BUSINESS POLICY

AND
STRATEGIC
MANAGEMENT

B. HIRIYAPPA, PHD.
Assistant Professor
Government First Grade
College
Thirthahalli(Bangalore)
 PREFACE

Strategic management is a stream of decisions and actions with view to

develop effective long term and short term planning and policies with
technological business forecasting that would help the organization
achieve its superior goal. Strategic management includes strategic
analysis, strategy formulation strategic choice, and strategy
implementation and control strategic decisions for an organization
might to be to deploy resources into new opportunities.

In writing this book I have drawn on a vast amount of literature in

strategic management. Naturally, I owe an intellectual debt to numerous
authors who have enriched the stream of literature in strategic
management by their contributions. My prefounded debt is to American
scholars to George Stenier, Ansoff, Newman, Warren, Peter Drucker,
Akcoff, Christenson, Kenneth, Bower and Vacil, Acherman, Robinson,
Piere, Wheeler and Hunger, Porter, Charles W.L.Hill and Gareth R.Jones.
In the UK I owe a great debt to Argeni, Hussey, and Barnard Taylor,
Thomson and other scholars

Bangalore

B.HIRIYAPPA. Ph. D.,

drbhiriyappa@gmail.com
 CONTENTS OF THE BOOK

CHAPTER 1 DILEMMA OF BUSINESS

Dilemma of business 15

Traditional Definition of business 17

Motives of business 19

Innovative Characteristics of business 20

Branches of business 21

Kinds of industry 21

Creative Objectives of a business 22

Long term objectives of a Firm 27

Expert opinion of Business policy 28

Need of business policy 30

Different types of business policy 31

CHAPTER 2 BUSINESS STRATEGY AND CORPORATE

STRATEGY

Introduction 41

Means and Ends of Business 42

Dilemma of strategy and structure of Strategy 47

Dilemma of corporate strategy 48

Concept of strategy 48

Characteristics of corporate strategy 50

CHAPTER 3 INTERNAL ENVIRONMENT ANALYSIS

Internal Environmental analysis 52

Environment influence on SWOT 53

Components of business environment 54

Relationship between organization and its environment 55

Internal analysis of the organization / company 57

The value of systematic internal assessment 58

Steps/process in the development of a organizational / company
profile 59

Identification of strategic factors 59

Functional approach 59

The value chain approach 64

Primary activities 64

Identifying support activities 65

Using value chain in internal analysis 68

Evolution of strategic internal factors 68

Stages in product / market evolution or product life cycle 69

Quantitative versus qualitative approaches in evaluating internal
factors of the organization 70

CHAPTER 4 MICRO AND MACRO ENVIRONMENT ANALYSIS

Introduction 72

Environmental scanning 73

Micro / operating environment 73

Suppliers 75

Customers 75

Competitors 76

Marketing intermediaries 77

Publics 77

Organization 77

Market 78

Macro / remote environment 79

Economic environment 80

Political - legal environment 82

Socio –cultural environment 84

Demographic environment 85

Natural environment 88

Technological environment 89

Global environment 92

Why do companies go global? 95

Strategic response to the environment 100

Competitive environment 101

CHAPTER 5 FRAMEWORK AND SCOPE OF STRATEGIC

MANAGEMENT

Introduction 105

Meaning of strategic management 105

Framework of strategic management 107

Importance of strategic management 108

Characteristic/nature of strategic planning 109

Scope of strategic management 110

Dimensions of strategic decisions 112

Tasks in strategic management 114

Strategic management model 115

Levels at which strategy operates / strategic 117

Levels in organization 117

Role of mangers at various levels 117

Corporate level 118

Business level 119

Functional level 119

Characteristic of strategic management decisions at different levels
119

Benefits of strategic management 121

Risks of strategic management 122

Strategic management process / steps 122

Components of strategic management 123

Tasks in strategic management 129

CHAPTER 6 DEVELOPMENT OF VISION AND MISSION

Introduction 130

Some fundamental questions related to related to mission & vision
130

The vision 130

Elements of a strategy vision 132

Development of strategic vision 133

Mission 133

The need for explicit mission of organization 134

Fundamental elements of mission 135

Components of mission statement 135

What is our mission? And what business are we in? 136

Defining organization mission 136

CHAPTER 7 NATURE AND SCOPE OF CORPORATE STRATEGY

Introduction 139

Corporate strategy 139

Nature, scope and concerns of corporate strategy 139

The stages of corporate strategy formulation implementation process
144

A need for long term and short term objectives 148

Qualities of long term objectives 150

CHAPTER 8 FRAMEWORK OF STRATEGIC ANALYSIS

Introduction 159

Strategic analysis 159

Issues to consider for strategic analyses 161

Situational analysis 163

Framework of strategic analysis 167

The methods of industry and competitive analysis 168

The concept of strategic groups 173

Swot analysis 178

Significance of swot analysis 180

CHAPTER 9 GENERIC STRATEGIES

Introduction 185

Strategic alternatives 185

Michael porter’s generic strategies 185

Cost leadership strategies 187

Advantages of cost leadership strategy 188

Strategic choices 188

Disadvantages of cost leadership strategy 189

Advantages of differentiation strategy 190

Disadvantages of differentiation strategy 191

Focus strategy 192

Advantages of focus strategy 193

Disadvantages of focus strategy 193

Strategic choices of focus strategy 194

Generic strategies comparative skills and resource requirement 194

Best cost provider strategy 196

Distinctive features of the generic competitive strategies 197

CHAPTER 10 FORMULATION OF FUNCTIONAL

DEPARTMENTAL STRATEGY

Introduction 200

Reasons for functional strategies are needed to firms 201

Marketing strategy formulation 202

Developing the marketing mix 205

Marketing strategy techniques 210

Financial strategy formulation 214

Production strategy formulation 222

Research and development strategies 225

Human resource strategies formulation 229

CHAPTER 11 GRAND STRATEGIES STRUCTURES IN

ENTERPRISES

Grand strategies / directional strategies 239

Features of grand strategies 241

Characteristics and scope of various grand strategies 242

Stability strategy 242

Characteristics of stability strategy 242

Expansion strategy 243

Characteristics of expansion strategy 243

Retrenchment/ divestment strategy 246

Characteristics of retrenchment/ divestment strategy 246

Combination strategy 246

Major reasons for organizations adopting different grand strategies
247

CHAPTER 12 DIVERSIFICATION STRATEGIES FOR

ENTERPRISES

Introduction 250

Diversification 250

Types of diversification 250

Related diversification 251

Unrelated diversification 251

Internal diversification 252

External diversification 252

Horizontal diversification 252

Vertical diversification 252

Active diversification 252

Passive diversification 252

Concentric diversification 256

Conglomerate diversification 257

CHAPTER 13 TURNAROUND, RETRENCHMENT DIVESTMENT,

AND LIQUIDATION STRATEGIES FOR ENTERPRISES

Introduction 260

Turnaround strategy 260

The causes of corporate decline 261

Main elements of successful turnaround strategies 264

Issues for successful turnaround strategies 266

Contribution elements for turnaround in firm’s 266

Divestment/cutback strategy 267

Reasons to adopt divestment strategy in firms 267

Liquidation strategies 268

Liquidation – the strategy of last resort 268

End game strategies 269

CHAPTER 14 TOWS MATRIX ANALYSIS, BCG MATRIX,

ANSOFF’S MATRIX, ADL MATRIX, THE GENERAL ELECTRIC
MODEL

Introduction 270

Tows matrix 270

Portfolio analysis 271

Advantage of portfolio analysis 272

Strategic business units 272

Characteristics of SBUs 273

Advantages of SBUs organizational structure 273

Disadvantages of strategic business unit organizational 273

Stages in product / market evolution or product life cycle 274

Advantage of product life cycle 275

BCG matrix 276

Mission of BCG 276

Available strategies to pursue 278

Limitations of the BCG matrix 279

ANSOFF’s product - market growth matrix 280

ADL matrix 283

The general electric model 285

CHAPTER 15 PORTER’S FIVE FORCES MODEL AND

MCKINSEY’S 7’S FRAMEWORK

Introduction 287

Competitive advantage 287

Five force model 287

Potential competitors 289

Rivalry among established companies 290

The bargaining power of suppliers 293

The bargaining power of buyers 293

The threat of substitute products 294

Mckinsey’s 7’s framework 295

CHAPTER 16 VALUE CHAIN CONCEPT ANALYSIS

Introduction 298

The value chain 298

Basic concepts of value chain 298

The value creation process 299

Primary activities 300

Supporting activities 300

Achieving superior efficiency 305

Economies of scale 305

Flexible manufacturing efficiency 306

Materials management efficiency 306

R&D strategy and efficiency 307

Human resource strategy and efficiency 307

Infrastructure and efficiency 307

Superior quality 308

The TQM concept 308

Implementing TQM 309

Superior innovation 310

Building competitive steps in innovation - customer responsiveness
311

CHAPTER 17 VERTICAL INTEGRATION AND STRATEGIC

ALLIANCES

Introduction 316

Vertical integration 316

Upstream/backward integration 317

Downstream/forward integration 317

Creating value through vertical integration 318

Disadvantages of vertical integration 320

Strategic alliances 321

Short term contracts and competitive bidding 321

Building long term 322

CHAPTER 18 ACQUISITIONS AND JOINT VENTURES

Introduction 324

Acquisitions and versus internal new venture as entry strategy 324

Failure of acquisitions 326

Guidelines for successful acquisition 327

Advantages of acquisition strategy 328

Disadvantages of acquisition strategy 329

Pitfalls of internal new venture 329

Joint venture 331

Advantages of joint venture strategy 332

Disadvantages of joint venture strategy 332

Life cycle of joint venture 333

Joint venture as a entry strategy 336

Drawback of joint ventures arrangements 336

CHAPTER 19 TAILORING STRATEGY ANALYSIS

Introduction 337

Companies competing in emerging industries of the future 337

Companies competing in turbulent, high velocity markets 340

Companies competing in mature, slow growth industries 343

Companies competing in stagnant or declining strategies 347

Companies competing in fragmented industries 349

Companies in competitively weak positions 352
CHAPTER 20 STRATEGY FOR FRAGMENTED INDUSTRIES

Introduction 358

Strategy in fragmented industries 358

Chaining 359

Franchising 360

Horizontal merger 360

Strategy in embryonic and growth industries 360

Strategy in mature industries 362

Strategies to manage rivalry immature industries 365

Price signaling 365

Price leadership 366

Non price competition 366

Capacity control 367

Focus causing excess capacity 368

Choosing a capacity control strategy in mature industries 368

Supply and distribution strategy in mature industries 369

Strategy in declining industry 370

Strategy selection in a declining industry 379

CHAPTER 21 STRATEGIC CHANGE MANAGEMENT

Introduction 372

Nature of strategic management change 372

Organizational politics and power 375

Source of organizational politics 375

Power 377

Source of power 377

Organizational conflict 379

Process of the organizational conflict 381

Managing conflict strategically 382

Conflict resolution strategies 383

Implementing strategic change steps in change process 383

CHAPTER 22 STRATEGIES FOR COMPETING IN

GLOBLIZING MARKETS

Introduction 386

Globalization market 386

Reasons for globalization 387

Advantages of globalization 387

Disadvantages of globalization 388

Why companies expand into foreign markets 388

The difference between competing internationally and competing
globally 389

Cross country differences in cultural, demographic and market
conditions 390

Multi-global /global country competition 391

Strategy options for entering and competing in foreign markets 391

Difference between multicountry strategy and global strategy 396

Pursuing competitive advantage by competing globally 398

Strategic alliance and joint venture with foreign country partners 400

Competing in emerging foreign markets 401

Strategies for local companies in emerging markets 401

CHAPTER 23 CORPORATE CULTURE AND LEADERSHIP

Introduction 403

Concept of corporate culture 403

Corporate culture 404

Contents of corporate culture 405

Strength of corporate culture 406

Strong culture companies 406

Weak culture companies 407

Unhealthy cultures 407

Adaptive culture 408

Thickness culture 408

Extent of sharing 408

Clarity of ordering culture 408

Deciphering culture 409

How culture influences 409

Building ethics into the culture 410

Strategic leadership 411

The role of the CEO 413

Key considerations in managerial assignment to implement strategy
413

Managerial assignment situations 414

CHAPTER 24 STRATEGIC CONTROL SYSTEMS

Introduction 416

Establishing strategic controls 416

Strategic control systems 416

Characteristics of strategic control systems 416

Steps/process in designing an effective control system 417

Levels of control 418

Types strategic control 418

Premise 419

Implementation 420

Strategic surveillance 421

Special alert control 421

Market 421

Output control 422

Operational control systems 422

Types of operational control systems 422

Strategic reward systems 424

CHAPTER 25 MATCHING STRUCTURE AND CONTROL

ANALYSIS

Introduction 426

Matching structure and control analysis at the functional level,
business level 426

Global structure 430

Multidomestic strategy and structure

International strategy and structure 429

Global organizational structure 430

Matching structure control at corporate level 437

CHAPTER 26 STRATEGY IMPLEMENTATION AND CONTROL

Introduction 439

Interrelationships between strategy formulation and implementation
439

Basic elements in Strategic management 440

Strategy formulation and implementation matrix 442

Contrast between strategy formulation and implementation 445

Issues in Strategy implementation 447

CHAPTER 27 BUSINESS PROCESS REENGINEERING AND

BENCHMARKING

BPR 453

Different forms of Business Process 457

Key elements in BPR 460

Rationale BPR 461

BPR approach 463

Steps in BPR 463

Problems of BPR 467

Benchmarking 469

Benchmarking Process 472
CHAPTER 28 SIX SIGMA AND MANAGEMENT

What is Six Sigma? 472

Focus Areas in Six Sigma 475

Six Sigma Méthodologies 476

What’s New About Six Sigma 479

Importance of six sigma in organization 480

Six Sigma Act as a System of Management 481

CHAPTER 29 CONTEMPORARY STRATEGIC ISSUES

Introduction 486

Strategies for internet economy 486

What is internet technology? 487

Strategy shaping characteristics of the e-commerce environment 488

Strategic management in non profit and government organization 490

Educational institutions 491

Medical organizations 491

Governmental agencies and departments 492

Index
 CHAPTER 1
DILEMMA OF BUSINESS

DILEMMA OF BUSINESS
Traditional business concept generally involves the buying and selling of
products and services which offered to ultimate customers. This concepts is
not suitable due to changes, fluctuations, innovations, inventions of new
market, new customers, new product and services, we can redefining of the
business concepts. Business managers are well equipped with e technology
to sell their companies products and services. They need the self awareness
of the work and self confidence to manage, admin, control and monitor the
sales proceeds in a several regions and several business segments.
New dimensions of business concept will be looking into e technology in
business through the net work marketing, without products and services and
enterprise advertise to business with just website and get orders from across
the world. An order would be executed on the basis of demand and supply
and ultimately shipping to customers. Sales manager would not see the
customer in spite of a manager get orders through internet marketing tools.
We believed that only buying and selling of goods and services meanwhile it
is happen in real scenario, it is totally change compare to old business
concepts. New business concepts are the output of innovations of
communication tools like as internet facilities. E commerce and e-
innovation result helpful to world economic forum that ready to contribution
to business and industry.
Globalization, liberalization and privatization are the major tools to business
growth, development, survival of the major multinational companies.
Multinational companies produce the goods and services in an economy of
scale, and get orders from across the world, in this way to take competitive
advantage; it is also one of the business strategies to enhance to business
activities.
Economic treaties will be added advantages to business cooperation from
one country to another country. Treaties are development of business along
with the good relationship with countries. It is also bring the new outlook to
business activities in this way to achieve the short term goals of business like
as profit maximization and long term goals like as wealth maximization.
Strategic alliances is the another form of business development tool to
multinational companies. Strategic alliances is entering to partnership to sell
the products and services of the partner firms who are entering business deals
with the new market and new enterprise in this way to dump their products
and services to entire world market and earn a maximum profit and share the
profit to their partner.
Business concepts are changing from time to time. It depends to business
environment and global environment. Intellectual capital will play very
dominant role in next century. Intellectual capital business is enhanced with
products and services. It will be control, manage, admin and effectively
achievement of means and ends.
Economic Turmoil and global recession will bring either ruin the business or
bring the new opportunities to business. We can redefine the business and its
policy of an enterprise. A Business Leader examines the real circumstances
which are coping with economic indicators of the state. Business
development managers are estimating the future demand and supply of
products and services which are offering to ultimate customers who are
located in different region. Economic turmoil vanish the confidence to
survival of the business and slowdown the demand of the products and
services. America, England, Japan, Germany, China. Japan and India are
failure to curb the economic turmoil and global recession due to failure to
application of appropriate strategy.
In this book, generally overlook to the core area of the business and its
policy towards the strategic goals and objectives. Business determines the
structure of an enterprise how that enterprise system supports; protect the
nature of business in this way to make the emerging business process in
terms of growth and development the business activities. Secondly the
tolerance management of strategy and its concepts towards an organization
in this way to how to manage and admin the different nature of activities
those are different from one strategic business unit to other strategic business
units. Thirdly, dynamic strategic competitive analysis in terms of
competitors, core competence and value chain analysis: it involved in terms
of internal environment and external environment that decides to primary
and secondary activities of business. Fourthly, the managing cost of business
that will be needed to business leader who are effectively implementation of
generic strategies and grand strategies in business, for these purpose,
strategic leader should overlook the strategic analysis, situation analysis and
strategic tools application in business to determine major and minor goals
and objectives of an enterprise. Fifthly, Strategist are in formulate of
business means and ends that way to implementation of functional level
strategy in a different business segment and to analysis to strengths and
weakness and opportunity and threat of an entity to know core competence
of the business activities and know how to over come the competitors in
different market and different segment. Finally, we will be involved the
implementation of means and ends with an appropriate manner and
accomplish strategic means and ends in different manner. In this book
indicates the recent changes in business and its scope to learn and manage in
a intellectual way to normalize business functions at a maximize the utility to
framework the business policy that will be helpful to develop strategy,
implement strategy and evaluate and control the strategy by applying the
strategic tools like as industrial analysis, situation analysis, competitor
analysis, value chain analysis, business environment analysis, tailoring
strategy which suitable to an enterprise and gain the competitive advantage.
TRADIATIONAL DEFINITION OF BUSINESS
The term ‘typically` refers to the development and processing of economic
values in society. Normally, the term is applied to portion of economic
activities whose primary purpose is to provide goods and services for society
in an effective manner. It is also applied to economics and commercial
activities of institutions which having other purposes.
Business principally comprises of an all profit seeking activities of
the organization which provide goods and services that are necessary to
economic system. It is the major economic pulse of a nation, striving to
increase society’s standard of living. Finally, profits are a primary
mechanism for motivating these activities.
Business is in any organization which makes distribution or provides
any article or service to the customers, who are belonging to members of
the society. Business may be satisfied customers needs for these purpose
customers are able and willing to pay for it.
Business may be defined as “the organized effort by individuals to
produce goods and services to sell these goods and services in a market place
and to reap some reward for this effort.”
Functionally, we may define business as “those human activities
which involves production or purchase of goods with the object of selling
them at a profit margin”. Issues of business as outlined:

The term business refers to the state of being busy for an individual,
group, organization or society.

It is also interpreted as one’s regular occupation or profession or
economic activities.

It deals with particular entity, company, organization, enterprise,
firms or corporation.

It also interpreted as particular market segment sector like computer
business and it included under term business.

It is wide and willing to use different activities

It consists of purchase, sale, manufacture, processing, marketing of
products, services like manufacturing, trading, transportation,
warehousing, banking and finance, insurance and advertising etc.

It is clearly stated that all business activities main purpose is to earn
profit. Profit as a surplus of business and it accrues and distributed to
the owners of the business. Business has to pay wages to workers
who work in the business. People invests money in business due to
be getting retain. Retain is profit from the business. This is awarded
to investor because of they are taking the risk.

Profit is the motive for the investor who serves and run business and
it is the stimulation effort of the business for growth, survival of
business.

taking the risk.

Profit is the motive for the investor who serves and run business and
it is the stimulation effort of the business for growth, survival of
business.
MOTIVE OF BUSINESS
Organizations are dividing into two parts: Part one is trading able and willing
to pay for it.
Business may be defined as “the organized effort by individuals to
produce goods and services to sell these goods and services in a market place
and to reap some reward for this effort.”
Functionally, we may define business as “those human activities
which involves production or purchase of goods with the object of selling
them at a profit margin”. Issues of business as outlined:

The term business refers to the state of being busy for an individual,
group, organization or society.

It is also interpreted as one’s regular occupation or profession or
economic activities.

It deals with particular entity, company, organization, enterprise,
firms or corporation.

It also interpreted as particular market segment sector like computer
business and it included under term business.

It is wide and willing to use different activities

It consists of purchase, sale, manufacture, processing, marketing of
products, services like manufacturing, trading, transportation,
warehousing, banking and finance, insurance and advertising etc.
It is clearly stated that all business activities main purpose is to earn profit.
Profit as a surplus of business and it accrues and distributed to the owners of
the business. Business has to pay wages to workers who work in the
business. People invests money in business due to be getting retain. Retain
is profit from the business. This is awarded to investor because of they are
organizations and Part two is Non Trading organizations. Trading
organizations main concepts is earning profit; it is main motive of business.
In other words, Non trading concern main concepts is rendering services to
society. We will know the main issues that are relating to profit, it is a main
motive of business:

For every kind of business organization, profit is often regarded as
motive for the entrepreneurs and it measure the overall performance
of the business.

Profit is the tool for measuring and evaluation of the business
efficiency and productivity at the managerial competence.

It is helpful to strategic managers how to take well decisions and
actions which are turn into effective in the form of able to combine
and utilize the available resource and able to sustain the organization
with growth and survival of the business entity.

Business managers who will take higher efficiency and risk and
certainly expect greater volume of the profit from the business entity.

Business efficiency expressed in terms of percentage of profit to sales
volume, to capital employed, to market value of corporate shares.

Outside investors eager to know the profit of the firm and to make
assessment about their commit funds and effective utilization of
funds will be in the business entity.

Peter F Drucker has drawn some conclusions about what is a
business and what are useful from the business and how to
understand the term business. His conclusions that Business is
created and managed by the people a group of people who will be
taken decisions that will be determined whether an organization is
going to prosper or decline, whether it will survive or will eventually
 perish. This conclusion is true in the business. And business cannot
explain in terms of profit.
INNOVATIVE CHARACTERISTICS OF BUSINESS
Business is to provide goods and service to the people. It provides
the public with the things, it needs and wants in order to survive,
enjoy life and improve in a material sense. From the point of view
of consumer, business is the satisfier of needs and desire of the
customer demands which should be provided by business.
Goods that have been produced or procured for sale in retain for
price enter the realm of business. This activity of selling results is
the creation of the wealth for the society. In satisfying demand,
business uses the resources of land, labor and capital. These
resources when taken separately have little value; but business
combines structures and refines the resources to produce to the
value of the society. Further, business employees’ who exchange
their talents for wages and salaries. Therefore, these people
exchange their compensation for the desired goods and service.
Business is profit-seeking activity. It supplies goods and services to
customers who are satisfy their demand and desire. It adds to
society’s value by earning of a profit. Profit is the biggest stimulus
for maintains the survival of the business and its future
development. Society has permits business to earn profit as a
reward for assuming the risks of operating a business.
Business is also an essential participant in society. For satisfying
society demand which supplying goods and services and earning
profits. Business involves the most fundamental activities of the
society. As a result, Society has looks to business for something
more than products, services and profits. It looks to business for
leadership and direction in helping to achieve society’s objectives.
It expects business to assist in the establishment of a better service
to the society.
BRANCHES OF BUSINESS
Business includes the total enterprise of the country. Business activity
has two branches. They are as follows:
Industry
Commerce
INDUSTRY
In broad sense, industry is the branch of business activity which
concerned with raising production, fabrication or possessing of goods and
services. In other words, industry is an activity concerned with conversion of
raw materials or semi finished goods into finished goods. Industry provides
two types of goods namely; Consumer goods and Industrial goods.
Consumer goods are those goods manufactured by industry for ultimate use
of a customer. For instance brush, Paste, cloth and food products etc.,
Industrial\Capital goods are those goods produced and used for further
production. For instance like machineries, tools and raw material etc.
KINDS OF INDUSTRY
Industry is further classified into five broad types. They are as listed
below:
1. Extractive industries
2. Genetic industries
3. Manufacturing industries
4. Construction industries
5. Territory \ Service industries
Extractive Industry
Extractive industry are those industries concerned with extraction of
wealth from surface of the earth, soil, forest, water, air etc, for instance
agriculture, mining etc.,
Genetic Industries
Genetic industries are those industries concerned with reproduction
and multiplication of plants animals for making profit on their sale. For
example, Nurseries, cattle building and poultry farming.
Manufacturing Industries
Manufacturing industries are engaged in the conversation and process of raw
material through separation, combination, and transformation into finished
goods. Such as machinery and plants of all types, iron and steel, sugar, paper,
cotton clothe, electrical appliances, zinc ore, paper pulp water power, etc.,
Construction Industries
Construction industries are concerned with the construction of roads,
railways, dams, canals, buildings, bridges etc. there are mainly concerned
with the manufacture of non-moveable items.
Territory or Service Industries
Service industry which produce intangible goods, those which cannot
be seen or touched included in this category are banking, transport,
insurance, communication and services of a professional nature such as
lawyers, doctors, dentists, management consultants, advertisers, chartered
accountants and engineers, etc.,
Commerce
Commerce has been defined as “the sum total of those processes
which are engaged in the removal of the hindrance of persons (trade), Place
(transport and insurance), and time (warehousing) in the exchange (banking)
of commodities”.
Trade
Trade means sale, transfer, or exchange of goods and services,
through certain ancillary functions like packing, warehousing, banking,
transportation, Insurance, and advertising. Trade may be as Domestic Trade
and International Trade.
CREATIVE OBJECTIVES OF A BUSINESS
Business Purpose
Business has some purpose. These purposes are listed below:

It is to create customers.

It is create customers for selling of their products and services.

It is create market.

Customers determine the main purpose of the business.

Customers are the basic foundation of the business and keep its in
existence in the market.

It is exists because of catering to material needs and requirement of
the society, individual persons, government institutions, company,
firms and enterprise.

Business is run with in the purview of the legal and general public
interest.

It is ultimate force of an economic expansion, growth and change.
In general sense, enterprises pursue multiple objectives rather than a one
objectives. Strategic manager has identified a set of main business
objectives. These pursued by a large cross–section of enterprises.
Profitability, productivity, efficiency, growth, technological, dynamism,
stability, self reliance, survival, competitive strength, customer services,
financial solvency, product quality, diversification, employee satisfaction
and welfare and so on are the major objectives of enterprise. Enterprise looks
for balance of these objectives in appropriate and suitable manner. Important
business objectives are listed below:
Figure 1.1 has identified the creative objectives of business as outlined:

Survival

Stability

Growth

Profitability

Efficiency
Survival

An organization mission statement reveals the organization’s
intention to secure its survival through development growth and
profitability of the business.

It is will and continue the business concern into the future as long as
possible perpetuate anxiety, Strategic managers take more
responsibility for survival of the organization business.
Figure – 1.1: Creative Objectives of Business
Stability

Survival

Objectives of a Efficiency
Business

Profitability

Growth

Therefore, Survival is an assumed goal of the business, if strategic

managers often neglected survival, its impact on strategic decisions
making for long term.

It is basic and implied objectives of the most organizations.

It will be gained more value and important during the stage of the
beginning of the business enterprise and during the general
economic adversity of business.

The survival refers to the function of the nature of ownership, nature
of business competence of management, general and industry
conditions, financial strength of the business enterprise or any type
of business concern.

All types of enterprises will be interested in more than mere
survival.
Stability

Stability is one of the important objectives of the business enterprise.

It will be cautious, conservative objective

It is a least expensive and risky objectives in form of managerial
time and talent and other resources,

A good and steady enterprise always minimizes its managerial
tensions and reduces its dynamic nature decisions which are taken
from managers.

It is least resistance compare to other objectives and hostile to
external environment.
Growth

An organization growth is closely associated with its survival
and profitability and equated with dynamism, vigor, promise,
and success.

Growth refers to overall development of the organization
activities in terms of increase in assets, manufacturing
facilities, and increase in sales volume in existing or through
new product in this way improves profits and market share.

Growth may be proactive change is a necessity for dynamic
business environment.

Growth refers to in terms of expansion business, increase
manpower employment, diversification and acquisition of
business and create unknown risky paths in this way
organization looks for survival, profitability and growth of the
business activities.
Profitability

Profitability is the vital goals of a business organization.

Profit is the sole motive of the business enterprise.

Private business enterprises are operated on behalf of the
owners and its benefits also goes to owners of the enterprise.

Strategic managers should know how to measure profitability
or how to define profitability either the long term or short
term of the organization.

Profitability clearly indicates of an organization’s ability to
satisfy the principal; claims and desires of employees and
stakeholder of the organization.

Strategic mangers analyses, interpretations of profit of the
organization, how it impact on survival of the organization in
the future.
Efficiency

Efficiency is one of objectives of the business.

It helps to business to achieve goals and success of the
business

Efficiency refers to best utilization of available and scarce
resources and brings the highest productivity in business
activities.

It is useful operation objectives due to effective utilization of
economic version of the technical objectives which for
achieving productivity and designing suitable input and
convert into output for effective utilizing of funds, resources,
physical facilities and so on in enterprise.
LONG TERM OBJECTIVES OF A FIRM
Short run profit maximization is rarely based on the best approach to
achieving sustained corporate growth and profitability of the firm. It is
recognized by the strategic managers of the firm. Therefore, to achieve long
term prosperity purpose strategic managers designed long term objectives.
Long term objectives of the firm or company or organization as listed below:

Profitability

Productivity

Competitive position

Employees development

Employee relationships

Public responsibility

Technological leadership
Profitability
Profitability is an important functional area of the long-term
objectives of the firm. The ability of any business is to operate in the long
run depends on attaining on acceptable level of profits. Strategically
managed firms characteristically have a profit objective usually expressed in
return on equity.
Productivity
Productivity is essential need for each strategist in the corporation.
Strategic managers try to improve the productivity of their systems.
Companies that can improve the input–output relationship normally increase
profitability. Productivity objectives are some times stated in terms of
desired decreases inmost. This is an equally effective way to increase
profitability.
Competitive Position
Competitive position can increases profitability and productivity of
the company. Companies or firms or organization’s Competitive position
reduces the cost of production of the output. The corporate success depends
on the firm’s competitive position. It is strongly dominated in the market.
Employee Development
It refers to experienced employees are the asset of the organization.
For long-term purposes, the company’s employees need training for further
course of action that effectively and efficiently managed to produce
productivity in the competitive position. Therefore, it is one of the major
long-term objectives of the organization.
Employee Relationships
All companies actively seek good employee committed relations
with organizational environment. Strategic manger should know the
employee needs and expectations. Strategic managers take a decision to
welfare programme for the employees of the companies. It is only can
improved of the employee’s relationship in the organization.
Technological Leadership
Technological leadership can gives clear picture of the organization goals
and objectives for the long term changes in the business scenario many
companies state their objectives in terms of their technological leadership.
Public Responsibility
Business recognizes their social responsibilities towards to customer and
society. Public responsibility is buildup long-term images in the society by
through providing social work to public.
EXPERTS OPINION Of BUSINESS POLICY
Business Policy According to Glueck
“Development from business policy arose from the use of planning
techniques by managers. Starting from day to day planning in earlier times,
managers tried to anticipate the future through preparation of budgets and
using control systems like capital budgeting and management by objectives.
With the inability of these techniques to adequately emphasize the role of the
future, long range planning came to be used. Soon, Long range planning was
replaced by strategic planning, and latter by strategic management: a term
that is currently used to describe the process of strategic decision making”.
Business Policy According To Christensen and Others
Business policy is “the study of the functions and responsibilities of senior
management, the crucial problems that affect success in the total enterprise,
and the decisions that determine the direction of the organization and shape
its future. The problems of the policy in business, like those of policy in
public affairs, have to do with the choice of purposes, the moulding of
organizational identity and character, the continuous definition of what needs
to be done, and the mobilization of resources for the attainment of goals in
the face of the competition or adverse circumstances”.

It tends to focus on the rational analytical aspect of strategic
management.

It presents a design framework for understanding for strategic
decision making.

Strategic framework enables an individual to make preparations for
handling general management responsibility effectively and
efficiently.

Business course introduced by the Harvard Business School and
origin of its business policy traced back to 1911.

It is integrative course in management and aimed to the creation of
general management capability.

This course was based on interactive case studies that had been use at
the school for instructional purposes since 1908.

It intended to enhance general manager capability of students.

The introduction of business policy is the curriculum of business
schools and management institutes came much later, in 1969.

The American Assembly of Collegiate Schools of Business is a
regulatory body for business schools. It made that the course of
business policy is a mandatory requirement for the purpose of
recognition.

This course spread to different management institutes across different
nations and become an integral part of management curriculum.

It is considered as a capstone, and integrative course offered to
business students who have previously been through a set of core
functional area business course.

The term ‘Business Policy ‘had been traditionally used in the
business schools in world which though new titles for the course have
begun to be introduced in recent years in India.
NEED OF BUSINESS POLICY

They tend to serve as precedents and thus reduce the repetitive
rethinking of all the factors of individual decisions which they save
time.

Policies aid in coordination, if a member of individuals are guided by
the same policies, they can predict more accurately the actions and
decisions of others.

Policy provides the stability in the organization, a certainty of action
is assured even though the top management may any change. The
policies continue and this continuity promotes stability in the
organization and thus reduces frustrations of members.

Clear policies encourage definite individual decisions. Each
functional manger has clearly understanding the range policy within
the organization which helpful to make decision and thus feel less
uncertain as to whether he\she can give answers to subordinates
without “getting into trouble”.

Policies clearly specify routes towards the related goals of the
organization. Policies serve as a standard or measuring yard for
evaluation performance in the organization. The actual results can be
compared with the policies of the organization which is to determine
how well the members of an organization have lived into their
professed and intentioned to what extent goals have been achieved.

Sound policies help to build up employee enthusiasm and loyalty for
the organization. This is specifically true when they reflect
established principles of fair play and justice and when they help
people to know that within an organization.

They setup the pattern of behavior and permit to participants to plan
with a greater degree of confidence and lead to better co-operation in
the organization.

Policies are monitored and controlling of the organization which
guides for delegated decision-making. They seek to ensure
consistency and uniformity in decisions relating to problems that
recur frequently and under similar. But not identical circumstances.

Policies always with clarity, relevance and reasonableness and enable
a firm to make the optimum utilization of scarce available resources
and thereby bring about an efficient level of operations because
wastage must be avoided.

Corporate policies always buildup an image of the business in the
eyes of the public and this brings in more reputation, goodwill; sale
and profits so that more and more acts of social responsibilities may
be undertaken by organization.

Proper administration and implementation of policies that encourage
initiative in the employees so that they act with full responsibility
with in the framework of the policies of the organization. This
naturally improves the working environment like very good-labor
management relations within the organization.
DIFFERENT TYPES OF BUSINESS POLICY
Different types of business policy as follows:
 On the basis of level of management
 On the basis of functional areas
 On the basis of expression
 On the basis of nature of origin
 On the basis of scope of organization
 On the basis of nature of management function

ON THE BASIS OF LEVEL OF MANAGEMENT

Business policies are framed at different levels of the management, and
accordingly then may be classified as
Top Level Management Policies
These policies are derived from the top management for planning
and decision making. The top management principally comprises of the
Board of Directors, chairman /president, vice president/vice-chairman,
managing director, general manager etc, and the top management frames the
policies by themselves and it is, therefore, responsible for these. These
people are the ultimate level of authority in the operation of the enterprise.
The policy makers plan to set of the objectives, define the goals, establish the
policies, see that these policies are put into effect and judge the results.
The top management policies involves with the long range product
selection extent of its diversification, a acquisitions and mergers of two or
more units, spin-offs-their nature, extent and liability-sales forecasting sizing
the enterprise, process of selection, machine selection, determining site,
location and needs of the plant, decisions regarding investment of available
resources in capital and human research development, settlement of
problems of executives regarding their promotion, transfer, retirement etc.,
and accomplishment of the organization objectives/goals.
Middle Level Management Policies
These policies are the out-come of the deliberations of the executives at the
upper middle and middle level. The upper middle management consists of
the head of the personnel administration department like Production
manager, sales manager, marketing manager, financial manager, deputy
general manager and assistant manager etc, their executives are responsible
for research, finance, accounting and marketing etc,
They lay down the policies regarding upon the establishment of organization,
selection of the best-suited executives staff and employees to carry out the
plans, installation of proper departments, designing of operating policies and
operating routines, deciding processes, methods and techniques of
production which exploration of new markets and decisions about channels
of distribution for assignment of duties to each department and to each
individual, who are deciding about source of manpower, resources and their
selection, deciding about wage, salary and incentive plans for them, obtain
necessary finances, controlling costs and solving problems of actual sales
activities etc.,
Middle management consists of the deputy heads of the various sections
under different functional departments-employment and training, industrial
relations, labor welfare and social security. Junior executive, superintendents
of departments divisions etc., these executives are the deputy head of the
functional department like sales, production, research, Finance and
accounting divisions of the organization. They frame policies are known as
middle management polices.
Lower Level Management Policies
The lower level management people are men and women who have direct
supervision over the working force in office, factory, sales field, and other
areas of activity of the organization. They are directly related to the
accomplishment of the task for the small sub-divisions of the whole
enterprise. They chalk out policies or the assignment of the jobs to the best
suited persons in the organization. The lower level management policies
guidelines of the provision of adequate tools, raw materials, training of the
workers, issuing of orders, maintenance of quality, improving working
conditions, morale, maintaining discipline and controlling absenteeism etc.
Operating Force Policies
These are the rules or a code for doing the job which enriched to a particular
worker performance. These are usually written down in the notebooks of the
organization. Operating policies notice to the worker how long each job
work should take a time, what tricks of the trade are required, and what
quality feature are emphasized.
ON THE BASIS OF FUNCTIONAL AREAS
On the basis of functional areas business policies may be classified as
production policies, marketing and sales polices, financial policies and
human resource development policies.
Production Department Policies
Production policies are framed and concerned with the following
issues:
The product to be produced (product line, type of product)
The type of technology, processes, equipment and tools, to be
used
The selection of factory\office\plant site, location and layout.
The decisions regarding scale of production
Making of production budgets manufacturing costs and deciding
about total cost and cost of installation and its maintenance
The selecting of junior executives;
Inventory control
Collective bargaining and labor relations
Organization and co-ordination of their activities
Selection of systems of quality, cost production control.
Production policies are the basic determinants of the total policy
making procedure.
Marketing and Sales Department Policies
These policies relate to policies in market analysis, business law, display,
salesmanship and advertising etc, i.e. they are concerned with total process
of marketing which covering both ‘product mix’ and ‘market mix’. The
product mix includes decisions regarding the type, quantity and quality of
product design, contents shape, methods and techniques of production etc.
Market mix covers the issues like price, place, promotion, channels of
distribution, advertising policies, packaging and branding decisions,
consumer psychology and behavior and pricing of the product etc.
Since the modern concept of market has treated as ‘consumer as a
king’, every product is brought to satisfy customer needs. Hence its gamut is
very fast. The policies in this field, therefore, deal with the following issues:
Spotting out of the present and potential markets, the size and nature
of consumers.
The degree of competition in the market and how best could it be
met.
The location of prospects and persuading them to purchase.
Fixing price of product, offering rebated, discounts and other
concessions.
Compensating salesman adequately; and providing them with
training and developmental opportunities.
Selecting channels of distribution or employing representatives and
agents.
Dividing the total market into branch or dealer areas.
Establishing advertising policies like:
i. Setting up sales control policies.
ii. And establishing sales volume and expense budgets.
Financial Department Policies
Financial policies may be regarded as the most important business policies of
the organization. It depends on the entire success and failure of a business
unit of the organization. Properly and careful framed financial policies help
to effective utilization of the resource like men, machine, market, method,
materials and long term survival of the business while improper framed
financial policies are ruin to business activities of the organization.
Financial policies are essential to organization. They are as listed below:

To know the capital requirement of the organization in terms of

short, medium and long term-and know the how to
procurement and effective utilization of finance in the
organization.
 The method of raising funds and the ratio between the various
types of sources of funds, particularly the proportion of owned
funds to borrowed funds.
Utilizations of the funds and the ratio between different types of
asset.
The credit policy, declaration and distribution of dividend to the
shareholder.
Profit policy, provisions for taxes, renovations and modernization
of plants and machinery.
Costing policy includes the policy for selecting the method of
costing, the method of allocating, apportioning, reapportioning and
absorbing overheads.
Accounting policy includes the following areas:
The basis of valuation of stock in trade at the year end;
whether at total cost, or at direct cost or at works costs.
The issue price of the raw material; whether to follow first
in first out method or last in first out method or average
cost or any other methods of issue of raw materials
Depreciation policy; whether straight line method or
reducing balance method or mileage method or any other
method.
The treatment of deferred revenue expenditure, intangible
asset, fictitious assets and preliminary expenses.
Capitalization of expenditure during construction period
The policy for provision of bad and doubtful debt,
investment losses, etc.
Human Resource Development Department Policy
Personal policy are concerned with human resource utilization, its
recruitments and selection, source of supply, training of employment,
training of the employees at whole cost; the promotion and transfer policy,
the issues regarding compensation to the employees, wage incentive and
other perks, benefits and services etc.
ON THE BASIS OF EXPRESSION
On the basis of expression policy may be classified into express
policies, oral policies and written policies
Express Policy
Express policies are those policies, which expressed in terms in clear
words either orally or in writing.
Oral Policies
Oral policies are those, which are issued or stated by the management
in terms of words of mouth to their subordinates. Such policies are generally
adopted when an organization is small and face-to-face communications is
desired. Since they are direct, they are more effective and, hence can be
bettering understood and implemented. They are more flexible and can be
adjusted to be different organizational conditions.
Limitation
First is the main drawback of such policies are not written as such.Second is
the interpreted in any way by the persons receiving them.Thirdly they are
often not remembered for long time and easily forgotten, especially when
there are number of policies and where their frequency of issues is great.
Therefore, usually oral policies are not in popular use.
Written Policy
Written policies are those, which are normally, pull in black and
white and stated in clear terms so that persons whom they are addressed to
easily understand them. For putting the policies in written, much care has to
be taken, for instance;

Policy is always written in terms of words which neither
vague nor unnecessarily academic, nor in any way
offensive to those for whom it is meant.

Words, sentence and paragraphs should be short and
statement of policy should be complete and precise.

It should not contain irritating words are expression
antagonistic or cast as persons on others.

The tone should be warm, without use of any legalistic
phraseology

The frame should be convenient and handy for
management reference and application.
Written policies are desirable in the following situations:

The subject matter on which a policy is to be formulated,
is of a very controversial nature

The distance between the top and lower levels of
management is so wide as to make personnel/informal
contact and communications rather difficult.

Consistent treatment all is needy and certainly of action
desired.

Preciseness and complete understanding is needed to
convoy to the employees at the different levels.
Advantages
There are distinct advantages of written policies are as follows:
The writing of policies makes commitments on the part of
an organization
Writing ensures uniformity of application and assures
continuity of action even when the management is
changed.
Its limits freedom of action on the part of the
management, for it is work with in the boundary of
policies.
The written policies provide something concrete on which
to base an appeal if there is any disagreement about what
is the organization’s policy.
Writing helps to ensure that the professed policies are
right for organization tries to put its best foot forward.
The likelihood of wrong interpretation or
misunderstanding is very much lessened.
Written policies facilitate easy and smooth compliance.
The results in greater convenience both to the policy
frame worse and implementers
However, written policies cannot be easily changed and perfect secrecy,
when desired cannot be maintained and writing of good policies needs
fluency in English that every person does not possess.Even then, in all
large organizations, written policies are a rule rather than exception.
Implied Policies
These are the policies, which are implied from the code conduct or
from mode of behavior of business executives; but they are not stated in
terms of orally. They generally flow from philosophy of the business, it is
social values and even traditions, for instance, smoking and drinking may be
prohibited not in writing but it implied by the conduct of superior executives
who refrain from these habits while on the duty.
Originated Policies
Originated policies emanate from the company objectives which are
determined by the top management, who are primarily responsible for
shaping business policies to guide and direct them and the subordinate in the
attainment of organization’s objectives these are framed by the board of
directors the president and general manager etc, and passed on to the
executives in hierarchy for implementation.
The subordinates usually readily accept such policies because they
have been framed by higher ups in power that entrusted with the shaping of
business policy for concern.
Appealed Policies
Appealed policies are often known as “suggested policies”. Because
they are framed on the suggestions of the subordinates or those who are
implement the policies. The idea is to make a policy is more effective so that
particular problems could find solutions under it. Such policies also have
general acceptance as that of the originated policy because, they have already
got the approved of the top management.
Index
Absolute cost advantages 290
Acceptable 150
Achievable 151
Achieving locational advantage 398
Achieving superior efficiency 305
Acquiring and restructuring 257
Adaptive culture 408
ADL matrix 283
Advantages of globalization 94
Analytic 117
Annual objectives 128
Ansoff’s product 280
Appealed policies 40
Appraisal of performance 233
Asset sales and closures 264
Augmented marketing 210
Backward linkages 447
Balance 161
Balanced score card approach 147
Bargaining power of buyers 293
Bargaining power of suppliers 293
Barriers to entry 325
BCG matrix 276
Benchmarking 469
Benchmarking process 472
Benefits of strategic management 121
Best cost provider strategy 196
Bidding strategy 327
Boosting revenues 355
BPR approach 463
Branches of business 21
Brand loyalty 289
Bruce Henderson 159
Budget systems 422
Building core competency 236
Business 15,17
Business level 119
Business level strategy 179
Business Policy 29,31
Business process reengineering 453
Business purpose 22
Cadbury’s vision 131
Chaining 359
Change process 384
Changing the leadership 264
Charles Greer 233
Chnanging orientations 109
Christensen 29
Clifton Garvin 51
Combination efforts 356
Combination strategy 246
Commerce 21
Commercialization 330
Common driving force 172
Communication network 96
Companies go global 95
Company opportunities 183
Company profile 59
Comparative account 180
Comparison and competitors 70
Compensation 234
Competing in mature industries 343
Competitive environment analysis 101
Competitive position 149
Competitive position 27
Competitive situation 165
Competitive structure 291
Competitive success 171
Competitor analysis 161
Competitors 76
Complementary assets 361
Components of mission statement 135
Components of strategic management 122
Concentrated marketing 213
Concentric diversification 256
Conflict aftermath 382
Conglomerate diversification 256
Connecting customers 204
Construction industries 22
Continuous process 110
Control 209
Control and evaluation 114
Control and evaluation 129
Cooperation in a competitive environment 102
Coordination 137
Core business process 455
Core competencies 95
Corporate culture 404
Corporate decline 261
Corporate level 118
Corporate level strategy 179
Corporate strategy 138
Cost advantages 266
Cost leadership strategies 187
Crafting strategy 114
Crafting strategy 153
Creating competitive atmosphere 235
Credible commitments 322
Crisis ridden business 352, 358
Critical success factor analysis 161
Customer responsiveness 313
Customer time cycle 466
Customers 75
Cutting cost 355
Deciphering a culture 409
Declining industries 348
Defining organization mission 136
Demand conditions 291
Demand uncertainty 256
Demarketing 213
Demographic environment analysis 85
Developing a strategic vision 144
Developing the marketing mix 205
Development of strategy 132
Differential marketing 213
Differentiation strategy 189
Dilemma of business 15
Direct marketing 210
Directional policy matrix 160
Directional strategies 239
Disadvantages of globalization 94
Distribution situation 165
Diversification 282
Diversification 250
Divestment strategy 267
Divestment strategy 246
Divestment strategy 371
Division of work forces 236
Dominant economic features 169
Downstream or forward integration 253
Driving force 171
Dynamic response 100
E commerce environment 488
Economic environment 80
Economies of scale 290
Economies of scope 258
Educational institutions 491
Efficiency 26
Elements of strategy 132
Emerging foreign markets 401
Emerging industries 337
Employee development 149
Employee Relationships 149
Employee relationships 28
Employee’s development 28
Empowerment of human resources 236
End game strategies 269
End game strategies 356
Enlightened marketing 213
Environmental scanning 74
Ethics and culture 237
Ethnic mix 88
Exchange of information 55, 56
Exchange resource 55, 57
Executive summay 209
Exit barriers 292
Expansion strategy 243
Expenditure budgets 423
Export strategies 392
Express policies 37
Extent of sharing culture 408
External diversification 252
External environment 54
Extractive industries 21
Facilitation of change 235
Failure of acquisitions 326
Family ownership 103
Feature of generic strategy 197
Features of grand strategies 241
Felt conflict 382
Finance and accounting policies 214
Financial attractiveness of industry 176
Financial policies 35
Financial strategy 215
Financial strategy formulation 214
Five force model 287
Five forces analysis 160
Flexible 150
Focus strategy 191
Formation of Regional Block 99
Forward linkages 446
Fragment industries 349
Framework of strategic analysis 166
Framework of strategic management 106
Franchising 360
Franchising strategies 394
Functional approach 59
functional areas 33
Functional level 119
Functional level strategy 179
Functional manager 117
Functional strategies 128
Fundamental elements of mission 135
General electric model 285
General management 62
General manager 117
Generic strategies 185
Genetic industries 21
Geographic distribution 87
George Salk 158
Global area structure 427
Global area structure 432
Global company 93
Global competition 391
Global environment analysis 92
Global matrix structures 436
Global operational structure 430
Global strategy 179
Globalization of markets 386
Glueck 28
Government 83
Government agencies 492
Grand strategies 239
Grand strategy 127
Growth 25
Harvest strategy 371
High costs 262
Holistic 116
Horizontal diversification 252
Horizontal merger 360
Host country and government 334
Hostage taking 322
Human resource management 67
Human resources strategy 229
Identification 137
Implementation 114
Implementation control 420 Legal 83
Implementation matrix 441 Levels in organization 117
Implementing and executing the strategy 155 Levels of control 418
Implementing BPR 462 Licensing strategy 392
Implementing TQM 308 Life cycle of a joint venture 333
Implied policies 39 Limitations of financial budget 217
Importance of Strategic management 108 Location strategies 268
Improved scheduling 255 Logical framework 180
Improvement of logistics 225 Logistics strategy 224
Improving profitability 265 Long term contract 321
Inadequate financial controls 262 Long term objectives 125
Inbound logistics 65 Long term objectives 147
Income distribution 88 Long term objectives 27
Industries key success factors 175 Longterm nature 109
Industry 21 lower level 33
Industry and competitive analysis 168 Macro environment 73
Innovative 20 Maintaining market discipline 322
Institutionalizing the strategy 128 Management of funds 218
Intellectual process 110 Manifestation of globalization 96
Internal analysis 58 Manufacturing industries 22
Internal assessment 58 Market 78
Internal diversification 252 Market control 421
Internal environment 51 Market development 248
Internal environment 54 Market development 282
Internal factors 68 Market penetration 248
International division structure 429 Market penetration 280
Internet economy 486 Market segmentation 160
Internet technology 487 Marketing analysis 208
Investment in specialized assets 255 Marketing and sales 66
Issues in project implementation 449 Marketing budget 209
Issues in strategy implementation 447 Marketing intermediaries 77
Joint venture 331 Marketing issues 202
Just inventory system 307 Marketing planning 208
Kenichi Ohmae 158 Marketing process 204
Key issues of technology 90 Marketing strategy 209
Latent conflict 381 Marketing strategy and efficiency 306
Leadership strategy 371 Marketing strategy formulation 201
Least resistance 100 Marketing strategy techniques 210
Mature industries 362 Organizational inertia 264
Mckinsey’s 7’s framework 295 Organizational politics 375
Measurable 150 Organizational structure 274
Medical organizations 491 Organizing marketing 211
Mic ro environment 72 Outbound logistics 66
Michael Porter’s 185 Over expansion 262
middle level 32 Past capabilities and performance 68
Mission 133 People 207
Mission and strategic intents 146 People evidence 207
Mission of BCG 276 Perceived conflict 382
Mobility of skilled resources 98 Person marketing 211
Monitoring developments 156 Personal policy 36
Motivating 150 PEST analysis 160
Motive of business 19 Peter F Drucker 19
Natural environment analysis 88 Place 206
Nature and extent of competition 102 Place marketing 211
Nature and strength of competition 170 Policies 128
Nature of globalization Political 84
Need for explicit mission 134 Political and legal environment 82
New competition 263 Poor implementation 331
Niche strategy 371 Poor management 262
Non political 117 Population size 86
Non price competition 366 Portfolio analysis 271
Non price competitive strategies 367 Potential competitors 289
Obligations 126 Power 377
Operating environment 75 Premise control 419
Operational control system 422 Price 206
Operational strategy 179 Price cutting 363
Operations 66 Price leadership 366
Operations planning and control 223 Price signaling 365
Opportunities 178 Primary activities 64
Opportunity 53 Proceed with caution 100
Opportunity and issue analysis 165 Process 207
Oral policies 37 Procurement 67
Ordering culture 408 Product 205
Organization 77 Product development 248
Organization infrastructure 67 Product development 282
Organizational conflict 379 Product life cycle 274
Product market expansion greed 248
Product situation 165
Production policies 34
Production strategy formulation 222
Production system 223
Productivity 148
Productivity 27
Profitability 147
Profitability 26
Profitability 27
Projected financial budget 216
Projected financial statements 216
Promotion 206
Protecting product quality 255
Public 77
Public responsibility 149
Public responsibility 28
Purposeful direction 235
Rationale BPR 461
Rationale for joint venture 332
Reasons for functional strategies 200
Reasons for globalization 93
Reconciliation and priorities 137
Recruitment and selection 223
Redefining strategic focus 264
Reduce transportation costs 96
Related diversification 251
Relationship marketing 210
Remote environment 79
Research and development strategies 227
Research and development strategy 225
Retrenchment strategy 246
Revenue budgets 423
Risk 162
Risks of Strategic management 122
salesmanship 34
Scale of entry 330
Scenario planning 160
Scheduling 424
Screening 327
Services 66
Services marketing 211
Setting objectives 147
Shaping external environment 101
Short term contract 321
Situational analysis 163
Six sigma 474
Six sigma methodologies 476
Social marketing 210
Socio cultural environment 84
Sources of conflict 380
Sources of funds 215
Sources of power 377
Stability 25
Stability strategy 242
Steps in BPR 463
Strategic alliances 321
Strategic response to environment 100
Strategic alternatives 185
Strategic analysis 159
Strategic business unit 272
Strategic change management 372
Strategic Choice 161
Strategic control system 416
Strategic decisions 112
Strategic finance and accounting 61
Strategic groups 173
Strategic HRD 62
Strategic leadership 411
Strategic management 105
Strategic management linkages 446
Strategic management model 114
Strategic management process 122
Strategic marketing 60
Strategic move of rivals 174
Strategic planning 109
Strategic production 61
Strategic reward system 424
Strategic uncertainty 142
Strategy revision 354
Strategy identification 181
Strategy implementation 161
Strategy of last resort 268
Strength 54
Strengths 177
Strong culture companies 406
Structuring strategic decisions 155
Subject matter of management 110
Substitute products 294
Success factors 70
Successful turnaround strategies 264
Suitable 150
Superior innovation 310
Superior quality 308
Suppliers 75
Survival 24
SWOT 53
SWOT analysis 161
Synchromarketing 213
System management 481
Tasks in Strategic management 114
Technical issues 222
Technological leadership 149
Technological changes 256
Technological environment analysis 89
Technological leadership 28
Technology development 67
Territory \ Service industries 22
The value chain approach 59
The vision 130
Thomson Watson 133
Threats 53
Threats 178
top management 32
Total Quality management 308
TOWS matrix 270
Training 233
Transferring competencies 258
Triggers of change 171
Turbulent high velocity markets 340
Turnaround firm 266
Turnaround strategy 261
Types of budget 217
Types of diversification 250
Types of strategic budgets 422
Understandable 151
Understanding 137
Understanding mission 137
Unforeseen demand shifts 263
Unhealthy cultures 407
Unrelated diversification 251
Upstream or back ward integration 253
Value chain 298
Value chain approach 64
Value creation process 299
Value delivery network 203
Vertical diversification 252
Vertical integration 254
Vertical integration 316
Weak culture companies 407
Weakness 54
Weakness and competitive deficiencies 183
Weaknesses 178
William Spender 199
Worth of business 220
Written policy 37