Assignment

Syed abrar ahmed

Program Bachelor of Business Administration- BBA
Semester 2
BUSINESS STRATEGY
1.
Explain the following
(a) Functions of Business strategy 5
(b) Strategic Analysis
5
(a)Functions of Business Strategies
Business Strategies are important guidelines, which serve to anchor the organisation, by
providing direction.
The important functions of business strategies are:
1.

Vision formulation The vision of the organisation combines 3 basic elements - the
organisations reason for existence, its core values and the huge but achievable goals,
which the organisation has set for itself in the future. It needs to be descriptive and
reachable. The vision statement spells out the core purpose of the company.

2. Knowledge of mission Mission is broad-based and seeks to create an image of the

company on the basis of its core values. The mission statement of the company should
be clear, enduring, realistic, and specific. It should reflect the values, beliefs and
philosophy of the company. An objective is the end result of what the firm wants to
achieve in the long run. It helps to provide direction, co-ordination and motivation for
its members to pursue the benchmarks or success. Objectives help to keep the
organisation on the right track.
3. Goal definition Goals are close-ended. They are specific and concise. Goals can be
short-term, medium-term or long-term. They must be measurable, achievable, related
and time bound. The achievement of goals indicates that the organization is
proceeding along the right course of growth. For example, a company aims to be top
in its business area within 5 years
(b) Strategic analysis
Business is always operating in an ever changing environment especially in the present
scenario as the customers are educated and are expecting the best possible product or service
from the seller. Added to this, there is a frequent change in the requirements or specifications
from the customers as they want to get the product or service personalised or customised to
suit their personal needs, tastes and preferences. The needs and preferences are again
changing constantly because of change in fashion and style because today the customers want
to be distinctive in the society. All these complexities are forcing the business units to employ
analytical tools which are more powerful and thereby act as a source of strength to the user.
So, strategic analysis has occupied a dominant position in todays organisational set up and
enhances the image of the strategic analyst.

2. Define strategic management. What are the causes for failure of Strategic
Management?
Definition of Strategic Management
3
Causes for failure of Strategic Management 7
Definition of Strategic Management :
According to Paine and Naumes, strategic management involves the decision making and
the activities in an organization which
(1) Have wider ramifications
(2) Have a long time perspective and
(3) Use critical resources towards perceived opportunities or threats in a changing
environment.
Causes for failure of Strategic Management :

Despite adopting the techniques of Strategic management, firms have not met with the
desired success the different causes responsible for failure of Strategic management are:
a) Strategic management is always based on certain fundamental premises. If these premises
do not hold good, the strategy or the plans based on them would be unrealistic or ineffective.
b) Strategic management is only a means to achieve the corporate goals, incase there is lack
of realism it will be reflected in the strategy. So we should always remember to be realistic
while framing our mission statement or declaring our objectives and not highly optimistic.
c) Many a time, the young Managers try to be over-ambitious and start dreaming of success
overnight by adopting Strategic management techniques. This results in failure to reach the
goals set and causes frustration.
d) Sometimes, the management may be always chanting th mantra of strategic management
and overlook or ignore several lucrative opportunities and thereby fail.
e) Failure in implementing the strategy effectively will end up in producing poor result. Let
us remember the plight of a patient who has not taken the best medicine prescribed for his
illness grumbling about the sickness.
f) Strategic planning requires high level of calibre, experience and knowledge with the best
vision. If people do not have adequate experience, expertise and commitment, the business
organization may not succeed.
g) Often people complain about the cost associated with planning and implementation,
ignoring the benefits derived in the medium and long term.

3 Write short notes on the following:

a) Core competencies and their importance 5
b) Strategic leadership.
5
b) Strategic leadership.
Strategic leadership refer to those leaders who are responsible for the creation as well as the
implementation of the strategic vision of the organization. The strategic leader of an
organization needs to provide the necessary direction in the following ways :
a) Vision: An effective leader has a vision for the growth of the organization. Normally, he is
able to predict future trends and is ahead of times in providing value to customers. Due to the
vision, the strategic leader is able to guide the course of business for the organization.
b) Organizational structure: A strategic leader is able to analyse the internal conditions of
the organization and the demands of the market place in order to arrive at a suitable
organizational structure. Such a structure helps in deciding on the action plans and allocation
of work, thereby making the implementation of the vision easier.
c) Pragmatic approach: Such an approach is practical, goal-oriented and is positive in
nature. A strategic leader has the ability to adopt a pragmatic approach in times of crisis and
can turn the business around.
d) Communication: An effective leader possesses good communication skills and is able to
clearly provide instructions for action. He also has the ability to establish proper
communication networks for his organization, which aid in the free flow of crucial
information and provides the framework for better action. Such a leader also makes informed
decisions as he has formal and informal channels of communication.
e) Culture: Due to the establishment of an efficient organizational structure and open
communication network as well as his personal qualities of reliability and consistency, a
strategic leader is able to forge a healthy work culture. He is also sympathetic to the problems
faced by the employees and provides solutions to ease their troubles, thereby establishing a
good environment for employees. This leads to increased productivity as the workers are at
rest with their personal troubles and concentrate on their work better.
f) Change Management: The strategic leader is capable of effective management of change
as he is able to anticipate and prepare for such change. He is always aware of the market
conditions, technological developments as well as the internal conditions of his organization
and has the ability to adapt to change quickly. Most efficient leaders also plan in advance to
minimise damages due to changes in environment. Hence, such leaders are better equipped to
lead the organization during times of crisis or change.

g) Corporate Governance: An effective leader practises the principles of good corporate

governance, as he recognises that the individual cannot be greater than the organization. He
implements strategies to ensure that there is transparent functioning within the organization.
This serves to boost the morale of employees. Such a leader also ensures that there is an
effective succession planning so that the organizations existence is not threatened by hostile
takeovers.