Chap 1 a (1hr)

By, Prof. Jitendra Singh Chouhan IIPM Bhopal

©2000 Prentice Hall

Study of the function and responsibilities Study of the function and responsibilities of senior management, the crucial of senior management, the crucial problems that affect success in total problems that affect success in total enterprise & decisions that determine enterprise & decisions that determine the direction of the organization and the direction of the organization and shape its future.shape its future.

Defining Business PolicyDefining Business Policy


In simplified terms, a strategy is the In simplified terms, a strategy is the means to achieve objectives.means to achieve objectives.

Defining StrategyDefining Strategy


Purpose of a Business (To provide value for a broad range of stakeholders)

Purpose of a Business (To provide value for a broad range of stakeholders)

Stakeholder GroupStakeholder Group Examples of Value ProvidedExamples of Value Provided

StockholdersStockholders Stock prices appreciation & Stock prices appreciation & dividends dividends

CustomersCustomers Products & servicesProducts & services

EmployeesEmployees Employment, wages, personal Employment, wages, personal growth opportunitiesgrowth opportunities

Local communityLocal community Jobs, economic development, Jobs, economic development, civic involvementcivic involvement

Society at largeSociety at large Economic health & security, Economic health & security, environmental protectionenvironmental protection

Trade associationTrade association Political strength, operating fundsPolitical strength, operating funds


Strategic PlanningStrategic Planning

The process of developing and maintaining The process of developing and maintaining a strategic fit between the organisation’s a strategic fit between the organisation’s

goals and its changing marketing goals and its changing marketing opportunitiesopportunities


Strategic Planning: Key StepsStrategic Planning: Key Steps

Defining the Corporate Mission

Designing the Business

Unit Strategy

Functional plans:

Marketing, HR

Operations

Finance

MIS

Designing the business portfolio

Setting Corporate Objectives/goals


ObjectivesObjectives

Corporate Level PlanningCorporate Level Planning Business Level PlanningBusiness Level Planning Marketing ProcessMarketing Process Product Level PlanningProduct Level Planning Business Process EngineeringBusiness Process Engineering New Dimensions in Strategic PlanningNew Dimensions in Strategic Planning

& Implementation& Implementation


Market-Oriented Strategic Planning


Objectives

Skills

Resources

Opportunities




Objectives

Skills

Resources

Opportunities

Profitand

Growth


Corporate Headquarters Planning

Corporate Headquarters Planning

Define the corporate missionDefine the corporate mission Establish strategic business units Establish strategic business units

(SBUs)(SBUs) Assign resources to SBUsAssign resources to SBUs Plan new business, downsize older Plan new business, downsize older

businessesbusinesses


Strategic-Planning, Implementation, and Control Process

Strategic-Planning, Implementation, and Control Process

Measuringresults

Diagnosingresults

Takingcorrective

action

ImplementationImplementationPlanningPlanning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

ControlControl

Chap 1 a (1hr)

Business

Transcript of Chap 1 a (1hr)