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    Buisness Policy and Strategy

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    Chitraksh Mahajan
    Chitraksh Mahajan is a student with Roll No 113 and SAP ID 500071415. The document discusses five reasons why strategy is important for an organization: 1) Planning helps build annual performance plans that work towards long-term goals; 2) Strategy increases awareness of strengths and weaknesses; 3) It helps identify needed skills and knowledge; 4) Strategy guides resource allocation to most promising opportunities; 5) Environmental scanning allows preparation for possible changes in the market or industry.

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    Buisness Policy and Strategy

    Uploaded by

    Chitraksh Mahajan
    17 views2 pages
    Chitraksh Mahajan is a student with Roll No 113 and SAP ID 500071415. The document discusses five reasons why strategy is important for an organization: 1) Planning helps build annual performance plans that work towards long-term goals; 2) Strategy increases awareness of strengths and weaknesses; 3) It helps identify needed skills and knowledge; 4) Strategy guides resource allocation to most promising opportunities; 5) Environmental scanning allows preparation for possible changes in the market or industry.

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    Chitraksh Mahajan is a student with Roll No 113 and SAP ID 500071415. The document discusses five reasons why strategy is important for an organization: 1) Planning helps build annual performance plans that work towards long-term goals; 2) Strategy increases awareness of strengths and weaknesses; 3) It helps identify needed skills and knowledge; 4) Strategy guides resource allocation to most promising opportunities; 5) Environmental scanning allows preparation for possible changes in the market or industry.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views2 pages

    Buisness Policy and Strategy

    Uploaded by

    Chitraksh Mahajan
    Chitraksh Mahajan is a student with Roll No 113 and SAP ID 500071415. The document discusses five reasons why strategy is important for an organization: 1) Planning helps build annual performance plans that work towards long-term goals; 2) Strategy increases awareness of strengths and weaknesses; 3) It helps identify needed skills and knowledge; 4) Strategy guides resource allocation to most promising opportunities; 5) Environmental scanning allows preparation for possible changes in the market or industry.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Chitraksh Mahajan

    Roll No - 113
    SAP ID- 500071415

    Here are the five reasons why strategy plays such an important
    role in the organization

    1. Planning - Building and monitoring progress compared to the annual


    performance plan is an important management tool for any company. What
    often loses the relationship these plans have for the future. Often annual work
    plans are created from a rear view mirror. What happened last year and
    where should we go next year? These are all good intentions. However,
    without a clear picture of what you want the future to look like, it will always
    be more effective than it really is. A well-defined long-term vision of the
    company for three to five years should serve to inform the annual
    performance plan. The annual plan has been a stepping stone to achieving
    long-term goals.

    2. Strengths and Weaknesses - At first glance this seems very obvious and
    he says to you, "We really know what our strengths and weaknesses are!"
    We can't disagree. No one knows your business better than you do. On the
    other hand, do you use strengths (competitive advantages) and do you have
    plans to close strong gaps in your organization (weaknesses)? The strategy
    creates a high level of awareness and provides greater focus on activities that
    will make the organization more effective.

    3. Skills and Knowledge - If you know where you want to take your business
    in the long run, you will have a better idea of the types of skills you will need
    to achieve your goals. The strategy defines and drives decisions in
    organizational structure. So by vigorously pursuing new skills and knowledge,
    you are preparing the organization for the future and increasing your chances
    of success.

    4. Resource allocation - One thing is clear about any company, large or small
    - resources are limited. We wish they had no limits, but that will not be the
    case. Strategy is about making decisions. What products, services and
    markets will be part of the future and what should we not do? These types of
    decisions are important in ensuring that limited resources are delivered to the
    most promising opportunities that will provide the greatest return.

    5. Environmental Scan - Too many CEOs do not take the time to truly know
    the external environment that can have a positive or negative impact on
    performance. This is not to say that leaders are incompetent with their
    customers, or unaware of their competition. The question is, how well do they
    process it? Jack Welch was right when he asked his class leaders to dig
    deeper to understand how things could change before they really happened.
    Knowing and preparing for possible changes in your market or industry
    provides an opportunity to take action before it happens.

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