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1. Definition.
2. Classes of Decisions.
3. Levels of Decisions.
4. Strategy.
5. Role of different Strategists.
6. Relevance of Strategic Management.
7. Benefits.
8. Strategic Management in India.

Strategic Management - Syllabus

As defined by Christensen: “Business Policy is the study of the function and responsibilities of Senior Management, the crucial problems that affect success in the total enterprise, and the decisions that determine the directions of the organisation and shape of its future.

1. The problems of policy in the business, like those of policy in public affairs, have to do with choice of purposes, the moulding of organisational identity and character, the continuous definition of what needs to be done, and the mobilisation of resources for the attainment of organisational Goals in the face of competition or adverse circumstance

Business Policy - Definition

9. 1900 -1930: Era of Mass Production – Maximising output, 10. Normally a Single Product, Standardised and low cost product, catering to unique set of customers servicing limited geographical area – Informal control and co-ordination. The Strategic planning was centred on maximising output.

Paradigm One: Ad-hoc Policy

2. 1930-1940:Changes in Technology, Turbulence in Political environment, Emergence of new industries, Demand for novelty products even at higher costs, Product Differentiation, Market segmentation in increasingly competitive and changing markets. These all made investment decisions increasingly difficult. This was era of integrating all functional areas and framing policies to guide managerial actions.

New Paradigm - 2
Integrated Policy Formulation.

11. 1940- 1960: Planned policy became irrelevant due to increasingly complex and accelerating changes. Firms had to anticipate environmental changes. A strategy needed to be formed with critical look at basic concept of Business and its relationship to the existing environment then.

Concept of Strategy – New Paradigm - 3

1. 1980 & onwards: The focus of Strategic Management is on the strategic process of business firms and responsibilities of general management. Everything outside the four walls is changing rapidly. 2. This phenomenon is called as “Discontinuity” by Mr. Peter Drucker. Past experiences are no guarantee as science and technology is moving faster. The future is no more extension of the past or the present. The world is substantially compressed and managing the environment becomes crucial function. 3. What to produce, where to market, which new business to enter, which one to quit and how to get internally stronger and resourceful are the new stakes.

Strategic Management – new Focus - 4

3. Strategic Planning is required to be done to endow the enterprise with certain fundamental competencies / distinctive strengths which could take care of eventualities resulting from unexpected environmental changes. 4. However, the evolution of this phase is still continuing and is yet not formed into a theory of how to manage an enterprise. But Strategic Management is a very important tool for and way of thinking to resolve strategic issues.

Strategic Management – new Focus - 4

4. Defining Strategy and Concept of Strategic Management
5. Alfred D Chandler(1962) : “The determination of basic long-term goals and the adoption of courses of the courses of action and the allocation of resources necessary for carrying out these goals”

6. Alfred D Chandler(1984) : “Basically, a strategy is a set of decisions-making rules for the guidance of...
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