Set 1 Subject Name : Strategic Management & Business Policy Q.

1 What do you understand by the term Strategy in the context of Business Management and Policy? And what are the stages in the formulation of a Strategy? The term 'strategy' is drawn from the armed forces. it is a strategic plan that interlocks all aspects of the corporate mission designed to overpower the enemy or the competitor. An appropriate strategy is considered to be essential to face adverse situations such as cutthroat competition. Strategy may imply general or specific programmes of action outlining how the resources are deployed to attain goals in a given set of conditions. If these conditions change, the strategy also changes. Strategies give direction for the achievement of objectives necessary through the deployment of resources. A strategy is an operational tool to achieve the goals, and thus, the corporate mission. Strategies do not attempt to outline exactly how the enterprise is to accomplish its objectives. A company may view downsizing as a strategy in a competitive market to render cost-effective services. Thus, strategy provides a framework to guide thinking and action. Strategies are very much useful in organisations for guiding, planning and control. Strategy is a way of life both at the macro as well as micro levels for everyone whether it is a nation or a company. To win over in a given complex situation, the organisations, even trans-nationals adopt strategies. They make changes, if necessary, even to their global strategies. An individual company may formulate its own strategy to bring out the desired results. The eventual success of the organisations depends upon strategy formulation and implementation. Stage in Strategy formulation a) Identification of mission and objectives b) Environment scanning. c) Generic strategy alternatives d) Strategy Variations e) Strategy choice f) Allocation of resources and formulation of organisational structure g) Formulation of plans, policies, programmes and administration h) Evaluation and control 1. Generic strategy Alternatives They refer to the strategy alternatives in broader terms. After the nature of the business of the firm is defined, the next task is to focus on the type of strategy alternative, in general, the firm should pursue. There are four strategy alternative available to firm or Business

a) Expansion strategy can be adopted in the case of highly competitive and volatile industries, particularly. If they are in the introduction stage of product / service life cycle. b) Stability strategy is a better choice when the firm is doing well, the environment is relatively less volatile, and the product / service has reached the stability or maturity stage of the life cycle. c) Retrenchment strategy is the obvious choice when the firm is not doing well in terms of sales and revenue and finds greater returns elsewhere or the product / service is in the finishing stage of the product life cycle. d) Combination strategy is not a new strategy as it combines the other strategies. However, it is to be noted that it is better to evolve individual strategies and combine them rather than trying to evolve a complex combination strategy which could be cumbersome with loss of precious business time. Strategy Formulation and implementation

Enterprise Strategists

Mission & Objectives

General Environment Industry and International Environment Internal factors Generic Strategy Alternatives Strategy Variations Strategic Choice Allocate Resources & Develop Organisational plans Formulation of Plans, Policies, Programmes & Administration Evaluation & Control

Q. 2 What, in brief, are the types of Strategic Alliances and the purpose of each? Supplement your answer with one real life example of each

Q. 3 What is a Business Plan? What purpose does it serve? What is Business Plan? A good business plan will help attract necessary financing by demonstrating the feasibility of your venture and the level of thought and professionalism you bring to the task.

The first step in planning a new business venture is to establish goals that you seek to achieve with the business. You can establish these goals in a number of ways, but an inclusive and ordered process like an organizational strategic planning session or a comprehensive neighborhood planning process may be best. The board of directors of your organization should review and approve the goals, because these goals will influence the direction of the organization and require the allocation of valuable staff and financial resources. Your goals will serve as a filter to screen a wide range of possible business opportunities. If you fail to establish clear goals early in the process, your organization may spend substantial time and resources pursuing potential business ventures that may be financially viable but do not serve the mission of your organization in other important ways. A liquor store on the corner may be a clear money-maker; however, it may not be the retail to assistant your community desires. The following are examples of goals you may seek to achieve through the creation of a new business venture: What purpose does it serve? Revenue Generation Your organization may hope to create a business that will generate sufficient net income or profit to finance other programs, activities or services provided by your organization. Employment Creation - A new business venture may create job opportunities for community residents or the constituency served by your organization. Neighborhood Development Strategy A new business venture might serve as an anchor to a deteriorating neighborhood commercial area, attract additional business to the area and fill a gap in existing retail services. You may need to find a use for a vacant commercial property that blights a strategic area of your neighborhood. Or your business might focus on the rehabilitation of dilapidated single family homes in the community.