon, sell lottery tickets, manufacture goods and services, or
provide value for its clients. In order to achieve the goals of the
organisation, they organise people's work activities.
The structure of the organisation has a significant impact on
the way people in the company are organised and how they interact
with each other.

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Identification of formal reporting relationships, such as the

number of tiers in the hierarchy and the range of authority that
managers and supervisors possess.
Individuals are organised into departments, and departments
are organised into the entire company.
Systems to guarantee effective communication, collaboration,
and integration amongst departments are designed.
Because of the scale, global reach, and complexity of today's
corporations, organisational structure has taken on a new
significance. Expanding markets and new competitors, as well as a
keen concentration on asset values and the profusion of products
and quick communication, have rendered the traditional industrial
corporation mostly obsolete. Even in a medium-sized business, it is
impossible for management to keep tabs on every single employee.
Systems of control and inspection must be created with incentives to
encourage desirable behaviour, and authority and accountability
must be distributed.
Organizing activities, roles, and divisions, as well as
allocating power and responsibility, are all critical considerations in
the process of creating an organization's structure. For thousands of
its employees, the organization's job must have purpose beyond all
else. It is essential to have the proper perspective on the fact that an
organization's people are its most valuable resource. Strategy is
implemented by people.

Organizational Systems:
It is the structure of the organisation that establishes who has
authority and who has responsibilities. Organizational units such as
departments and divisions, which are built on a foundation of
multiple levels of power, are the end result. Each unit and position
within an organisation is given a certain amount of authority and
responsibility.
As a result of the organization's need to carry out a series of
tasks structured to achieve its goals, systems that link the various

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units and positions are required to be developed. Organizational

Systems are the name given to these types of systems.
Production/operations, marketing, finance and accounting,
and human resources are the four key functional areas. In each of
these primary sectors, for example, marketing is subdivided into
various subareas, such as sales promotion, distribution and sales
volume. Other areas of functionality are the same. In addition to
these functional areas, the general management of the organisation
is also considered. For this reason, strengths and weaknesses are
identified using a functional approach to organisational analysis.

The distribution and utilisation of resources

The efficiency with which resources are allocated and utilised
determines whether or not a company is successful or not.
Resources include not only physical assets like land and buildings,
but also intangibles like managerial expertise, organisational
capacity, and technical know-how. An organisation that allocates
and utilises its resources in a balanced manner is better able to deal
with environmental concerns.
It is possible to balance the allocation and use of resources by
considering the importance of various activities in achieving the
goals, as well as the resources they require.

In the second step, resources are rationalised.

The rationalisation of resources is yet another critical
consideration in the use of those resources. In multi-unit
organisations, this issue is increasingly critical. A multi-unit
company, for instance, can have a slew of facilities and offices,
resulting in overlapping operations. The less duplication there is, the
stronger the company will be since duplication is expensive for the
company.

Pattern of Placement:
The organization's operational efficiency is impacted by the
locational pattern, despite the fact that many economic and

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noneconomic factors influence it. For both plants and administrative

offices, this type of locational pattern can be studied. The more
favourable locations an organization's plants and offices have, the
more advantageous it is for it.
As an example, the establishment of a plant in a rural location
may provide many advantages, but the opening of an administrative
office may not. As a result, many corporations prefer to locate their
manufacturing operations in less-developed locations, such as
Mumbai's fort district, while opening their headquarters elsewhere,
like Kolkata's Chowranghee district.

Production Capacity and Use :)

The profitability of a company is influenced by how much
production capacity is utilised. A company's production capacity is
a strength, but a company's cost of production may be extremely
high if this capacity is underutilised.

The cost structure is the fifth factor.

The profitability of the company is influenced by the
product's cost structure. Products with high costs are a liability.
Furthermore, the organization's inability to control costs is a
vulnerability. Hence, a benefit is a cheap price with a high degree of
controllability, while a disadvantage is a high price with a low
degree of controllability.

Cost-Volume-Profit Interaction:
A company's profitability at various stages in the production
process can be gauged using the cost volume profit connection
rather than just the cost structure. Organizational weakness occurs if
break-even points are low and there is a low margin of safety; on the
other side, high break-even points and high margins of safety are
signs of strength.

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Operation Procedures:
Operations like production design, scheduling, output, and
quality control have a direct impact on an organization's internal
efficiency. Therefore, they are the organization's assets, and the
polar opposite of these are its liabilities, as they have a negative
impact on the organization's productivity.

The availability of raw materials

Because the raw materials are vital and rare and are supplied
from a restricted number of sources, the organization's ability to
function is negatively harmed. So, the organisation has no or very
limited control over raw material supply in such a scenario.
Thus, its dependence on a limited supply of raw materials is a
drawback. It's a plus if the company is able to acquire its resources
from a variety of domestic sources and the materials are readily
available there.

A system for keeping track of inventory

There are numerous benefits to having an effective inventory
control system that is able to control and regulate procurement of
materials in such a manner that its cost is minimised and there is no
needless delay in the manufacturing process. An inventory control
system that is ineffective or non-existent is a weakness.

Research and development (also known as R&D)

There are two reasons why management should devote
significant resources to R&D. First technical cooperation with any
foreign organisation can last up to five years, with a three-year
extension in exceptional circumstances. Authorities mandate that
local organisations conduct research and development (R&D)
during this time.
There are also tax advantages for R&D and products
developed as a result of the company's investment in R&D. In order
to reap the benefits, the organisation must engage in R&D activities

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and assess the extent to which they contribute to the development of

its product.
R&D activities can be evaluated in terms of amount spent on
them, number of products developed, or number of patents
registered by inside R&D. This is a sign of the organization's overall
strength.

Patents
Organisations holding certain patent rights under which they
can use some well established brand names have certain advantages
because they have not to incur any extra expenditure for promoting
the brand.

B. Promotion:
For a firm, marketing is of utmost importance as it interacts
with the outside world through marketing functions. If the current
leadership position is maintained, managers should evaluate the
organization's performance in light of a variety of marketing
elements, keeping in mind how these factors are helping or
hindering the fulfilment of organisational goals.
The following are some of the most important marketing
aspects that were considered.
Competitive Competence is a measure of a company's ability
to compete in The only exception to the rule that businesses must
function in a competitive environment is in protected markets,
where markets are defined by factors other than individual
companies or the market itself.
It is possible to assess a company's competitiveness by
looking at patterns in market share, information that may be
obtained from a variety of outside sources as well as from within the
company's own marketing research department. Numerous
additional aspects are taken into consideration in addition to market
share when assessing a company's competitiveness, as detailed
below.

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The mix of products:

The company's numerous revenue streams are determined by
its product mix. A single class, as well as a diverse organisation,
falls under this category. If a company's revenue is mostly derived
from a single product or a small number of items, this could be a
source of concern.
The product life cycle is referred to in this section.
There are various stages in the product's life cycle that are
mapped out. The numerous marketing possibilities and dangers are
corresponding to these stages. Every product and brand goes
through a typical life cycle, which includes an introduction stage, a
growth stage, a maturity stage, and a decline stage. The
organization's weakest link is its products that are in the final stages
of decline.

Research into marketing:

A variety of marketing decisions can be made using the data
gleaned from marketing research in light of current market
conditions. Having an effective and efficient marketing research
system is a benefit to the company because it will allow it to
connect with its surroundings in a way that is appropriate for the
organisation.
In terms of distribution, there are a number of options.
In addition to distributing the products where they are needed,
a well-functioning distribution channel gives valuable information
about the market's shifting dynamics.

Sixth, the sales force:

If your sales team is very successful and efficient, it will be
able to handle any danger from the outside world. A sales force's
vulnerability could be in focusing sales efforts on a small number of
customers.
When it comes to pricing, here are some options:
Pricing has a significant impact on both sales and revenue for
a company, especially in regions where consumers are price

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sensitive. Different pricing techniques can be used in different

markets and at different stages of a product's life cycle, but they all
must be appropriate for the product and the market in which it is
used.

Efforts to Promote:
The positioning of products in the market is influenced by a
variety of marketing strategies. They also have an impact on the
company's brand image and overall reputation. The absence of
effective promotional initiatives is a weakness for the organisation.

C. Money:
In the finance department, the primary focus is on raising,
administering, and allocating financial resources to ensure that the
organization's objectives are met. The importance of finance and
accounting has grown as a result of the prevalence of monetary
measures of success.
The organization's financial management and accounting
system is well-developed.
Financial and accounting strengths and weaknesses can be
determined in the following ways:

Cost of capital:
The cost of the organization's capital is determined by the
organization's sources of funding. The overall cost of capital for an
organisation can be reduced by balancing diverse sources of
finance. Different elements, such as norms for debt and equity,
capital market positions, profitability of organisations, and other
conditions tied to funds, can be taken into consideration when
deciding the sources of funding. A low initial investment is a plus,
whereas a high initial investment is a minus.
Secondly, the structure of the capital market:
Flexibility in obtaining extra capital, preserving financial
leverage, and ensuring minimal capital costs are all determined by
an organization's capital structure. In order to take advantage of

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equities trading, an effective capital structure allows greater

flexibility in raising money and appropriating multiple sources of
cash.
Financial planning is the third step in the process.
In financial planning, the amount and type of capital required
are both predetermined in advance. Consequently, the sorts of assets
and money needed to run the firm are identified, as is when and
from where the required capital will be sourced. It is in the
organization's best interest to plan ahead of time in order to reap the
benefits.

Benefits to the Taxpayer:

Environmental factors, such as government legislation, and
good financial planning both have a role in tax benefits. Tax
benefits can be taken advantage of if an organization's investment
strategy is correctly planned.

Shareholder and financial relations:

There is a direct correlation between the sort of connection
between a firm and its shareholders and financiers. In the event of
adversity, if the connection between the two parties is amicable, the
organisation will be able to function smoothly and implement big
policy changes. Developing and enforcing these rules would be
impossible without the support of the company's shareholders and
financial backers.

Accounts Payable and Receivable

Efficiency in the areas of accounting and costing is essential
for ensuring that no money have been misappropriated and for
providing input on how to proceed moving forward.

Human Resource Management:

Human resources are typically undervalued in organisational
analysis because of the belief that they do not contribute to the
performance of the organisation. Pre-liberalisation, when most

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companies were functioning in closed markets, this was a fair

impression. Competition has transformed from a sellers' to a buyers'
market with the liberalisation of the economy. Organizations are
now exploiting human resources to get an advantage in the
marketplace.
The following criteria are taken into consideration when
analysing human resources:

Highest Level of Personnel Competence:

A company's success is heavily influenced by the calibre of its
workforce. Quality employees are those that have the right mix of
abilities, dispositions, and drive to do a good job. Strengths can be
gained if all of these traits are favourable, since they can be
leveraged to effectively translate physical and financial resources to
outputs.

Employee turnover and absenteeism:

This is a major difficulty for organisations in today's climate,
particularly at the managerial and technical levels. This issue is
exacerbated in knowledge-based businesses like information
technology and consulting. Retaining employees is a major concern
for organisations since they plan their strategy around the people
they have or will have in the future. A company's strength is in its
ability to retain essential individuals. Personnel absenteeism goes
hand in hand with staff turnover.

Labor-Management Relations:
In an era of frequent labour disputes, industrial relations are
essential to the success of the organisation. Having a better working
relationship with your employees is good for your company. In
order to gauge the health of an organization's labour relations,
factors such as employee unrest or noncooperation, the frequency of
labour disputes and grievances, employee absences and turnover,
and the willingness of employees to embrace change are taken into
consideration.

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Administration:
Despite the importance of many of the elements listed above,
they cannot work effectively unless they are supported by
appropriate leadership and a variety of management approaches. An
organization's unifying principle. Therefore, it is important for
strategists to analyze these aspects in order to discover their own
strengths and limitations.

This category includes the following factors:

1. The role of a leader:
The process of gaining the enthusiastic support of others in a
company is known as leadership. It's a key factor in a company's
overall success. Good leadership is a hallmark of high-performing
organisations, and these organisations prioritise transformational
leadership above transactional leadership.
His followers are inspired by a transformative leader's great
vision and dynamism. A transactional leader determines what
subordinates need to accomplish to attain objectives, categorises
those criteria, and helps the subordinates grow convinced that they
can achieve their goals..

Management's Constitution and Principles:

The lifeblood of any organisation is provided by the people at
the very top. Organizational success is strongly influenced by its
structure and ideology. An organisation with a long history of
traditional management will have a harder time competing in today's
market. The growth of a company is heavily dependent on the
entrepreneurial approach used by the organization's top executives.
The image and prestige of the organisation
Working conditions within an organisation are affected by the
image and prestige of the organisation, which can either provide
better facilities or impose more restrictions in the sake of
maintaining a lower reputation. However, the absence of any
quantifiable criterion makes evaluating the image and reputation of
a company challenging.

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Workplace Culture:
As a result of how an organisation interacts with its members,
it may develop an internal set of characteristics known as its
"organisational climate." Members' relationships are formed based
on how they are treated by the organization's leaders. Measuring
how members react to particular acts, their willingness to
collaborate with the organisation in order to achieve its goals, and
their satisfaction with the organisation can all be used to gauge the
climate of an organisational setting.
This section focuses on management practises:
A company's success can be influenced by how well it
adheres to particular management practises. Strategic planning,
objective control and evaluation, management information systems,
and personnel planning and succession planning all receive high
marks in the organization's management practises assessment.

Structure of the Company:

Interactions inside an organisation are facilitated by its
structure, which consists of a web of internal relationships. An
organization's strength comes from having a well-designed
organisational structure. Structure's applicability depends on the
organization's environment (technology, size and people), but not
universally. All these variables must be taken into consideration
when determining a proper organisational structure.

External Relationships of the Organization:

The organisation must deal with a wide range of variables in
order to succeed. Organizational operations are influenced by these
elements, which provide opportunities and limits. The organization's
success or failure is defined by the degree to which it develops
relationships with the factors offering such facilities and limits,
including the government and other regulatory agencies.

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Cultural approach
The Collaborative approach's democratic component is further
extended to lower levels of the organisation through the Cultural
approach.
Organizational vision and mission are clearly communicated
to all employees so that they can use them as a reference point when
formulating new plans and strategies in this manner. Workers are
encouraged to develop their own job activities in order to achieve
the company's goals and objectives. Once the strategy is in place,
the manager acts as a coach, directing the team while encouraging
them to make their own decisions on how to carry out the plan's
implementation.
The Cultural approach uses third order control tactics to
implement the strategy, i.e., it aims to influence behaviour by
altering the norms, values, symbols, and beliefs that managers and
employees base their decisions on, in order to affect behaviour.
Using rules processes, and organisational structure to steer
behaviour is a form of second-order control, whereas first-order
control includes direct supervision. Third-order control is said to be
more subtle and strong than the previous two levels of control.
Organizations with appropriate resources look most likely to
benefit from the Cultural approach, according to our research."
High-tech companies with strong growth potential are often the
target of these attacks.
There are various advantages to taking a cultural approach.
When all members of an organisation are able to participate in some
capacity in both strategy formulation and strategy implementation,
the boundaries between thinkers and doers are partially broken
down. As a result of their involvement in the strategy's creation,
individuals should be expected to devote themselves to its
implementation.
There are other drawbacks to taking a cultural approach.
Strategists at lower levels may lack the perspective and vision to
make sound decisions. To achieve these attributes takes a long time
and a lot of effort.

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Companies with extremely strong cultures often conceal

deviance, inhibit change and create uniformity and inbred thinking,"
according to a recent report. Companies like IBM, Xerox, and
General Motors have isolated their ongoing research units and new
product development initiatives to combat this conformist tendency.
These units are sometimes physically located far away from other
units to shelter them from the prevailing culture of the firm."

ROLE OF MANAGER IN STRATEGY IMPLEMENTATION

Through the exercise of their authority and influence,
managers play a critical role in determining which strategies will be
implemented and how they will be implemented. They can also
utilise their clout and sway to successfully implement new strategic
initiatives that necessitate constant change management.
Five aspects that affect the day-to-day working of an
organisation and its outcome (either in regard to strategy
development or implementation) have been identified by Prof.
Miller and Prof. Dess:
Authoritarian acts with "political" overtones (based on
position-related authority).
In situations where negotiations are necessary.
The type of communication that was exchanged.
Acting as an example for others.
For the formulation and implementation of strategy, as well as
the management of change, all five of the aforementioned levers are
powerful. As vital as the team and organisation are to a company's
survival and success, it is the actions performed by each individual
manager that ultimately define the end outcome. There are several
administrative activities and deeds that must be performed on a
regular basis and followed up persistently in order to maintain
interest and momentum and also nurture new ideas. These actions
are not restricted to the creation of a bold vision or a great strategy.
As a result of their authority, managers have the ability to
change the direction of action and overcome objections to their
plans. Despite the general dislike for authority, it is necessary for

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change and progress to be implemented. There are numerous

instances in which powerful people do not use their authority
effectively, resulting in organisations that are unable to carry out
their stated goals. In other words, successful implementation
necessitates the presence of power, which is essentially energy.
Institutional and personal factors contribute to the influence of
managers.
The three most important sources of power are:
I. The authority of the organisation as a whole;
iii. The manager's personal competency;
Attractiveness in a manager's character enables him to
influence people through negotiation, political manoeuvring, and
communication.
Depending on the situation and the manager's working style,
the aforementioned power sources can be used either overtly or
implicitly. This type of typology connects the sources of power
(institutional and individual) with the two approaches to using the
power (i.e., explicit or implicit) that are available.
An explicit-called "commanding" is expressed in the
instructions given or the structural and system modifications that are
implemented.
(a) Institutional origin; implied use of the term "shaping,"
which is reflected through efforts to alter culture and agenda, among
other things.
"Persuading" is a term that refers to a process of persuasion
involving negotiation and discussion between individuals.
This is referred to as 'inducing', and it manifests itself through
personal charisma, role modelling and the way in which
organisational politics are handled.
Negotiation and communication abilities are two of a
manager's most critical assets when it comes to creating and
implementing a winning strategy. There is always a need for these
skills. When negotiating, a great manager's primary goal is to
establish a win-win situation that benefits both parties and improves

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the quality of their working relationship, regardless of who they are

dealing with.
When negotiating for a specific outcome, it is important to
keep in mind the following:
It's all about problems, not people;
I focus on cooperative issue solving rather than negotiation
based on a zero-sum game (also known as position-based
negotiation);
As a last point, the focus should be on maximising the
benefits for all sides.
Failure to reach an agreement or not having an agreement at
all might cost you dearly.
When it comes to strategy development and implementation,
effective communication is just as critical as negotiating. To be
successful in communication and also use the same as a source of
power, two crucial prerequisites are-what a manager says and how
he listens Listening is the most important skill because it allows the
listener to gain insight into the thoughts and feelings of the other
person. When listening, it is important to be attentive yet not
judgmental or evaluative.
When listening to others, a predisposition to look for defects
can lead to dispute, argument, and hardened feelings, making
communication difficult. He will be able to see the other person's
point of view and sentiments and also understand the other person's
perspective if he learns to avoid making evaluation while listening.

PLANNING AND CONTROL SYSTEM FOR

IMPLEMENTING STRATEGY
The process of formulating a strategy is now known as
"strategic planning," which is distinct from "Management Planning"
and control over the implementation of a strategic plan. It is defined
as "the process of deciding on objectives of an organisation, on
changes in objectives, and on the resources employed to reach them,
and on the rules that govern the acquisition, use, and disposition of
these resources."

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Setting long-term objectives and goals for the organisation, as

well as the associated policies and strategies necessary to
accomplish those goals, entails taking into account external
economic, political, and social factors.
Strategic planning, as defined by Anthony, is the process of
developing long-term strategic plans and policies that influence the
organization's future orientation. When it comes to an industrial
company, this process includes everything from strategic planning
to the acquisition and sale of major facilities, divisions and
subsidiaries as well as policies relating to management control and
other processes. It also includes market research and distribution
channels, as well as the organization's structure, new product
development and new sources of permanent capital and divi all
these things..
The management planning and control system differs from
strategic planning in that it focuses on the day-to-day operations of a
business. Managers presume that resources are collected and utilised
effectively and efficiently in order to achieve the organization's
goals.
A time-phased declaration of the company aims and
objectives and operational plans is developed by taking the strategic
planning objectives as 'given' and attempting to link the
organisational resources to the objectives.
As a result, the management planning and control system can
be viewed as a medium through which strategic objectives, policies,
and meaningful goals and plans are turned into more detailed,
quantifiable, achievable, and meaningful goals and plans. It is a part
of the overall strategy concept - a part of the strategy
implementation stage.
As part of a company's management planning system, annual
plans are created that outline the company's general aims and
objectives in terms of sales (volume), expenses (margins), profits
(profit margins), and return on capital (ROC).
Also included in this may be the creation of more long-term
(say, five-year) 'action' plans that specify the potential sales and

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market share ranges as well as costs and profits, capital expenditures

and expected returns on investment, and operational plans in terms
of money, people, and materials needed over time to meet the
predetermined corporate goals
The formal planning system should ensure that the executives,
with the assistance of managers at lower levels, break down the
institutional objectives into functional and divisional objectives,
thus translating strategy consideration into management
consideration for specific periods of time. An efficient planning and
control system necessitates a clear organisation structure that clearly
defines roles and responsibilities.
The following are critical components of a planning and
control system for successful implementation of strategy:
Organizational structure that specifies power and
responsibility in terms of the task at hand.
Based on the input-output relationship in the relevant
operations, the goals and targets of organisational units can be
determined.
A system for swiftly diagnosing deviations from desired
results, especially in those areas that represent crucial variables in
processes.
A framework for monitoring and coordinating follow-up
actions to guarantee rapid remedial action based on thorough
analysis and evaluation
Management and supervisory staff at all levels are encouraged
to get involved and lend their support.
Budgeting is a popular strategy implementation tool. The
budget serves as a tool for implementing plans and policies by
allowing management to define goals and objectives in quantitative
and financial terms. As a result, budgeting demands the involvement
of managers at all levels in the establishment of plans and policies.
The planning and control process includes a motivating drive,
which is essential to the strategy's success. In addition to its inherent
limitations, its usefulness does not take into account budgets. The
budget, on the other hand, may be determined to be the source of

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many of the problems, rather than the budgeting process or the lack
of management understanding of the problem.

APPROACHES OF STRATEGY IMPLEMENTATION

Effective execution of strategy involves, first of all, a clear
and proper approach to the implementation. It should be based on
such aspects as an assessment of change, structure, and culture
characteristics.
According to Brodwin and Bourgeois' research on
management practises at various companies, there are five basic
techniques to implementing strategy. You can choose from the
Commander method, the Organizational Change method, the
Collaborative method, the Cultural mode of thought method, or the
Crescive mode of thought. There are a variety of ways to implement
a strategy, ranging from merely asking subordinates to carry out the
plan to allowing them to devise and implement their own sound
strategies.

Commander Approach:
The Commander approach, as the name implies, is a top-down
approach to problem solving and decision making. Those in charge
of putting the plan into action receive direction from the
organization's top brass, who devise the strategy. The plan is
overseen by the company's top executives, who take a backseat role
in implementing it.
This technique has a significant drawback in that individuals
charged with putting the plan into action were excluded from the
process of developing it in the first place. It's possible that they lack
the necessary emotional commitment to make the strategy work. As
a result, their entire potential and strategic goals would be hindered
by a lack of self-motivation. The Commander approach focuses
solely on the economic aspects of strategy development and
implementation, ignoring the political, social, and behavioural
aspects.

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A lot of small businesses and enterprises in well-established

industries use this strategy. If the method to be adopted is relatively
simple, this approach is most effective.
This approach is also appropriate when formulating a strategy
in a secret or timely manner, or when behavioural issues preclude
the use of other approaches.

Organisational Change Approach:

The Commander approach to strategy design is similar to the
Organizational Change approach (or simply the Change approach),
but the approach to implementation of the strategy differs
significantly.
If you want to implement a plan, you need to bring about the
necessary organisational transformation to do so.
It is common for new strategies to necessitate major structural
and staffing changes to focus attention on the organization's new
priorities, planning and control systems, among other things. That
the Organizational Change method to strategy implementation is
critical is illustrated by this.
Using powerful behavioural techniques, the Change strategy
is often more effective than the Commander Approach and can
implement more complex solutions, according to the authors.
However, the Change technique has a number of drawbacks.
However, this strategy does not give enough consideration to the
social and behavioural components. The strategy is dictated from
the top down, which has the same motivating issues as under the
Commander model. Furthermore, organisational reforms can take
time, and this strategy might backfire in uncertain or fast changing
conditions.

Collaborative Approach:
The Collaborative approach views strategy development as a
collective endeavour that should consider the views of all the
managers in the organisation who can contribute to this vital task.

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Under this approach, brainstorming sessions are usually

employed to formulate strategy and implementation tactics. Many
companies have found this a very useful approach.
The Collaborative approach has several advantages. This
approach, in which the goals and strategies are negotiated among
the top team, overcomes two key limitations of the Commander and
Change approaches. By providing a forum to share and evaluate
information and views contributed by various managers closer to
operations, it presents a better strategy development process. It
involves economic, social and political dimensions. The
involvement of different sections in the strategy formulation
enhances the commitment to its implementation.
The Collaborative approach, however, has several limitations.
This approach is often time- consuming. If some of those who
participated in the strategy negotiation feel that there views were not
heeded, they may become emotionally detached with the strategy. A
negotiated strategy may sometimes turn out to be a compromise
rather than the best strategy.
In some other cases, vested interests of the dominant members
or the majority of the team may give rise to a skewed strategy,
sacrificing the proper strategic perspective. It is pointed out that
sometimes a negotiated strategy is likely to be less visionary and
more conservative than one developed by a Commander approach.

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INTER-RELATIONSHIP BETWEEN STRATEGY

FORMULATION AND IMPLEMENTATION

The interdependence of strategy formulation and

implementation is the best way to characterise the relationship.
Accordingly, these two parts of strategic management have been
categorised primarily from the standpoint of orderly study as well as
the skill needs.
Conceptual and analytical skills are required for strategy
design, whereas administrative skills are required to implement it.
Real-world application and formulation are interwoven. Both are
reiterative in the sense that they are both influenced by the other's
actions. Among other things, the approach is developed in a
dynamic setting.
As a result of strategy implementations, operational feedback
provides notices of the changing environmental conditions to which
strategy must be altered. As a result, this is a continuous process
rather than a discrete one. The process of developing a plan and
putting it into action should be viewed as a continuous one.
Managers should, however, keep in mind that strategy design
and implementation are interdependent. Because of the
interdependence, management can take remedial action based on

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feedback from the implementation, but making a separation between

the two helps put the organization's human and physical resources
into proper perspective.
Management below a specific level should not be responsible
for strategy creation because of the reliance on contingent factors;
nonetheless, management at this level is responsible for strategy
implementation. This is achievable due to the fact that specific
implementation plans for numerous operational functional areas can
be produced once general strategic decisions have been reached. As
a result, several layers of management enter the strategic
management picture.
The feedback mechanism emphasises the necessity of
continuously assessing execution of strategy and organisational
performance in order to determine whether any changes to the
strategy are required. Because of this, persons in charge of strategy
development cannot be absolved of their responsibility for its
implementation.

TYPES OF STRATEGY IMPLEMENTATION

Procedural Implementation:
A procedure is a set of linked tasks that are performed in a
specific order. It's a tried-and-true method for getting the job done.
The level of procedural implementation concerned with the
fulfilment of all government-mandated statutory and other
formalities can be national, regional, or local.
Certain procedures, such as licencing requirements, Foreign
Exchange Management Act requirements, collaboration procedures,
import and export requirements, incentives and benefits, and
requirements of labour laws and other legislation, must be
incorporated into the strategic implementation process in
accordance with strategy. From country to country, there are a
number of differences in the way these concerns are handled.
Listed below are some of the most important needs from the
perspective of an Indian business:

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The 1951 Industries (Development and Regulation) Act

established the licencing requirements for various industries at the
time. Industrial licences are necessary in many fields, particularly in
those where the public health is at risk.
Enterprises registered under the Companies Act, 1956 with
more than 50% foreign ownership, as well as all foreign companies,
are required to seek Reserve Bank of India approval before making
any financial decisions, according to FEMA rules.
The Central Government must be notified before Indian
enterprises enter into agreements with international corporations.
Securities Exchange and Board of India Act, 1992 provides
SEBI with some jurisdiction over public capital issuance in the form
of a disclosure rule. As a result, SEBI examines a company's
prospectus before it plans to access the capital market to verify that
the prospectus has the necessary information to allow investors to
evaluate an issue of shares or debentures. In order to raise cash, the
Central Government must be notified in advance.
There are two types of items that are subject to import and
export restrictions: those that are on the open general licence list and
those that are restricted. However, the Reserve Bank of India must
be notified if companies are importing or exporting commodities
that fall under the open general licence. However, the Ministry of
Commerce requires an import and export permission for
commodities on the restricted list.

FUNCTIONAL IMPLEMENTATION:
In order to put strategy into action, middle managers must be
given guidance on how to make the most use of available resources
through the formulation of functional policies. In order to put
strategy into action, functional policies provide direction to middle
managers on how to formulate operational plans and strategies.
Policies serve as guiding concepts for top-level decision-makers.
In order to ensure that strategic decisions are carried out, they
are created the establishment of policies and plans in many areas of
a company's operations is known as functional implementation.

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Analyzing an organisation from a functional perspective helps to

discover the strengths and weaknesses of various departments
within the organisation.
Both vertical and horizontal connection is required in order to
implement a strategy. Vertical links bring together plans at the
corporate, business unit, divisional, and functional levels to provide
support and coordination.
Divisional strategies that require the development of a new
product should be driven by corporate growth goals and
understanding of the company's resources, including capital and
R&D capabilities.
Linkages that cross departments, divisions, and functional
areas of the organisation horizontally should be paired with each
other as a priority. A new product introduction plan, for example,
necessitates the joint efforts and coordination and cooperation of
R&D, marketing, and production divisions, amongst other factors.

PROJECT IMPLEMENTATION
Visions and plans are brought to fruition at this phase of
project implementation (or project execution). A project's financial
resources can only be found after a thorough evaluation of the
project's needs, as well as an application for funding. A project's
technical implementation is a component of its successful
completion.

When a project plan is put into action, the deliverables, or

products or services, for clients or stakeholders, are produced. When

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a project's planning phase is complete, the team will have

established the project's primary goals, along with the associated
timetable and budget. In order to keep the project on track and on
budget, it is necessary to coordinate resources and track
performance during the implementation phase. It also includes
dealing with any unexpected problems that may arise throughout the
course of a project.
Managers of projects must interact regularly with their teams
to set and alter priorities as necessary, while keeping open
communication with clients or other important stakeholders to
ensure that the project is on track.

PROJECT IMPLEMENTATION IMPORTANT

It is possible for a team to reach their project goals and stay
within budget and deadlines if they use the strategic planning stated
earlier in the process. Project implementation is the link between the
planning phase and the project's final results. This phase of the
project, and how well it is implemented, can have a significant
impact on the project's success.
In order to keep the project on track, a project manager
conducts an evaluation of how well the team is reaching the project
objectives. Taking ownership of a project and empowering the team
to achieve common goals builds trust and transparency among those
directly participating in the project.

HOW TO IMPLEMENT A PROJECT

Assess the project plan
Establishing a strategy that fits the expectations of
management, clients, and other key stakeholders is a good initial
step in the project cycle. Assess the plan and make sure that
everyone on the team understands what the project deliverables are
before putting it into action. People's assigned duties and the
project's planned timetable should be laid out in an introductory
meeting, along with the goals the team is working toward in the

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implementation phase. This initial step can unite the project team
and define a collaborative standard for work.

Execute the plan

It's time to go to work on the project now that we have a plan
in place and the team's expectations in place. This stage calls for
managers to check in with their teams on a frequent basis to see how
they're doing. Observe the project's timeframe and resources to
ensure that the team has everything they need to effectively
complete the project. In order to keep the group on track with the
project's priorities, effective communication is essential during this
stage of the process. Providing regular progress updates to clients or
other key stakeholders is also critical during this phase.

Make changes as needed

There will almost always be adjustments needed to be made
throughout the implementation phase of any project, whether it is in
response to customer requests for extra features or to keep the
project within its original parameters. Use the project plan as a
guide for making these revisions. Keep in touch with the group and
keep asking questions to ascertain what more help they require.
Make sure you have enough resources and employees on hand if a
project deviates from the original plan. Change is a given in most
projects, and the success of the project depends in part on the
project manager's ability to successfully implement such changes.

Analyze project data

Continuous data analysis is critical during the project
implementation phase in order to monitor how a project is going
against its initial estimates. In order to gather information on
staffing, resources, and budget, you can either use specialised
project management software or a manual system. Determine if
additional adjustments are necessary to assist a team reach the initial
project requirements by analysing the data. Continue to collect data

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and evaluate the project variables by going back to step one and
making the necessary adjustments.

Gather feedback
However, there are still a few critical tasks to be taken once
the team has completed the project deliverables. Inquire about the
project's outcome from the project team, clients, and stakeholders,
determining what went well and what may be improved upon. To
gather this information, you can speak with persons participating in
the project directly or create and distribute a short survey that asks
for comments. In order to successfully complete future projects,
companies might benefit from this step.

Provide final reports

Deliver final reports on the project's performance in relation
to the estimated budget and timetable to the project team, clients,
and other stakeholders. Describe any places where you had to alter
the scope or budget of the project in order to keep it on track. Data
on the project's budget, time, and resources are all included in these
reports. An important benefit of this stage is that it allows firms to
reflect on their projects' accomplishments and identify any areas that
could use improvement going forward.
When we talk about a "process," we're referring to a series of
linked tasks performed in a specific order. As far as I know, it's the
only method to go about completing the task at hand. It is at this
stage of the procedure's implementation that the requirements of the
federal and state governments are met. The following are some of
the most important steps in the strategy implementation process:

Is There A Licensing Process?

Under the Industries (Development and Regulation) Act,
1951, there are licencing provisions. An industrial licence is
required in many sectors, particularly those that are believed to
harm public health.

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The FEMA Guidelines

It is a requirement of the FE MA that all Indian enterprises
with a foreign shareholding of above 50%, along with any foreign
company wishing to invest in India or acquire an Indian business
unit, seek authorization from the Reserve Bank of India before
engaging in any activity.

Foreign Co-operation Methodologies

Emergence of joint venture ventures with international
collaborators brings technology and equity engagement. India's
businesses can also enter into technology partnerships in order to
import technical know-how from other countries. A joint venture
and technology agreement must be approved by the Central
Government before it may go into effect.

Capital Issue Requirements

Compliance with disclosure standards is one way SEBI keeps
an eye on public capital issues under the authority of the Securities
Exchange and Board of India Act, 1992 (SEBA). As a result, SEBI
examines the prospectus of a firm looking to enter the capital
market to make sure the prospectus contains important information
from which investors and other interested parties can determine
whether or not the issue of shares or debentures is worth purchasing.
Prior approval from the Central Government is required for raising
funds from overseas via Global Depository Receipts, American
Depository Receipts, and long-term loans.

Requirements for Import and Export

There are two sorts of commodities that have different import
and export requirements: those that fall under an open general
licence and those that fall under a restrictive licence. Other than
notifying the Reserve Bank of India when importing or exporting,
there are no additional procedures for open general licence
commodities. The Ministry of Commerce does require an import

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and export licence, however, if the item falls under the restricted
list.

ISSUES IN STRATEGY IMPLEMENTATION

Leadership:
Leadership is fundamentally the ability to persuade others to
seek set objectives willingly and enthusiastically. A manager can
get an intended work performed by his subordinates in the
organisation in two ways- by exerting authority vested in him or by
garnering support of his employees. Out of these, the second
strategy is superior since it brings people to work enthusiastically
and their contributions would be larger than the first way in which
people use around 60-70 per cent of their abilities in doing tasks.
That is why Stephen Covey, a management expert, has
observed that “while producers and managers are necessary, but
leaders are vital to sustainable organisational success.” Thus, every
forward- leaning organisation needs leadership, more particularly
strategic leadership. Before going through the intricacies of role of
leadership in strategy execution, it is desirable to see what strategic
leadership is.

Organizational Culture:
Another factor that impacts strategy implementation is
organisational culture, which offers a framework for how
individuals of an organisation behave. Organizational culture has
been defined as a system of shared meaning, despite conflicting
definitions of what that means. A specific definition of
organisational culture has been provided by O'Reilly. Since "the
common set of assumptions, beliefs, values and standards among
the members of an organisation constitute organisational culture,"
As a result, an organization's culture can be defined as a set of
shared traits among its members. Assumptions, beliefs, values, and
conventions are examples of abstract cultural elements, while
products, buildings, clothing, and other tangibles are examples of
material cultural elements. Both types of qualities are important.

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Values, Ideologies, and Ethics:

The way an organisation implements a plan is influenced by
its values, ideology, and ethics. As an organisation is made up of
individuals, these three factors play a significant role in the overall
organisational behaviour.

Values:
Convictions and a framework of philosophy form the basis of
an individual's evaluation of good and bad. "Global ideas that
influence actions and judgments across a variety of settings," is how
prominent socio-psychologist Rokeach defines values. It is further
explained that values are "fundamental convictions that a-specific
mode of behaviour (for end-state of existence) is personally or
socially preferable to an opposite manner (or end-state of
existence)."
Terminal and instrumental values are the two types of values
that he has categorised. A person's ultimate goals are reflected in
their "terminal values," which are also known as "end values," such
as "a comfortable existence, a secure family, a sense of self-worth,
and success." The terms "instrumental value" and "means value"
refer to concepts such as "courage," "honesty," and "imagination,"
among others. At least in terms of degrees, there is a wide range of
values held by individuals.
Additionally, they may differ in terms of how they plan to get
from point A to point B. Despite the fact that values tend to be long-
lasting, an individual can adapt new values and modify old ones as
he gains more experience.

Ideologies:
An ideology can be thought of as a systematised collection of
beliefs. Definition of ideology by the American Heritage
Dictionary: "the corpus of beliefs reflecting the social requirements
and ambitions of an individual(s), group(s), class(ies), culture."
Collins and Porras define a core philosophy in organisations as a set

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of values and goals that serve as a road map for a company or

individual to follow in order to achieve long-term success.
There are a few broad guiding principles that should never be
sacrificed for financial gain or short-term expediency, and these are
the core values of a company. The underlying reasons for an
organization's existence aside from producing money are referred to
as its "purpose." Even in the face of adversity, an organization's
essential ideas retain their stability. Thus, ideologies have a wider
meaning than values, despite the fact that values are the foundation
of ideologies.

Ethics:
As a whole, ethics can be defined as a set of universally
accepted moral principles or ideals. This clarifies what is right or
wrong from a social perspective: what is nice or harmful. A
businessman's conduct in a business context is governed by business
ethics. As a set of principles and standards, business ethics "focuses
principally on the link between business aims and practises and the
satisfaction of human ends."
Value-forming institutions, organisational ideals and goals,
peer and colleague relationships, work and career contexts, and
professional codes of behaviour all play a role in the development of
business ethics.

Social Responsibility:
Managers today are more concerned than ever before with the
social challenges that they and their businesses are confronted with,
both personally and professionally. This is taking place all
throughout the world, including India. Even though there have been
arguments both in favour and against social responsibility in the
past, there is now a consensus that it is vital for the long-term
existence of businesses.
Societies contain organisations. Many social issues affect how
organisations operate since society as a whole is a larger context
within which they operate. As a result, the majority of organisations

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include social concerns in their goals. Decisions and actions

performed by an organisation for causes that are at least somewhat
unrelated to the company's bottom line are considered socially
responsible. This means that a company must consider how to meet
the needs of a wide range of stakeholders, including its own
stockholders as well as its employees as well as its customers,
vendors, and the general public.

Corporate Governance:
Due to the fact that every firm is required by law or regulation to
adopt specific management practises, corporate governance plays an
extremely important role in the rollout of strategy. Managing a
corporation in the best interest of all of its stakeholders is now possible
thanks to a framework known as "corporate governance." Companies are
guided and governed by this system, which is based on a code of good
business practises. According to the World Bank, "Corporate governance
promotes justice, openness, and accountability."
Corporate governance is concerned with maintaining the
balance between economic and social aims between individual and
societal goals," Chairman of Cadbury Adrian Cadbury has stated.
The corporate structure is in place to promote resource efficiency
and to hold people accountable for the way in which those resources
are stewarded. Individuals, corporations, and society are all aiming
to align their interests to the greatest extent possible."

Organizational Politics:
Organizational politics influence strategic decision-making.
The same is true for the implementation of a strategy.
Organizational politics and power relations are intertwined, and
each power centre strives to influence the outcome of the situation.
'Who gets what' (politics) is endemic to any organisation, regardless
of size, purpose or ownership character," say Pfiffner and
Sherwood. There are many examples of this throughout the
organisation, and it gets worse as the stakes rise and the range of
possible outcomes widens."

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Everyone in the company is a political player at some point in

time. Various sources define politics as a set of self-serving
behaviours, such as the pursuit of power, the defence of one's
territory, the development of support through the establishment of a
group, or political manoeuvring. In all of these scenarios, politics is
about gaining power or being in the presence of power and acting in
an egocentric manner.
As a result, politics can be defined as measures taken by
people and groups to acquire, keep, extract, and execute power in
order to achieve personal objectives. Because of the influence of
organisational politics, choices made in the workplace are
influenced in a way that favours the interests of the individual rather
than those of the organisation.

RESOURCE ALLOCATION
The allocation of resources is a key part of strategy
implementation. Regardless of how smart a strategy is, it is only
effective when it is put into practise. In order to get things done, you
need a plan of action and the means to carry it out. Resources are
either physical or virtual entities that must be consumed to generate
a product or service for the benefit of the consumer, and they are
limited in supply. Human and process resources are subcategories of
natural resources.
Renewable and non-renewable natural resources are both
examples of this category. Minerals and fossils are examples of non-
renewable resources that are used in the manufacturing business. In
order to preserve the limited resources we have for a longer length
of time, it is critical that we allocate these resources efficiently.
Because humans have the ability to transform raw materials
into useful goods, they are also called resources. The skills,
energies, talents, abilities, and knowledge that are put to use in the
production of commodities or in the provision of services are all
considered to be a part of human resources.
Intangible and tangible resources make up category iii of
process resources. A company's intangible resources include

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intellectual property (patents, trademarks, etc.), as well as tangible

assets such as machinery. In order to get the most out of these
resources, they may need to be processed and developed. Again, the
resources aren't concentrated in one place but are dispersed over the
globe at random. In the case of intangible resources, they are
likewise prone to exhaustion and obsolescence. Allocating human
resources is also critical to the successful implementation of a
strategy.
Identifying and acquiring resources in the beginning of an
organization's lifecycle is essential for achieving its goals. As a
result, resources should be allocated in a way that gives the
company a long-term competitive edge.

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MODULE - V
STRATEGY EVALUATION AND
CONTROL

A
s important as formulating a strategy is the process
of evaluating that strategy to determine whether or
not the comprehensive plans are successful in
obtaining the targeted goals. There are several factors to consider
when evaluating a company's current strategy in today's rapidly
changing market. The final stage of strategic management is
strategic evaluation.
Management, teams, departments, and other entities all
contribute to the success of an organization's plan by monitoring
and improving their performance. In addition to providing inputs for
the development of new strategic planning, the need for feedback,
assessment and reward as well as the growth of the strategic
management process are all reasons why Strategic Evaluation is so
important in today's business environment.

The final step in the strategic management process is to

assess the strategy's efficacy. No matter how well a strategy has
been implemented, it must be evaluated to see if the organization's
goals and objectives have been met. Furthermore, strategic
evaluation can be defined as measuring whether or not an

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organization's implemented strategy has achieved its goals, and

what remedial steps are necessary to remedy any weaknesses in the
strategy.
Strategists are responsible for creating an action plan that
will help an organisation accomplish its stated goals and objectives.
The strategy must be checked to see if it achieves the goals set forth
by the organisation in order to be considered a success. Strategic
evaluation is used to accomplish this. The importance of strategic
evaluation in an organisation cannot be overstated. In the absence of
strategic evaluation, the organisation will have no way of knowing
how effective the strategy is.
Overlooking short-term elements that could affect the
organization's operational efficiency, strategic evaluation instead
focuses on patterns that will decide the organization's success or
failure over time. It takes a lot of coordination across managers,
groups, and departments in an organisation to do strategic
evaluation. As a starting point for future strategy development,
compensation and incentive systems, and other strategic
management activities, strategic evaluation is critical.

PROCESS OF STRATEGIC EVALUATION

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Fixing benchmark of performance –

Strategists face questions such as - what benchmarks to set,
how to set them, and how to articulate them - as they work to set the
benchmark. Finding out what is required to complete the main work
will help you define a benchmark performance. Performance
indicators that best identify and convey particular requirements can
subsequently be utilised for evaluation.A comprehensive evaluation
of performance can be conducted using both quantitative and
qualitative criteria. Net profit, ROI, earnings per share, production
costs, employee turnover rates, and other quantitative metrics are
examples of quantitative criteria. Subjective assessments of
elements like skill and competency levels, risk-taking capacity, and
adaptability are all examples of qualitative factors.

Measurement of performance –
It is against the standard performance that the actual
performance is measured. It's possible to gauge effectiveness thanks
to the reporting and communication system. In order to evaluate a
plan, it is necessary to have the right tools and establish the right
criteria in place. However, it is difficult to quantify aspects such as
the role of managers. In the same way that individual performance
can be difficult to quantify, divisional performance can also be
difficult to measure. This necessitates the creation of a variety of
objectives against which performance can be measured. This must
be done at the correct moment or evaluation will fail to achieve its
goal. A balance sheet and profit and loss account must be generated
annually in order to measure the company's success.

Analyzing Variance –
There may be discrepancies between the actual performance
and the standard performance that must be examined. Strategists
need to specify the acceptable range of deviations between actual
and expected performance. Positive deviations indicate improved
performance, but consistently exceeding the goal is rare. Positive
deviations are good. Because it shows a drop in performance, the

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negative deviation warrants attention. As a result, strategic planners

must identify and address the root reasons of divergence and take
corrective action.

Taking Corrective Action –

A corrective action must be devised as soon as a discrepancy
in performance is discovered. If the results are regularly below
expectations, the strategists will have to do a thorough investigation
to determine what is causing the underperformance. Organizational
potential may not be sufficient to meet performance expectations,
hence standards must be decreased. Reformulating the strategy,
which necessitates going back to the beginning of the strategic
management process and reframing plans in light of new resource
allocation trends, is another uncommon but harsh corrective move.

IMPORTANCE OF STRATEGIC EVALUATION

Deciding the Destination
The strategic assessment process begins with the phase of
creating goals, even though the real review step occurs at the
conclusion of the process, after goals have been attained or not.
Your company's direction and success can be gauged by setting
goals.
If you want to achieve your company's long-term goals, such
as enhancing the environment or reducing suffering, your goals
should be measurable and concrete. Specific and quantifiable goals,
such as boosting sales by a certain percentage over a specific period
of time, should be included in your company's purpose and vision.

Benchmarking your Performance

It's important to take a step back and evaluate your
company's success in light of the criteria and benchmarks provided
by your goals. Because it gives a snapshot of the results you've
accomplished in relation to the milestones you've established,
measuring performance is an important step in the strategic review

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process It's easy to evaluate and assess how well you've done if you
set clear and verifiable goals in the beginning.

Succeeding or Falling Short?

Despite the fact that objectives are landmarks, achieving
them is not an all-or-nothing proposition. As part of the strategic
review process, it's necessary to analyse how near you've come to
your goals. Even if you miss your target by one percent, you've still
done better than if you had only made it half-way through your goal.
Also, you may succeed by a tiny percentage, or you may
succeed so spectacularly that your aim is rendered meaningless.
Analyzing both quantitative and qualitative variance is critical. Take
a look at why you've excelled or fallen short of your targets by
calculating the degree of variance in your results.

Steering a Better Course

The strategic evaluation process provides an opportunity to
reflect on why your company has fallen short of its goals and to then
take corrective action. An important part of the strategic evaluation
process is creating a new set of company-specific goals that will
reflect your progress and push you in new ways.

NATURE OF STRATEGIC EVALUATION

Strategic evaluation must be adjusted to the demands of the
organisation in order to be effective. Marketing and HR departments
of an organisation have varied needs when it comes to conducting
strategic evaluations.

Simplicity:
The strategic evaluation process must be easy to follow and
understand. It should be simple to put into action. People won't be
able to understand a method that makes strategic evaluation
difficult. Anger and conflict will ensue, and the procedure will be
implemented incorrectly as a result. However, when the process is
well-defined and understood by all employees, the level of

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enthusiasm in the organisation is extremely high and employees are

able to carry out the evaluation system.

Selection:
The evaluation procedure cannot be comprehensive in nature.

Limited:
It has to be very picky in how it goes about things. In order
to ensure the organization's long-term viability, vital and critical
variables must be identified. Managers' time is better utilised this
way, allowing them to devote themselves to the fundamental
functions of the organisation.
In order to remain adaptable, a company must review its
strategies and plans on a regular basis. Political, technical,
economic, and other variables can all play a role in these shifts. To
avoid making a mistake, the strategic evaluation process should not
be too rigid. It must adapt to the needs of the environment and seize
the chances that are available.
The strategic review process should take into account the
future and be able to forecast occurrences before they become an
issue for the organisation. They can only be useful to the
organisation if they have the proper training. Identifying and
correcting irregularities is essential for management to take
appropriate action.
Strategic evaluation techniques should be sensible, says
Robbins. Workers want them to be fair in their dealings with them.
Employees will lose motivation if their managers set wildly
improbable goals. As a rule of thumb, these tasks should not be too
easy for employees to complete and provide no challenge.
Therefore, the strategy evaluation process must be judicious.
Employees should be challenged but not intimidated by them, thus
they need to be just right.
There must be no ambiguity in strategic assessment control
systems. Employees should regard them as unbiased. It ought to be
applicable to everyone. Employees will be more likely to accept the

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evaluation parameters if they see how they are used. On the other
side, employees will lack confidence in the evaluation and control
process if the standards are unclear and arbitrary.
Strategic review must identify who bears the brunt of the
blame for failures. Determining the cause of a deviation in an
organisation is more important than merely knowing about it. It's
critical that the organization's strategic control system highlights the
corrective actions needed to overcome any flaws that have been
discovered.
If the strategic assessment and control system does not have
the collaboration and trust of the employees, it will not work.
Everyone must accept it. If the standards are well defined, objective,
free of bias, and reasonable, then this is possible.

STRATEGIC CONTROL
Strategic control is a way to keep tabs on how well a
strategy is being carried out. It is unique in the management process
since it can deal with the unknown and ambiguous while tracking
the implementation of a strategy and the resulting results. It is
regarded unique. By adapting strategy implementation approaches
to changing external and internal elements, strategic control can
help achieve strategic objectives.
As a means of guiding the company toward its long-term
strategy, strategic controls exist. Over time, a strategy is
implemented to keep a company on track in a continually changing
world. Strategy is forward-looking and depends on management
assumptions about several events that haven't yet transpired.
The standard against which actual results are measured is
known as the traditional approach to quality control. As soon as the
job is completed, the manager conducts an evaluation of the results
and uses the results to guide future efforts. Even if this method isn't
completely ineffective, it isn't the best way to control a plan.
Strategic control refers to the part of strategic management
that guarantees that an organization's strategic goals are being met.
Otherwise, what steps should be taken to ensure strategic success?

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In the context of strategic control, this means keeping an eye

on and evaluating the plans, activities, and results of the
organisation in order to anticipate future actions, providing a
warning signal through the diagnosis of data, and triggering
appropriate interventions, whether they are tactical adjustments or
strategic reorientation."

PROCESS OF STRATEGIC CONTROL,

1. Setting Performance Standards:
Organizations begin every task with a set of goals and
objectives that must be met. Standards have been set based on these
considerations, which are used to evaluate actual results. In order to
establish control standards, it is critical to identify the desired
outcomes in detail and with precision. These standards must be
stated clearly and accurately.
It's critical to identify what constitutes "good" or
"satisfactory" performance or achievement after you've established
the standards. It's important that the performance goal is within
reach and reasonable. Also, the level should have some degree of
flexibility, and should be defined in terms of maximum and lowest
values, as well.

2. Measuring Actual Performance:

Measuring performance is an important part of the control
process. Measuring a work's performance in terms of control
standards is part of this step. There is a direct correlation between
the presence of standards and the ability to monitor and comprehend
the nature of the current situations and the degree of control that has
been accomplished.
There should be a constant monitoring of performance
versus standards so that deviations can be spotted before they occur
and corrective measures can be taken. It's much easier to evaluate
performance if the standards are well defined and the techniques for
measuring it can be clearly communicated.

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3. Analysing Variance:
Contrast between actual and standard performance
constitutes a third significant step in controlling. Figuring out how
much variety there is and finding out what the causes are are two
separate processes. Discrepancies in actual performance can be
easily identified if appropriate standards are set and actual
performance is precisely standardised and assessed. There is no
additional management action required once the standards have
been met.
There will be exceptions to the rule and the degree of
deviation will vary from one situation to the next. It's necessary to
conduct an investigation into why real performance differs from
standard performance when the difference exceeds the prescribed
limit. Ascertaining the reasons of variation and calculating the
variations is critical for controlling and planning purposes, as this
analysis enables management take remedial actions.

4. Taking Corrective Actions:

As the final phase in the control process, steps must be
performed to ensure that the system or operation remains under
control. In contrast to a thermostat, which maintains a constant
temperature due to the design of the device, an organisation does
not have a self-regulating system. It is impossible to implement this
form of automatic control in a commercial organisation since so
many things influence the overall environment. As a result,
additional measures are needed to maintain control.
It is possible to take appropriate action if the performance is
not up to the mark, or if the standards are too high and unrealistic;
or it is possible to change objectives, strategies, and plans in the
event that they are not working.

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TECHNIQUES OF STRATEGIC EVALUATION

Strategic Momentum Control

There are a number of evaluation procedures for strategic

momentum control that are aimed at ensuring the strategists that
their strategies are still acceptable since their assumptions or
premises have not altered and are still applicable to date. As a result,
these strategies aim to keep the strategic momentum moving along
at its current pace. It's more important to maintain the status quo
than to alter it.
Success Aspects - We've previously learned about some of
the most important factors in a company's success. These underlying

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success factors let the organisation focus solely on the most critical
and unavoidable success elements necessary to fulfil the goals
underlying the chosen strategy, which is all that needs to be said. In
other words, the most important aspects of a strategy are tracked
and taken care of. If a strategy is successful, strategists can keep an
eye on these important success factors to see if they are actually
contributing to that success. This is an on-going way of close-up
monitoring.
Method of Using Generic Strategies – According to strategic
control, similar organisations' plans are comparable since they
compete with one other. In this reasoning, "generic to specific" and
"specific to general" are used interchangeably. If a firm X is
spending 5% of its sales revenue on advertising, Y company should,
in order to be competitive or equivalent, obtain the same or similar
results in sales growth. In light of this contrast, an organisation can
determine why and how it is doing this. A company's strategy and
measures are compared with those of competitors to assess if they
are on the right track.

Strategic Leap Control

There is no other option than to leap or skip in order to adapt
the organization's strategy to the uncertain environment in which it
operates. As a result, strategic leap control aids these companies in
successfully exiting such a quagmire. So it is an attempt to cope
with the dynamic and threatening conditions that confront us. For
the fourth time, Professor J.G. Thomas has suggested a set of
approaches. What we have here is –
Identifying and managing one or more strategic issues and
their ramifications for an organisation is SIM. H.I. Ansoff defines a
strategic issue as "a forthcoming development, either within or
outside the organisation, which is expected to have a substantial
impact on the enterprise's capability to accomplish its objectives."
The strategists can avert a significant jolt to the company's
operations by using SIM. Contingency plans for shifting strategies
to avoid a sudden turn of events can be prepared.

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This is an investigation of the nature and breadth of the

synergies that exist or do not exist between the various parts of an
organisation, known as a strategic field analysis. It is up to the
strategists to determine whether or not the company can take full
advantage of any and all synergies that exist. The strategists are
assessing whether or not the company can create synergies that do
not now exist. As a result, SFA is a valuable tool in your toolbox.
Computer-based models that simulate the main properties of
the organisation and its surroundings are the foundation of systems
modelling. Preaction control can be exercised by organisations
through systems modelling by examining the impact of the
environment on the enterprise. Because this computer-aided model
is based on real-world data, it's more accurate.
As part of environmental analysis, scenario writing is an
important aspect of the process. A scenario is a speculative picture
of what a certain form will encounter in the future. There will be a
series of scenarios written with various combinations of
environmental forcers in various permutations and combinations. As
an artist employs colours and tints to create diverse perceptions to
an onlooker, this scenario writing serves as a tool for analysing the
environment. It is thus possible to plan contingency plans that are
best appropriate for the most likely scenario.

Operational Control Techniques of Evaluation

Operational control is concerned with the most efficient
distribution and utilisation of organisational resources. Internal
analysis is a more appropriate method for operational control than
external environmental scanning or monitoring, which falls within
strategic control's competence. Techniques like this one, which
focus on internal analysis, are fairly commonplace. What we have
here is –
Methods of Financial Management These financial methods
are mostly concerned with evaluating a company's financial health.
Only a brief mention is made here because they have already been

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explored elsewhere in this book. The following are some examples

of different types of financial instruments:
The Parta System is a financial analysis tool that uses zero-
based budgeting.
Net Work Methods – PERT, CPM, and networks are all
examples of net work techniques in operations research. These are
utilised widely in the distribution of resources to different projects
where scheduling and control is critical.. Effective operational
management over projects, including their costs and performance,
has been achieved by combining these network techniques with cost
accounting procedures.
Objective-based Management — More and more managers
and academics have misinterpreted MBO, despite the fact that it is
totally straightforward. An way to planning that helps to alleviate
some of the obstacles is MBO. Dr. P.F. Drucker, the management
guru, used it in his book "The Practice of Management" in 1954 for
the first line. Setting and attaining goals in accordance with
management's preferences and needs is a key component of a
management by objectives strategy.
Consequently, "management by results" is being practised.
A common goal for juniors and seniors is to evaluate each other's
performance in accordance with mutually agreed-upon objectives.
Through the process of consultation, a control system based on
commitment and self-discipline is created through the creation of
goals for the project.
Memorandum of Agreement – Commitment is at the heart
of both MOU and MBO. A memorandum of understanding (MOU)
is a contract between a company and a government entity in which
each party outlines their expectations and duties. Aside from the
PSUS, it can be used quite efficiently in the private sector as well.
A MNC, for example, may have a separate MOU with a
subsidiary. Instead of a royalty agreement, MOUs are becoming
increasingly prevalent in the publishing industry. One-time royalty
payments are made under an MOU, which commits the publisher to
paying the author(s) and/or authors only once for a single printing of

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the manuscript and guarantees to pay the author or authors only

once for reprinting the document in future iterations. The author
also promises to put up his best effort within a specific time frame.
Evaluation of actual performance is based on compliance with
MOU promises and duties put forth by the parties involved.

ANALYSING VARIANCES
Variance analysis is a technique used in budgeting and
management accounting to compare actual results with those
expected. This is all about the difference between what people
actually do and what they say they'll do, and how it affects corporate
performance.

ROLE OF ORGANIZATIONAL SYSTEMS IN EVALUATION

There are many different types of organisational structures
in which strategic evaluation can be carried out. Various systems are
developed by an organisation to aid in the integration of various
areas of the organisation. Información, planning, motivation,
appraisal and development are among the most important
organisational systems. They all have a role to play in strategic
evaluation and management. Some of these systems are directly
linked to assessment and control, while others aren't. The following
systems may play a role in strategic evaluation in relation to
organisational systems.

A computer system
From the beginning to the finish, all evaluation and control
actions are led by proper information. As a result of their tight
relationship, the management information and management control
systems are built on one another. Everyone in the organisation
should be aware of their own performance, standards, and
contributions to the overall success of the organisation.
Management needs a system of information adapted to their
individual demands at every level, both in terms of adequacy and
timeliness.

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Scheduling Procedures
Because it provides the whole spectrum on which control
functions are based, planning serves as the foundation for control.
When it comes to naming the department in charge of production
planning, scheduling, and routing, these two phrases are commonly
used combined. It highlights that the organisation has a plan in place
that governs its conduct and actions. Measures are put in place to
ensure that these behaviours and activities do not deviate from the
norm. As a result, planning and control are mutually reinforcing.

Motivational Methodology
In the review and control process, managers' lack of
motivation is a key hurdle. In order to be certain that a company's
goals are being met, review and control are essential. In this
process, motivation is critical. In order to achieve organisational
success, managers and other employees need to be motivated to do
their best work.

System of Appraisal
Appraisal systems entail the systematic assessment of an
individual's performance at work and development potential. An
individual's abilities and potential for higher performance are taken
into account as well as their actual performance while evaluating
them. Consequently, the assessment system offers information to
the control system about how employees are doing.

The Development Methodology

Personnel development is the focus of the development
system, which aims to improve the performance of current and
future employees. As a result, an organization's ability to perform at
a higher level is a primary goal of a development system. These
findings serve as the foundation for further investigation and
analysis. In strategic evaluation, the importance of organisational
systems cannot be overstated.

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STRATEGIC MANAGEMENT FOR NON-PROFIT

ORGANIZATIONS
Nonprofit organisations use strategic management to pick
their goals, determine the strategic programmes required to attain
specific objectives on the way to the goals, and design the means
necessary to ensure that the policies and strategic programmes are
implemented. It is the long-term planning process used to create and
attain corporate goals that is known as strategic management. It has
been difficult to use strategic planning approaches in nonprofit
organisations because they were created in the context of huge
business enterprises. However, because charities come in such a
wide variety of shapes and sizes, it can be difficult to tell which of
one type's formal planning experiences and difficulties could be
relevant to another. The strategic management method discussed in
this article is a universal strategy. However, in the context of a
given organisation, its implementation will depend on the workers'
abilities, the length of the planning period, the values of the
organisation, its organisational structure, and its financial power.
While categorising nonprofits is tough, we've come up with
a general framework that comprises the following phases for
nonprofits: Nonprofit organisations' strategy development and
implementation: Managers have an important role in defining the
organization's mission and establishing its goals; The identification
of current aims and strategies; Environmental analysis: the
identification of strategic possibilities, threats, strengths,
weaknesses; Developing, evaluating, and implementing a strategy
are all steps in the strategic decision-making process. Progress
monitoring and evaluation.

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A great strategic plan begins with a clearly defined vision.

When it comes to an organization's long-term goals and aspirations,
it's important to have a clear picture of where they want to end up.
To construct a mission, one must first have a clear vision. The
organization's mission sets it apart from others with a similar aim.
What is the point of the company's existence, and what issues
should it address? This is the answer provided by the mission
statement. The organization's vision and mission both represent its
core principles. As part of its overall strategy, it employs these
essential foundations of its operation. In non-profit organisations,
the process of developing a vision and mission is turned into the
process of setting goals. It's important to note that these goals are
unique in that they don't have a single, overarching purpose (such as
profit).
The next step in strategic management is the synthesis of
information gleaned from both internal and external sources. The
findings of the study reveal opportunities, risks, and the strengths
and weaknesses of the organisation. The organisation will make use
of this data while formulating its plan. Strategic options are re-
evaluated depending on their risk and usefulness in the construction
of a strategy. Based on the organization's current resources, this is
the best course of action. It is possible for an organisation to employ
a variety of approaches after developing a strategic plan for doing
so. To name a few examples: determining the scenario, determining

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important points, establishing goals, etc. Nonprofit organisations

should have detailed strategic strategies. All personnel, including
volunteers, board members, funders, and the general public, must be
aware of the strategy in order for it to be implemented.
The strategy must be implemented and checked by the
organisation using the right tools. In the nonprofit sector, there
appears to be an increase in the use of strategic management
techniques.
One of the factors that has motivated many nonprofits to
establish more formal strategy is the presence of business people on
their boards of trustees. Strategic management has the significant
advantage of providing consistent directions for the actions of the
company. It is the job of managers to set specific goals for their
organisations and devise a plan to achieve them. As a result, their
businesses have a well-defined mission and goals. In order to make
the right judgments, strategic management helps Strategy demands
significant resources in terms of time, money and human capital in
order to be successful. The strategic-planning process may take
years in certain businesses. If a new review and evaluation process
isn't completed in time, businesses may delay crucial choices. Lost
opportunities may ensue as a result.

SOCIAL RESPONSIBILITY AND STRATEGIC MANAGEMENT

“Actions that appear to serve some societal benefit, beyond
the interests of the firm” are defined as “Corporate social
responsibility” (CSR). It covers a wide range of problems, including
environmental concerns, employee and supplier treatment,
philanthropic efforts, and other community concerns. The picture in
this paragraph gives a quick overview of the various aspects of
CSR.

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CSR necessitates that businesses go above and above the

requirements of the law in order to be considered compliant. In
terms of corporate social responsibility, an organization's actions
above and beyond what it owes its constituents are taken into
consideration (Johnson and Sholes, 2002). A company's duty to
operate in a way that does not hurt other stakeholders or the
environment, as well as to examine how its decisions and actions
will benefit society in general, is known as "Corporate Social
Responsibility" (CSR). Socially responsible behaviour is defined as
an organization's efforts to benefit its shareholders while also
minimising any negative effects on other stakeholders, such as
employees, suppliers, customers and the broader community, as
well as proactively mitigating any negative effects on the
environment.

RESPONSIBILITIES OF BUSINESS
A company's economic responsibilities are the most
fundamental. Businesses have a duty to deliver goods and services
to the public at a fair price. The corporation fulfils its economic
responsibilities by creating jobs for its employees, paying taxes to
the federal, state, and local governments, and donating to charitable
organisations.
A company's legal responsibilities include, among other
things, assuring the safety of its customers and minimising its
impact on the environment.

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Responsibilities in terms of ethics: reflect the company's

view of good corporate conduct. Beyond what is required by law,
one's ethical obligations extend. Despite the fact that they are not
required to do so by law, companies are expected to uphold high
standards of ethical conduct.
Business organisations that take a civic approach to
corporate social responsibility take on discretionary duties. They
participate in a variety of charitable endeavours, including public
service announcements, contributions, medical camps, and other
public-welfare initiatives. Full corporate responsibility requires
strategic managers to tackle social issues with the same enthusiasm
they do business issues.

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 MODULE - V | STRATEGY EVALUATION

REFERENCES

1. Strategic Management: A Competitive Advantage Approach

by Fred R David.
2. Strategic Management by Andrea Shepard, Garth Saloner,
and Joel M. Podolny
3. Strategic Management Book by Frank T. Rothaermel
4. Strategic Management Book by Richard L. Lynch
5. Strategic management: formulation, implementation and
control, 9thed. by jr richard b robinson
6. Strategic Management by Bhandari, McGraw Hill

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