Strategic Management and Business Policy

Dr. Vijay Pithadia

ISBN: 9789351197713

292 pages

INR 399

Description

This book titled Strategic Management and Business Policy is an ideal textbook for students studying

management for the first time, whether at undergraduate or graduate programs, covering all of the

functional areas and processes of management, i.e., Planning, Organizing, Staffing, Directing,

Controlling, etc. It provides a framework for students to understand the inter-relatedness of the different aspects of management and how they robust as one in the business organization. The primary objective of this book is to present prologue to the theory and practice of management and it is a base for a number of important undergraduate or graduate studies in India.

Chapter 1: Strategic Management

  • Introduction
  • Meaning of Strategy
  • Definition of Strategy
  • Elements of Strategy
  • Organizational Strategy – Vision, Missio and Competitive Advantage
  • Levels of Strategy
  • L-1 Corporate Level Strategy
  • L-2 Business Unit Level Strategy
  • L-3 Functional Level Strategy
  • Formulation of Strategy
  • Approaches to Strategy
  • Organizational Strategy - External Assessment
  • Organizational Strategy - Internal Assessment
  • Finance
  • Production
  • Marketing
  • Sales and Distribution
  • Customer Service
  • Strategy Implementation and Realization
  • Strategy Realisation: Essential Elements
  • Role of Strategists
  • Strategic Management
  • History of Strategic Management
  • Preface
  • About the Book
  • About the Author
  • Acknowledgements
  • xiv Strategic Management and Business Policy
  • Scope of Strategic Management
  • Critical Tasks of Strategic Management
  • Criticisms of Strategic Management
  • Objective of Strategic Management
  • Other Objectives
  • Objectives in Strategic Management
  • The Objectives of Business Policy
  • In Terms of Knowledge
  • In Terms of Attitude
  • Role of Objectives
  • Characteristics of Objectives
  • Objective Should be Understandable
  • Objective Should be Concrete a Specific
  • Objectives Should be Related to a Time Frame
  • Objectives Should be Measurable and Controllable
  • Objectives Should be Challenging
  • Different Objectives Should Correlate with Each Other
  • Objectives Should be Set within Constraints
  • Issues in Objective Setting
  • Specificity
  • Multiplicity
  • Verifiability
  • Objectives of Strategy
  • Measuring the Effectiveness of the Organizational Strategy
  • General Approaches to Strategic Management
  • The Marketing Revolution
  • Gaining Competitive Advantage
  • Importance of Strategic Management
  • Key Success Factors
  • Levels Involved in Strategic Management
  • Principles of Strategic Management
  • Integrating Corporate Social Responsibility into Strategic Management
  • Corporate Social Responsiveness and Stakeholder Management
  • Review Questions

Chapter 2: Strategic Management Process

  • Introduction
  • Strategic Management Process
  • Detailed Contents
  • Strategic Planning
  • Implementation Planning
  • Execution
  • Performance Evaluation
  • Benefits of Strategic Management
  • Components of the Strategic Management Model
  • Company Mission
  • Company Profile
  • External Environment
  • Strategic Analysis and Choice
  • Long-term Objective
  • Annual Objective
  • Policies
  • Strategic Management as a Process
  • Holistic
  • Analytic versus Prescriptive
  • Nonpolitical
  • Processes of Strategic Management
  • Strategy Formulation
  • Strategy Implementation
  • Strategy Evaluation
  • Strategic Management: An Ongoing Process
  • Strategic Management: Art and Science
  • Processes & the Strategy Hierarchy
  • Steps in Implementation of Strategic Management Process
  • Step One: Agreement on the Process
  • Step Two: Identification and Clarification of the Organization’s Mission
  • Objectives and Current Strategies
  • Step Three: Identification of the Organization’s Internal Strengths and Weaknesses
  • Step Four: Assessment of Threats and Opportunities in the External Environment
  • Step Five: Identification of Key Constituents and Stakeholders, their Expectations and Resources
  • Step Six: Identification of Key Strategic Issues
  • Step Seven: Design, Analysis and Selection of Strategy Alternatives
  • Step Eight: Implementation of the Strategy
  • Step Nine: Monitoring and Review of Performance
  • Vision and Mission Statement
  • xvi Strategic Management and Business Policy
  • Understanding Mission
  • Defining Mission
  • Formulation of Mission Statements
  • Mission Statements
  • Steps to Developing Effective Mission Statements
  • Mission Statement and its Connection with the Organization
  • Mission Statements from Wide Assortment of Organizations
  • Characteristics of a Mission Statement
  • Mission Impossible Statement
  • Nonprofit Organization’s Mission Statement
  • Mission Statement Criteria
  • Contents of Mission Statement
  • Verbs
  • Nouns Embodying Activities
  • Brevity
  • Too Broad or too Narrow
  • Uniqueness
  • A Remedy for ‘Founder’s Syndrome’
  • Stay On the Guidelines for Mission Statement
  • Judgment
  • Judgment and Decision Making for Management
  • Specialist Judgment: Vital Instrument for Science Integration
  • Business Judgment Statute
  • Mission of Judgment in Decision-making
  • Sound Judgment & Decision-making
  • Completely Assessing Risks
  • Addressing the Requirements of Each Party
  • Manager’s Emotional Intelligence
  • Authenticity Based
  • Vigilantly Allowing for Every Options
  • Review Questions

Chapter 3: Environments

  • Introduction
  • Organization’s Internal Environment
  • Organization’s External Environment
  • The Remote Environment
  • Detailed Contents
  • The Industry Environment
  • The Forces behind Operating / Industrial Environment
  • Threat of Entry
  • The Power of Suppliers
  • The Power of Buyers
  • Threat of Substitute Products
  • Competitive Rivalry
  • SWOT Analysis
  • SWOT as an Objective
  • Internal SWOT Analysis
  • Company Culture
  • Determine the Desired Company Culture
  • Align the Company Culture
  • Corporate Image
  • Product Positioning
  • Organization Structure
  • Pre-bureaucratic
  • Bureaucratic Structure
  • Functional Structure
  • Matrix Structure
  • Divisional Structure
  • Five Phases of the Organizational Life Cycle
  • Start-up or Birth Phase
  • Growth Phase
  • Decline Phase
  • Renewal or Death Phase
  • Natural Resource
  • Operational Efficiency
  • Market Share
  • Internal Analysis
  • Resources and Capabilities
  • VRIO Analysis
  • Valuable
  • Innovation
  • Inimitable
  • Organized
  • Business Functions and the Value Chain
  • xviii Strategic Management and Business Policy
  • Inertia
  • Prior Commitments
  • Avoiding Failure
  • Luck
  • The Reasons for a Mission Statement
  • Missions Promote Unity
  • Missions help Allocate Scarce Resources
  • Missions help Move from Ideas to Action
  • Missions Establish Culture
  • The Reason for Mission and Vision Statements
  • Benefits
  • Porter’s Model - Industry Analysis
  • Threats of New Entrants
  • Rivalry among Competitors
  • Bargaining Power of Buyers
  • Bargaining Power of Suppliers
  • Threat of Substitute Products
  • Developing Company Profile
  • Company Profile
  • Identification of Strategic Internal Factors
  • A Functional Approach
  • The Value Chain Approach
  • Evaluation of Strategic Internal Factors
  • Comparison with Past Capabilities and Performance
  • Stages in Product / Market Evolution
  • Comparison with Competitors
  • Success Factors in the Industry
  • Quantitative vs. Qualitative Approaches in Evaluating Internal Factors
  • Business Market Trends
  • The Companiy’s Communication Systems
  • Strategy Formulation
  • Diagnosis Phase
  • Formulation Phase
  • Implementation Phase
  • Three Aspects of Strategy Formulation
  • Corporate Level Strategy
  • Organizing the Corporate Level Strategy
  • Detailed Contents
  • Growth Strategies
  • Growth Objectives
  • Categories of Growth Strategies
  • Mergers, Acquisitions and Strategic Alliances
  • Stability Strategies
  • Retrenchment Strategies
  • Portfolio Strategy
  • Parenting Strategy
  • Competitive Strategy
  • Porter’s Four Generic Competitive Strategies
  • Overall Price Leadership
  • Differentiation
  • Price Focus
  • Differentiation Focus
  • Competitive Tactics
  • Timing Tactics
  • Market Location Tactics
  • Cooperative Strategies
  • Functional Strategies
  • Choosing the Best Strategy Alternatives
  • Business Environment
  • Factor Affecting Business
  • Changing External Environment
  • The Players of External Environment
  • Review Questions

Chapter 4: Porters 5 Force Model

  • Introduction
  • Main Aspects of Porter’s 5 Forces’ Analysis
  • Force 1: The Degree of Rivalry
  • Force 2: The Threat of Entry
  • Force 3: The Threat of Substitutes
  • Force 4: Buyer Power
  • Force 5: Supplier Power
  • Porter’s 5 Forces Analysis
  • Porter’s Five Forces Operating in the Indian Paints Industry
  • Threat of New Entrants
  • x x Strategic Management and Business Policy
  • Rivalry among Existing Firms
  • Bargaining Power of Buyers
  • Bargaining Power of Suppliers
  • Threat from Substitute Products
  • Value Chain
  • Interrelated Generic Activities
  • Cost Advantage and the Value Chain
  • Support Activities
  • Key Features
  • Institutional Factors
  • Linkages between Value Chain Activities
  • Grand Strategy
  • Views on Turn-around Situations
  • Narrow View of a Turnaround Situation
  • Wider View of a Turn-around Situation
  • Broad View of a Turn-around Situation
  • Seriousness of a Turn-around Situation
  • Turn-around Management
  • Stages of Turnaround Process
  • Conditions for Turnaround Strategies
  • Action Plan for Turn-around
  • Abandonment Strategy
  • Liquidation Strategy
  • Planned Liquidation
  • Legal Aspects of Liquidation
  • Horizontal Integration
  • Horizontal Integration as Interactive Marketing Strategy
  • Interactive Marketing Services
  • Horizontal Integration as Customer Care Tools
  • Innovation
  • Innovation in Organizations
  • Technological Concepts of Innovation
  • Types of Innovation
  • Innovation and Market Outcome
  • Sources of Innovation
  • Diffusion of Innovations
  • Goals of Innovation
  • Detailed Contents
  • Failure of Innovation
  • Incremental Innovation
  • Process Innovation
  • Red Ocean Innovation
  • Service Innovation
  • Business Model Innovation
  • Sustainable Innovation
  • Frugal Innovation
  • Blue Ocean Innovation
  • Radical Innovation
  • Disruptive Innovation
  • Supply Chain Innovation
  • Vertical Integration
  • Dynamic Technology
  • Vertical Expansion
  • Concentric and Conglomerate
  • Mergers & Acquisitions
  • Types of Mergers
  • Horizontal Mergers
  • Vertical Mergers
  • Conglomerate Mergers
  • Unrelated Diversification
  • Joint Venture
  • Internal Reasons
  • Competitive Goals
  • Strategic Goals
  • Choosing a Joint Venture Vehicle
  • Documentation Involved
  • Managing the Joint Venture Company
  • Deadlock
  • Capital and Funding
  • Protection of a Minority Shareholder
  • Evaluation of Grand Strategy
  • Some Language Basics
  • Cost Drivers
  • Customer Drivers
  • Competitive Drivers
  • xxii Strategic Management and Business Policy
  • Country Management
  • International Structure
  • Multinational Structure
  • Transnational Structure
  • Global Structure
  • Review Questions

Chapter 5: GE Nine Cell Planning Grid

  • Introduction
  • Boston Consulting Group Growth Share Matrix (BCG GSM)
  • General Electric’s Stoplight Grid
  • Life Cycle Analysis
  • Strategic Implications of Life Cycle Curves
  • Growth Stage Strategy Implications
  • Life Cycle Analysis Limitations
  • GAP Analysis
  • Environmental GAP Analysis
  • GAP Analysis at the Function Level
  • GAP Analysis at the Business Level
  • Directional Policy Matrix (DPM)
  • The Familiarity Matrix and Optimum Entry Strategies
  • The Process of Strategy Selection: Strategic Decision Making
  • Context of the Individual
  • Organization Context
  • Global Context
  • Decision Models in Perspective
  • Characteristics of the Selected Strategy
  • Clarity of Goals
  • Flexibility
  • Management Commitment
  • Strategic Analysis at Corporate Level
  • Strategic Analysis: A Scientific Art
  • The Developing Strategic Analysis
  • Strategic Analysis and Public Sector Organizations
  • Modeling the Dynamics of Unemployment
  • Grand Strategy
  • Components of the Grand Strategy
  • Detailed Contents
  • Strategic Analysis and Choice
  • Grand Strategies
  • Evolution of Grand Strategy
  • Porter’s Generic Strategies
  • Cost Leadership Strategy
  • Differentiation Strategy
  • Segmentation Strategy
  • Marketing Strategy as a Key Part of the General Corporate Strategy
  • Marketing Strategy and Sector Tactics and Actions
  • Technology Strategy
  • Trading Strategy
  • The Business Environment
  • Corporate Level Strategy
  • Major Reasons for Adopting different Grand Strategies
  • Dimensions of Grand Strategies
  • Internal / External Dimension
  • Related / Unrelated Dimension
  • Horizontal / Vertical Dimension
  • Active / Passive Dimension
  • Steps for Grand Strategies
  • Step One
  • Step Two
  • Step Three
  • Step Four
  • Step Five
  • Step Six
  • Step Seven
  • Step Eight
  • Strategic Choice
  • The Strategic Choice Approach
  • Factors Determining Strategic Choice
  • Considerations for Governmental Policies
  • Commitment to Past Strategic Actions
  • Strategist’s Decision Style and Attitude to Risk
  • Internal Political Considerations
  • Timing and Competitor Considerations
  • Impact Matrix
  • xxiv Strategic Management and Business Policy
  • The Centralization-Decentralization Continuum
  • Business Units as the Focal Point
  • The Nature of IT-Business Unit Interaction
  • Developing Systems
  • Review Questions

Chapter 6: Formulating Long-Term Objectives

  • Introduction
  • Long-term Objectives and Grand Strategies
  • Long-term Objectives
  • Types of Long-term Objectives
  • Qualities of Long-term Objectives
  • Long-term and Short-term Objectives
  • Broad Objectives
  • Types of Objective for a Company
  • Financial Objectives
  • Strategic Market Objectives
  • Internal Operational Objectives
  • Innovative and Learning Objectives
  • Setting Goals
  • Setting Objectives
  • Grand Strategy: Its Connection with Objectives
  • Major Reasons for Adopting Different Grand Strategies
  • Components of the Grand Strategy
  • Mission
  • Internal Analysis
  • External Environment
  • Strategic Analysis and Choice
  • Long-term Objectives
  • Generic and Grand Strategies
  • Short-term Objectives and Action Plans
  • Types of Grand Strategies
  • Expansion Strategy
  • Stability Strategy
  • Retrenchment Strategy
  • Combination Strategy
  • Operation and Strategic Management
  • Detailed Contents
  • Leadership & Strategy
  • The Strategy Hierarchy
  • The Failure to Choose
  • The Growth Trap
  • Profitable Growth
  • The Role of Leadership
  • Operations Strategy: Products and Services
  • Operations Strategy: Capacity and Facility
  • Strategy and Internet
  • Alfred D. Chandler (1962)
  • William F. Glueck (1972)
  • Leadership
  • Leadership Implementation
  • Theoretical Understanding of Leadership
  • Leadership Style Changes at the TVS Group
  • Leadership Development
  • Strategic Check-Up
  • The Leading Strategy into Action
  • Project Leadership
  • Women in Leadership: Legacies, Opportunities and Challenges
  • Leadership: Strategic Planning and Strategic Management
  • Effective Leadership
  • Strategy Implementation
  • Strategy at Different Levels of a Business
  • Corporate Strategy
  • Business Unit Strategy
  • Operational Strategy
  • Strategic Analysis
  • Strategy Implementation
  • Essential Elements of Strategy Implementation
  • Motivational Leadership
  • Strategy into action
  • Performance Management
  • Impact of Organizational Culture on Strategy
  • Strategic Thinking
  • Matching People with Organizational Strategy
  • Impact of Organizational Value on Strategy
  • xxvi Strategic Management and Business Policy
  • The Origins of Organizational Values
  • Organizational Culture, Values and Firm Performance
  • The Psychology of Strategic Management
  • Criticisms of Strategic Management
  • Strategic Planning
  • The Difference between Strategic Planning and Long-range Planning
  • Strategic Thinking and Strategic Management
  • Tools for Analysis and Planning
  • SWOT Analysis
  • The Macmillan Matrix
  • Alignment with Mission Statement
  • Competitive Position
  • Program Attractiveness
  • Alternative Coverage
  • The Difference between Data, Information and Knowledge
  • An Information Strategy
  • Buyer-Supplier Relationships
  • Review Questions

Chapter 7: Operation Control Systems

  • Introduction
  • Strategic Controls
  • Levels of Control
  • Operational Control System
  • Characteristics of a Strategic Control System
  • Applying Strategic Control Ideas in Organizations
  • Management Control
  • Operating Control
  • Differences between Strategic and Operational Control
  • Measurement
  • Analysis of Strategic Control Models
  • Action
  • The Importance of Strategic Control
  • Strategy Implementation & Strategic Control
  • Organizational Evaluation and Control
  • Implications for Controlling Formal Plans
  • Premise Control
  • Detailed Contents
  • Milestone Reviews
  • Strategic Audit Measurement Methods
  • The “Lowest” Level of Strategy is Operational Strategy
  • Strategic Control
  • Risks of Strategic Management
  • Implications for Information Systems
  • Process of Operational Control System
  • Setting Standards of Performance
  • Measurement of Performance
  • Analysis Variance
  • Taking Corrective Action
  • Management Control System (MCS)
  • Balanced Scorecard (BSC)
  • Total Quality Management (TQM)
  • Kaizen
  • Activity Based Costing (ABC)
  • Target Costing
  • Benchmarking and Bench Trending
  • Just in Time (JIT)
  • Program Management Techniques
  • Feed forward
  • Simultaneous Control
  • Criticism
  • Domestic Control
  • Internal Control System
  • Exterior Control
  • Review Questions

Chapter 8: Strategic Management in Multinational Firms

  • Introduction
  • Corporate Level Strategies - Grand Strategies
  • Major Reasons for Adopting Different Grand Strategies
  • Stability Strategy
  • Expansion Strategy
  • Retrenchment Strategies
  • Combination Strategies
  • Strategic Management in Indian Companies
  • xxviii Strategic Management and Business Policy
  • Pre-liberalization Stage
  • Post-liberalization Stage
  • Status of Strategic Management Teaching and Research in India
  • Corporate Restructuring by Indian MNCs
  • Competitive Strategies for Multinational Corporations
  • Review Questions

Chapter 9: Strategic Evaluation and Control

  • Introduction
  • Budgetary Control
  • Budgets are an Indispensable Sin
  • Watch out for Cash Seepage
  • Spending Beyond Limits is Dangerous
  • Think Twice of Expenses Tiptoe
  • Capital Budgeting
  • Features of Budgetary Control
  • Benefits of Budgetary Control
  • Budgetary Control as a Tool for Control
  • Budgetary Control as an Aid to Coordination
  • Problems of Budgetary Control
  • Budgetary Planning Problems
  • Budgetary Operational Problems
  • Budget Preparation
  • Financial Ratio Analysis
  • Liquidity Ratios
  • Activity Ratios
  • Leverage Ratios
  • Profitability Ratios
  • Return on Investment
  • Advantages of ROI
  • Limitations of ROI
  • Social Performance Control
  • Approaches for Measuring Social Performance

 

Social Audit

Review Questions

Index