Q.1 What do you understand by the term Strategy in the context of Business Management and Policy?

And what are the stages in the formulation of a Strategy? Ans. A strategy is an operational tool to achieve the goals, and thus, the corporate mission. Strategies do not attempt to outline exactly how the enterprise is to accomplish its objectives. A company may view downsizing as a strategy in a competitive market to render cost-effective services. Thus, strategy provides a framework to guide thinking and action. Strategies are very much useful in organisations for guiding, planning and control. Strategy is a way of life both at the macro as well as micro levels for everyone, whether it is a nation or a company. To win over in a given complex situation, the organisations, even transnationals adopt strategies. They make changes, if necessary, even to their global strategies. An individual company may formulate its own strategy to bring out the desired results. The eventual success of the organisation depends upon strategy formulation and implementation. The recently initiated moves such as globalisation, privatisation and liberalisation are strategies to attain a globally competitive economy. Business management must focus on following issues a. Vision- For proper growth of the company. b. Mission What the company wants to achieve. c. Goals To achieve the above mission. d. Objectives To achieve the set goals e. Strategies To achieve the above objectives f. Policies To control strategies g. Programmes For implementation of objectives The above list outlines some of the key issues at every stage of action illustrating how: a. The mission springs out from vision statements b. Goals from the mission c. Objectives from goals d. Strategies from objectives e. And programmes from objectives It is the crux of the strategic management process. Strategy refers to the course of action desired to achieve the objectives of the enterprise. Formulation, together with its implementation, constitutes an integral part of the management activity. Managers use strategies for different purposes such as to overcome competition, to increase sales, to increase production, to motivate the employees to provide their best, and so on. Implementation of a strategy is a crucial task as the formulation of it. There may be a lot of resistance during the implementation process. It is necessary for the manager to be very tactful to involve the members of his group in the formulation of strategy to facilitate the implementation process. Stages in Strategy Formulation and Implementation a. Identification of mission and objectives b. Environment scanning c. Generic strategy alternatives d. Strategy variations e. Strategic choice f. Allocation of resources and formulation of organisational structure g. Formulation of plans, policies, programmes and administration h. Evaluation and control Q.2 What, in brief, are the types of Strategic Alliances and the purpose of each? Supplement your answer with one real life example of each. Ans. Strategic alliances constitute a viable alternative in addition to Strategic Alternatives. Companies can develop alliances with the members of the strategic group and perform more effectively. These alliances may take any of the following forms. Following are the different types of strategic Alliances:

1. Product and/or service alliance: Two or more companies may get together to synergise their operations, seeking alliance for their products and/or services. A manufacturing company may grant license to another company to produce its products. The necessary market and product support, including technical know-how, is provided as part of the alliance. Example :- Coca-cola initially provided suchsupport to Thums Up. Two companies may jointly market their products which are complementary in nature. Example :1) Chocolate companies more often tie up with toy companies. 2) TV Channels tie-up with Cricket boards to telecast entire series of cricket matches live. Two companies, who come together in such an alliance, may produce a new product altogether. Example :- Sony Music created a retail corner for itself in the ice-cream parlours of Baskin-Robbins. 2. Promotional alliance: Two or more companies may come together to promote their products and services. A company may agree to carry out a promotion campaign during a given period for the products and/or services of another company. Example :- The Cricket Board may permit Cokes products to be displayed during the cricket matches for a period of one year. 3. Logistic alliance: Here the focus is on developing or extending logistics support. One company extends logistics support for another companys products and services. Example:- The outlets of Pizza Hut, Kolkata entered into a logistic alliance with TDK Logistics Ltd., Hyderabad, to outsource the requirements of these outlets from more than 30 vendors all over India for instance, meat and eggs from Hyderabad etc. 4. Pricing collaborations: Companies may join together for special pricing collaborations. Example :- It is customary to find that hardware and software companies in information technology sector offer each other price discounts. Companies should be very careful in selecting strategic partners. The strategy should be to select such a partner who has complementary strengths and who can offset the present weaknesses.