Concept of Businesses policy and strategic management

Business policy Definition by Christensen and others The study of the functions and responsibilities of senior management, the crucial problems that affect success in the total enterprise and decisions that determine the direction of the organization and shape its future. It considers 1- study of functions and responsibilities of the senior management related to those problems which affects success of organization as a whole 2-deals with determination of future course of actions by the organization 3-Involves choice of purpose and defining what needs to be done to mould the character and identity of organization 4- concerned with mobilization of resources by the help of which organization can achieve its goals.

 Strategic ManagementManagement - an art as well as a science. Management science based on practical experiences of managers , Business Policy forms a basis in practice of management and further taken forward as strategic management. Definition of strategy strategy term derived from Greek word strategos means generalship- actual direction for military force a plan or a course of action or a set of decision rules making a pattern or creating a common thread. Pattern related to activities derived from policies, goals for taking organization with desired future Concerned with resources for implementing plans and also with sustainable strategic positioning of company Michael porter- says- core of general management is a strategy used in developing communicating companies unique position, making trade offs and forging fit among various activities.

 Strategic decision makinga process of selecting a course of action from among many alternatives, Steps in process 1- Determine objectives to be achieved 2- Identify alternative ways of achieving the objectives 3- each alternative is evaluated in terms of objective achieving ability 4- the best alternative is chosen. Being Complex process it starts with answering fundamental questions as 1- what is our business, what will it be and what it should be. 2-swot analysis. 3- Analyze issues like maximizing returns, realisticachievable, rationality, creativity-originality, variability, maturity of deciding persons, group participative or individual, top or sbu or functional levels

 Definitions of strategic managementThe dynamic process of formulation, implementation, evaluation and control of strategies to realize the organization's strategic intent the process thru which org analyze and learn from their internal and external environment, establish strategic directions, create strategies that r intended to help achieve establishing goals and execute these strategies, all in an effort to satisfy key organizational stakeholders. Phases in strategic management process1-establishing strategic intent, 2-formulation of strategies, 3-implementation of strategies, 4- strategic evaluation strategic control to be kept throughout the process

 Elements in strategic Management process1- establishing the hierarchy of strategic intenta) creating and communicating a vision, b) designing a mission statement, c) defining the business, d) adopting the business model e) setting objectives. 2-formulatin of strategiesf) Performing environment appraisals g) doing organization appraisal, h) formulating corporate level strategies i) formulating business level strategies, j) undertaking strategic analysis, k) exercising strategic choice l) preparing a strategic action plan,

3- Implementation of strategiesm) activating strategies, n) designing structures and systems o) managing behavioral implementation p) managing functional implementation q) operationalising strategies. 4- performing strategic evaluation and controlr) performing strategic evaluation, s) exercising strategic control, t) reformulating strategies. Strategist and their role in strategic management. Individuals or groups involved in formulation, implementation and evaluation r strategists. may be at all levels of mangers outside consultants are also referred as strategists. perform various roles in strategic management.

 1-Board of directorsUltimate legal authority, owners/promoters/shareholders/ controlling agencies/ govt/ fin institutions elect and appoint. responsible for governance of organization. provide guidance and directives, exercise authority as per memorandum and article of association of the company. conforms various provisions of companies act . besides legal framework board has to act within policies, rules , procedures and conventions of the org. Boards of Mncs public-pvt sector cos, family run ,professionally run co,s differ in practices. Although role is only to direct but matters of vital significance tech collaborations, Sr mgt appointments, new product developments r also referred to board.

Acts as vital link between environment and direct org as advisory body not operational Guides Sr mgt in setting and accomplishing objectives, review and evaluation of performance and appointments of Sr exe depending on clarity and relationship of CEO and requirement of corporate governance. Corporate governanceImp due to present concern about bias and unethical practices of companies globally/ locally -it deals with laws, rules, procedures, practices that determines companies ability of managerial decisions towards its claimants-shareholders, creditors, employees and state.

 2- C.E.O.- role as strategistselected and appointed by board, responsible of all aspects of strategic management from formulation to evaluation. designated as m.d or e.d or president etc performs strategic tasks, executes, provide directions ,set mission, decides objectives and goals, enunciates corporate philosophy, manages growth, ext envoi, , specialist in past but also generalist, professional, self managed for time and leadership qualities, styles 3-Entrepreneur as strategistalways searches and responds to change and exploit as an opportunity, high level of motivation, sense of purpose, independence in thought of action Strategic mgt not based on formal, takes quick decisions and creates sense of purpose among subordinates 4- senior mgt as strategist profit center heads, new projects. 5- SBU level exe as strategists in a diversified company ,handles portfolio of business

 , 6-role of planning staff as strategists.corporate finance, planning of expansions mergers, 7-Role of consultant as strategist Fergusson, McKinsey etc, for smes, individuals as consultant. Helps in getting unbiased and objective opinions, knowledgeable outsider, cost effective, specialist skills and provide strategic experience . 8-role of middle level mangers as strategist - rarely involved in strategy as busy in operations/executions but does sounding boards for departmental plans as strategy. their expertise is also available mostly in finance and operations. Provide future strategies for org. 9-role of exe assistant as strategists- CA,s MBAs r appointed as advisors for strategy in large org .public sectors.