BUSINESS POLICY

AND
STRATEGIC MANAGEMENT

Submitted by:-

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 PIMS
# Profit impact of Market Strategy(PIMS)
• PIMS database is "a collection of statistically documented
experiences drawn from thousands of businesses, designed to
help understand what kinds of strategies (e.g., quality, pricing,
vertical integration, innovation, advertising) work best in what
kinds of business environments. The data constitute a key
resource for such critical management tasks .

• Evaluating business performance, analyzing new business

opportunities, evaluating and reality testing new strategies,
and screening business portfolios."

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 The PIMS Database
# Companies members of Strategic Planning Institute contribute
profiles of their Strategic Business Units (financial data, customers
information, markets, competitors, operations:.
#The strategic business units in the database are separated into eight
classifications:
• producers of consumer durables
• consumer non-durables
• capital goods
• raw materials
• Components/supplies
• Wholesale distributors
• retail distributors
• providers of services.
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 Case Study

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 ANSWER :A

# WHY IT IS ESSENTIAL TO UNDERTAKE STRATEGIC ANALYSIS

• Strategic analysis refers to the process of conducting research
on a company and its operating environment to formulate a
strategy.

To develop a business strategy, Strategists need to look at the

following:

• Vision – What it wants to achieve in the future (5-10 years).

• Mission Statement – What business a company is in and rallies
people.
• Values – The fundamental beliefs of an organization reflecting its
commitments and ethics.
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cont...
# Factors must be considered for strategy
analysis
• Marketing factors
• Production factors
• Research and development and engineering factors,
• Personnel and expertise factors and
• Corporate resources and finance factors.

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 ANSWER :B

# Diversification is an act of an existing entity

branching out into a new business opportunity.

# The reasons why firms opt for diversification:

• For growth in business operations.
• To ensure maximum utilization of the existing
resources and capabilities.
• To escape from unattractive industry
environments.
• Advantage they Have(through research).
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cont...

# Following are the likely advantages that

diversification strategy would bring to the
company:
• Consumer see herbal tea as a healthier option.
• 77.2% Indians consume tea on a daily basis.
• 40% of tea consumer are from the northern
region.
• Tea is frequently served as hot beverage at work
places.
• Steady increase in Tea Bag consumption.
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 ANSWER :C

# Strategic alliance is an arrangement between two

companies to undertake a mutually beneficial project while
each retains its independence.
# Advantages of strategic alliance
• Gain new client base and add competitive skills.
• Learning from partners
• Create different sources of additional income.
• Level industry ups and downs.
• Reduce risk.
• Gain new resources and improve existing resources.
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