Conclusion:Thus an organization is set up to make Prompt and Accurate decision. Introduction : - Environment means the surrounding. American Companies became best in the world after applying the principles. Customers : Earlier days, Customers had little choice they used to buy the product that was offered to them.
These days customers come with more specifications and they demand for customized products and they want individual attention. Hence customers have upper hands these days. Competition : As many companies emerges, the competition rises. They offer good quality of products at lesser price and consumers prefer such products. But these days customers prefer high quality at lowest price.
The Company, which offers these at best price, goes high quality and best service becomes standard of all the competitors. Changes : Changes has become both pervasive and persistent because companies face a greater competitors and each one introduces a product and service innovation to the market with the globalisation of the economy.
Elaborate what you would study in the environment? The external environment is made of factors, conditions that influences outside the organization. The external environment gives rise to opportunities, which can be accomplished, or it may cause problems to the organization. The internal environment refers to all factors within the control of and within the organization. These factors may impart strengths that can be utilised by the organization or cause weakness, which becomes threat to the organization.
Strength: —It is an inherent capacity that is in relation to the environment. For an organization to be a success it requires strength and it gives strategic advantage to gain more than the competition. Innovation and new products are required for superior research and development facilities.
Weakness: - It is an inherent inadequacy that is again in relation to the environment. It gives strategic disadvantage and something that required for success is missing. It helps in strengthening its position. THREATS: when the opportunities are not utilized properly it can cause problem to the to the organization which causes threat.
It is unfavorable condition for the organization. Due to opening up of economy, the emergence of multinational companies, which are stronger and has good resources, offers stiff competition to the existing companies in an industry. An understanding of both internal and external environment in terms of opportunities, threat, strength, weaknesses important for existence, growth and profitability of an organization.
A systematic approach and understanding the environment is SWOT analysis all about. Bilateral agreement between 2 countries in which the company is operating and facing competition from local companies. They are he course of action along which events take place like global warming, nuclear families etc. Pollution Control, Business ethics after scams. Like corporate governance, greater transparency, stricted auditing norms.
What are the core competencies and organization capabilities? In terms of organizational competencies it manifest themselves in advantages over competition. The capability of using these competencies to exceed well turns them into core competence. K Prahaled and Gary Hamel. What are not easily visible and apparent — are the core products and leaves, flowers, fruits are the end product.
To carry at the organizational study internal analysis tools can be used as mentioned below. Open navigation menu. Close suggestions Search Search. User Settings. Skip carousel. Carousel Previous. Carousel Next. What is Scribd? Explore Ebooks. Bestsellers Editors' Picks All Ebooks. Explore Audiobooks. Bestsellers Editors' Picks All audiobooks. Explore Magazines.
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Is this content inappropriate? Report this Document. Flag for inappropriate content. Download now. For Later. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Before making a decision managers have to look into the course of deciding since Strategy involves situations like a How to face the competition.
Operational Level is derived from functional level strategies Conclusion: These are the levels at which strategies are formulated 3 What are the Issues in Strategic Decision Making? Role of C. A Company can promote the entrepreneurial spirit and this can be internal attitude of an organization. They provide a sense of direction and are active in implementation. Sheetal Darediya Page 8. They are more on the implementation role. Role of Corporate Planning Staff: It provides administrative support, tools and techniques and is a Co-ordinate function.
They are not actively involved in formulation of Strategies and they are developed to be the future top management. Explain each step briefly. Sheetal Darediya Page 9. SCDL Assignment Subject Strategic Management Answer: Strategic Management Process: In today's highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper.
The firm must engage in strategic management process that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track. Strategic management is the application of strategic thinking to the job of leading an organization.
Jagdish Sheth, a respected authority on marketing and strategic planning, provides the following framework for understanding strategic management: continually asking the question, "Are we doing the right thing? Formulation of the organization's future mission in light of changing external factors such as regulation, competition, technology, and customers Development of a competitive strategy to achieve the mission Creation of an organizational structure which will deploy resources to successfully carry out its competitive strategy.
These unchanging ideals form the business vision and are expressed in the company mission statement. Company Vision is What a Company Wishes to become or aspire to be. The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.
Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth.
Strategic objectives are related to the firm's business position, and may include measures such as market share. Core Ideology: Is the unchanging part of organization. It is the character of an organization, this would not change for a longer time even it were disadvantage.
Core Values: The core values are a few values no more than five or so that are central to the firm. Core values reflect the deeply held values of the organization and are independent of the current industry environment Core Purpose: The core purpose is the reason that the firm exists.
This core purpose is expressed in a carefully formulated mission statement. Like the core values, the core purpose is relatively unchanging and for many firms endures for decades or even centuries.
This purpose sets the firm apart from other firms in its industry and sets the direction in which the firm will proceed Envisioned Future: Are the goals to be reached. It is classified into: Audacious Goals: These are the goals that the company would like to achieve. They are tough needs extraordinary commitment and effort. Vivid Description: These Goals are put into words that evoke a picture of what it would be like to achieve the Audacious Goals.
Environmental Scan The environmental scan includes the following components: 1. Internal analysis of the firm 2. Analysis of the firm's industry task environment 3. External macro environment PEST analysis The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysis An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces.
This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry. Sheetal Darediya Page Its an unborn capacity, which needs to fulfill two conditions. It has strengths more than the competitor; it could gain more than the Competitor.
It gives strategic disadvantage to the Organisation. Over dependence on a single product line in a mature market. Core Competencies: Is developed over a period of time, using these competencies exceeding well, it develops a fine art of Competition with its rules. This capacity of exercing turns them to core competencies Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats.
To attain superior profitability, the firm seeks to develop a competitive advantage over its rivals. A competitive advantage can be based on cost or differentiation. The selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. In a large company, those who implement the strategy likely will be different people from those who formulated it.
For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected The implementation of the strategy must be monitored and adjustments made as needed.
Evaluation and control consists of the following steps: 1. Define parameters to be measured Define target values for those parameters Perform measurements Compare measured results to the pre-defined standard Make necessary changes. Goals are clear and unambiguous and often an organization sets a combination of goals, financial and non-financial, quantitative and qualitative.
The important thing to remember is that too many goals can be confusing and can often lead to contradictions. So goals should be limited and manageable, clear and consistent with each other. Objectives: Objectives are the ends that state specifically how the goals shall be achieved. They are concrete and specific in contrast to goals, which are generalized at t he company wide level.
In this manner objectives make the goals operational. While goals may be qualitative, objectives tend to be more quantitative in specification. In this way they are measurable and comparable. They are the brains of Strategic Decision Making. It should be specific at the level, which it is being set. It should not be either too narrow or too broad. This consistency helps the organization to pursue its vision and mission.
Objectives become the basis for strategic decision-making, as the right strategies need to be formulated and implemented for achieving the objectives.
Objectives are invariably Sheetal Darediya Page They provide clear measures and standards for performance. So they help in appraisal, to see if the organization is on the right track or not.
Specific - the objective should state exactly what is to be achieved. Measurable - an objective should be capable of measurement so that it is possible to determine whether or how far it has been achieved Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business.
Relevant - objectives should be relevant to the people responsible for achieving them Time Bound - objectives should be set with a time-frame in mind.
These deadlines also need to be realistic. How is it Changing? Explain the process of SWOT analysis. Elaborate what you would study in the environment. Answer: Environment Sheetal Darediya Page Environment is complex there are many factors in the environment. Most are the factors have relationship with each other and the interrelationships with each other and the interrelationships are in many different ways.
The factors in environment have effect on the company and the actions of the company in turn affects the environment and the effects are constantly changing. Thus it has a great and far-reaching impact on the company. Environment on abroad level can be classified as follows: 1. External environment 2. Internal environment External environment is made up of all the factors, conditions and influences outside the organization.
This may give rise to opportunity which can be exploited or it may give rise to the threat which can underline or cause the problem to the organization. Any organization has no or very little control over the external environment.
Internal environment refers to all the factors with in the control of and inside the organization. Change in environment: The three major forces that drives the changes in external environment of a company are 1.
Customers 2. Customers: Earlier days, Customers had little choice they used to buy the product that was offered to them. These days customers come with more specifications and they demand for customized products and they want individual attention.
Hence customers have upper hands these days. Its difficult for an organization to survive in the long run unless they satisfy customers needs so change in the customer preference is a major factor which influence the external environment Competition: As many companies emerge, the competition rises. They offer good quality of products at lesser price and consumers prefer such products.
But these days customers prefer high quality at lowest price. The Company, which offers these at best price, goes high quality and best service, becomes standard of all the competitors. Changes: Changes has become both pervasive and persistent because companies face a greater competitors and each one introduces a product and service innovation to the market with the globalization of the economy. Hence the companies need to move fast in pace with the changing environment otherwise its difficult to move.
The internal environment: The internal environment also changes rapidly. Many times due to changes in the conditions the factors which were earlier the strength of the company becomes weakness now.
The Principle of division of Sheetal Darediya Page American Companies became best in the world after applying the principles. Environmental factors internal to the firm usually can be classified as strengths S or weaknesses W , and those external to the firm can be classified as opportunities O or threats T. It is also a very popular tool with business and marketing students because it is quick and easy to learn. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates.
As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:. Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. It is an inherent capacity that is in relation to the environment. For an organization to be a success it requires strength and it gives strategic advantage to gain more than the competition.
Examples of such strengths include: Sheetal Darediya Page Weaknesses The absence of certain strengths may be viewed as a weakness. It is an inherent inadequacy that is again in relation to the environment. It gives strategic disadvantage and something that required for success is missing.
For example, each of the following may be considered weaknesses: lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels. In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity.
While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment. Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth.
Its a favorable condition for an organization in its environment Some examples of such opportunities include: 1. Threats Changes in the external environmental also may present threats to the firm. Also when the opportunities are not utilized properly it can cause problem to the to the organization which Sheetal Darediya Page It is unfavorable condition for the organization.
Some examples of such threats include: shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities.
In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats W-T strategies.
Answer: Introduction: Expansion strategies are the most popular and common corporate strategies. Companies aim for substantial growth. A growing economy, burgeoning markets, customer seeking new ways of need satisfaction, and emerging technologies offer ample opportunities for companies to seek expansion.
When a company follows the expansion strategy, it aims at high growth. This can be done by a large increase in one or more of its business.
The scope of the business is broadened in terms of their respective customer groups, customer functions, and alternative technologies-singly or jointly in order to improve its overall performance.
An expansion strategy has a significant and profound impact on a companys internal structure and processes, leading to changes in most of the aspects of internal functioning.
Expansion strategies are thus more risky as compared to stability strategies. Expansion strategies can be undertaken in a variety of ways: 1. Expansion through concentration: Here company tries to increase business by concentrating in the core jobs. For expansion, concentrations often the first preference strategy for a company. The simple reason for this is that a company that is familiar with an industry would naturally like to invest more in known Sheetal Darediya Page Each industry is unique in the sense that there are established ways of doing things.
Concentration strategies have several advantages: 1 Concentration involves fewer organizational changes. Limitation of concentration strategies: 1 Firstly, concentration strategies are heavily dependent on the industry, so adverse conditions in an industry can also do affect companies if they are intensely concentrated. For expansion through concentration large cash inflows are required for building up assets while the business are growing.
But when these business mature, company often faces a cash surplus with little scope for investing in the present business. Expansion through Integration: Integration basically means combining activities on the basis of the value chain related to the present activity of a company. Sets of interlinked activities performed by an organization right from the procurement of basic raw materials right down to the marketing of the finished products to the ultimate consumers is a value chain.
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Flag for inappropriate content. Download now. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Correct Answer Operational level systems Your Answer Operational level systems Multiple Choice Single Answer Question These people are charged with the responsibility of continuous screening of performance? Tarun Kumar Srivastava. Mohit Anand. Deepak Kumar Verma. Chaitanya Swaroop Mata.
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