Chapter 1

Express policy: Express policies are those policies, which expressed in terms in
clear words either orally or in writing.
Oral policies are those, which are issued or stated by the management in terms o
f word of mouth to their subordinates
Written policies are those, which are normally, put in black and white, and stat
ed in clear terms so that persons whom they are addressed to understand it easil
y.
Strategic Business Unit (SBU) is any part of a business organisation which is tre
ated separately for strategic management purposes.
Business policy has been defined as a principle or a group of related principles,
along with their consequent rules of action that provide for the successful ach
ievement of specific organisation or business objectives.
Chapter 2
Strategy is defined as a unified, comprehensive and integrated plan designed to a
ssure that the basic objective of the enterprise is achieved
Strategy formulation is the process of deciding on objectives, changes in objecti
ves, the resources used to attain these objectives and the policies that are to
govern the acquisition, use and disposition of resources
Strategic planning may be defined as a systematic approach to formulate strategi
es for positioning the business in relation to its environment to ensure continu
ed success and offer security from surprises.
Strategic choice - It can be defined as the decisions to select from among the gr
and strategies considered, the strategy which will best meet the enterprises obje
ctives.
A strategic audit provides a checklist of questions, by area or issue that enabl
es a systematic analysis necessary for various corporate functions and activitie
s.
Chapter 3
Stretch: It is a misfit between resources and aspirations.
Leverage: It refers to concentrating, accumulating, complementing, conserving, a
nd recovering resources in such a manner that the meagre resource base is stretc
hed to meet the aspirations that an organisation dares to have.
Fit: It means positioning
Vision - it as description of something (an organisation, corporate culture, a bu
siness, a technology, an activity) in the future
Mission is defined as an essential purpose of the organisation, concerning partic
ularly why it is in existence, the nature of the businesses it is in, and the cu
stomers it seeks to serve and satisfy.
Business model can be defined as a representation of a firms underlying core logic
and strategic choices for creating and capturing value within a value network
Goals denote what an organisation hopes to accomplish in a future period of time
.
Balanced Scorecard is one of the tools which are used for organisational apprais
al.
Chapter 4
A merger is a combination of two or more businesses in which one acquires the ass
ets and liabilities of the other in exchange for stock or cash or both. Companie
s are dissolved and assets and liabilities are combined and new stock is issued.
Horizontal mergers: Horizontal mergers are combinations of firms engaged in the
same business.
Vertical mergers: Vertical mergers are combination of different firms engaged in
activities complimentary to each other like supply of raw materials, production
of goods and marketing.
Concentric mergers: Concentric mergers are combination of firms related to each
other in terms of customer groups or customer functions or alternative technolog
ies.
Conglomerate mergers: Conglomerate mergers are the combination of firms unrelate
d to each other in terms of customer groups, customer functions and alternative
technologies.
Takeover (or acquisition) is defined as, the attempt (often sprung as a surprise)
of one firm to acquire ownership or control over another firm against the wishe
s of the latters management (and purchase some of its stakeholders).