Business policy

and Strategic
management

3rd Semester
MBA
 Introduction
 Why Business policy & strategic
management?

 It lends a Methodology and framework

 Provide route map to a firm
 Ensure speedy decision & direction
 Hedge against uncertainty
 To understand the external trends in
advance
 To Ensure the best utilization of resources
 What is Strategy?
 A well thought out systematic plan of
action to defend and to defeat
competitors.

 Emergent Strategy ?
 Level of strategy

 Corporate Corporate

 Business Business1 Business3

Business 2
 Functional
F1 F2 F3 F4
 Strategic management (SM)

 Originated in 1950’s and again

revived after 1990’s.
 S.M is defined as the art and science
of formulation, implementing and
cross-functional
evaluating
decisions that enable an
organization to achieve its objective.
 Key terms in Strategic
management
 Competitive advantage & Core
competency
 Vision & Mission statement
 External opportunities and threats
 Internal strength and weaknesses
 Long term objectives
 Annual Objectives
 Strategies
 Strategists
 Policies
 Advantages of Strategic
management
• Allows for identification, Prioritization and
Exploration of opportunities.
• Provide an objective view of management
problems
• Minimize the effect of adverse condition
• Allow effective allocation of resources
• Encourages forward thinking
• Gives degree of discipline and formality to
the management of a business.
• Framework for internal communication.
 Stages of strategic management
 Formulation
 Implementation
 Evaluation