Professional Documents
Culture Documents
Business Policy
&
Strategic Management
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Strategy Formulation
Strategic Intent Vision
Mission
Business Definition
oals & Objectives
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Strategy Formulation :-
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is evaluated on 3 counts:
Versatility: your ability to adapt to an ever canging environment.
Growth: your ability to maintain a continuing grot.
Markets: your ability to penetrate or create ne markets.
SWO Analysis
our eaknesses are determined troug failures, defeats, losses
and inability to matc up it te dynamic situation and rapid
cange. e eaknesses may be rooted in lack of managerial
skills,, insufficient quality
skills quality,, tecnological backardness, inadequate
systems or processes
processes,, slo deliveries, or sortage of resources.
SWO Analysis
SWO Analysis
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After SBUs ave been identified for a particular organization, te next step
is to categorize eac SBU itin one of te folloing four matrix quadrants:
|tars ± SBUs tat are ³stars´ ave a ig sare of a ig-grot market
and typically need large amounts of cas to support teir rapid and
significant grot. Stars also generate large amount of cas for te
organization and are usually segments in ic management can make
additional investments and earn attractive returns.
VashVows ± SBUs tat are cas cos ave a large sare of a market tat
is groing only sligtly. ese SBUs provide te organization it large
amounts of cas, but since teir market is not groing significantly, te cas
is generally used to meet te financial demand of te organization in oter
areas, suc as te expansion of a star SBU.
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Strategy Formulation :-
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Dos ± SBUs tat are dogs ave a relatively small sare of a lo-grot
market. ey may barely support temselves; in some cases, tey actually
drain off cas resources generated by oter SBUs.
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Strategy Formulation :-
Matsusita Strategy Matrix e cost and time required to create a ne
product or service are so large tan lack of a perfectly aligned and
executed innovation strategy can be extremely asteful.
ou must create an innovation strategy tat is aligned it not only
your firm's core mission and values, but it your future tecnology,
supplier, and manufacturing strategies. Lack of alignment beteen
product and process arcitectures rapidly increases cost and risk. If
your development process and organization structure are not
matced to eac oter and $
%, you're in even
deeper trouble.
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Strategy Formulation :-
oad-mapping leads to effective project portfolio development and
management. It provides for company-ide tecnological strategy
development and tecnology assessment, as ell as division-level
project evaluation and strategic aligning.
oad-mapping tools
provide also a common language for innovation and building bridges
beteen tecnologists and business managers itin your
corporation, and it you major suppliers and customers..
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Strategy Formulation :-
Porter's model for industry analysis - outlines te primary forces tat determine
competitiveness itin an industry and illustrates o tose forces are related.
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$ (%"!
(%"! e ne era of rapid, systemic and radical
cange requires more flexible, systemic and dynamic approaces to strategy
formulation. us today, corporate strategy formulation sould be a combination of
different currently practiced approaces described above ± judgmental designing,
intuitive visioning
visioning,, and emergent learning; it sould be about transformation as ell as
perpetuation; it as to involve individual cognition and social interaction, co-
co-operative
as ell as conflictive; it must include analyzing before and programming after as ell
as negotiating during; and all of tis must be in response to at can be a demanding
environment.
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Strategy Formulation :-
esource Based - e currently dominant vie of corporate strategy ± resource
resource--based
teory or resource
resource--based vie (
BV of firms ± is based on te concept of economic rent
and te vie of te company as a collection of capabilities. is vie of strategy as a
coerence and integrative role tat places it ell aead of oter mecanisms of strategic
decision making.
e main tenets of strategic intent planning are direction, discovery and destiny.
|$) includes an understanding about te long long--term market or
competitive position tat a firm aims to build over te next decade. our sense of
direction sould be a vie of te future tat conveys a unifying and personalizing
sense of direction.
*|$)+, our strategic intent sould retain a sense of discovery and
*|$)+,our
excitement about te future. is elps create a competitively unique outlook and
gives employees te opportunity to explore ne competitive territory.
*|$), Strategic intent as an emotional edge to it and it sould be a
goal tat bot you and your employees perceive as inerently ortile.
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Strategic Intent :- By setting out strategic intent, clarifies company¶s
goals and elp set te pat for future successes.
A mission is different from a vision in tat te former is te cause and te
latter is te effect; a mission is someting to be accomplised ereas a
vision is someting to be pursued for tat accomplisment.
$
is a legally
recognized organization designed to provide goods and/or services
to consumers
consumers..[
.
$ include economic grot,grot, interest rates,
rates,
excange rates and te inflation rate.
rate. ese factors ave major
impacts on o businesses operate and make decisions. For
example, interest rates affect a firm's cost of capital and terefore to
at extent a business gros and expands. xcange rates affect
te costs of exporting goods and te supply and price of imported
goods in an economy
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(,.,|,,.,', -
|$include te cultural aspects and include ealt consciousness
|$include consciousness,, population
grot rate,
rate, age distribution,
distribution, career attitudes and empasis on safety. rends in social
factors affect te demand for a company's products and o tat company operates. For
example, an ageing population may imply a smaller and less-less-illing orkforce (tus
increasing te cost of labor. Furtermore, companies may cange various management
strategies to adapt to tese social trends (suc as recruiting older orkers.
factors include ecological and environmental aspects, suc as
&D activity,
automation,, tecnology incentives and te rate of tecnological cange
automation cange.. ey can
determine barriers to entry,
entry, minimum efficient production level and influence outsourcing
decisions. Furtermore, tecnological sifts can affect costs, quality, and lead to
innovation..
innovation
.+
factors include eater, climate, and climate cange
cange,, ic may
especially affect industries suc as tourism, farming, and insurance. Furtermore, groing
aareness to climate cange is affecting o companies operate and te products tey
offer--
offer --it
it is bot creating ne markets and diminising or destroying existing ones.
& -
egulator controls te policy and beavior of an organization. So te
organization is affected by is activities. e regulators are also of to types. ey
are
egulatory Agencies and Interest groups.
egulatory agency is a unit formed by
government ic provides protection to people an organization by curbing unfair
business practices. It protects consumer rigts. Interest groups are formed to
influence an organization. Suc groups orks for te interest of its members or group
|
is evaluated on 3 counts:
Versatility: your ability to adapt to an ever canging environment.
Growth: your ability to maintain a continuing grot.
Markets: your ability to penetrate or create ne markets.
SWO Analysis
our eaknesses are determined troug failures, defeats, losses
and inability to matc up it te dynamic situation and rapid
cange. e eaknesses may be rooted in lack of managerial
skills,, insufficient quality
skills quality,, tecnological backardness, inadequate
systems or processes
processes,, slo deliveries, or sortage of resources.
SWO Analysis
SWO Analysis
Integrative & Systemic factors ± Mktg. mix, mkt. standing, co. image.,
mktg. organization, mktg. system, mktg. MIS & so on«
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($( ±is includes ±
Factors
elated to te Production System ± apacity, location,
layout, product or service design, ork systems, degree of
automation, extent of vertical integration & oters«
Factors
elated to te Operations & control System ± aggregate
production planning, material supply, inventory, cost & quality
control, maintenance systems & procedures & so on«
Factors
elated to te
& D System ± Personnel, facilities,
product development, patent rigts, level of tecnology used,
tecnical collaboration & support & so on«
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($( ±is includes ±
Factors related to te general management system ± Sources, qty., quality &
timeliness of information, retention capacity & security of information«
Factors related to te transmission & dissemination ± Speed, scope, idt & dept
of coverage of information & illingness to accept information«
Factors related to external relationsips ± Influence on & rapport it te govt.,
regulatory agencies & financial institutions, public relations, sense of social
responsibility, pilantropy, public image as corporate citizen & so on«
6 eneral Mgmt. Strengt ig Quality & exp. op mgmt,generally adopts a
proactive stance it regard todecision making.
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