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Business Strategy

The document discusses different levels of strategy within an organization. The business level includes business and corporate managers who form comprehensive plans and allocate resources for business units. The functional/operating level includes areas like production, finance, and marketing, and focuses on achieving functional objectives. Strategic management involves strategic planning, implementation, and identifying and executing an organization's strategic plan through environmental scanning, strategy formulation, implementation, and evaluation. Principles of good strategy are that it deals with long-term developments, has a unified and comprehensive approach, is universally applicable, applies to all functional areas, and considers uncertainty and flexibility.

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76 views2 pages

Business Strategy

The document discusses different levels of strategy within an organization. The business level includes business and corporate managers who form comprehensive plans and allocate resources for business units. The functional/operating level includes areas like production, finance, and marketing, and focuses on achieving functional objectives. Strategic management involves strategic planning, implementation, and identifying and executing an organization's strategic plan through environmental scanning, strategy formulation, implementation, and evaluation. Principles of good strategy are that it deals with long-term developments, has a unified and comprehensive approach, is universally applicable, applies to all functional areas, and considers uncertainty and flexibility.

Uploaded by

karen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2.

BUSINESS LEVEL STRATEGY

The middle level or business level is the level which includes business managers and corporate
managers. Strategies formed at this level are comprehensive plans providing objectives for small
business units, allocation of resources and coordination of the SBUs for optimal performance.

3. FUNCTIONAL /OPERATING LEVEL STRATEGY

The level of strategy includes functional areas like production, finance, marketing, personnel and
Research and development etc. the operating level strategy are result oriented and hence focus on
achieving functional objectives.

PROCESS OF STRATEGIC MANAGEMENT

Strategic management entails both strategic planning and implementation and is the process of
identifying and executing the organisations strategic plan.

Strategic management process has following four steps.

1. Environmental Scanning : environmental scanning refers to a process of collecting,


scrutinizing and providing information for strategic purposes. It helps in analysing the
internal and external factors influencing an organisation.
2. Strategy formulation : strategy formulation is the process of deciding best course of action
for accomplishing organizational objectives and hence achieving organizational purpose.
3. Strategy implementation – strategy implementation implies making the strategy work as
intended or putting the organisations chosen strategy into action. It includes designing the
organisation’s structure, distributing resources, developing decision making process and
managing human resources.
4. Strategy evaluation : strategy evaluation is the final step of strategy management process.
The key strategy evaluation activities are appraising internal and external factors that are
the root of present strategies, measuring performance and taking remedial and corrective
actions.
Hence,Strategic management is an ongoing process.

PRINCIPLES OF GOOD STRATEGY


Following are the principles of good strategy
1. STRATEGY DEALS WITH LONG TERM DEVELOPMENTS- It deals with long term
developments rather than routine operations. i.e. it deals with probability of innovations
or new products and new methods of productions, or new markets to be developed in
future.
2. UNIFIED AND COMPREHENSIVE STRATEGY- Strategy is a unified comprehensive and
integrated plan. Successful implantation of strategy requires integrated efforts of people
at various levels of hierarchy.
3. UNIVERSAL APPLICABILITY – strategy are universally applicable – whether it is business
unit, educations institution, etc. this is because every organisation needs to frame
strategies to keep moving in the right direction and fulfilment of objectives.
4. APPLICABLE TO ALL FUNCTIONAL AREAS – Strategies are framed in all functional areas to
achieve the overall objectives. It facilitates planning, organising, directing, controlling
and this aid decision making in all the functional area of the organisations
5. TY

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