Strategic Management

Topics: Strategic management, Marketing, Strategic planning Pages: 48 (13800 words) Published: March 15, 2013
Strategic Management
Written by: Bhavin Pathak
(Student, CA-IPCC, Arihant Institute Pvt. Ltd.) Features:
       Full coverage of IMP aspects of Strategic Management Summarized and conceptual Based on Study Material of ICAI Easy to remember format Point-to-point approach towards subject Diagrams and charts given wherever required Useful for LMR (Last Minute Revision)


INDEX 1. 2. 3. 4. 5. 6. 7. TOPIC Business Environment Business Policy & Strategic Management Strategic Analysis Strategic Planning Formulation of Functional Strategy Strategic Implementation & Control Reaching Strategic Edge PAGE NO. 2 9 14 17 24 30 36

Rules of My Life: “Don't use anyone, but being useful for everyone.” “There is no tax on helping each other.” “Live for other is more joyful rather than live for yourself.” “If you light a lamp for somebody, it will also brighten your path.” “Happiness is a by-product of an effort to make someone else happy.”  – Me


- Written by Bhavin Pathak

Written by Bhavin Pathak Ph. No.: 8000054359

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Chapter 1: Business Environment
What is business?  Etymologically the term business refers to the state of being busy for an individual, group, organization or society.  Business can be any activity consisting of purchase, sale, manufacture, processing, and/or marketing of products and/or services. What are the objectives of a business?  Survival:  Basic, implicit objective of most organizations.  Survival of the fittest. Business and other enterprises are interested in more than mere survival.  Stability:  It is a strategy of least resistance in a hostile external environment.  Minimizes managerial tensions and demands less dynamism from managers.  Growth:  Promising and popular objective.  May take the enterprise along relatively unknown and risky paths, full of promises and pitfalls.  Efficiency:  Very useful operational objective.  Efficiency is an economic version of the technical objective of productivity-designing and achieving suitable input output ratios of funds, resources, facilities and efforts.  Profitability:  Sole motive.  All other objectives are facilitative objectives and are meant to be subservient to the profit motive  Pvt Org lives for profit.  Reward for taking Risk What is environment? The environment includes factors outside the firm which can lead to opportunities for or threats to the firm. Although there are many factors, the most important of the sectors are socio-economic, technological, supplier, competitors, and government.

What are the problems in understanding the environmental influences?  Diversity of influences:  Understanding this can contribute to strategic decision-making.

Written by Bhavin Pathak Ph. No.: 8000054359

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 Mere Listing of all possible environmental influences may not help in getting overall picture of important influences on the organization Uncertainty of influences :  Technology and global communications are changing rapidly  So it is very difficult to understand future external influences on an organization Complexity of Influences:  Simplifying complexity by focusing on aspects of the environment, which, have been historically important, or confirm prior views may not help.  Strategic Manager should break out of oversimplification or bias in the understanding of their environment, while still achieving a useful and usable level of analysis.

Framework to understand the environmental influences  Take an initial view to ascertain the uncertainty  Is it Static or changing? Simple or complex. This helps in deciding what focus the rest of the analysis is to take.  Auditing of environmental...
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