Q 1 - Concept of Strategy?

Ans Introduction : The top management of an organization is concerned with the selection of
a course of action from among different alternatives to meet the organizational objectives. The
process by which objectives are formulated aand achieved is known as strategic management and
strategy acts as the means to achieve the objective. Strategy is the grand design or an overall
‘plan’ which an organization chooses in order to move or react towards the set of objectives by
using its resources. Strategies most often devote a general programme of action and an implied
deployed of emphasis and resources to attain comprehensive objectives. An organization is
considered efficient and operationally effective if it is characterized by coordination between
objectives and strategies. There has to be integration of the parts into a complete structure.
Strategy helps the organization to meet its uncertain situations with due diligence. Without a
strategy, the organization is like a ship without a rudder. It is like a tramp, which has no
particular destination to go to. Without an appropriate strategy effectively implemented, the
future is always dark and hence, more are the chances of business failure.
Meaning of strategy : The word ‘strategy’ has entered in the field of management from the
military services where it refers to apply the forces against an enemy to win a war. Originally,
the word strategy ha s been derived from Greek, ‘strategos’ which means generalship. The word
as used for the first time in around 400 BC. The word strategy means the art of the general to
fight in war.
The dictionary meaning of strategy is “the art of so moving or disposing the instrument of
warfare as to impose upon enemy, the place time and conditions for fighting by one self”
In management, the concept of strategy is taken in more broader terms. According to Glueck,
“Strategy is the unified, comprehensive and integrated plan that relates the strategic
advantage of the firm to the challenges of the environment and is designed to ensure that
basic objectives of the enterprise are achieved through proper implementation process”
This definition of strategy lays stress on the following:
a) Unified comprehensive and integrated plan
b) Strategic advantage related to challenges of environment
c) Proper implementation ensuring achievement of basic objectives
Another definition of strategy is given below which also relates strategy to its environment.
“Strategy is organization’s pattern of response to its environment over a period of time to
achieve its goals and mission”
This definition lays stress on the following:
a) It is organization’s pattern of response to its environment
b) The objective is to achieve its goals and missions
However, various experts do not agree about the precise scope of strategy. Lack of consensus has
lead to two broad categories of definations:strategy as action inclusive of objective setting and
strategy as action exclusive of objective setting.
Strategy as action, inclusive of objective setting:
In 1960’s, Chandler made an attempt to define strategy as “the determination of basic long term
goals and objective of an enterprise and the adoption of the courses of action and the allocation
of resources necessary for carrying out these goals”
This definition provides for three types of actions involved in strategy :
a) Determination of long term goals and objectives
b) Adoption of courses of action
c) Allocation of resources
Strategy as action exclusive of objective setting :
This is another view in which strategy has been defined. It states that strategy is a way in which
the firm, reacting to its environment, deploys its principal resources and marshalls its efforts in
pursuit of its purpose. Michael Porter has defined strategy as “Creation of a unique and valued
position involving a different set of activities. The company that is strategically positioned
performs different activities from rivals or performs similar activities in different ways”
The people who believe this version of the definition call strategy a unified, compreshensive and
integrated plan relating to the strategic advantages of the firm to the challenges of the
environment
After considering bothe the views, strategy can simply be put as management’s plan for
achieving its objectives. It basically includes determination and evaluation of alternative paths to
an already established mission or objective and eventually, choice of best alternative to be
adopted
Nature of Strategy:
Based on the above definations, we can understand the nature of strategy. A few aspects
regarding nature of strategy are as follows:
• Strategy is a major course of action through which an organization relates itself to its
environment particularly the external factors to facilitate all actions involved in meeting
the objectives of the organization
• Strategy is the blend of internal and external factors. To meet the opportunities and
threats provided by the external factors, internal factors are matched with them
• Strategy is the combination of actions aimed to meet a particular condition, to solve
certain problems or to achieve a desirable end. The actions are different for different
situations
• Due to its dependence on environmental variables, strategy may involve a contradictory
action. An organization may take contradictory actions either simultaneously or with a
gap of time. For example, a firm is engaged in closing down of some of its business and
at the same time expanding some
• Strategy is future oriented. Strategic actions are required for new situations which have
not arisen before in the past
• Strategy requires some systems and norms for its efficient adoption in any organization
• Strategy provides overall framework for guiding enterprise thinking and action
The purpose of strategy is to determine and communicate a picture of enterprise through a
system of major objectives and policies. Strategy is concerned with a unified direction and
efficient allocation of an organization’s resources. A well made strategy guides managerial
action and thought. It provides an integrated approach for the organization and aids in meeting
the challenges posed by environment
Essence of Strategy:
Strategy, according to a survey conducted in 1974, includes the determination and evaluation of
alternative paths to an already established mission or objective and eventually, choice of the
alternative to be adopted. Strategy is characterized by four important aspects:
• Long term objectives
• Competitive Advantage
• Vector
• Synergy

Q 2- Define Vision /Mission/Objective/Goals/Profile

Q 3- Kinds of Strategy
Three Kinds of Business Strategy
Figure 1 - Three Kinds of
Strategy
There are at least three basic kinds of strategy with
which people must concern themselves in the world of
business: (1) just plain strategy or strategy in general,
(2) corporate strategy, and (3) competitive strategy (see
Figure 1). The purposes of this post are to clarify the
differences between and among these three kinds of
strategy and to provide some questions useful in
thinking about all three.
Strategy in General
Strategy, in general, refers to how a given objective will
be achieved. Consequently, strategy in general is
concerned with the relationships between ends and means, between the results we seek and the
resources at our disposal. Strategy and tactics are both concerned with conceiving and then
carrying out courses of action intended to attain particular objectives. For the most part, strategy
is concerned with how you deploy or allocate the resources at your disposal whereas tactics is
concerned with how you employ or make use of them. Together, strategy and tactics bridge the
gap between ends and means (see Figure 2).
Figure 2 - "Bridging the Gap"
Strategy and tactics are terms that come to us from the military. Their use in business and other
civilian enterprises has required little adaptation as far as strategy in general is concerned.
However, corporate strategy and competitive strategy do represent significant departures from
the military meaning of strategy.
Corporate versus Competitive Strategy
Corporate strategy defines the markets and the businesses in which a company will operate.
Competitive or business strategy defines for a given business the basis on which it will compete.
Corporate strategy is typically decided in the context of defining the company’s mission and
vision, that is, saying what the company does, why it exists, and what it is intended to become.
Competitive strategy hinges on a company’s capabilities, strengths, and weaknesses in relation to
market characteristics and the corresponding capabilities, strengths, and weaknesses of its
competitors.
According to Michael Porter, a Harvard Business School professor and the reigning guru of
competitive strategy, competition within an industry is driven by five basic factors:
1. Threat of new entrants.
2. Threat of substitute products or services.
3. Bargaining power of suppliers.
4. Bargaining power of buyers.
5. Rivalry among existing firms.
Porter also indicates that, in response to these five factors, competitive strategy can take one of
three generic forms: (1) focus, (2) differentiation, and (3) cost leadership.
Factors Affecting Corporate and Competitive Strategy
Writers on the subject of strategy point to several factors that can serve as the basis for
formulating corporate and competitive strategy. These include:
• Products-services offered • Natural resources
• Sales-marketing methods • Production capacity-capability
• Users-customers served • Size/growth goals
• Distribution methods • Technology
 • Market types and needs • Return/profit goals
Michael Treacy and Fred Wiersema suggest that "value disciplines" should serve as the basis for
settling on strategy (corporate or competitive). The three basic "value disciplines" they present
are:
• Operational Excellence
Strategy is predicated on the production and delivery of products and services. The
objective is to lead the industry in terms of price and convenience.
• Customer Intimacy
Strategy is predicated on tailoring and shaping products and services to fit an increasingly
fine definition of the customer. The objective is long-term customer loyalty and long-
term customer profitability.
• Product Leadership
Strategy is predicated on producing a continuous stream of state-of-the-art products and
services. The objective is the quick commercialization of new ideas.
Summary
The preceding discussion asserts that strategy in general is concerned with how particular
objectives are achieved, with courses of action. Corporate strategy is concerned with choices and
commitments regarding markets, business and the very nature of the company itself. Competitive
strategy is concerned with competitors and the basis of competition. These basic points are
illustrated in Figure 3.
Figure 3 - Basic Points about Strategy

Q 4- Strategic management Process Model

Strategic management is a field that deals with the major intended and emergent initiatives
taken by general managers on behalf of owners, involving utilization of resources, to enhance the
performance of firms in their external environments.[1] It entails specifying the organization's
mission, vision and objectives, developing policies and plans, often in terms of projects and
programs, which are designed to achieve these objectives, and then allocating resources to
implement the policies and plans, projects and programs. A balanced scorecard is often used to
evaluate the overall performance of the business and its progress towards objectives. Recent
studies and leading management theorists have advocated that strategy needs to start with
stakeholders expectations and use a modified balanced scorecard which includes all stakeholders.
Strategic management is a level of managerial activity under setting goals and over Tactics.
Strategic management provides overall direction to the enterprise and is closely related to the
field of Organization Studies. In the field of business administration it is useful to talk about
"strategic alignment" between the organization and its environment or "strategic consistency".
According to Arieu (2007), "there is strategic consistency when the actions of an organization
are consistent with the expectations of management, and these in turn are with the market and the
context." Strategic management includes not only the management team but can also include the
Board of Directors and other stakeholders of the organization. It depends on the organizational
structure.
“Strategic management is an ongoing process that evaluates and controls the business and the
industries in which the company is involved; assesses its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reassesses each strategy
annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it
has succeeded or needs replacement by a new strategy to meet changed circumstances, new
technology, new competitors, a new economic environment., or a new social, financial, or
political environment.”
Strategy formation
Strategic formation is a combination of three main processes which are as follows:
• Performing a situation analysis, self-evaluation and competitor analysis: both internal and
external; both micro-environmental and macro-environmental.
• Concurrent with this assessment, objectives are set. These objectives should be parallel to
a time-line; some are in the short-term and others on the long-term. This involves crafting
vision statements (long term view of a possible future), mission statements (the role that
the organization gives itself in society), overall corporate objectives (both financial and
strategic), strategic business unit objectives (both financial and strategic), and tactical
objectives.
• These objectives should, in the light of the situation analysis, suggest a strategic plan.
The plan provides the details of how to achieve these objectives.
Strategy evaluation
• Measuring the effectiveness of the organizational strategy, it's extremely important to
conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and
threats (both internal and external) of the entity in question. This may require to take
certain precautionary measures or even to change the entire strategy.
In corporate strategy, Johnson, Scholes and Whittington present a model in which strategic
options are evaluated against three key success criteria:[3]
• Suitability (would it work?)
• Feasibility (can it be made to work?)
• Acceptability (will they work it?)
Suitability
Suitability deals with the overall rationale of the strategy. The key point to consider is whether
the strategy would address the key strategic issues underlined by the organisation's strategic
position.
• Does it make economic sense?
• Would the organization obtain economies of scale, economies of scope, or experience
economy?
• Would it be suitable in terms of environment and capabilities?
Tools that can be used to evaluate suitability include:
• Ranking strategic options
• Decision trees
Feasibility
Feasibility is concerned with whether the resources required to implement the strategy are
available, can be developed or obtained. Resources include funding, people, time and
information.
Tools that can be used to evaluate feasibility include:
• cash flow analysis and forecasting
• break-even analysis
• resource deployment analysis
Acceptability
Acceptability is concerned with the expectations of the identified stakeholders (mainly
shareholders, employees and customers) with the expected performance outcomes, which can be
return, risk and stakeholder reactions.
• Return deals with the benefits expected by the stakeholders (financial and non-financial).
For example, shareholders would expect the increase of their wealth, employees would
expect improvement in their careers and customers would expect better value for money.
• Risk deals with the probability and consequences of failure of a strategy (financial and
non-financial).
• Stakeholder reactions deal with anticipating the likely reaction of stakeholders.
Shareholders could oppose the issuing of new shares, employees and unions could
oppose outsourcing for fear of losing their jobs, customers could have concerns over a
merger with regards to quality and support.
Tools that can be used to evaluate acceptability include:
• what-if analysis
• stakeholder mapping

Q 5- Decision making Importance

Q 6- Decision making 3 Phases

Q 7- Decision making Techniques Brainstorming/S/Ng/Ct

Q 8- Business Communication

Ans: Business Communication used to promote a product, service, or organization; relay

information within the business; or deal with legal and similar issues. It is also a means of
relaying between a supply chain, for example the consumer and manufacturer.
Business Communication is known simply as "Communications." It encompasses a variety of
topics, including Marketing, Branding, Customer relations, Consumer behaviour, Advertising,
Public relations, Corporate communication, Community engagement, Research & Measurement,
Reputation management, Interpersonal communication, Employee engagement, Online
communication, and Event management. It is closely related to the fields of professional
communication and technical communication.

In business, the term communications encompasses various channels of communication,

including the Internet, Print (Publications), Radio, Television, Ambient media, Outdoor, and
Word of mouth.

Business Communication can also refer to internal communication. A communications director

will typically manage internal communication and craft messages sent to employees. It is vital
that internal communications are managed properly because a poorly crafted or managed
message could foster distrust or hostility from employees.[1]

Business Communication is a common topic included in the curricula of Masters of Business

Administration (MBA) programs of many universities. AS well, many community colleges and
universities offer degrees in Communications.

There are several methods of business communication, including:

Web-based communication - for better and improved communication, anytime anywhere ...
video conferencing which allow people in different locations to hold interactive meetings;
e-mails, which provide an instantaneous medium of written communication worldwide;
Reports - important in documenting the activities of any department;
Presentations - very popular method of communication in all types of organizations, usually
involving audiovisual material, like copies of reports, or material prepared in Microsoft
PowerPoint or Adobe Flash;
telephoned meetings, which allow for long distance speech;
forum boards, which allow people to instantly post information at a centralized location; and
face-to-face meetings, which are personal and should be succeeded by a written followup.
Business communication is somewhat different and unique rather from other type of
communication since the purpose of business is to get profit. Thus to make good way for profit
the communicator should develop good communication skills. Everyone knows that in the
present day trends the knowldege alone wont be a fruitful one to have sustainable development.
By knowing the importance of communication many organisations started training their
employees in betterment of Communicaiton techniques.

Essentially due to globalisation the world has became a Global village. Thus here the importance
of cross cultural communcation plays a vital role. Since each and every nations haa their own
meaning for each and every non verbal actions.

The way we appear speaks a lot about us in business communication. A neat appearance is half
done verbal communication. But Developing communication is not a day work, it needs constant
yearly practise. Their are seveal way to get trained in excelling business communication such 1.
by our own, 2. by practising from trainers, 3. by internet contents, 4. by books.
Q 9- Market Structure

Q 10- Pricing Strategy

There are many ways to price a product. Let's have a look at some of them and try to understand
the best policy/strategy in various situations..

Premium Pricing.
Use a high price where there is a
uniqueness about the product or service.
This approach is used where a a
substantial competitive advantage exists.
Such high prices are charge for luxuries
such as Cunard Cruises, Savoy Hotel
rooms, and Concorde flights.

Penetration Pricing.
The price charged for products and
services is set artificially low in order to
gain market share. Once this is achieved,
the price is increased. This approach was
used by France Telecom and Sky TV.

Economy Pricing.
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum.
Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming.
Charge a high price because you have a substantial competitive advantage. However, the
advantage is not sustainable. The high price tends to attract new competitors into the market, and
the price inevitably falls due to increased supply. Manufacturers of digital watches used a
skimming approach in the 1970s. Once other manufacturers were tempted into the market and
the watches were produced at a lower unit cost, other marketing strategies and pricing
approaches are implemented.
Premium pricing, penetration pricing, economy pricing, and price skimming are the four main
pricing policies/strategies. They form the bases for the exercise. However there are other
important approaches to pricing.
Psychological Pricing.
This approach is used when the marketer wants the consumer to respond on an emotional, rather
than rational basis. For example 'price point perspective' 99 cents not one dollar.

Product Line Pricing.

Where there is a range of product or services the pricing reflect the benefits of parts of the range.
For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.

Optional Product Pricing.

Companies will attempt to increase the amount customer spend once they start to buy. Optional
'extras' increase the overall price of the product or service. For example airlines will charge for
optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.

Captive Product Pricing

Where products have complements, companies will charge a premium price where the consumer
is captured. For example a razor manufacturer will charge a low price and recoup its margin (and
more) from the sale of the only design of blades which fit the razor.

Product Bundle Pricing.

Here sellers combine several products in the same package. This also serves to move old stock.
Videos and CDs are often sold using the bundle approach.

Promotional Pricing.
Pricing to promote a product is a very common application. There are many examples of
promotional pricing including approaches such as BOGOF (Buy One Get One Free).

Geographical Pricing.
Geographical pricing is evident where there are variations in price in different parts of the world.
For example rarity value, or where shipping costs increase price.

Value Pricing.
This approach is used where external factors such as recession or increased competition force
companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds.

Q 11- Growth Accelerators.

• Knol Management
• IT
• Innovation.
• R&D
Q 12- Mckinsey 7s Model
Introduction
This paper discusses McKinsey's 7S Model that was created by the consulting company
McKinsey and Company in the early 1980s. Since then it has been widely used by practitioners
and academics alike in analysing hundreds of organisations. The paper explains each of the
seven components of the model and the links between them. It also includes practical guidance
and advice for the students to analyse organisations using this model. At the end, some sources
for further information on the model and case studies available on this website are mentioned.

The McKinsey 7S model was named after a consulting company, McKinsey and Company,
which has conducted applied research in business and industry (Pascale & Athos, 1981; Peters &
Waterman, 1982). All of the authors worked as consultants at McKinsey and Company; in the
1980s, they used the model to analyse over 70 large organisations. The McKinsey 7S Framework
was created as a recognisable and easily remembered model in business. The seven variables,
which the authors term "levers", all begin with the letter "S":

Figure 1: McKinsey's 7S Model

These seven variables include structure, strategy, systems, skills, style, staff and shared values.
Structure is defined as the skeleton of the organisation or the organisational chart. The authors
describe strategy as the plan or course of action in allocating resources to achieve identified
goals over time. The systems are the routine processes and procedures followed within the
organisation. Staff are described in terms of personnel categories within the organisation (e.g.
engineers), whereas the skills variable refers to the capabilities of the staff within the
organisation as a whole. The way in which key managers behave in achieving organisational
goals is considered to be the style variable; this variable is thought to encompass the cultural
style of the organisation. The shared values variable, originally termed superordinate goals,
refers to the significant meanings or guiding concepts that organisational members share (Peters
and Waterman, 1982).

The shape of the model (as shown in figure 1) was also designed to illustrate the interdependency
of the variables. This is illustrated by the model also being termed as the "Managerial Molecule".
While the authors thought that other variables existed within complex organisations, the
variables represented in the model were considered to be of crucial importance to managers and
practitioners (Peters and Waterman, 1982).

The analysis of several organisations using the model revealed that American companies tend to
focus on those variables which they feel they can change (e.g. structure, strategy and systems)
while neglecting the other variables. These other variables (e.g. skills, style, staff and shared
values) are considered to be "soft" variables. Japanese and a few excellent American companies
are reportedly successful at linking their structure, strategy and systems with the soft variables.
The authors have concluded that a company cannot merely change one or two variables to
change the whole organisation.

For long-term benefit, they feel that the variables should be changed to become more congruent
as a system. The external environment is not mentioned in the McKinsey 7S Framework,
although the authors do acknowledge that other variables exist and that they depict only the most
crucial variables in the model. While alluded to in their discussion of the model, the notion of
performance or effectiveness is not made explicit in the model.

Description of 7 Ss

Strategy: Strategy is the plan of action an organisation prepares in response to, or anticipation
of, changes in its external environment. Strategy is differentiated by tactics or operational actions
by its nature of being premeditated, well thought through and often practically rehearsed. It deals
with essentially three questions (as shown in figure 2): 1) where the organisation is at this
moment in time, 2) where the organisation wants to be in a particular length of time and 3) how
to get there. Thus, strategy is designed to transform the firm from the present position to the new
position described by objectives, subject to constraints of the capabilities or the potential
(Ansoff, 1965).
Structure: Business needs to be organised in a specific form of shape that is generally referred
to as organisational structure. Organisations are structured in a variety of ways, dependent on
their objectives and culture. The structure of the company often dictates the way it operates and
performs (Waterman et al., 1980). Traditionally, the businesses have been structured in a
hierarchical way with several divisions and departments, each responsible for a specific task such
as human resources management, production or marketing. Many layers of management
controlled the operations, with each answerable to the upper layer of management. Although this
is still the most widely used organisational structure, the recent trend is increasingly towards a
flat structure where the work is done in teams of specialists rather than fixed departments. The
idea is to make the organisation more flexible and devolve the power by empowering the
employees and eliminate the middle management layers (Boyle, 2007).

Systems: Every organisation has some systems or internal processes to support and implement
the strategy and run day-to-day affairs. For example, a company may follow a particular process
for recruitment. These processes are normally strictly followed and are designed to achieve
maximum effectiveness. Traditionally the organisations have been following a bureaucratic-style
process model where most decisions are taken at the higher management level and there are
various and sometimes unnecessary requirements for a specific decision (e.g. procurement of
daily use goods) to be taken. Increasingly, the organisations are simplifying and modernising
their process by innovation and use of new technology to make the decision-making process
quicker. Special emphasis is on the customers with the intention to make the processes that
involve customers as user friendly as possible (Lynch, 2005).

Style/Culture: All organisations have their own distinct culture and management style. It
includes the dominant values, beliefs and norms which develop over time and become relatively
enduring features of the organisational life. It also entails the way managers interact with the
employees and the way they spend their time. The businesses have traditionally been influenced
by the military style of management and culture where strict adherence to the upper management
and procedures was expected from the lower-rank employees. However, there have been
extensive efforts in the past couple of decades to change to culture to a more open, innovative
and friendly environment with fewer hierarchies and smaller chain of command. Culture remains
an important consideration in the implementation of any strategy in the organisation (Martins
and Terblanche, 2003).

Staff: Organisations are made up of humans and it's the people who make the real difference to
the success of the organisation in the increasingly knowledge-based society. The importance of
human resources has thus got the central position in the strategy of the organisation, away from
the traditional model of capital and land. All leading organisations such
as IBM, Microsoft, Cisco, etc put extraordinary emphasis on hiring the best staff, providing them
with rigorous training and mentoring support, and pushing their staff to limits in achieving
professional excellence, and this forms the basis of these organisations' strategy and competitive
advantage over their competitors. It is also important for the organisation to instil confidence
among the employees about their future in the organisation and future career growth as an
incentive for hard work (Purcell and Boxal, 2003).

Shared Values/Superordinate Goals: All members of the organisation share some common
fundamental ideas or guiding concepts around which the business is built. This may be to make
money or to achieve excellence in a particular field. These values and common goals keep the
employees working towards a common destination as a coherent team and are important to keep
the team spirit alive. The organisations with weak values and common goals often find their
employees following their own personal goals that may be different or even in conflict with
those of the organisation or their fellow colleagues (Martins and Terblanche, 2003).

Q 13- MIS

Q14 Discuss Types Of Decision making According To

-- Problem Complexity & Order Uncertainty
-- According To Status Nature