1. What is Strategy management?

(Ans ):­
Strategic Management gives a broader perspective to the employees of an organization and they can better understand
how their job fits into the entre organizational plan and how it is co­related to other organizational members. It is
nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives.
The employee become more trustworthy, more committed and more satisfied as they can co­relate themselves very
well with each organizational task.
1. What is Strategy?
(Ans ):­
Strategy is a term that comes from the Greek strategia, meaning “Generalship”. In the military, strategy often refers to
maneuvering troops into position before the enemy is actually engaged. In this sense, strategy refers to the
development of troops, once the enemy has been engaged, attention shifts to tactics, Here, the employment of troops
is central, substitute “Resources” for troops and transfer of the concept to the business world begin to take form.
According to George Steiner.
1. Strategy is that which top management does that is of great importance to the organization
2. Strategy refers to basic directional decisions, that is, to purpose and missions.
3. Strategy answers the questions: What should the organization be doing?
4. Strategy answers the questions: What are the ends we seek and how should we achieve them?
2. Why is strategic management important? Explain with example?
(Ans ):­
Most business owners want to make wise decisions, but they sometimes are at a loss of where to begin. This is where
strategic management comes into play. An important concept for business owners and managers to grasp, strategic,
management entails evaluating business goals, objectives and plans in light of your company focus on effectiveness
and efficiency.
Following below :­
1. Defining strategic management
2. Corporate Governance
3. Core competencies
4. Setting Goals
Defining strategic Management:­
Strategic Management is an oft­used and sometimes, ill­understood concept in business. It helps to consider the two
words separately first. Strategies are the initiatives a company takes to maximize its resources and to grow its
business. This might involve financial planning, human resources management or focusing on a mission statement.
Management is the process of operating the business on a day to day basis and planning for future success.
Corporate Governance:­
An effective organization is often one that has initiated programs and service within its structure that ensure open
communication, good management and effective leadership. Without these hallmarks of corporate governance. It is
difficult to manage strategically because the basis framework of goal­setting and decision making are missing.
Core Competencies:­
Strategic Management can help your business to identify and capitalize on its core competencies thing within your
business that you do best As Edward Russel­ walling notes in his book “50 Management ideas You really Need to
Know” a core competency has three key factors, It is not easy for competitors to duplicate, your business can use it in
a number of different products or service and it provides a benefit to your customers. If you think your business has
strengths in multiple areas, it’s important to get at the root of what causes these successes.
Setting Goals:­
Strategic management is vitally important even on the small scale within a business. However­ Strategic management
is difficult to accomplish without a clearly defined set of goals for the business operation. Its also helps you to
identify areas for improvement and set goals and objectives based on those weaknesses. If you know, for instance,
that your business is lagging behind in utilizing the power of the internet to sell its products, one of your goals can be
to introduce an online trading platform within the next six month. Importantly, the goals your business sets should be
measurable, specific and have a time frame attached to them. Setting goals in this way helps you to strategically
position your business for future success.
3. Discuss the major role of the environmental school of strategic management?
(Ans):­
Major roles of Environmental School
The environmental school for thought is more of situational related. The environmental school gives most importance
to the environmental. For example in information technology industry expertise of people matters and the knowledge
of people needs regular up gradation. when expert knowledge become scares, the strategy formulation needs a change
on the basis of available expertise of people. Under the given dimension, environment plays a major role. Therefore,
situational analysis is the most used tool in the environmental school. This though process depends on the situation,
and is used when there is total dependences on environmental factors.
4. What do you mean by mission and vision? Explain with example
(Ans ):­
Mission:­
A mission is a brief description of why a company or nonprofit organization exists. In one to three sentences, it
explains what the company does, who it serves, and what differentiates it from competitors. It’s used to provide focus,
direction, and inspiration to employees while it tells customer or clients what is expect form the business.
A mission is often part of a business plan.
Example:­ the best mission statements are clear, concise, and memorable. Here are a few examples
1. TED:­ Spread ideas
2. Google:­ Google’s mission is to organize the world’s information and make it universally accessible
and useful
3. Wall­Mart: ­ We save people money so the can live better.
Vision:­
An inspirational description of what an organization would like achieve or accomplish in the mid­tern future. It is
intended to serves as a clear guide for choosing current and future courses of action.
Ken Blanchard and Jesse Stoner say, “Vision knows who you are, where you’re going and what will guide your
journey”
Example: ­ The Company created the vision to provide their employees with a clear direction and gave their
employee a mission to complete within the next 6 months.
Objectives:­
A specific result that a person or system aims to achieve within a time frame and with available resources In general,
objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and
strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of
business objectives include minimizing expenses, expanding internationally or making a profit.

5. Different between Strategic and police? With example?

(Ans):­
Basis For comparison Strategy Policy
Meaning Strategy is a comprehensive plan, made to Policy is the guiding, principle, that
accomplish the organizational goals helps the organization to take logical
decisions.
What is it? Action Plan Action principle
Nature Flexible Fixed, but the allow exceptional
situation
Orientation Action Decision
Formulation Top level management and middle level Top Level management
management
Approach Extroverted Introverted

6. Identify strategic elements within or organization?

(Ans ):­
A Strategic is a document that establishes the direction of company or work unit. It can be a single page or fill up a
binder, depending on the size and complexity of the business and work. 7 Strategic elements within or organization.
There are:­
Vision Statement:­
Vision Statement is an aspiration statement of where you want your unit to be in the future. “Future” is usually
defined as the next three to five years, but it could be more. A vision should set the overall direction for the unit and
team and should be bold and inspirational. A vision describes the “What” and the “Why” for everything you do.
For example, Zappos.com will be that online store. Our hope is that our focus on services will allow us to wow our
customers, our employees, our venders and our investors. We want Zappor.com to sell shoes, handbags, and anything
and everything”
Mission Statement:­
While a vision describes where you want to be in the future, a mission statement describes what you do today. It often
describes what you do, for who, and how. Focusing on your mission each day should enable you to reach your vision.
Here is an example of a mission statement from Harley­ Davison “We fulfill dream through the experience of
motorcycling, by providing motorcyclists and the general public with an expanding line of motorcycles and branded
product and services in selected market segments”
Core Values:­
Core values describe your beliefs and behaviors they are the things that you believe in that will enable you to achieve
your vision and mission. Here is an example of core values from the coca­Cola company:
Leadership: The courage to shape a better future
Collaboration: leverage Collective genius
Integrity: Be real
Accountability: If it is to be, it’s up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well.
SWOT Analysis:­
SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis some up where you are now
and provides ideas on what you need to focus on.
Long Tern Goals:­
Long Term goals are three to five statements that drill down a level below the vision and describe how you plan to
achieve your vision.
Yearly Objectives:­
Each long term goal should have a few (three to five) one year objectives that advance your goals. Each objective
should be as “SMART” as possible: Specific, Measurable, Achievable, Realistic, and Time based.
Action Plane:­
Each objective should have a plan that details how the objective will be achieved. The amount of detail depends on
the complexity of the objective. Note that the strategic plan starts at the highest level (vision) and then gets more
specific, short term, and specific. Both are important.
7. Describe the factors that modify the planning process?
(Ans):­
There are
Vision/ Destination:­
No point planning until you know where you want to end up. Clear, identifiable targets “To be the best dry cleaning
shop in town” are a rubbish vision because the target is too vague. “To have 98% customer satisfaction Rating” is a
clear target.
See Possibilities:­
Many people defeat themselves by reducing their options. Then, when a way ahead is blocked, they’re stymied. Look
for all options, especially unusual ones. The unusual paths are less trodden so you have less competition and more
advantage.
Identify Immediate Actions:­
If you need resources you don’t have, the first action has to be getting those resources. I can’t believe the number of
people who talk about budget or resource restraints as reasons for not doing things. If you can’t move something
because you need a van, then “get a van” is your immediate action.
Get Feedback:­
Mike Tyson said “Everybody has a plan till the get punched in the mouth”. A plan no matter how brilliant will not
able to take into account all the possible futures so you need critical feedback in order to re­align your plan where
necessary. And you need it often real time would be preferred.
8. Describe the Major barriers to entry into the Industry
(Ans):­
Barriers to entry are factors that prevent a startup from entering particular markets. As a whole, they comprise one of
the five forces that determine the intensity of competition in an industry (the other are industry rivalry, the bargaining
power or buyers, the bargaining power of suppliers and the threat of substitutes). Startups need to understand any
barriers to entry for their business and market for two key reasons:
1. Startups might seek to enter a business with high barriers to entry. Doing so would put the start up at a
significant disadvantage that is difficult to overcome.
2. Startups that become market leader must understand how to protect their position by building barriers to
entry
Major Barriers to entry into the Industry are below,
1. Economies of scale
2. Product differentiation
3. Capital requirement.
4. Switching Costs
5. Access to distribution Channels
6. Cost Disadvantage independent of scale
7. Government Policy
8. Explain the link between strategy equation and Strategy Landscape
(Ans):­
Strategy is your plan or achieving competitive advantage. It’s your decision about how and where you will
compete the term "strategy" is often used rather loosely, to refer to getting from A to B in a variety of contexts.
When I talk about Strategy (with capital S) I am referring to Competitive Strategy Your Strategy sets the agenda for
all your business activities. It establishes criteria for all your business decisions.  Your Strategy should be unique.
You don't get competitive advantage by copying your competitors.  Competitive advantage is achieved through a
combination of:
1. Your strategic assets, and
2. The way you choose to use them. 
To express this as an equation: 
What you have + how you use it = your competitive advantage. 
In other words, "Use what you've got, to get what you want". 
To make your Strategy unique, get creative with both parts of the equation. Think more deeply about your strategic
assets (more about these in later posts). Then consider how these can best be applied in ways that your customers or
clients value. 
Strategy equation consists of the set of statements that define the strategic positioning of an organization. The
strategy equation consists of three clusters or groupings:

Defined ENDS: the vision, mission, and goal statements are concerned with the ends that organization seeks to
achieve.
Defined MEANS: the strategies and objectives are focused on the means to achieve the ends.
Defined RULES: the policies and Values set out the rules and behaviors appropriate to the pursuit of both the Means
and the ENDS.
Mapping the strategy equation to its industrial and societal landscapes is called strategy landscape is an integral part
of the process of developing and detailing the strategy equation.
There are many different pathways that can be taken in reaching a given goal. These pathways correspond to the
different strategy options and the mix of action and behavior choices that face the organization will vary considerably.
There are choices between different pathways or strategies shown as A, B, and C. Choosing which path to take would
depend on a wide variety of conditions and circumstances. For example, path A may be faster but more difficult and
dangerous; this would probably appeal to a risk taker. Path C may be slower but safer; this would probably appeal to
a more cautious individual. In this example, the surrounding environment is the physical landscape, and this needs to
be crossed in order to reach the goal of climbing the mountain.

9. Generic Strategy in the value chain analysis?

(Ans):­
(The value chain is a series of the value activities the firm performs for competing in an industry. Therefore,
a meaning full cost analysis examines cost within these activities and not the cost of a firm as a whole, Cost
analysis of the firm’s value chain begins with assigning operating costs and assets to value activities). Next
come the cost drivers which can combine to determine the cost of a given activity. These cost drivers differ
from firm to firm in the same industry, if different value chains are employed. There are ten major cost
drivers that determine the cost behavior of value activities.
The buyer value chain also consists of activities they perform just as in the case of the firm. The buyers also
perform some activities that will help them in knowing the value a firm creates for them.
The Value chain and Generic Strategies
The value chain and Cost analysis
1. Define the value chain for Cost analysis
2. Assigning Costs and Assets
3. First Cut Analysis of Costs
Cost Behavior:­
1. Cost Drivers
 2. Economies or Diseconomies of Scale
3. Learning and spillovers
4. Pattern of Capacity Utilization
Linkages:­
1. Linkage within the Value Chain
2. Vertical linkages
3. Interrelationships
4. Institutional Factors
5. The cost of purchased inputs
6. Segment Cost behavior
7. Cost Dynamic
8. Industry Real Growth
Cost Advantage
1. Determining the Relative Cost of Competitors
2. Gaining Cost Advantage
3. Implementation and Cost Advantage
10. Discuss the components of Generic Strategy
(Ans):­
Three generic strategies that a company could use to gain competitive advantage back in 1980, these three
are: ­ cost leadership, differentiation and focus. Description are bellow,:­
Cost Leadership:­
The cost leadership strategy advocates gaining competitive advantage due to the lowest cost of production of
a product or service. Lowest cost need not mean lowest price. Costs are removed from every link of the
value chain including production. Marketing and wastages and so on.
Examples are the TPS system developed by the Toyota Motor company, TPS system aims to cut costs
throughout the company, but Toyota cars are still price at almost the same levels as American or other
Japanese cars.
Differentiation:­
The ‘differentiation’ strategy involves creation of differentiated products for segments. A variety of products,
িবধা াস
each branded and promoted differently with levels of function, allow a company to ‘desensitize (সু
করা)’ price and on the basis of being different, charge premium or higher price
A prime example of this strategy is Hindustan lever, which, while focused on FMCG, has a rang of products
even within the soaps category for different segments. Such a strategy needs strong segmentation, marketing
and branding skills
Focus:­
The ‘Focus’ strategy involves focusing on a narrow, defined segment of the market, also called a ‘niche’
segment. For example, Porches markets to the particular segment that likes fast and expensive car and can
afford it. A company in a niche market has customers who understand appreciate and can pay a premium for
their indulgence.
11. Discuss the relationships between process chain and SWOT analysis
(Ans):­
Process Chain:­
A process chain is a sequence of processes that are scheduled to wait in the background for an event. Some
of these processes trigger a separate event that can, in turn, start processes.
SWORT Analysis:­
SWOT analysis is a common way to quickly assess a company’s strategic situation. The internal environment is
assessed through determining the company’s strengths and weaknesses, while evaluating opportunities and threats
helps to understand the external environment.
Relationship between SWOR and Process Chain:­
In many cases, the SWOT method is an inadequate analysis of the internal business environment. Simply starting
strengths and weakness gives a brief explanation of what the company does best and where there’s room for
improvement, but the SWOT leaves out many of the details of the company’s operations. The value chain files in
some of the internal analysis gaps that SWOT leaves. Conversely, value chain analysis virtually ignores the external
environment by examining only the needs and desires of customers. In many ways, SWOT analysis and the value
chain give a more complete picture of the business environment when used together.
Combined Analysis:­
The value chain and SWOT can be combined in different ways. The value chain analysis internal
environment. So it can be used in place of the strengths and weakness potion of the SWOT. Most often, the
value chain is used in conjunction with SWOT, creating a comprehensive business analysis that incorporates
both internal and external evaluation. Business managers can take elements of the value chain and apply the
elements of opportunities and trends part of the SWOT analysis.
12. How can the objective be made SMART? Provide examples of SMART objectives?
(Ans):­
Objective be made SMART:­
SMART objectives are simple and quick to learn. The Objective is the starting point of the marketing Plan.
One environmental analysis (Such as SWOT, Five Forces Analysis, and PEST) and marketing audit have
been conducted; their results will inform SMART Objective. The purposes of SMART objectives include.
1. To enable a company to control its marketing plan.
2. To help to motivate individuals and teams to reach a common goal.
3. To provide an agreed, consistent focus for all function of a an organization
All objectives should be SMART i,e Specific, Measurable, Achievable, Realistic and Timed
1. Specific­ Be precise about what you are going to achieve.
2. Measurable­ Quantify your objectives.
3. Achievable – Are you attempting too much?
 4. Realistic – Do you have the resources to make the objective happen (men, money, machines, materials,
minutes)
5. Timed – State when you will achieve the objective (within a month?)
Some Examples of SMART Objectives:­
1. Profitability Objectives :­ To achieve a 20% return on capital employed by August 2019
2. Market Share Objective :­ To gain 25% of the market for sports shoes by September 2019
3. Promotional Objective :­ To increase awareness of the dangers of AIDS France from 12% to 25% by June 2017
4. Object for Survival :­ To survive the current double dip recession
5. Objectives for Growth:­ To increase the size of our Brazilian operation from $200,00 in 2017 to $400000 in
2018
6. Objective for Branding: ­ To make Y brand of bottled beer the preferred brand of 21­28 year old females in
North America by February 2017.
13. State the critical success factors of value chain?
(Ans):­
Value chain analysis refers to the process of examining the steps involved in a company’s value chain and
the supporting company systems. Management expert Michael Porter outlined theses elements 1985 his
book “Competitive Advantage”. By analyzing your company’s value chain. We can improve efficiencies
and more effectively meet the needs of your customers
Logistic:­
Logistics includes the coordination of the flow of information and goods into and out of your business. Analyzing
your inbound logistics includes consideration of way to reduce supplier costs and build stronger relationships with
core suppliers. Outbound logistics involving movement of goods and information to your buyers is a critical
distribution and service factor, delivery of goods in the most efficient but low cost way is important to optimized
distribution costs and timely service for buyers.
Operations:­
The operations step in the value chain includes the various processes, equipment and employee used to manufacture,
buy and sell inventory to customers. Manufacturers often focus on developing the best quality goods at the lowest
cost by optimizing labor and equipment cost and taking wasted steps out of production processes.
Front­End Activities:­
Porter emphasizes marketing, sales and support as import front end value chain activities. Essentially, businesses
need to constantly review and enhance marketing research, promotional activities and support for customers.
Research helps you learn more about potential or existing customers. Promotions including advertising and sales
attract customers.
Supporting Factors:­
Porter identified four supporting factors in a value chain. Infrastructure, human resources, technology development
and procurement. Infrastructure and technology development essentially relate to build­up and development of
buildings, equipment supplies and technology to support ongoing business activities. Analyzing your infrastructure
and technology allows you to seek way to boost your structure to support customers. Human resources is central to
attracting, retaining and motivating top workers. Purchasing departments routinely review procurement steps to seek
opportunities for lower costs from supplier or more favorable terms.
14. Mention the factors to be considered in identified strategic Business Units (SUBs)
(Ans):­
Strategic Business Units (SUBs):­
Strategic Business unit, popularly know as SBU, is a fully­functional unit of a business that has its own vision and
direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the
company. It reports to headquarters about its operational status
The best Example of SBU is companies like Proctor and Gamble, LG etc. These companies have different product
categories under the roof, For example, LG as a company makes consumers durables.
15. Distinguish between prescriptive and process views of strategic management?
(Ans):­
Prescriptive view:­
Prescriptive view includes three so called “School” that share some common elements while exhibiting their own
areas of emphasis – Design, planning and positioning’. As mentioned earlier, the prescriptive perspective is strongly
normative in its orientation­ focusing on what an organization should do.
Three are bellow there:­
The Design School:­
1. Strategy formation should be a controlled, conscious application of though to action.
2. Responsibility for that control and consciousness must rest with the chief executive officer: tat person is THE
Strategist
3. Model of Strategy formation must be kept simple and informal elaboration will kill it.
4. Strategic should be unique the best ones result from a process creative design.
5. Strategies emerge from this design process full blown.
The Planning School:­
1. That Responsibility for the overall process rest with the chief executive in principle; responsibility for its
executive rest with the staff planners in practice
The Positional School:­
1. The marketplace (the context) is economic and competitive.
2. Analysis plays a major role in this process, feeding the results of their calculations to managers, who officially
control the choices.
Process views:­
To provide a basis for understanding the process organization of the system, an architectural view called the process
vide is used in the Analysis & design discipline. There is only one process view of the system, which illustrates the
process decomposition of the system, including the mapping of classes and subsystems on the processes and threads.
The Following six “process of school”. There are,
1. The Entrepreneurial School.
2. The cognitive School
3. The learning School
4. The political School
5. The Cultural School
6. The environmental School
1. When we use PESTLE analysis ( Pag 17)
2. Michal Porter five forces Module? porter 5 forces for competitive analysis/ Industry analysis
3. Barrier of new entry (Page 56)
4. Michal Porter four generic strategy/ Michal Porter generic Competitive strategy/ Generic strategy approach to
strategy?
5. Non generic Strategy( Strategy formulation)
6. What is diversification
7. Levels of diversification
8. Diversification strategy/ Strategy to diversify a company
Case Study will be given from strategy formulation
9. organizational Philosophy; Organizational Policy; Competitive Strategy Code of ethics
10. Process of Strategic management
11. vision definition and its characteristic
12. Why change vision
13. Importance /necessity of vision
14. Mission and its difference with vision? ideal content of mission
15. How to conduct internal environment or internal analysis/ company ¬¬¬______ analysis
16. Why manager need to do internal analysis
17. Value chain analysis?
18. Component of the micro environment/ factors of general environment of business organization/ PESTLED
analysis