This document discusses key elements of business strategy and strategic management. It outlines 6 elements of a business strategy including vision/objectives, core values, SWOT analysis, tactics, resource allocation, and measurement. It also discusses 5 levels of strategy including corporate, business, functional, operations, and planning. The document then covers 7 elements of a business plan and 5 classifications of strategy. Finally, it discusses how to implement strategic formulation and issues that can arise in strategic management.
This document discusses key elements of business strategy and strategic management. It outlines 6 elements of a business strategy including vision/objectives, core values, SWOT analysis, tactics, resource allocation, and measurement. It also discusses 5 levels of strategy including corporate, business, functional, operations, and planning. The document then covers 7 elements of a business plan and 5 classifications of strategy. Finally, it discusses how to implement strategic formulation and issues that can arise in strategic management.
This document discusses key elements of business strategy and strategic management. It outlines 6 elements of a business strategy including vision/objectives, core values, SWOT analysis, tactics, resource allocation, and measurement. It also discusses 5 levels of strategy including corporate, business, functional, operations, and planning. The document then covers 7 elements of a business plan and 5 classifications of strategy. Finally, it discusses how to implement strategic formulation and issues that can arise in strategic management.
This document discusses key elements of business strategy and strategic management. It outlines 6 elements of a business strategy including vision/objectives, core values, SWOT analysis, tactics, resource allocation, and measurement. It also discusses 5 levels of strategy including corporate, business, functional, operations, and planning. The document then covers 7 elements of a business plan and 5 classifications of strategy. Finally, it discusses how to implement strategic formulation and issues that can arise in strategic management.
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CLASSIFICATION OF STRATEGIES AND ● Vision, mission, and values
PLANS ● Long-term goals for your business
6 ELEMENTS OF A BUSINESS strategy STRATEGY ● Financial objectives 1. Vision and business objectives- business 4. Functional Strategy- approach that points up strategy is intended to help you reach your a particular functional area of an organization. business objectives. With a vision for the Examples of functional strategy comprise direction of the business, you can create clear production strategy, marketing strategy, human instructions in the business strategy for what resource strategy, and financial strategy. needs to be done and who is responsible for 5. Operations Strategy- put across at the field completing each step. level, usually to achieve on-hand objectives. In 2. Core values- business strategy guides top- some companies, managers develop an level executives, as well as departments, about operations strategy for each set of annual goals what should and should not be done, according in the divisions. The components of operating to the organization's core values. It helps strategy are: everyone stay on the same page and with the ● Designing and positioning the same goals. production system. 3. SWOT analysis- included in every business ● Focusing on production or strategy, as it allows the company to rely upon manufacturing and service facilities. its strengths and use them as an advantage. It ● Designing and developing the product or also makes the company aware of any service. weaknesses or threats. PLANNING- about managing resources and 4. Tactics- Many business strategies articulate priorities in an organized way. the operational details for how the work should 7 ELEMENTS OF BUSINESS PLAN be done in order to maximize efficiency. 1. Executive summary- includes the mission 5. Resource allocation plan- you will find the statement along with any information about the required resources to complete the plan, how the company's leadership, employees, operations, resources will be allocated and who is and location. responsible for doing so. 2. Company overview- identify the main 6. Measurement- includes a way to track the identity of your company. This includes history, company's output, evaluating how it is creator, events, timeline, etc. performing in relation to the targets that were set 3. Products and services- company can outline prior to launching the strategy. the products and services it will offer, and may 5 CLASSIFICATION OF STRATEGY also include pricing, product lifespan, and 1. Competitive Strategy- a plan that combines benefits to the consumer. the clout of the external situation. The 4. Market analysis- plan will detail a company's competitive strategy aims at gaining a competition and how the company fits in the competitive advantage in the marketplace industry, along with its relative strengths and against competitors. weaknesses. 2. Corporate Strategy- It draws up at the top 5. Marketing strategy- how the company will level by the senior management of a diversified attract and keep its customer base and how it company. Such a strategy describes the intends to reach the consumer. company’s overall corporate 6. Financial planning- company's financial planning and projections. Financial statements, balance sheets, and other financial information 3. Business Strategy- “The business strategy may be included for established businesses. consists of plans of action adopted to use a 7. Budget- include costs related to staffing, company’s resources and distinctive development, manufacturing, marketing, and competencies to gain competitive advantages in any other expenses related to the business. the market.”- M. A. Mannan ETHICS AND BUSINESS The components of business strategy are: Ethics- refer to the philosophical study of the level concentrates on how an organization is concepts of moral right and wrong and moral going to grow. good and bad HOW TO IMPLEMENT STRATEGIC Morality- system of principles FORMULATION AND and values concerning people's behavior, which IMPLEMENTATION is generally accepted by a society or by MISSION AND VISION- provide a clear a particular group of people. direction and a sense of purpose for the 3 MODELS OF ETHICS organization. MORAL- Act of doing good and moral ENVIRONMENTAL ANALYSIS- Internal IMMORAL- act of evil analysis examines the organization's strengths, AMORAL- act of being neutral weaknesses, resources, and capabilities. BUSINESS ETHICS- code of conduct imposed External analysis assesses factors such as on an employee of a certain profession market trends, competition, economic PERSONAL ETHICS- code of conduct that conditions, technological advancements, and govern an individual’s whole life regulatory changes. FACTORS AFFECTING ETHIC SWOT ANALYSIS- SWOT analysis helps in Family, Friends, Politics, Religion, Self-Belief, understanding the current position of the Social Media organization and its potential direction. ROLES OF ETHICS IN STRAT MANAGE. SMART- These strategies can include market Guidng Decision Making- provide a expansion, product development, cost framework for making decisions that align with leadership, differentiation, etc. moral values and principles. RESOURCE ALLOCATION- organization Reputation and Trust- strong ethical reputation has the necessary means to implement the enhances an organization's brand and fosters strategies effectively. loyalty. IMPLEMENTATION- requires effective Increasing Innovation- can lead to new coordination, communication, and monitoring of products, services, and business models that can progress. help organizations to grow and succeed. MONITORING AND EVALUATION- allows ETHICAL ISSUES STRAT MANAGE. for timely adjustments and ensures that the Corporate Governance- Ethical concerns can organization stays on track toward its goals. arise in the structure and functioning of the FEEDBACK AND ADAPTATION- Based on board of directors and executive leadership. the monitoring and evaluation, feedback is Environmental Impact- Failing to address collected, and necessary adaptations are made to environmental sustainability can lead to strategies. pollution, resource depletion, and climate ISSUES change, causing harm to the planet and future NATURAL ISSUES- some natural issues that generations. can’t be anticipated like disasters, pandemics, STRATEGIC FORMULATION AND etc. IMPLEMENTATION EMPLOYEES CONFLICT- some employees STRATEGY FORMULATION- process of are not getting along and some create issues using available knowledge to document the ADJUSTMENTS- you need to do something to intended direction of a business. align yourself with company and you have to get LEVELS OF STRATEGY FORMULATION used to it. CORPORATE LEVEL STRATEGY- It STRATEGIC MANAGEMENT focuses on what business you are going to enter STRATEGY- an action that managers take to the market. attain one or more of the organization's goals. BUSINESS LEVEL STRATEGY- This level MANAGEMENT- coordination and answers the question of how you are going to administration of tasks to achieve a goal. Such compete administration activities include setting the FUNCTIONAL LEVEL STRATEGY- This organization’s strategy and coordinating the efforts of staff to accomplish these objectives STRATEGIC MANAGEMENT- process of setting goals, procedures, and objectives in order to make a company or organization more competitive. TYPES OF PLAN STRATEGIC PLAN TACTICAL PLAN OPERATIONAL PLAN CONTINGENCY PLAN STRATEGY FORMULATION- process of choosing the most appropriate course of action STRATEGY IMPLEMENTATION- decisions that are made to install new strategy or reinforce existing strategy STRATEGY EVALUATION- know when and why particular strategies are not working well STRATEGY CONTROL- determine what to control THEORIES OF MANAGEMENT AGENCY THEORY- stresses the underlying important relationship between the shareholders PROFIT MANAGEMENT THEORY- based on the notion that a business organization’s main objective is to maximize long term profit and developing sustainable TALENT MANAGEMENT THEORY- a constant process that involves attracting and retaining high-quality employees BLUE MANAGEMENT THEORY- company needs to reinvent because its identity is not effective and irrelevant RESOURCE BASED THEORY- resources that are valuable, rare, difficult to imitate, and non-substitutable best position a firm for long- term success SURVIVAL THEORY- centers on the concept that organizations need HUMAN RESOURCE BASED THEORY- emphasizes the importance of the human element in the process of strategy development of organizations CONTIGENCY THEORY- draws the idea that there is no one or single best way or approach to manage organizations BALANCED SCORECARD THEORY- strategic management performance metric used to identify and improve various internal business functions