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Q1. How do you differentiate between strategy and strategic management? What
is your understanding of ‘Policy’? Write down source definitions of strategic

Strategy is defined as the unified plan designed to achieve goals and objectives. This plan is
conducted after understanding the environment and system. Strategy is the process of
providing a trick so as to reach the destination with saving in time, cost, resources and
energy. Strategy is all about providing a course of action and every strategy is how to beat
the competition. Strategy is all about providing a right set of tools and techniques to make
sure that the process of success is well defined. Strategy is a tool in every initiative we take
up with. It starts with proper understanding o environment and creating a strategy requires
providing a option for understanding the decision and providing solutions for each of the
type. Strategies are done at corporate, business and functional level.

The term strategy is derived from Greek word ‘Strategos’ which means ‘Generalship’ i.e. The
science or art of planning and directing large scale military movements and operations. In
business parlance strategy may be defined a stream if management decisions that
determine the purpose and direction if the enterprise. These management decisions serve
as a route may to guide the enterprise towards its desired destination as specified in its
mission statement. Example of strategic decisions include:-

(i) Financing if business

(ii) Pricing if products to gain competitive advantage in the market place
(iii) Diversification, acquisition and divestment
(iv) Retrenchment of employees
(v) Recognition if trade unions etc

Strategy is the directions and scope of an organization over the long term which achieve
advantages for the organization through its configuration if resources within a changing
environment, to meet the need of market and to fulfill stake holder expectations.

Strategic Management: It is all about creating a mission understanding, the environment

analyzing the environment institutionalizing the strategy, controlling and evaluating,
whereas institutionalizing means way if doing a practice and uses. Strategic Management
requires a proper way if evaluating and controlling by use of various types if strategies
defined strategic management as “a stream of decisions and actions which leads to the
development of an effective strategy or strategies to help achieve corporate objectives”.

Policy: The implementation of strategy requires development of functional policies. These

provide direction to middle management on how best to make use if the resources
allocated. They guide middle managers in devising operational plans and tactics to make
the strategy work. Policy is only guide to action. It does not provide prescription on how to
handle specific situations like introduction of specific products or dismissal of a particular
worker. Policy is the general guidelines which help managers to make certain choices.
Policies are developed to ensure that strategic decisions are implemented. It channelizes
organizational efforts. It leads to the achievement if goals, objectives, purpose and mission
if the company. Firms environmental factors, internal policies and power play, all affect the
policy making process as the policies decided will ultimately influence the distribution if
resources. Also internal resistance to change, coalition building and conflicts between units
are likely to occur during the development of policies. Specialists in each functional area
develop plans and policies. The functional areas have traditionally been classified as
production, marketing, finance and personnel.
Strategic decision making is the most important functions if any manager. Strategic
decision making is the prominent task of the senior management. In the process of
strategic mgt the basic thrust of strategic decision making is to make a choice regarding the
courses if action to adopt. Thus, most aspects of strategy rest on strategic decision making.
The fundamental strategic decision relates to the choice of a mission. In other words,
answers to questions.

“What is our business? What will it be? And what should it be?” Are the basic concerns in
strategic management? Finally, at the level if choosing the strategy, the senior
managements chooses from among a number of strategic alternative in order to adopt one
specific course if action which would make the company achieve its objective and realize its
mission. Senior management has to make important strategic decisions with regard to
environmental threat and opportunities, company’s strength and weakness, resource
allocation etc. Thus, strategic decision making joins the cores of strategic management.

The characteristics of strategic decision

1. Strategic decisions are likely to be concerned with the long-term direction if an


2. Strategic decisions are normally about trying to achieve some advantage for the
organization over competition. For e.g. The merger was expected to give manager
advantage in the music industry to the extent that it could transformer the way in
which music was sold and distributed and how artists received payments. In other
situations advantage may be achieved in different ways and may also mean different
things. For e.g. In the public sector, strategic advantage can be thought of as
providing better value for money services than other providers thus attracting
support and funding from the government. Strategic decisions are sometimes
conceived of, therefore, as the search if effective positioning in relation to
competition so as to achieve advantage.

3. Strategic decisions are likely to be concerned with the scope of an organizations

activity. The issue if scope of activity is fundamental to strategy because it concerns
the way in which those responsible for managing the organization conceive the
organizations boundaries. This could include important decisions about product
range or geographical coverage.

4. Strategic decisions are likely to affect operational decisions. They are extremely
difficult, complicated and, at times intriguing and enigmatic process specially in
organization with wide geographic scope such as multinational firms or in firms with
wide ranges if products and services. Strategic decisions can involve a high degree
of uncertainty.

Definitions of strategic management Strategic management includes understanding the

strategic position of an organization, strategic choices for the future and tuning strategy into
action. It is also defined as a “stream if decisions and actions which lead to the development
of an effective strategy or strategies to help achieve corporate objectives”.

Hofer and others considered strategic management as the process which deals with
fundamental organizational renewal and growth with the development if strategies,
structures and systems, necessary to achieve renewal and growth within the organizational
system needed to effectively manage the strategic formulation and implementation
Strategic mgt can also be defined as the formulation and implementation of plans and
carrying out if activities related to the matters, which are if vital and continuing importance
to the total organization.

Q2. What is vision and mission? Enumerate its elements. Write down your
company’s vision and mission statements and discuss whether they fit into your
definitions. What are goals and objectives? What are the main features of
objectives? State factors affecting objectives. Distinguish between official and
operative objectives.

Vision It is desired future state on the aspiration if the organization.

Mission The corporate mission statement describes the firm’s basic purpose i.e., why
it exists, how it sees itself, what it wishes to do, its beliefs and its long term aspirations. The
mission statement therefore informs everyone if the corporate vision and purpose, the firm’s
core values and its role in the society. It should also provide a good statement of the
business definition if the firm by specifying the products, functions and markets it expects to
serve. A clear business definition provides a better focus when top management considers
various strategic alternatives with respect to products, service or markets.

Examples of few mission statements include:-

1. Tata Information System – “To be India’s most successful and most respected
IT Company’.

2. Ranbaxy – “To become $1 billion research based global pharmaceuticals

company”. Mission can be defined as the overriding purpose in line with the values
on expectations of stakeholders.

Goals: These are the general statement of purpose.

Objectives: Objectives are the ends which the organization strives to achieve in order to
fulfill its mission. Examples are:-

1. Increase in the market share.

2. Growth in profits
3. Quality products or services to customers
4. Service to society.

Objectives should be specific, measurable, attainable and time bound. They provide
standards against which to measure organizational performance. When expressed in
specific terms objectives become goals. Objectives are open ended attributes whereas
goals are closed ended attributes. The objectives if a firm is formulated by the top

The following factors influence the formulation if objectives:-

1. The forces in the environment which are represented by the firm’s stockholders.
These comprise the owners, shareholders, governments, trade unions, competitors
and suppliers.
2. The enterprise’s resources. Larger firms have nine resources to combat forces in the
3. The internal power relationship amongst the top managers. The extent of support
management enjoys if others in the organization e.g. Employees, stockholders etc
will determine the degree if influence.
4. The past objectives of the firm. These are generally taken as reference by top
managers to set current objective. The changes to the past objectives may be
incremental in nature depending on the competing claims presented by the stake

Q3. What are the basic social obligations of a business organization? Do these
conflicts with the profit objective of the business? What is social audit? Analyze
the mission and objectives of your own organization. Evaluate and write down to
what extent does the organization follows social responsibility and its objectives?

Corporate social responsibility demands that firms behave as ‘good citizen’ while pursuing
purely commercial goals. The firm should conduct themselves on the basis of certain
fundamental principles. Source of the commonly accepted principles are :-

1. Concern for the quality of life including life at work.

2. Concern for the physical environment.
3. Fair reward for effort and enterprise.
4. Interest and involvement in activities of the wider community.
5. No mis-representation in advertising on fraudulent activities.
6. No unfair discrimination in hiring promotion or dismissal of employee.
7. Compliance with laws and established customs of the community.

Many large, profitable firms, however, opt to behave in socially responsible ways as co-
operation and support of the community is vital to their long term survival and commercial
success. Source of the benefits that accurse from such involvement are:-

1. Projection of a ‘green’ image which is good for business and leads to higher soles.
2. Sponsorship of charitable and community events attracts valuable publicity.
3. Firm’s image as a good employer helps to attract and retain high caliber workers.
4. Use of energy conservation and anti pollution environmental methods leads to
reduced production.
5. Cost and increased corporate efficiency.
Q4. What is the concept of environment? Search the library and other sources of
information to predict the type of environment managers are likely to face ten
years hence. Analyze the environment scanning process in your own organization
and evaluate how it will face the environment which is fast developing as per your
analysis above?

To a business firm environment means the sum total of conditions, events and influences
that surround and affect it.

The environment in which a business firm exists may either be internal or external. The
internal environment refers to all factors (players) within an organization which could
provide strengths or weaknesses of a strategic nature.

The players in the internal environment comprises if stakeholders i.e. Owners, share holders,
competitors etc, and the influences exerted by them.

The external environment on the other hand consists of various forces which may either
present an opportunity or pose a threat to the firm. Typically these external forces exist in
the following sectors:-
• Political
• Social
• Demographic
• Economic
• Supplier
• Technology
• Physical.

Characteristics of environment

• Environment is complex – The environment consists of a number of factors, events,

conditions and influences accusing from different sources.
• Environment is dynamic. - The environment is constantly changing in nature.
• Environment is multifaceted - What shape and character the environment assumes
depends upon the perception of the observer.
• Environmental scanning is normally carried out by means of a search of verbal and
written information, spying, forecasting, MIS etc.

The sources of verbal and written information include:

• Mass media such as radio and television.
• Firm’s documents, files, MIS, employees etc.
• External agencies such as the government, trade associations, marketing
intermediaries, customers etc.
• Formal studies by consultants, educational institution, markets research agencies
• Spying through services of professional’s agencies, one’s employees and former
employees of competition.
• Secondary sources of information such newspapers, magazines, trade journal,
government publications etc.

A wide range of methods and techniques are used in conduct of environmental survey and
forecasting in strategic planning. As the main purpose of environmental survey is
forecasting the future state of environmental factors, most of the techniques are based on
the statistical methods used in forecasting.

Q5. Explain the role of SWOT analysis as the tool of facilitating strategic choice at
the business level. How is it similar/dissimilar to the grand strategy matrix and
the matrix of grand strategy clusters?

SWOT is the acronym for ‘strengths, weakness, opportunities and threats’. Typically strength
and weaknesses exists within the organization whereas opportunities and threats and
normally encountered in the external environment.

A few examples of areas where opportunities may be present are:-

1. International market.
2. mergers or acquisition of competing fairs.
3. Introduction of new production/ services.
4. Development of new markets on penetration of existing one.
5. Control of distribution network.
6. improvement of relation with suppliers

A few examples of areas where threats may emerge are;_

1. Competitions.
2. Governments legislations
3. Technical obsolescence.
4. Sudden changes in customer preferences
5. Over- dependence on main suppliers in margin customers.
6. Volatility in on collapse of the stock market.

A few examples of sources of strength and weakness existing within the form
jerm are :-
1. Customer’s relations.
2. Production efficiency
3. R &D skills. (e.g. New product development)
4. Quality control and quality assurance.
5. Distribution network.
6. Advertising and sales promotions.
7. Market researches facilities.
8. Cash flow management.
9. Organization culture.
10. Human resource potential.
11. Corporate image, social responsibility and brand equity.

SWOT ANALYSIS :- The two projects ETOP and SAP, can be merged and analyzed to
narrow down the strategic alternative to once which feasible.

By way of illustration of SWOT profile, of a hypothetical firm in the software business is show

ETPO sector impact SAP impact factor

Government Finance
Market Marketing
Supplier RAO
Technological Personnel
International management

ETOP profile of a Hypothetical firm

Based in the above information it may be such that the firm has definite strength in the
functional areas of corporate capabilities and resources. The environment shown the
domestic market to be sluggish. As government policies are favorable and international
market shown potential, the firm should intensify marketing efforts to attract orders from
abroad. The expansion strategy appears to offer a feasible approach competence and
financial and personnel resources.

Firm may also consider suitable merger acquisitions, as a part of the expansion strategy,
provided substantial synergy benefits are likely to accrue. Any strategy formulated through
the SWOT analysis technique will depend on certain other factors as well. A strategy of
expansion will only be selected provided to management has an inclination for risk-taking.
Prior to making a strategic choice various subjective factors will need to be considered when
analysis that emerge from the SWOT analysis


Q1. What is core competence? Explain with some examples. Can you list your
company’s core competencies? What is organizational culture? Why is it

Core competencies are the basis upon which as organization achieves strategic advantage
in terms of activities, skills or know show which distinguish it from competition and provide
value to customers or clients. On the basis of its resources and behavior, an organization
develops certain strengths and weaknesses which when combined lead to synergistic
effects. Such effects manifest themselves in terms of organizational competencies.
Competencies are special qualities possessed by an organization that make them without
and pressures of competition in the market place. In other words, the net results of the
strategic advantages and disadvantages that exist for and organization determine its ability
to compete with its revolts. Other terms frequently used as being synonymous to
competencies are unique resources, core capabilities, invisible assets embedded knowledge,
and so on. To identify a cone competence, Prahalad and Hamel prescribe three tests:-

1. It should be able to provide potential access to a wide variety of markets

2. It should make a significant contribution to the perceived customers benefits of the era

3. It should be difficult for the competition to imitate for example -

• Canon’s core competence lies in optics ,imaging and microprocessor controls
• Sony’s in miniaturization
• Philips in optical media
• 3 m’s in stick tape
• Honda’s in engine and power trains etc. The core- competencies of this cooperation have
enabled them to operate in diverse markets offering different products. In instance, canon
has entered into, and even dominates, diverse markets such as copies, laser printers,
cameras and image scanners.
• Nandas if Escorts in light engineering,
• Reliance industries in skillful project management and execution.
• S Kumar in textile processing.
• Kumar Mangalam Birla, of the AV Birla group, sees the group’s core competencies in a wide
array of skills related to process industries, project management, operations, raw material
sourcing, distribution and logistics, setting up dealer networks commodity branding, and
raising finance at a competitive cost.

The idea of core competence is brilliant way to focus upon the latent strength of and
organization yet they cannot be taken for granted. Over reliance, on core-competence to the
extent of becoming prisoners of one’s own excellence my result in strategic- myopia.

Core competency save a useful purpose if they are used to develop sustained strategic
advantages though building up organizational capability, which is such total of resource and
behavior, strength & weakness, synergistic efforts occurring in and the competence of any

Organizational culture: This is a dimension of climate that leaders help to develop. The
culture of an organization consists of customary ways of doing things and its members
shared perceptions of issues that affect the organization. A firm’s culture evolves gradually.

It affects:-

• Leadership styles
• Individual perceptions of colleagues and situations.
• Assumption about how work should be performed.

Attitudes towards what is right or wrong. Organizational culture may be innovative,

conservative or a mix to two. It creates norms of behavior, attitude, and perception, myths,
feelings etc. To change the existing culture of an organization may require injection of new
staff, incentive schemes for acceptance of new working methods, whole hearted
management support of new ideas etc. Organizational culture is the set of important
assumption – often unstated – that members of an organization share in common. There are
major assumptions in common: beliefs and values. Believes are assumption about reality
and are divided and reinforced by experience. Values are assumptions about ideals that are
desirable and worth striving for. When beliefs and values are shared in an organization, they
create a corporate culture.

The manifestation of corporate culture in as an organization is evident in:-

Shared things (e.g., the way people dress)

Shared saying (e.g., “let’s get down to work”)
Shared actions (e.g., a service oriented approach)
Share feeling (e.g., land work is not rewarded him)
These shared assumptions can help to decipher the composition of the corporate
culture of any organization

Culture is a strength that can also be a weakness. As a strength, culture can facilitate
communication, decision making and control, and create cooperation and commitment. As a
weakness, culture may obstruct the smooth implementation of strategy by creating
resistance to change. Politicized organizational environment, promoting bureaucracy in
preference to creativity and entrepreneurship and unwillingness to look outside the
organization for best practices.

There are three factions that seen to contribute to the building up of a strong
culture there are:-

• A founder or an influential leader was established desirable values.

• A sincere and dedicated commitment to operate the business of the organization
according to the business of the organization according to the desirable value.
• A genuine concern for the well being of the organization’s stakeholders. Managerial
behavior arising out of corporate culture car either facilitates or obstructs the smooth
implementation of strategy. A major role of the leadership within an organization is to
create an appropriate strategy culture fit.
Q2 Explain the role of three behavioral considerations in strategy examination
and chaise. What are the advantages of centralization and decentralization? How
does having exceptionally competent people at lower levels in the organization
facilitate decentralization?

Glueck has defined Strategic choice as the decision to select from among the alto nature
grand strategies considered the strategy which will best meet the enterprise’s objective.
Strategic choice is an analytical as well as judgmental task. So performer the task the frail
relies heavily on its marketing research and marketing information systems. This is so
because strategies choice finally boils down to choice of products and markets that the
fearing will play in. The selection factions’ car is classified as objective and subjective
factions. The objective factors which are based our analytical technique are also referred to
as rational normative is prescript facts. The subjective factors, on the other hand, are
qualitative in nature and based on personal judgment. These factions are also referred to as
intuitive or descriptor faction. The strategic alternative generated are armload our basis of
the objective and subjective selection faction.

Leadership Implementation: - Leaders are important to an organization as they help it

cope with change. They ensure that plans and policies formulated are implemented as
planned. The successful implementation of strategy chosen will need to be ensured by
selecting the right strategist in the right place at the right tire. The criteria employed will
include such factors as education, abilities, experience, temperament and personality. The
farina must ensure the strategy chosen and the CEO. So complete and grow in global
market places joins must concentrate on being creative and innovative and to achieve this
they will need people centered leaders not the old style authoritative managers.

Organization Development (OD): OD is an aspect if leadership implementation that

involves charge processes. It is defined as a large range effort to improve an organizations
problems-soling and renewal processes through a more effective and collaborative
management of organization culture. To implement change consultants use a variety of
techniques which include survey feedback, confrontation meetings, team building
selections, transactional analysis etc. Must sewing has suggested there stages for
overcoming resistance to change:-
• Unfreezing: - resistance rid of existing practices and ides that stand in the way of
change. Awareness of the need and benefits of change can be introduced through
the OD techniques.
• Changing:-Teaching employees to think and preformed differently.
• Refreezing- Establishing new moors and standard practices. Refreezing involves the
consolidation and stabilization of the new change.

Corporate or core value are of paramount importance when building or lasting firm. These
are small set of guiding principle not to the comp outlined for financial gain or short their
expediency values run deep they are timeless guiding principles that drive the way a their
operates. Corporate values are the fundamental beliefs on which the farina is built. They
are the essence of a just identity. They are long lasting and serve as a beacon for firm to
chain their business course values and nouns and nouns are truly invisible and often an
firm’s employees are not very aware of their culture or the role they play in helping to
maintain it.

However every fern does have it’s our culture and its own set of values sometimes these are
not clear to outsiders in ever to those within value drives business firm must articulate their
values clearly so that the stakeholders understand what the organization stands for.
Centralization:-The organization is dominated by either a very powerful individual or a
dominate small group strategic decisions and many operational Owen are made by the
centre and very few are devolved to other managers. Such an organizations ability to
respond to environmental change becomes limited. There is power culture in centralized
organization power culture is common in small entrepreneurial organization.

Decentralization- The organization is run by rules and laid down precedence’s. These
organizations resound slowly to change due to slow decision making process. it has role
culture which is common in traditional bureau races such as government departments. The
task of management in a role culture is to manage procedures.

Q3. Explain the relationship between renounce commitments to strategy

activation? It is said, ‘People are not like other resources’. Take a position and
defend it. Distinguish between ‘Power’ and ‘Politics’?

It is said, “People are not like other resources” take a position and defend it Distinguish
between ‘power’ and ‘polities’. Consisting of board of directors the CEO or managing
director, and executive committee could decide the requirements and distribute resources
Top-Down approach - is usually adopted in an entrepreneurial mode of strategy
Bottom-Up approach - Resources are allocated after a process of aggregation from the
operating level.
Strategic budgeting - It is a mix of the above approaches and involves an iterative from of
strategic decision making between different levels of management. Besides the strategic
budget, there are several other means of resource allocation such as BCG matrix, PLC and
so on.

Making a Strategic Budget:

Power is defined as “the ability to influence others” and power within an organization is
derived from five types of sources.
• Reward Power arises from the ability of managers to reward positive outcomes.
• Concise Power arises from the ability of managers to penalize negative
• Legitimate Power arises from the ability of managers to use position to influence
• Referent Power arises from the ability of the managers to create a liking among
subordinates due to charisma or personality.
• Expert Power arises from the manager’s competence, knowledge and expertise that
is acknowledged by others.

Strategists use one or nine of these power to influence the behavior of organizational

Politics is concerned with the use of power and relates to managing coalitions, consensus –
building, and the creation of commitment to organizational purpose and mission. The
nature of organization itself creates the conditions for corporate politics to manifest itself.
Corporate politics is “the carrying out of activities not prescribed by policies for the purpose
of influencing the distribution of advantages within the organization”.
For everyone manger that considers corporate politics and the use of power as bad, there
could be another manager who feels that it is good. So, despite source well-meaning
managers shunning it, politics remains a part of the organization. Political considerations
and use of power, therefore, are a part of behavioral implementation by strategists. Politics
is related to the use of power but it is not similar to it. Politics and power may be thought of
as a means for the achievement of organizational objectives. They affect the way a strategy
is formulated and implemented.

Question: It has been observed that “WS industries strategic success has been
the synergy it was able to establish with its competencies to supply core
components and its competitive advantage in terms of price’.

Yes, I agree with the view that ‘WS industries strategic success has been the synergy it was
able to establish with its competencies to supply core-components and its competitive
advantage in terms of price? Since competing for end products like lightening conductors,
surge arrestors and capacitors was impossible on the multinational’s home territory for WS
industries. WS industry adopted the strategy to join the competitors and make them
partners instead of competing with them. WS industry identified its core-competency which
was their knowledge of the physical and chemical process involved in mass production of
electrical insulating porcelain, which was their major strength. Insulators being labor
intensive product, WS could often international quality at competitive prices. WS industry
decided to supply their core components to the original equipment manufacturers and end

Mr. V Srinivasan, vice Chairman and Managing Director of the company, made personal
visits to companies in Europe, where he found that executive were open to the idea of
buying insulators from India, as they were faced with rising costs at home and WS
represented the opportunity to lower their production costs.

This strategy was successful and it was evident from the company’s exports turnover. The
company repeated the performance in the US market after which the company entered into
a collaboration to set up a plant in Canada.

Q1. Yes

Q2. Yes

Q3. Yes

Q4. Yes

Q5. Yes

Q6. Yes

Q7. No

Q8. Yes

Q9. No, Skills and abilities required will be mental ability, analytical ability, oral and
written communication skills.

Q10. SBU is Strategic Business Unit.

Q11. Yes

Q12. Yes

Q13. No

Q14. Yes

Q15. No

Q16. No

Q17. Contingency strategy is required as backup in situations where the occurrence of an

event or its timing cannot be predicted.

Q18. No

Q19. Yes

Q20. Functional policies

Q21. No

Q22. Yes

Q23. No

Q24. Yes, the steps of strategic implementation are as follows.

- Resource allocation
- Leadership implementation
- Structural implementation
- Functional implementation
- Behavioral implementation

Q25. Yes

Q26. No

Q27. Yes

Q28. Yes

Q29. Yes

Q30. Strategic control continually monitors strategy in the context of organizational and
environmental change and take necessary steps to adjust the strategy to the new
requirements. The two techniques used to evaluate strategic control are:-

(a) Strategic momentum control and

(b) Strategic leap control.

Q31. Operational Control is aimed at allocation and use of firm’s various resources. The
evaluation techniques for this type of control system are based on internal analysis neither
than environmental scanning. These include financial analysis ratio, budgetary control,
MBO, network techniques like PERT and CPM etc.

Q32. Strategic Review and Control

Q33. Yes

Q34. Yes

Q35. Performance gap is the gap between the expected outcomes of continuing with the
existing strategy and the desired outcomes which could result in the future if the new
strategy were to be implemented.

Q36. Yes

Q37. These are basic types of strategic controls.

Q38. No

Q39. Yes

Q40. Yes

Q41. Yes, Structure of a firm can influence its strategy formulation process.

Q42. Yes

Q43. Yes

Q44. No

Q45. Yes