TABLE OF CONTENT

Chapter Topic name

1 INTRODUCTION

1.1 Introduction Of Topic (10)

1.2 Importance Of Study (5)
1.3 Explaination Of Study(10)
1.4 Strategic management functions (6)
1.5 Advantages and disadvantages of study and
Concept of topic (15)
2 RESEARCH METHODOLOGY

2.1 Study of research on topic (5)

2.2 Objective of study(5)
2.3 Methodology(3/4)
2.4 Scope of study (5)
3 LITERATURE REVIEW
(5)
4 DATA ANALYSIS & INTERPRETATION (10)
Current year take graphs from google graphs and its explaination/
data 2015-2018 TAKE ANY COMPANY STRATEGIC PLANNING
5. SUGGESTIONS(1/2)

6. CONCLUSION(1/2)

7. REFERENCES(1)

7.1 Bilbiography

7.2 Webliography
 CHAPTER -1

INTRODUCTION

1.1 INTRODUCTION OF TOPIC

This chapter introduces the concept of business policy and strategic

management. With the increased competition, the management of business
has acquired strategic dimension. All professionals, including the chartered
accountants, working towards growth of their businesses must possess
sound knowledge of strategic management. Business policy and strategic
management are highly intertwined.

Strategic Management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive advantage for their
organization. An organization is said to have competitive advantage if its profitability is
higher than the average profitability for all companies in its industry.

Strategic management can also be defined as a bundle of decisions and acts which a manager
undertakes and which decides the result of the firm’s performance. The manager must have a
thorough knowledge and analysis of the general and competitive organizational environment
so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), i.e., they should make best possible utilization of strengths,
minimize the organizational weaknesses, make use of arising opportunities from the business
environment and shouldn’t ignore the threats.

Strategic management is nothing but planning for both predictable as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the smallest
organization face competition and, by formulating and implementing appropriate strategies,
they can attain sustainable competitive advantage.

It is a way in which strategists set the objectives and proceed about attaining them. It deals
with making and implementing decisions about future direction of an organization. It helps us
to identify the direction in which an organization is moving.

Strategic management is a continuous process that evaluates and controls the business and the
industries in which an organization is involved; evaluates its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reevaluates strategies on a
regular basis to determine how it has been implemented and whether it was successful or
does it needs replacement.

Strategic Management gives a broader perspective to the employees of an organization and

they can better understand how their job fits into the entire organizational plan and how it is
co-related to other organizational members. It is nothing but the art of managing employees
in a manner which maximizes the ability of achieving business objectives. The employees
become more trustworthy, more committed and more satisfied as they can co-relate
themselves very well with each organizational task. They can understand the reaction of
environmental changes on the organization and the probable response of the organization
with the help of strategic management. Thus the employees can judge the impact of such
changes on their own job and can effectively face the changes. The managers and employees
must do appropriate things in appropriate manner. They need to be both effective as well as
efficient.

One of the major role of strategic management is to incorporate various functional areas of
the organization completely, as well as, to ensure these functional areas harmonize and get
together well. Another role of strategic management is to keep a continuous eye on the goals
and objectives of the organization.

Strategy is an action that managers take to attain one or more of the organization’s goals.
Strategy can also be defined as “A general direction set for the company and its various
components to achieve a desired state in the future. Strategy results from the detailed
strategic planning process”.

A strategy is all about integrating organizational activities and utilizing and allocating the
scarce resources within the organizational environment so as to meet the present objectives.
While planning a strategy it is essential to consider that decisions are not taken in a vaccum
and that any act taken by a firm is likely to be met by a reaction from those affected,
competitors, customers, employees or suppliers.

Strategy can also be defined as knowledge of the goals, the uncertainty of events and the need
to take into consideration the likely or actual behavior of others. Strategy is the blueprint of
decisions in an organization that shows its objectives and goals, reduces the key policies, and
plans for achieving these goals, and defines the business the company is to carry on, the type
of economic and human organization it wants to be, and the contribution it plans to make to
its shareholders, customers and society at large.

Strategy is a well defined roadmap of an organization. It defines the overall mission, vision
and direction of an organization. The objective of a strategy is to maximize an organization’s
strengths and to minimize the strengths of the competitors.

Strategy, in short, bridges the gap between “where we are” and “where we want to be”.

An organization’s strategic intent is the purpose that it exists and why it will continue
to exist, providing it maintains a competitive advantage. Strategic intent gives a
picture about what an organization must get into immediately in order to achieve the
company’s vision. It motivates the people. It clarifies the vision of the vision of the
company.

Strategic intent helps management to emphasize and concentrate on the priorities.

Strategic intent is, nothing but, the influencing of an organization’s resource potential
and core competencies to achieve what at first may seem to be unachievable goals in
the competitive environment. A well expressed strategic intent should guide/steer the
development of strategic intent or the setting of goals and objectives that require that
all of organization’s competencies be controlled to maximum value.

Strategic intent includes directing organization’s attention on the need of winning;

inspiring people by telling them that the targets are valuable; encouraging individual
and team participation as well as contribution; and utilizing intent to direct allocation
of resources.

Strategic intent differs from strategic fit in a way that while strategic fit deals with
harmonizing available resources and potentials to the external environment, strategic
intent emphasizes on building new resources and potentials so as to create and exploit
future opportunities.

strategy statement is the statement of the role by which an organization intends to

serve it’s stakeholders. It describes why an organization is operating and thus
provides a framework within which strategies are formulated. It describes what the
organization does (i.e., present capabilities), who all it serves (i.e., stakeholders) and
what makes an organization unique (i.e., reason for existence).
 A strategy statement differentiates an organization from others by explaining its broad
scope of activities, its products, and technologies it uses to achieve its goals and
objectives. It talks about an organization’s present (i.e., “about where we are”). it
serves the organization in long run, but it may become ambiguous with organizational
growth and innovations.

In today’s dynamic and competitive environment, mission may need to be redefined.

However, care must be taken that the redefined mission statement should have original
fundamentals/components.

Strategy implementation is the translation of chosen strategy into organizational action so as

to achieve strategic goals and objectives. Strategy implementation is also defined as the
manner in which an organization should develop, utilize, and amalgamate organizational
structure, control systems, and culture to follow strategies that lead to competitive advantage
and a better performance. Organizational structure allocates special value developing tasks
and roles to the employees and states how these tasks and roles can be correlated so as
maximize efficiency, quality, and customer satisfaction-the pillars of competitive advantage.
But, organizational structure is not sufficient in itself to motivate the employees.

An organizational control system is also required. This control system equips managers with
motivational incentives for employees as well as feedback on employees and organizational
performance. Organizational culture refers to the specialized collection of values, attitudes,
norms and beliefs shared by organizational members

Developing an organization having potential of carrying out strategy successfully.

Excellently formulated strategies will fail if they are not properly implemented. Also, it is
essential to note that strategy implementation is not possible unless there is stability between
strategy and each organizational dimension such as organizational structure, reward structure,
resource-allocation process, etc.

Strategy implementation poses a threat to many managers and employees in an organization.

New power relationships are predicted and achieved. New groups (formal as well as
informal) are formed whose values, attitudes, beliefs and concerns may not be known. With
the change in power and status roles, the managers and employees may employ confrontation
behaviour.
Strategy is consciously considered and flexibly designed scheme of
corporate intent and action to achieve effectiveness, to mobilise resources,
to direct effort and behaviour, to handle events and problems, to perceive
and utilise opportunities, and to meet challenges and threats to corporate
survival and success. In corporate strategy, the set of goals has a system
of priorities; the combination, the sequence and the timing of the moves,
means and approaches are determined in advance, the initiative and
responses have a cogent rationale behind them, are highly integrated and
pragmatic; the implications of decisions and action programmes are
corporate wide, flexible and contingent.

The very injection of the idea of strategy into business organizations is

intended to unravel complexity and to reduce uncertainty of the
environment. To the extent the term strategy is associated with unified
design and action for achieving major goals, gaining command over the
situation with a long-range perspective and securing a critically
advantageous position. Its implications for corporate functioning are
obvious.

Strategy is meant to fill in the need of organizations for a sense of

dynamic direction, focus and cohesiveness. Objectives and goals alone do
not fill in the need. Strategy provides an integrated framework for the
top management to search for, evaluate and exploit beneficial
opportunities, to perceive and meet potential threats and crises, to make
full use of resources and strengths, to offset corporate weaknesses and to
make major decisions in general. Top management operates in an
environment of partial ignorance and uncertainty.
Strategies are meant to fill in the need of enterprises for a sense of
direction, focus and coherent functioning. Strategies provide an integral
framework for management to negotiate its way through a complex and
turbulent external environment. They provide a systematic basis for the
enterprise to stand its ground in the face of challenge and change as also
quickly adjust to them. They obviate the occasions for impulsive and
crisis decisions, false starts, misdirected moves, wasted resource uses and
the like. Without a network of well designed strategies, followed up by
policies, corporate objectives and goals tend to remain as mere
aspirations and good intentions. Even if they get off the ground, they will
be lacking drive and direction. The role of strategies thus stems from the
fact that achievement of organizational objectives is best with uncertainties
and pitfalls.

Strategies are formulated at the corporate, divisional and functional level.

Corporate strategies are formulated by the top managers. They include
the determination of the business lines, expansion and growth, vertical
and horizontal integration, diversification, takeovers and mergers, new
investment and divestment areas, R & D projects, and so on. These
corporate wide strategies need to be operationalized by divisional and
functional strategies regarding product lines, production volumes,
quality ranges, prices, product promotion, market penetration,
purchasing sources, personnel development and like.

However, strategy is no substitute for sound, alert and responsible

management. Strategy can never be perfect, flawless and optimal. It is in
the very nature of strategy that it is flexible and pragmatic; it is art of the
possible; it does not preclude second-best choices, trade-offs, sudden
emergencies, pervasive pressures, failures and frustrations. However, in
a sound strategy, allowances are made for possible miscalculations and
unanticipated events.

The strategies are not mutually exclusive. It is possible to adopt a

mix of the above to suit particular situations. An enterprise may seek
stability in some areas of activity, expansion in some and
retrenchment in the others. Retrenchment of ailing products followed
by stability and capped by expansion in some situations may be
thought of. For some organizations, a strategy by diversification and/or
acquisition may call for a retrenchment in some obsolete product
lines, production facilities and plant locations.
Strategic thinking involves orientation of the firm’s internal
environment with the changes of the external environment. The
competitive strategy evolves out of consideration of several factors
that are external to the firm as shown in the figure - Context in
which competitive strategy is formulated

The economic and technical component of the external environment

are considered as major factors leading to new opportunities for the
organization and also closing threats. Similarly the broader
expectation of the society in which the organization operates is again
an important factor to determine the competitive strategy. The
strengths and weaknesses of organizations are the internal factors,
which determine the corporate strategy. It is to be analysed and find
out in which functional area such as marketing, R & D, operations, etc.
the organization has superiority over the competitors. The strength is to
considered in the context of the opportunities arising in the external
environment. The personal values of the key implementers also
play major roles in formulating the competitive strategy.

STRATEGIC DECISION MAKING

Decision making is a managerial process and function of choosing a
particular course of action out of several alternative courses for the
purpose of accomplishment of the organizational goals. Decisions may
relate to general day to day operations. They may be major or minor.
They may also be strategic in nature. Strategic decisions are different
in nature than all other decisions which are taken at various levels of the
organization during day-to-day working of the organizations. The major
dimensions of strategic decisions are given below:

♦ Strategic issues require top-management decisions: Strategic

issues involve thinking in totality of the organizations and also there
is lot of risk involved. Hence, problems calling for strategic
decisions require to be considered by top management.
♦ Strategic issues involve the allocation of large amounts of company
resources: It may require huge financial investment to venture
into a new area of business or the organization may require huge
number of manpower with new set of skills in them.

♦ Strategic issues are likely to have a significant impact on the long

term prosperity of the firm: Generally the results of strategic
implementation are seen on a long term basis and not immediately.

♦ Strategic issues are future oriented: Strategic thinking involves

predicting the future environmental conditions and how to orient for
the changed conditions.

♦ Strategic issues usually have major multifunctional or multi-

business consequences: As they involve organization in totality
they affect different sections of the organization with varying
degree.

Good communication and feedback are needed throughout the strategic

management process.

Application of the strategic management process is typically more

formal in larger and well-established organizations .Formality refers
extent that participants, responsibilities, authority, duties, and approach
are specified. Smaller businesses tend to be less formal. Firms that
compete in complex, rapidly changing environments, such as
technology companies, tend to be more formal in strategic planning.
Firms that have many divisions, products, markets, and technologies
also tend to be more formal in applying strategic-management
concepts. Greater formality in applying the strategic management
process is usually positively associated with the cost,
comprehensiveness, accuracy, and success of planning across all types
and sizes of organizations.
The strategic management process, after deciding the vision, mission, goals
and objectives of the organization, turns its focus to scanning of
 environment in which all organizations work as sub-systems. That is
environmental scanning covers both scanning of external environment
and internal environment. The scanning of external environment leads to
the identification of the opportunities and threats thrown open to
organizations while the internal analysis leads to the study of strengths and
weaknesses which will decide as to what extent each company is going to
capitalize the opportunities and threats thrown open.

Strategy formulation is not a task in which managers can get by with

opinions, good instincts, and creative thinking. Judgments about what strategy
to pursue need to flow directly from solid analysis of a company's external
environment and internal situation. The two most important situational
considerations are (1) industry and competitive conditions and (2) a
company's own competitive capabilities, resources, internal strengths and
weaknesses, and market position.

The analytical sequence is from strategic appraisal of the company's external and internal
situation, to evaluation of alternatives, to choice of strategy. Accurate diagnosis of the
company's situation is necessary managerial preparation for deciding on a sound long-term
direction, setting appropriate objectives, and crafting a winning strategy. Without
perceptive understanding of the strategic aspects of a company's external and internal
environments, the chances are greatly increased that managers will concoct a strategic
game plan that doesn't fit the situation well, that holds little prospect for building
competitive advantage, and that is unlikely to boost company performance. The strategic
management process is dynamic and continuous. A change in any one of Business
Policy and Strategic Management.

The major components in the model can necessitate a change in any or all
of the other components. For instance, a shift in the economy could
represent a major opportunity and require a change in long-term objectives
and strategies; a failure to accomplish annual objectives could require a
change in policy; or a major competitor's change in strategy could require
a change in the firm's mission. Therefore, strategy formulation,
implementation, and evaluation activities should be performed on a
continual basis, not just at the end of the year or semi-annually. The
strategic management process never really ends.

The strategic management process is not as cleanly divided and

neatly performed in practice as the strategic management model
suggests. Strategists do not go through the process in lockstep fashion.
Generally, there is give-and-take among hierarchical levels of an
organization. Many organizations conduct formal meetings semi-
annually to discuss and update the firm's vision/mission,
opportunities/threats, strengths/weaknesses, strategies, objectives,
policies, and performance. Creativity and candour from participants.

It is encouraged in meeting. Good communication and feedback are

needed throughout the strategic management process.

Application of the strategic management process is typically more

formal in larger and well-established organizations. Formality refers
to the extent that participants, responsibilities,
authority, duties, and approach are specified. Smaller businesses tend to
be less formal. Firms that compete in complex, rapidly changing
environments, such as technology companies, tend to be more formal in
strategic planning. Firms that have many divisions, products, markets,
and technologies also tend to be more formal in applying strategic-
management concepts. Greater formality in applying the strategic
management process is usually positively associated with the cost,
comprehensiveness, accuracy, and success of planning across all types
and sizes of organizations.
1.2 Importance of topic
Strategic management provides the framework for all the major business
decisions of an enterprise such as decisions on businesses, products
and markets, manufacturing facilities, investments and organizational
structure. In a successful corporation, strategic planning works as the
pathfinder to various business opportunities; simultaneously, it also serves
as a corporate defence mechanism, helping the firm avoid costly
mistakes in product market choices or investments.

Strategic management has the ultimate burden of providing a business

organization with certain core competencies and competitive advantages in
its fight for survival and growth. It is not just a matter of projecting the
future. It is not just a forecasting job; it is concerned with ensuring a good
future for the firm. It seeks to prepare the corporation to face the future
and even shape the future in its favour. Its ultimate burden is
influencing the environmental forces in its favour, working into the
environs and shaping it, instead of getting carried away by its turbulence
or uncertainties. It is environmental uncertainty that makes strategy and
strategic conduct essential in a business.
Strategic planning and implementation have become a must for all
organizations for their survival and growth in the present turbulent
business environment. ‘Survival of fittest ‘as propagated by Darwin is
the only principle of survival for organization, where ‘fittest’ are not
the ‘largest’ or ‘strongest’ organization but those who can change
and adapt successfully to the changes in business environment. Just
like the extinction of the dinosaurous who ruled the earth one time but
failed to survive in change condition of earth natural environment many
organizational giants have also followed the path of extinction failing
to manage drastic changes in the business environment. Also business
follows the war principle of ‘win or lose’, and not necessarily win-
win situation arises in business world. Hence the organization has to
 build its competitive advantage over the competitors in the business
warfare in order to win. This can be done only following strategic
analysis, formulation and implementation.

The strategic management process can best be studied and applied using
a model. Every model represents some kind of process. The model
illustrated in the Figure: Strategic management model is a widely
accepted, comprehensive. This model like any other modal of
management does not guarantee sure-shot success, but it does represent
a clear and practical approach for formulating, implementing, and
evaluating strategies. Relationships among major components of the
strategic management process are shown in the model.
Identifying an organization's existing vision, mission, objectives, and strategies is
the starting point for any strategic management process because an organization
present situation and condition may preclude certain strategies and may even dictate
a particular course of action. Every organization has a vision, mission, objectives,
and strategy, even if these elements are not consciously designed, written, or
communicated. The answer to where an organization is going can be determined
largely by where the organization has been. While business management focusing on
“who” are involved and “what” resources and outputs need to be managed in order to survive
within the industry, strategic management add depth into “where” to play and “how” is the
organization going to survive.

Strategic management specifically needs to be understood by top management (such as board

of directors) in order to implement it throughout the stakeholders.

If you have a company and you have every resources you need to produce your product, you
won't survive in such industrial competition without a certain strategic planning and
management. You need to convice everyone you have a certain value

Consider a strategic plan as a blueprint for success. Whether an outside consultant

is brought in to facilitate this process for a company or it is done internally among
leadership, a strategy is a long-term plan to help you manifest your vision. It can
include: goals and objectives; a mission statement; what services and products are
being provided; target customers and clients; and plan revenue earning. A strategic
plan should always be written as a living, breathing document. Changes should be
encouraged as the company moves forward and evolves, based on when you reach
critical business benchmarks.
Strategic management is critical to staying competitive and standing out in a crowded
marketplace. A good strategy helps management prioritize activities within the company and
how resources get spent. It is a systematic way to execute a company's initiatives and goals
under the guidance of its leadership.

Peter Drucker, an Austrian-born American business management consultant and a significant

thought leader in the area, believes that once a business has defined its goals and objectives,
the owners should define the metrics that will be used to gauge progress, and should ensure
they're used equally across all levels of management.

But strategic management isn't all theoretical; it is a practical way to implement a

company's decisions, vision and goals. For strategic management to be successful, the
organization's leaders must have a thorough understanding and analysis of their company. A
SWOT analysis should be conducted (strengths, weaknesses, opportunities and threats) to
optimize the company's strengths and minimize the organizational weaknesses. It's also
crucial for leaders to know what opportunities are on the horizon and how to address any
threats that may be lurking.

Strategic planning should be reflective of the company's beliefs and personality. And, while
many leaders do spend money on creating such a plan, once it's done, it tends to be forgotten.
Create a plan that is realistic and relevant and that provides a real service to your
organization. No matter what industry your company is in, business is always changing. So
while leaders may come and go, a well-executed plan could very well keep your business
functioning like a well-oiled machine. By keeping your plan tied to the vision of your
company, you'll be much more likely to reach your ultimate business goals. Gold has been
published in a variety of capacities writing about everything from Kennebunkport and
southern Maine municipal government, art and cultural events, to cloud technology and
business transformation. Her experience extends to both corporate and freelance; she's a
former Senior Editor at the B2B publication Accounting Today, writing about public
accounting firms with a specialization in diversity, technology, best practices, and business
development. During her tenure, she was also co-founder and editor of Accounting
Tomorrow, a blog focused on intergenerational workplace issues that is still thriving today.
Most recently, Liz has been writing about accountants working in the cannabis industry on
CPA Trendlines and reporting on cannabis trends for Southern Oregon Good Herb magazine
in Oregon.

Strategic planning is the most important key for solving strategic tasks; it is the process of
developing, controlling and maintaining a strategic balance between organizational goals and
resources in the market environment. A strategic plan is a set of activities that are geared
towards an organizations growth and success. Strategic management refers to the art of
business planning at the highest possible level implemented by the company's leader or
leaders and is focused on building a solid underlying foundation for a company. Strategic
planning is a 10-step process that begins with clearly stated goals that align with
organizational goals and objectives.

1.3 EXPLAINATION OF TOPIC

1. STRATEGIC ANALYSES

Strategy formulation is not a task in which managers can get by with opinions, good instincts, and creative
thinking. Judgments about what strategy to pursue need to flow directly from solid analysis of a company's
external environment and internal situation. The two most important situational considerations are (1)
industry and competitive conditions and (2) a company's own competitive capabilities, resources, internal
strength.

1. Strategic Management

What is involved in sizing up a company's overall situation and deciding on a strategy?

The analytical sequence is from strategic appraisal of the company's external and internal
situation, to evaluation of alternatives, to choice of strategy. Accurate diagnosis of the
company's situation is necessary managerial preparation for deciding on a sound long-term
direction, setting appropriate objectives, and crafting a winning strategy. Without
 perceptive understanding of the strategic aspects of a company's external and internal
environments, the chances are greatly increased that managers will concoct a strategic game
plan that doesn't fit the situation well, that holds little prospect for building competitive
advantage, and that is unlikely to boost company performance.

Implementation is the execution of the necessary strategies to meet the objectives that have
been set. To ensure success, all employees should understand their roles and responsibilities.
Appropriate activity measures provide necessary feedback with facts that identify positive
impacts and areas for change.

In this phase, companies pay attention to details and monitor processes to implement quick
changes as required. For example, if a common customer complaint is that products take too
long to arrive, an analysis of the shipping process may reveal ways to expedite delivery, such
as using pre-printed shipping levels to streamline packaging and carrier pickup of shipments
at the store.

Evaluating strategies used in the implementation phase serve as performance feedback. Some
companies use a gap analysis to compare how the company performed to set goals.
Analyzing present state compared to desired future state identifies the need for new products
or additions to existing products. One example is a company comparing its anticipated
consumer purchase response with the actual number of sales or comparing old shipping times
to the delivery timeframe after new procedures were implemented.

Marketing strategy involves mapping out the company's direction for the forthcoming planning
period, whether that be three, five or ten years. It involves undertaking a 360° review of the firm and
its operating environment with a view to identifying new business opportunities that the firm could
potentially leverage for competitive advantage. Strategic planning may also reveal market threats that
the firm may need to consider for long-term sustainability.[9] Strategic planning makes no assumptions
about the firm continuing to offer the same products to the same customers into the future. Instead, it
is concerned with identifying the business opportunities that are likely to be successful and evaluates
the firm's capacity to leverage such opportunities.

Obviously, there will be new approaches to financial management whose success will be

measured by the extent to which each satisfies its stated objectives. The problem today is that

The school of academic thought (from traditionalists through to post-

modernists) has failed to convince practising financial managers that their approach is always

better than another. A particular difficulty is that if their objectives are too broad they are

dismissed as self evident. And if they are too specific, they fail to gain general acceptance.

Perhaps the best way foreword is a trade-off between flexibility and uniformity, whereby none of

the chronological developments outlined above should be regarded as mutually exclusive. As we

shall discover, a particular approach may be more appropriate for a particular decision but overall

each has a role to play in contemporary financial management. So, why not focus on how the

various chronological elements can be combined to provide a more eclectic (comprehensive)

approach to the decision process? Moreover, an historical perspective of the developments and

changes that have occurred in finance can also provide fresh insights into long established

practice.

As an example, consider investors who use traditional published accounting data such as

dividend per share without any reference to economic values to establish a company’s

performance. In one respect, their approach can be defended. As we shall see, evidence from

statistical studies of share price suggests that increased dividends per share are used by

companies to convey positive information concerning future profit and value. But what if the

dividend signal contained in the accounts is designed by management to mislead .

As behaviourists will tell you, irrespective of whether a positive signal is false, if a sufficient

number of shareholders and potential investors believe it and purchase shares, then the demand

for equity and hence price will rise. Systematically, the firm’s total market capitalisation of

equity will follow suit.

Post-modernists will also point out that irrespective of whether management wish to maximise

wealth, stock market participants combine periodically to create “crowd behaviour” and market

sentiment without reference to any rational expectations based on actual trading fundamentals

such as “real” profitability and asset values.

Strategic planning typically begins with a scan of the business environment, both internal
and external, this includes understanding strategic constraints.An understanding of the
external operating environment, including political, economic, social and technological
which includes demographic and cultural aspects, is necessary for the identification of
business opportunities and threats.This analysis is called PEST; an acronym
for Political, Economic, Social and Technological. A number of variants of the PEST
analysis can be identified in literature, including: PESTLE analysis (Political, Economic,
Social, Technological, Legal and Environmental); STEEPLE (adds ethics); STEEPLED
(adds demographics) and STEER (adds regulatory).

The aim of the PEST analysis is to identify opportunities and threats in the wider
operating environment. Firms try to leverage opportunities while trying to buffer
themselves against potential threats. Basically, the PEST analysis guides strategic
decision-making. The main elements of the PEST analysis are:

 Political: political interventions with the potential to disrupt or enhance trading

conditions e.g. government statutes, policies, funding or subsidies, support for
specific industries, trade agreements, tax rates and fiscal policy.
 Economic: economic factors with the potential to affect profitability and the
prices that can be charged, such as, economic trends, inflation, exchange rates,
seasonality and economic cycles, consumer confidence, consumer purchasing
power and discretionary incomes.
 Social: social factors that affect demand for products and services, consumer
attitudes, tastes and preferences like demographics, social influencers, role
models, shopping habits.
 Technological: Innovation, technological developments or breakthroughs that
create opportunities for new products, improved production processes or new
ways of transacting business e.g. new materials, new ingredients, new machinery,
new packaging solutions, new software and new intermediaries.
 Strengths: distinctive capabilities, competencies, skills or assets that provide a
business or project with an advantage over potential rivals; internal factors that
are favourable to achieving company objectives
 Weaknesses: internal deficiencies that place the business or project at a
disadvantage relative to rivals; or deficiencies that prevent an entity from moving
in a new direction or acting on opportunities. internal factors that are
unfavourable to achieving company objectives
 Opportunities: elements in the environment that the business or project could
exploit to its advantage； external factors of the organization including: new
products, new markets, new demand, foreign market barriers, competitors'
mistakes, etc.
 Threats: elements in the environment that could erode the firm's market position;
external factors that prevent or hinder an entity from moving in a desired direction
or achieving its goals.

Typically the firm will attempt to leverage those opportunities that can be
matched with internal strengths; that is to say the firm has a capability in any area
where strengths are matched with external opportunities. It may need to build
capability if it wishes to leverage opportunities in areas of weakness. An area of
weakness that is matched with an external threat represents a vulnerability, and
the firm may need to develop contingency plans.
1.4 FUNCTIONS OF TOPIC
Functions of Strategic Management

Mid-Term Planning

The primary function of strategic management is to develop medium, or mid-term, strategies

for the organization. Mid-term strategies are those which focus on the organizational leader's
vision for the company with the mid-term range of 2 to 4 years, as opposed to short-term or
long-term strategies. The strategic management process should be reviewed and adjusted
periodically to ensure that these medium-term plans remain relevant to the organization’s
desired position within the industry.

Alignment

Another essential function of strategic management is the alignment of day-to-day work

activities with the overall mission of the organization. The strategic management process
typically begins with the development of a mission statement, which articulates the
organization’s reasons for being in existence. The mission statement defines why and how the
business does what it does and sets the tone for the organization.

Sustainable Competitive Advantage

The creation and maintenance of a sustainable competitive advantage is another essential

function of strategic management. This is commonly accomplished through the use of a
SWOT analysis, gap analysis or a combination of both. Through the use of the SWOT
analysis, leaders may identify internal strengths and weaknesses as well as external
opportunities and threats which may help or hinder the organization’s ability to maintain a
sustainable competitive advantage. Gap analysis, meanwhile, measures the gap between the
organization’s current position and its desired position.

Strategy Implementation

No amount of strategic planning will be successful without effective implementation. The

final function of strategic management is the implementation of strategies conceived
throughout the process. These strategies -- which begin as abstract concepts at the uppermost
echelons of the organization -- are finally disseminated downward through the ranks for
implementation at the operational level. Strategy implementation typically occurs through the
use of policies and procedures developed to align the day-to-day functional and operational
activities of the organization with its mission statement.

The Functions of a Corporate Strategy Department

Corporate strategy identifies barriers to achieving company objectives and develops an
approach that allows you to overcome the obstacles. When several individual
departments implement strategies, corporate actions lack coordination and may act at
cross-purposes. A corporate strategy department functions as a coordinating body,
developing and implementing strategies that satisfy the objectives of individual dep
Development

A corporate strategy department surveys those responsible for company operations to gather
information on challenges and objectives. It consolidates individual strategic aims into an
overall approach and invites feedback from the departments concerned. If you are developing
a corporate strategy, you have to achieve consensus on what obstacles the company faces and
what strategic activities will be successful. Once there is broad agreement, you can
communicate the final version of the corporate strategy and assign tasks required for carrying
it out to the departments involved.

Business planning defines the strategies the business will use to meet its goals and missions.
Business planning provides details on the business’ operations, products and services, and
marketing strategies as it relates to the inclusive industry. This process expounds the
operation strategies from short- and long-term views while focusing on the overall activity of
the company. The business plan does not identify specific employee strategies but rather
provides industry strategies.

Corporate Planning

Corporate planning defines the strategies that the employees will take to meet the business’
goals and missions. This type of planning, also known as strategic planning, focuses on staff
responsibilities and procedures. As with business planning, strategic planning requires a close
look at the company’s missions, strengths and weaknesses. However, corporate planning
identifies the step-by-step process of the business, such as the actual steps the staff will take
to counteract challenges, train employees and achieve accomplishments. Corporate planning
also provides specific, measurable goals with realistic time lines.
Interdependency

Business planning and corporate planning are interdependent. Although business planning
can exist without corporate planning, the goals of the business plan are much more attainable
with corporate planning. As with business planning, the corporate plan can exist without a
business plan. However, without business planning, the overall goals and missions of the
business are not clear. Therefore, the corporate planning becomes incomplete.

Effects

There are many effects of business and corporate planning. Not only does the planning
process help businesses to succeed, it helps businesses to determine when new directions and
changes are needed. A close analysis can result in early recognition of potential issues and
dangers, as well as help the company to quickly adapt to customer demand and needs.

Considerations

Business and strategic plans should be reviewed periodically. The plans should be reviewed
to compare the business’ current standpoints against those that were outlined in the plans.
Adjustments should be made, if necessary, to align the business’ actual activities to the
defined plans. When analyzing needed changes, consideration should be given to the
industry’s environment and trends, as well as the economy’s stability, customer demand and
business needs. The balancing of the business and strategic plans should outline the moves or
changes that the business will strive to implement and framework the strategies that the
employees will use to meet the business’ missions and goals.

1.5 ADVANTAGES AND DISADVANTAGES

Like any process or tool, there are both advantages and disadvantages to a strategic
management process. Unfortunately, many of the disadvantages are because of
inappropriate application (often by poor consultants) as opposed to inherent limitations. As
with any tool or process, you as the client have the final responsibility to ensure that the
strategic management process you are using is appropriate for your needs. While I believe
that strategic management in some form can be beneficially applied
The Disadvantages of Strategic Management

One of the major criticisms of strategic management is that it requires the organization to
anticipate the future environment in order to develop plans, and as we all know, predicting
the future is not an easy undertaking. The belief being that if the future does not unfold as
anticipated then it may invalidate the strategy taken. Recent research conducted in the private
sector has demonstrated that organizations that use planning process achieve better
performance than those organizations who don't plan - regardless of whether they actually
achieved their intended objective. In addition, there are a variety of approaches to strategic
planning that are not as dependent upon the prediction of the future.

There is no doubt that in the not-for-profit sector there are many organizations that cannot
afford to hire an external consultant to help them develop their strategy. Today there are
many volunteers that can help smaller organizations and also funding agencies that will
support the cost of hiring external consultants in developing a strategy. Regardless, it is
important to ensure that the implementation of a strategic management process is consistent
with the needs of the organization, and that appropriate controls are implemented to allow the
cost/benefit discussion to be undertaken, prior to the implementation of a strategic
management process.

Strategic management processes are designed to provide an organization with long-term

benefits. If you are looking at the strategic management process to address an immediate
crisis within your organization, it won't. It always makes sense to address the immediate
crises prior to allocating resources (time, money, people, opportunity, cost) to the strategic
management process.

When you undertake a strategic management process, it will result in the organization saying
"no" to some of the opportunities that may be available. This inability to choose all of the
opportunities presented to an organization is sometimes frustrating. In addition, some
organizations develop a strategic management process that become excessively formal.
Processes that become this "established" lack innovation and creativity and can stifle the
ability of the organization to develop creative strategies. In this scenario, the strategic
management process has become the very tool that now inhibits the organization's ability to
change and adapt.
A third way that flexibility can be impeded is through a well-executed alignment and
integration of the strategy within the organization. An organization that is well aligned with
its strategy has addressed its structure, board, staffing, and performance and reward systems.
This alignment ensures that the whole organization is pulling in the right direction, but can
inhibit the organization's adaptability. Again, there are a variety of newer approaches to
strategy development used in the private sector (they haven't been widely accepted in the not-
for-profit sector yet) that build strategy and address the issues of organizational adaptability.

Strategic management is a long-term approach to growing a business, requiring careful

planning that sets both macro and micro goals for a company. While long-term strategies can
help a small business take more proactive steps to build its profits, the management of these
strategies can also stall an entrepreneur’s ability to take advantage of short-term
opportunities.

For many strategic plans to work, all areas of a business must understand the strategic goals
and operate together to achieve them. This means different functions or departments, such as
marketing, production, information technology and human resources, must be educated about
the company’s overall strategies and develop their own departmental strategies and tactics to
contribute to the objectives. Each area must also take steps to make sure its actions don’t
interfere with any other area’s.

Because of the integration of different departments into a strategic plan, different functions
might need to get approval or confirmation from other functions before they can act. For
example, a production manager might want to change a product feature that is causing
slowdowns in production and increased production costs. However, no matter how beneficial
the change might seem, the production manager must check with the marketing department to
make sure the feature isn’t something customers need or want. If marketing wants to make a
change to a product, it might have to get approval from finance if the company has a strategic
plan regarding profit margins and return on investment for its products. This need for
ongoing strategic management can sap time from key managers and slow their ability to react
to opportunities. This can be doubly dangerous if it slows the company's ability to react to a
threat, such as a new competitor.

Small-business owners often have short-term opportunities to make money that might not fit
into a big-picture strategic plan. For example, a local restaurant might be able to take
advantage of a technology convention that’s in town by putting out a welcome sign for the
attendees or running ads in local papers offering a discount. This might invite a relatively
young target audience to come to the eatery. If the restaurant has a long-term strategy of
trying to brand itself as a restaurant for seniors and middle-age empty-nesters, this marketing
tactic could confuse its brand. The restaurant would have to forgo this chance to make easy
money to manage its strategic brand strategy. If a business has a strategy of making a specific
return on investment or percentage profit margin on products, it might have to forgo sales
opportunities that don’t meet the strategic financial goals the company has set.

The process of strategic management includes a set of long term goals and
objectives of the company – using this method helps the company in facing
the competition in a better manner and also increase its capabilities. These
are definitely some of the strategic management benefits but every coin has
two sides – same is the case with strategic management. Here are some of
the limitations of strategic planning in management.

1. Complex process:

The strategic management includes various types of continuous process

which checks all type of major critical components. This includes the
internal and external environments, long term and short term goals,
strategic control of the company’s resources and last but not the least it also
has to check the organizational structure. This is a lengthy process because
a change in one component can affect all the factors.

Hence it is vital that one understands the issues with all the concerned
factors. This generally takes time and at the end, the growth of the
company is affected.

Being a complex process it calls for lots of patience and time from the
management in order to implement the strategic management.

In order to have proper strategic management, there should be strong

leadership and proper structured resources.
2. Time consuming process:

In order to implement the strategic management it is necessary that the top

management spends proper quality time in order to get the process right.
The managers have to spend lot of time researching, preparing and
informing the employees about this new management. This type of long
term and time consuming training and orientation would hamper the
regular activities of the company.

The day to day operations are negatively impacted and in the long term it
could affect the business adversely. For e.g. there are many issues which
requires daily attention but this is not taken care because they are busy
researching the details about the strategic management.

In case, proper resolution of the problems are not done on time then there
could be great amount of attrition increase. Besides this, the performance of
the employees will also go down because they are not getting required
resolution of their problems. This type of situation may lead the
management to divert all their critical resources towards employee
motivation and performance – while doing this your strategic management
process will be sidelined.

3. Tough implementation:

When we speak the word strategic management then it seems to be a huge

and large word. But it is also a fact that the implementation of this
management system is difficult as compared to other management
techniques. The implementation process calls for perfect communication
among the employees and employer.

The strategic management has to be implemented in such a way that the

employees have to remain fully attentive; there should be active
participation among the employees and besides this the employees have to
be accountable for their work. This accountability is meant not only for the
top management but for all employees across the hierarchy. The experts
mention that implementation is difficult because they have to continuously
strive to make the employees aware about the process and benefits of this
system.

For e.g. if a manager was involved in forming of the strategic process and
he/she has not been involved in the implementation process then the
manager will never be accountable for any processes in the company.

4. Proper planning:

When we say management systems then it calls for perfect planning. You
just cannot write things on paper and leave them. This calls for proper
practical planning. This is not possible by just one person but it is a team
effort. When these types of processes are to be implemented then you need
to sideline various regular decision making activities which would
adversely affect the business in the long run.

The Advantages of Strategic Management

The first reason that most organizations state for having a strategic management process is
that it discharges the responsibility of the Board of Directors.

Strategic management provides a discipline that enables the board and senior management to
actually take a step back from the day-to-day business to think about the future of the
organization. Without this discipline, the organization can become solely consumed with
working through the next issue or problem without consideration of the larger picture.

Strategy provides a framework within which all staff can make day-to-day operational
decisions and understand that those decisions are all moving the organization in a single
direction. It is not possible (nor realistic or appropriate) for the board to know all the
decisions the executive director will have to make, nor is it possible (nor realistic or practical)
for the executive director to know all the decisions the staff will make. Strategy provides a
vision of the future, confirms the purpose and values of an organization, sets objectives,
clarifies threats and opportunities, determines methods to leverage strengths, and mitigate
weaknesses (at a minimum). As such, it sets a framework and clear boundaries within which
decisions can be made. The cumulative effect of these decisions (which can add up to
thousands over the year) can have a significant impact on the success of the organization.
Providing a framework within which the executive director and staff can make these
decisions helps them better focus their efforts on those things that will best support the
organization's success.

Allowing the board and staff participation in the strategic discussion enables them to better
understand the direction, why that direction was chosen, and the associated benefits. For
some people simply knowing is enough; for many people, to gain their full support requires
them to understand.

A strategic management process forces an organization to set objectives and measures of

success. The setting of measures of success requires that the organization first determine what
is critical to its ongoing success and then forces the establishment of objectives and keeps
these critical measures in front of the board and senior management.

Addressing operational issues rarely looks at the whole organization and the interrelatedness
of its varying components. Strategic management takes an organizational perspective and
looks at all the components and the interrelationship between those components in order to
develop a strategy that is optimal for the whole organization and not a single component.

Strategic planning still has the connotation of a process that is discrete, separate, and
independent from the business of an organization. While strategic management connotes the
planning, implementation, evaluation, on-going maintenance, and adjustment of the
organization's strategy. Because I believe that strategic management is an integral aspect of
an organization's business and not just a once per every three-year retreat, I have used the
term strategic management throughout this article.
1.6 Features of Strategy

1. Strategy is Significant because it is not possible to foresee the future. Without a

perfect foresight, the firms must be ready to deal with the uncertain events which
constitute the business environment.
2. Strategy deals with long term developments rather than routine operations, i.e. it deals
with probability of innovations or new products, new methods of productions, or new
markets to be developed in future.
3. Strategy is created to take into account the probable behavior of customers and
competitors. Strategies dealing with employees will predict the employee behavior.

Mission statement has three main components-a statement of mission or vision of the
company, a statement of the core values that shape the acts and behaviour of the
employees, and a statement of the goals and objectives.

a. strategy must be feasible and attainable. It should be possible to achieve it.

b. strategy should be clear enough so that any action can be taken.
c. It should be inspiring for the management, staff and society at large.
d. It should be precise enough, i.e., it should be neither too broad nor too narrow.
e. It should be unique and distinctive to leave an impact in everyone’s mind.
f. It should be analytical ,i.e., it should analyze the key components of the
strategy.
g. It should be credible, i.e., all stakeholders should be able to believe it.

1.7 GENERAL INFORMATION ABOUT STRATEGY MANAGEMENT

Strategic Management provides

♦ To provide a basis for motivating the use of the

organization’s resources. ♦ To develop a basis, or standard,
for allocating organizational resources.
♦ To establish a general tone or organizational climate, for
example, to suggest a businesslike operation.

♦ To serve as a focal point for those who can identify with the
organization’s purpose and direction, and to deter those who
cannot form participating further in the organization’s activities.

♦ To facilitate the translation of objective and goals into a work

structure involving the assignment of tasks to responsible elements
within the organization.

♦ To specify organizational purposes and the translation of these

purposes into goals in such a way that cost, time, and
performance parameters can be assessed and controlled.

A company’s Mission statement is typically focused on its present

business scope – “who we are and what we do”; mission statements
broadly describe an organizations present capabilities, customer focus,
activities, and business makeup.

Mission should contain elements of long-term strategy as well as

desired out comes they often basic values and the philosophy of the
organizations that is perceived by the senior managers at the senior
level who write them. A good mission statement should be of precise,
clear, feasible, distinctive and motivating. It should indicate major
components of strategy. Following points are useful while writing
mission of a company :

♦ The mission is not to make a profit.

♦ One of the roles of a mission statement is to give the

organization its own special identity, business emphasis and path for
development – one that typically sets it apart form other similarly
situated companies.

♦ A company’s business is defined by what needs it trying to satisfy,

by which customer groups it is targeting and by the technologies
and competencies it uses and the activities it performs.
 ♦ Technology, competencies and activities are important in
defining a company’s business because they indicate the boundaries
on its operation.

♦ Good mission statements are highly personalized – unique to the

organization for which they are developed.

EXPLAIN DEFINE AND ELABORATE STAREGY

MANAGE MENT AND WRITE FROM THE
BOOK ( 5) PAGES

CHAPTER -2
RESEARCH METHODOLOGY

2.1 RESEARCH RELATED TOPIC

Research Methodology
We address this gap in the literature by exploring the relationship between big data analytics
and EAM at the level of the individual components in the EA. These components were devel-
oped by: first, reviewing literature on big data analytics, EA and its management, and a set of
EA frameworks to form a theoretical foundation; second, using the theoretical foundation to
adapt requirements of big data analytics for strategic EAM; and third, consolidating
these
requirements into the existing EA framework in which benefits are highlighted. For this pur-
pose, these basic architecture domains (layers) of The Open Group Architecture Framework
(TOGAF) were used: business, data, application, and technology. TOGAF presents both the
Architecture Development Method (ADM) and information model for architectural
descrip-
tion. The cyclic ADM is designed as reference method for performing an architecture project,
which in the sense of TOGAF is the way of performing EAM (The Open Group, 2009).
This paper employs a research method that follows the guidelines for Design Science Re-
search (DSR) approach as described by Hevner et al (2004). DSR is a widely applied research
approach and is concerned with developing useful artefacts. It is a problem-solving paradigm
in which the boundaries of organizational capabilities to create new and innovative artefacts
are extended together with the knowledge and understanding of a problem domain through
the
building and application of the design artefact (Hevner et al, 2004). In the context of EAM, it
was previously applied by Aier, Gleichauf and Winter (2011). Aiming to provide a detailed
overview to the issue of big data analytics for strategic management of EA, this paper is fo-
cused only on the first four steps of the DSR process while other steps will be described thor-
oughly in future research. In this regard, the objectives of this paper are: 1) discuss the pre-
paredness of EA for big data analytics; 2) provide strategic alignment of big data analytics in
the business ecosystem; 3) map these requirements on EA layers of TOGAF; and 4) propose
a model containing components of big data analytics for strategic management of EA. The
days of just using gut feelings for business strategy have gone. So too has the era of “Excel is
all I need”. Now, business and its strategy are driven by data from many different sources.
Fortunately, data analytics for insights and actions from that data can be made user-friendly
for non-technical business users, while providing affordable power to tackle enterprise
databases and big data. Now that you know 10 ways (at least) in which your business strategy
can be revolutionized, your next step is clear – use data analytics for your own business
benefit. Data analysis is a key element of the research process. Accordingly, appropriate
doctoral training in data analysis is vital to the strategic management field's future. We used a
two‐study design to evaluate quantitative data analysis trends and doctoral training. An
analysis of Strategic Management Journal articles from 1980 to 2001 reveals that, contrary to
some predictions, the use of general linear model techniques such as regression has increased
over time. However, the use of more specialized techniques, including those suitable for
examining longitudinal data, discrete events, and causal structure, has also grown
substantially. A survey of recent doctoral graduates shows that, although skilled with general
linear models, many are ill prepared to use specialized techniques.

2.2 Nature of strategy

In 1985, Professor Ellen Earle-Chaffee summarized what she thought were the main elements
of strategic management theory where consensus generally existed as of the 1970s, writing
that strategic management:

 Involves adapting the organization to its business environment;

 Is fluid and complex. Change creates novel combinations of circumstances requiring
unstructured non-repetitive responses;
 Affects the entire organization by providing direction;
 Involves both strategy formulation processes and also implementation of the content of
the strategy;
 May be planned (intended) and unplanned (emergent);
 Is done at several levels: overall corporate strategy, and individual business strategies;
and
 Involves both conceptual and analytical thought processes.

Chaffee further wrote that research up to that point covered three models of strategy, which
were not mutually exclusive:

1. Linear strategy: A planned determination of goals, initiatives, and allocation of

resources, along the lines of the Chandler definition above. This is most consistent
 with strategic planning approaches and may have a long planning horizon. The
strategist "deals with" the environment but it is not the central concern.
2. Adaptive strategy: In this model, the organization's goals and activities are primarily
concerned with adaptation to the environment, analogous to a biological organism.
The need for continuous adaption reduces or eliminates the planning window. There
is more focus on means (resource mobilization to address the environment) rather
than ends (goals). Strategy is less centralized than in the linear model.
3. Interpretive strategy: A more recent and less developed model than the linear and
adaptive models, interpretive strategy is concerned with "orienting metaphors
constructed for the purpose of conceptualizing and guiding individual attitudes or
organizational participants." The aim of interpretive strategy is legitimacy or
credibility in the mind of stakeholders. It places emphasis on symbols and language
to influence the minds of customers, rather than the physical product of the
organization.

2.3 SCOPE OF STUDY

: Expansion strategy is implemented by redefining the business by adding

the scope of business substantially increasing the efforts of the current
business. Expansion is a promising and popular strategy that tends to be
equated with dynamism, vigor, promise and success. An enterprise on
the move is a more agreeable stereotype than a steady-state enterprise.
It is often characterised by significant reformulation of goals and
directions, major initiatives and moves involving investments, exploration
and onslaught into new products, new technology and new markets,
innovative decisions and action programmes and so on. Expansion also
includes diversifying, acquiring and merging businesses. The strategy
may take the enterprise along relatively unknown and risky paths, full of
promises and pitfalls.

For some firms, diversification is a means of utilising their existing

facilities and capabilities in a more effective and efficient manner. They
 may have excess capacity or capability in manufacturing facilities,
investible funds, marketing channels, competitive standing, market
prestige, managerial and other manpower, research and development, raw
material sources and so forth. Another reason for diversification lies in
its synergistic advantage. It may be possible to improve the sales and
profits of existing products by adding suitably related or new products,
because of linkages in technology and/or in markets.

2.4 OBJECTIVES OF STUDY

A goal is a desired future state or objective that an organization tries to achieve. Goals
specify in particular what must be done if an organization is to attain mission or vision. Goals
make mission more prominent and concrete. They co-ordinate and integrate various
functional and departmental areas in an organization. Well made goals have following
features-

a. These are precise and measurable.

b. These look after critical and significant issues.
c. These are realistic and challenging.
d. These must be achieved within a specific time frame.
e. These include both financial as well as non-financial components.

Objectives are defined as goals that organization wants to achieve over a period of time.
These are the foundation of planning. Policies are developed in an organization so as to
achieve these objectives. Formulation of objectives is the task of top level management.
Effective objectives have following features-

a. These are not single for an organization, but multiple.

b. Objectives should be both short-term as well as long-term.
c. Objectives must respond and react to changes in environment

There are many benefits of strategic management and they include identification,
prioritization, and exploration of opportunities. For instance, newer products, newer markets,
and newer forays into business lines are only possible if firms indulge in strategic planning.
Next, strategic management allows firms to take an objective view of the activities being
done by it and do a cost benefit analysis as to whether the firm is profitable.

Just to differentiate, by this, we do not mean the financial benefits alone (which would be
discussed below) but also the assessment of profitability that has to do with evaluating
whether the business is strategically aligned to its goals and priorities.

The key point to be noted here is that strategic management allows a firm to orient itself to its
market and consumers and ensure that it is actualizing the right strategy.

Financial Benefits

It has been shown in many studies that firms that engage in strategic management are more
profitable and successful than those that do not have the benefit of strategic planning and
strategic management.

When firms engage in forward looking planning and careful evaluation of their priorities,
they have control over the future, which is necessary in the fast changing business landscape
of the 21st century.

It has been estimated that more than 100,000 businesses fail in the US every year and most of
these failures are to do with a lack of strategic focus and strategic direction. Further, high
performing firms tend to make more informed decisions because they have considered both
the short term and long-term consequences and hence, have oriented their strategies
accordingly. In contrast, firms that do not engage themselves in meaningful strategic planning
are often bogged down by internal problems and lack of focus that leads to failure.

Non-Financial Benefits

The section above discussed some of the tangible benefits of strategic management. Apart
from these benefits, firms that engage in strategic management are more aware of the external
threats, an improved understanding of competitor strengths and weaknesses and increased
employee productivity. They also have lesser resistance to change and a clear understanding
of the link between performance and rewards.

The key aspect of strategic management is that the problem solving and problem preventing
capabilities of the firms are enhanced through strategic management. Strategic management
is essential as it helps firms to rationalize change and actualize change and communicate the
need to change better to its employees. Finally, strategic management helps in bringing order
and discipline to the activities of the firm in its both internal processes and external activities.

A typical dictionary will define the word strategy as something that has
to do with war and deception of an enemy. In business organizational
context the term is not much different. Businesses have to respond to a
dynamic and often hostile environment for pursuit of their mission.
Strategy seeks to relate the goals of the organization to the means of
achieving them. A company’s strategy is the game plan management is
using to stake out market position, conduct its operations, attract and
please customers, compete successfully, and achieve organizational
objectives.

2.5 DIFFERENCE BETWEEN STUDY CONCEPTS i.e, STRATEGY FORMULATION

AND STRATEGY IMPLEMENTATION

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning and Strategy Implementation involves all those
decision-making involved in developing means related to executing the strategic plans.
organization’s strategic goals and plans.

In short, Strategy Formulation is placing the In short, Strategy Implementation

Forces before the action. is managing forces during the action.

Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly

Activity based on strategic decision-making. an Administrative Task based on strategic
and operational decisions.

Strategy Formulation emphasizes Strategy Implementation emphasizes

on effectiveness. on efficiency.

Strategy Formulation is a rational process. Strategy Implementation is basically

an operational process.

Strategy Formulation requires co-ordination Strategy Implementation requires co-

among few individuals. ordination among many individuals.

Strategy Formulation requires a great deal Strategy Implementation requires

of initiative and logical skills. specific motivational and leadership traits.

Strategic Formulation precedes Strategy Strategy Implementation follows Strategy

Implementation. Formulation.

CHAPTER -3

REVIEW AND LITERATURE(4)

 CHAPTER 4

DATA ANALYSIS
 CHAPTER 5

Conclusion
In the recent years, most of the firms have understood the importance of strategic
management – it plays a key role in the upbringing and downfall of any company. In a
nutshell, we can conclude that the purpose of strategic management is possible if a company
can provide dedicated resources and staff in order to formulate and implement the entire
system.

If strategic management is implemented in the company thoroughly then there is no doubt

that the company will survive all types of odds and competition and remain in the market for
a long period of time. This is required in the present situation for all companies. It just calls
for proper planning and right people in order to implement them in the company.

You need to keep a regular check on all external and internal factors affecting your industry;
besides this check all your financial resources whether they are enough to expand your
business. If you could keep in mind these things the implementation will become very easy
and quick for any organization irrespective of their sizes.
Our principal contribution is a systematic approach dealing with the composition of
architecture layers, components and relationships within agile and adaptable EA for big data
analytics, by means of strategic management. In our paper, we applied the DSR approach
to gain better understanding of EA’s strategic management through analysis of existing
literature to build more agile and adaptable EA and identify components that capture the
requirements of big data analytics. The novelty in our paper comprises new aspects for
mapping benefits of big data analytics in the context of architecture layers of the existing EA
framework TOGAF. The results of this study showed that it is important for executive
decision-makers as well as developers and designers to understand how the requirements of
big data analytics influence the strategic management of EA. A subsequent deeper evaluation
and extension of our approach is planned as future work.

CHAPTER 6

SUGGESSTIONS

IN this project I would like to suggest that the Strategic management provides
overall direction to an enterprise and involves specifying the
organization's objectives, developing policies and plans to achieve those
objectives, and then allocating resources to implement the plans. [4] Academics
and practicing managers have developed numerous models and frameworks to
assist in strategic decision-making in the context of complex environments and
competitive dynamics.[5] Strategic management is not static in nature; the models
often[quantify] include a feedback loop to monitor execution and to inform the next
round of planning.

Make sure you communicate the company’s strategic plan and how that is linked
to your strategic priorities for your department. Articulate strategies clearly and
often, and explain how each person’s role is related to those strategies. The more
your teams know about the bigger picture, the better able they are to shape their
performance to meet those goals.
Open communication about your performance expectations and metrics for
measuring performance is vital. All too often, the first time employees hear they
are not meeting expectations is in a quarterly or annual performance review. This
is counterproductive and disrespectful to your team members. Many employees
who don’t meet expectations were perfectly capable of becoming valued
performers if only they had the feedback they needed. Your failure to engage in
regular and ongoing communications about performance expectations and metrics
can result in high turnover, decreased productivity, and ineffective relationships.

You will need to make important decisions on a daily basis and you should be
able to articulate the legitimate business reasoning behind those decisions. All too
often, managers don’t take time to think about how they would explain the
decision-making process and therefore aren’t capable of articulating it clearly.
This detracts from your trustworthiness in the eyes of your team. If you truly have
engaged in sound business reasoning, you should be able to explain your criteria
even before you are asked. Sharing this information lets employees feel included
in the process, even if they don’t agree with the result.

This suggestion is to targeted to help first-time managers or managers in new

roles to consider some important management strategies. But as you can see, the
content applies to anyone in a management role. Positioning yourself as a leader
by using effective communications to enhance performance is appropriate for all
managers, regardless of the length of your management career. It’s never too late
to be self-regulatory and figure out what you can change so you are more
effective in your role.

Hunkering down in your office means that you are disconnected and unaware of
the work environment of your employees. You need to be accessible, and part of
that is being present in their work space. Make it a habit to walk around, stop by
people’s desks, have casual team lunches, and check in to see if anyone needs
anything from you. Ask them for input and feedback and then give it appropriate
consideration. If this sort of visible management is not a part of your personality,
you have an opportunity to change for the better of your organization.
 CHAPTER 7

REFERENCES

BILBIOGRAPHY

https://en.wikipedia.org/wiki/Strategic_management#Nature_of_strategy,