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Strategic management is a stream of decisions and actions with view to develop effective long term and short term planning and policies with technological business forecasting that would help the organization achieve its superior goal. Strategic management includes strategic analysis, strategy formulation, strategic choice, strategy implementation and control strategic decision for an organization to deploy resources into new opportunities. Strategic management is important for Chartered Accountants, CEO, Directors, Managing Directors, Strategy Planners, Students and Faculty Members of BBM, MBA, M.Com, PGDM, PGDBM, PGDHRM, ICFAI and competitive examinations in India and abroad. I invite suggestions from one and all for improvements in next edition of this book. Many individuals have rendered their helping hand to me. I take this opportunity to thank all of them. I thank Dr. D.M. Basvaraja, my teacher, guide and supervisor and professor from Kuvempur University for this constant inspiration and support. I also thank Dr. C.M. Thagaraju, Dr. G.T. Govindappa, my teachers, and professors of Kuvempur University. I am immensely indebted to them. I also thank T.N. Suresh, Director of Padmashree group of institutions, Bangalore, Dr. C.N. Aswathnarayan, Chairman of Padmashree group of institutions, Bangalore, Dr. Bakkappa, Coordinator, Shiva Gangothri PG Centre, Davanagere, Dr. A.Venktaraju, Professor, ATNCC, Shimoga, Prof. Sheshchalla, KKECS, Bangalore, Chairman, Principal, HOD and staff of TIMS, Bangalore, and Prof. Shekappa and my friend Nagaraja A.P. In writing this book I have drawn on a vast amount of literature in strategic management. Naturally, I owe an intellectual debt to numerous authors who have enriched the stream of literature in strategic management by their contributions. My prefounded debt is to American scholars, George Stenier, Ansoff, Newman, Warren, Peter Drucker, Akcoff, Christenson, Kenneth, Bower and Vacil, Acherman, Robinson, Piere, Wheeler and Hunger, Charles W.L. Hill and Gareth R. Jones. In the UK I owe a great debt to Argeni, Hussey, and Barnard Taylor, Thomson and other scholars. Shri Saumya Guptha, MD, Shri Sudarshan S.P., Marketing manager, the New Age International Publisher, these persons are the main initiators and monitors of this project. I express my sincere gratitude to all of them. It is my prime responsibility to thank my parents, brother, sisters and friends for put with inconveniences caused during writing of this book. Dr. B. HIRIYAPPA. Ph. D. Bangalore
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Preface 1. BUSINESS ENVIRONMENT 1.1 Introduction 1.2 Definition of Business 1.3 Characteristics of Business 1.4 Components of Business 1.5 Objectives of a Business 1.6 Characteristics of Business Environment 1.7 Environmental Influences on Business 1.8 Environmental Analysis 1.9 Components of Business Environment 1.10 Relationship Between Organisation and its Environment 1.11 Internal Analysis of the Organisation/Company 1.12 The Value of Systematic Internal Assessment 1.13 Identificaion of Strategic Factors 1.14 Evalution of Strategic Internal Factors 1.15 External Environment 1.16 Economic Environment 1.17 Political-Legal Environment 1.18 Socio–Cultural Environment 1.19 Demographic Environment 1.20...