VISHAL,

HERE IS SOME USEFUL MATERIAL.

2 ANSWERS LEFT OUT DUE TO LACK OF SPACE.

REGARDS
LEO LINGHAM
=====================================
1.Each level of strategy involves different strategic decisions. Discuss taking into
consideration the different levels of strategy . Illustrate your answer with the help of
examples.

THE COMPANY ANALYSES THE FOLLOWING DATABASE

AND APPLYS THE PROBELM SOLVING/ DECISION
MAKING APPROACH / FINALIZES THE PLAN.

1. External Assessment

Areas for opportunities and threats

* Markets [ what is the market situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .
* Industry [ is the industry trend ]
* Competition [ is it the competitive situation
*Factors of business [ causing the change]
* Technology [ is it technology change ]

2. Internal Assessment

Areas for strengths, weaknesses, and barriers to success

ORGANIZATION DIMENSIONS
*Culture [ is the working culture change ]
* Organization [ is the organization demanding change ]
* Systems [ is it the systems change ]
* Management practices [ change in managemement process]

OTHER KEY DIMENSIONS

*Cost-efficiency[ is it for cost efficiency ]

* Financial performance [ is it for financial performance improvement ]
* Quality [ is it for quality performance improvement
*Service [ is it for service performance improvement
*Technology[ is it for technology performance improvement
* Market segments [ is it for sales performance improvement
* Innovation[ is it for performance improvement
*new products[ is it for new product performance improvement
*Asset condition[ is it for financial performance improvement
*productivity[ is it for financial performance improvement

3. Source Strategic objectives and programs

The critical issues that must be addressed if the organization

Is to succeed
Strengths
Weaknesses
Opportunities
Threat

PRIORITY ISSUES

FROM THE ABOVE , DETERMINE THE CORE ISSUES

WHICH NEEDS TO SOLVED WITH YOUR INVESTMENT.

STRATEGIC PROGRAMS

FROM THE ABOVE CORE ISSUES , DETERMINE YOUR

STRATEGIC PROGRAMS.

Mission STATEMENT

VISION STATEMENT

Your CORE PURPOSE

Your CORE OBJECTIVES

Your Core markets;
Your CORE strategic thrusts.
======================================
NOW THE QUESTION IS
-BASED ON THE ABOVE WHAT ARE
THE STRATEGIES NEEDED.

1. Basic question: How is organizational direction determined? Every organization takes on

some direction, in terms of what customers/clients it serves and what functions it performs
for these customers. This direction is often called its purpose, Mission or realized strategy.
An organization's mission is a set of statements that define the exchange relationship
between the organization and its stakeholders or claimants. More specifically a mission
defines the population served and the function it fulfills or the need it satisfies for that
claimant. This direction, or mission, may be the result of a deliberate planning process or it
may emerge as the result of a set of incremental decisions.

THIS ORGANIZATION Realized Strategies are the result of a combinations of Purely

Deliberate and Purely Emergent Strategies.

1.THIS ORGANIZATION'S Deliberate Strategy-

This process starts with an analysis of a company's current mission and strategies. The
most popular tool used in this process is the SWOT (Strengths, weaknesses, opportunities,
threats) model. The external environment in terms of opportunities and threats, is analyzed
by examining threats to the company's current position and new opportunities (new
customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by
examining the company's internal environment in terms of its strengths and weakness. A
mission and competitive strategy is formulated that matches opportunities with strengths
and plans are made to strengthen areas of weakness.
The next step is to develop functional strategies that support the overall business level
competitive strategy. Marketing, Human Resource, Financial, Operations, Information
Systems, and R & D strategies are developed that support the business unit strategy.
Finally, a control system (organizational structure) is designed to insure that operational
decisions are made consistent with the business and functional strategies.

2. THIS ORGANIZATION'S Emergent Strategy

- Emergent Strategies are the result of incremental decision making that achieve some
degree of consistency over time and launch the organization into a direction. When
decisions are made or problems are solved, they have potential strategic impact.

Levels of Strategy

1. Mission/Domain- Before identification of strategy can occur, one must clearly identify the
mission or domain of the organization. The domain of an organization consists of the
population it serves and the functions it performs (satisfies) for that population. Sometimes
the domain is defined in terms of products or services offered (rather than functions
performed), but this tends to be more limiting because it defines the mission more in terms
of means rather than ends.

2. Corporate Level Strategy.

1. Vertical Integration STRATEGY

Forward Integration- Gaining ownership or control over distributors.
[TAKE OVER DISTRIBUTORS IN ''UNREPRESENTED AREAS'' .

2. Horizontal Integration STRATETGY

- Seeking ownership or control over competitors
[BOUGHT OVER ONE SMALL /BUT DYNAMIC COMPETITORS ]

3. Market Penetration STRATEGY

- Seeking increased market share for present products through greater marketing efforts

4. Market Development STRATEGY

- Introducing present products in new markets
5. Product Development STRATEGY
- Seeking increased sales by improving present products

6. Diversification STRATEGY
1. Concentric- Adding new or related product lines
2. Conglomerate- Adding new, but unrelated product lines

3. Competitive or Business Level Strategy

- How should we compete in our chosen business(es)? Competitive strategies involve
determining the basis of costumer or client decision making. Generally, they are based on
some combination of quality, service, cost, time, and quality of the experience.

1. Cost Leadership Strategies

- With this strategy you are competing on price. Your various functional strategies all
emphasize cost reduction. This is an effective strategy when the market is comprised of
many price sensitive buyers, when there are few ways to achieve product differentiation,
when buyers do not care much about differences from brand to brand , or when there are a
large number of buyers with significant bargaining power.

2. Differentiation Strategies
- Differentiation strategies rely on some basis of product differentiation such as flexibility,
specific features, service, time and availability, low maintenance, etc. as the basis for
competition. Product development and market research are generally necessary
components of a differentiation strategy. Generally, a successful differentiation strategy
allows a firm to charge a higher price for its product. Organizations generally need strong R
& D departments with strong coordination between R & D and marketing departments.
Human Resource strategies must place emphasis maintaining a competitive skill base and
motivating employees toward the basis for differentiation.

3. Focus or Niche Strategies

- A successful focus strategy depends upon an industry segment that is of sufficient size,
has good growth potential, and it not crucial to the success of other major competitors.
Focus strategies are pursued in limited markets in conjunction with cost leadership and/or
differentiation strategies. Focus strategies are the most effective when consumers have
distinctive preferences or requirements and when rival firs are not attempting to specialize in
the same target segment.

4. Functional Strategies
- How do organizational functional units contribute to the business level strategies? How can
functional strategies be integrated to achieve competitive advantage?

1. Marketing Strategies- How do we communicate our strengths to the customer?

How do we identify customer requirements and changes in customer requirements?
2. Human Resource Strategies- How do we recruit, train, develop, motivate,
compensate, and place employees so that behavior is directed toward the competitive
strategy and works to build competitive advantage?
3. Financial Strategies- How do we secure financial resources necessary to carry
our competitive strategy?
4. Operations Strategies- How do we design our processes to produce products
and/or service that meet customer requirements as specified in our strategy?
5. Information System Strategies- How do we provide decision makers, at all levels,
with information necessary to make decisions consistent with strategy?
6. Technological (R & D) Strategies- How do we develop products consistent with
customer requirements as specified in strategy?

#######################################################
2. Explain how strategic control links the internal business environment and the external
environment. Give example in support of your of answer.

Three fundamental perspectives-strategic control, continuous improvement, and the

balanced scoreboard-provide the basis for designing strategy control systems. Strategic
controls are intended to steer the company toward its long-term strategic goals.
- Premise controls,
-implementation controls,
-strategic surveillance, and
-special alert controls are types of strategic control.
All four types are designed to meet top management's needs to track the strategy as it is
being implemented, to detect underlying problems, and to make necessary adjustments.
These strategic controls are linked to the environmental assumptions and the key operating
requirements necessary for successful strategy implementation. Ever-present forces of
change fuel the need for and focus of strategic control.
Operational control systems require systematic evaluation of performance against
predetermined standards or targets. A critical concern here is identification and evaluation of
performance deviations, with careful attention paid to determining the underlying reasons for
and strategic implications of observed deviations before management reacts. Some firms
use trigger points and contingency plans in this process.
The "quality imperative" of the last 20 years has redefined global competitiveness to include
reshaping the way many businesses approach strategic and operational control. What has
emerged is a commitment to continuous improvement in which personnel across all levels in
an organization define customer value, identify ways every process within the business
influences customer value, and seek continuously to enhance the quality, efficiency, and
responsiveness with which the processes, products, and services are created and supplied.
This includes attending to internal as well as external customers. The "balanced scorecard"
is a control system that integrates strategic goals, operating outcomes, customer
satisfaction, and continuous improvement into an ongoing strategic management system.

THE FOLLOWING CONTROLS

- Premise controls,
-implementation controls,

TO TRACK /MONITOR/ ACTION PLANNING

BUSINESS INTERNALS.

1.HOW THE COMPANY MAXIMIZES THE STRENGTHS

AS PART OF BUSINESS STRATEGY
Criteria examples

Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution, awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications, certifications?
Processes, systems, IT, communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
-------------------------------------------------------------------
2.HOW THE COMPANY OVERCOMES THE WEAKNESSES
AS PART OF BUSINESS STRATEGY
Criteria examples

Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession
---------------------------------------------------------------------------
3.HOW THE COMPANY TAKES ADVANTAGE OF THE OPPORTUNITIES
AS PART OF BUSINESS STRATEGY
Criteria examples

Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion influences?
----------------------------------------------------------------
4. HOW THE COMPANY MANAGES THE THREATS
AS PART OF BUSINESS STRATEGY
Criteria examples

Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?
-------------------------------------------------------------------------------
THE FOLLOWING CONTROLS

-strategic surveillance, and

-special alert controls
TO TRACK /MONITOR/ ACTION PLANNING
BUSINESS EXTERNALS.
Political (incl. Legal)

-Environmental regulations and protection

[what are the government regualtions/ protection laws that must be observed ]

-Tax policies
what tax hinder the business and what taxes incentives are available]

-International trade regulations and restrictions

[ does the government encourage exports / with high tariffs on imports]

-Contract enforcement law/Consumer protection

[does the government enforce on consumer protection ]

-Employment laws]
[ is the government encouraging skilled immigrants with temp. permits]

-Government organization / attitude

[ does the government have a very positive attitude towards this industry]

-Competition regulation
[ are there regulation for limiting competition]

-Political Stability
[ politically , does the government have a very stable government ]

-Safety regulations
[ has the government adopted some of the modern safety regulations]
=================================================================
Economic

-Economic growth
[ what is the economic growth rate / what are the reasons ]

-Interest rates & monetary policies

[ are the interest rates under control / is there a sound monetary policies]

-Government spending
[is government spending is significant and is it under control ]

-Unemployment policy
[what is the employment / unemployment policies of the government ]

-Taxation
[ has the taxation encouraged the industry ]

-Exchange rates
[ is there well managed exchange controls and is it helping the industry]

-Inflation rates
[ is the inflation well under control ]

-Stage of the business cycle

[ is your industry is on the growth pattern]
-Consumer confidence
[ is the consumer confidence is high/ strong and if not, why ]

==================================================
Social

-Income distribution
[is there balanced income distribution policy ]

-Demographics, Population growth rates, Age distribution

[ what is population growth and why ]

-Labor / social mobility

[ what are the labor policies and is there labor mobility]

-Lifestyle changes
[ are there significant lifestyle changes taking place--more modernization/ why ]

-Work/career and leisure attitudes

[ are the population career minded and are seeking better lifestyle]

-Education
[ what are the education policies / is it successful ]

-Fashion, hypes
[are the people becoming fashion conscious ]

-Health consciousness & welfare, feelings on safety

[ are the people becoming health consciousness]

-Living conditions
[ is the living conditions improving fast and spreading rapidly]

=========================================================

Technological

Government research spending

[is the government spending on research and development]

Industry focus on technological effort

[are the industries focused on using improved technology]

New inventions and development

[ are new inventions being encouraged for developments]

Rate of technology transfer

[ is the rate of technology transfer is speeding up ]

(Changes in) Information Technology

[ is the information technology rapidly moving and is there government support]

(Changes in) Internet

[ is the internet usage rapidly increasing and why]

(Changes in) Mobile Technology

[is the Mobile technology rapidly developing and is there government support]

===========================================

THE CONTROLS FOR ANY ORGANIZATION ARE THE FOLLOWING

-EFFECTIVE ORGANIZATION STRUCTURE

-MANAGEMENT CONTROLS AT ALL LEVELS

*MARKETING MANAGEMENT
*SALES MANAGEMENT
*SUPPLY MANAGEMENT
*DISTRIBUTION MANAGEMENT
ETC ETC

-BUDGETORY CONTROLS

-AUTHORIZATIONS CONTROLS

-INVENTORY CONTROLS--RAW MATERIALS

-INVENTORY CONTROLS --FINISHED PRODUCTS

-QUALITY CONTROLS

-PROCUREMENT CONTROLS

-DEBT CONTROLS

-SALES/ MARKETING EXPENSES CONTROL

-PERSONNEL CONTROL

-MONTHLY PERFORMANCE REVIEW AGAINST BUDGET

-HALF YEARLY BUSINESS AUDITING

--------------------------------------------------------------------------
IN ORGANIZATION , THEY HAVE INTEGRATED THE CONTROL
SYSTEMS INTO PLANNING, SO THAT IT HELPS
-TO MEASURE THE DEVIATIONS
-TO STUDY THE VARIANCES
-TO TAKE APPROPRIATE ACTIONS.

Management planning and control process"

P .PLANNING-----------------C.CONTROL [ c1.establish standards]
p1.establishing objectives.
p2.determine detailed activities.
p3.delegation
p4.schedule tasks
p5.allocate resources
p6.communication and coordination
p7.provide incentives

c2.measure and compare.

c3.evaluate results.
c4.feedback and coach
c5.take corrective action.

The above schematic shows the important interrelationships between planning and control.
As you can see, the control process does not begin after the entire planning process ends,
as most managers believe.
After objectives are set in the first step of the planning process, appropriate standards
should be developed for them. Standards are units of measurement established to serve as
a reference base and are useful in determining time lines, sequences of activities,
scheduling, and allocation of resources.
For example, if objectives are set and work is planned for 18 people on an assembly line,
standards or reasonable expectations of performance from each person then need to be
clearly established.
The second significant interaction between planning and control occurs with the final step of
the control process-taking corrective action. This can take several forms, but two of the most
effective are to change the objectives or alter the plan.
Managers dislike doing either; but if a positive motivational climate is to be established,
these ought to be the first two corrective actions attempted. Objectives and standards are
based on assumptions, but if these assumptions prove inaccurate, then objectives and
standards require alteration. Thus sales quotas assigned on the premise of a booming
economy can certainly be altered if, as is often the case, the economy turns sour.
Likewise, if the assumptions are accurate and objectives and standards have not been met,
then it is possible that the plan developed was inadequate and needs to be changed.
--------------------------------------------------------------------------------

Controls are to be an integral part of any organization's financial and business policies and
procedures. Controls consists of all the measures taken by the organization for the purpose
of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy
and reliability in accounting and operating data; (3) securing compliance with the policies of
the organization; and (4) evaluating the level of performance in all organizational units of the
organization. Controls are simply good business practices.
1.Responsibility
Everyone within the COMPANY has some role in controls. The roles vary depending upon
the level of responsibility and the nature of involvement by the individual. The Board of
President and senior executives establish the presence of integrity, ethics, competence and
a positive control environment. The department heads have oversight responsibility for
controls within their units. Managers and supervisory personnel are responsible for
executing control policies and procedures at the detail level within their specific unit. Each
individual within a unit is to be cognizant of proper internal control procedures associated
with their specific job responsibilities.
The Internal Audit role is to examine the adequacy and effectiveness of the company
internal controls and make recommendations where control improvements are needed.
Since Internal Auditing is to remain independent and objective, the Internal Audit Office
does not have the primary responsibility for establishing or maintaining internal controls.
However, the effectiveness of the internal controls are enhanced through the reviews
performed and recommendations made by Internal Auditing.
2.Elements of Internal Control
Internal control systems operate at different levels of effectiveness. Determining whether a
particular internal control system is effective is a judgement resulting from an assessment of
whether the five components - Control Environment, Risk Assessment, Control Activities,
Information and Communication, and Monitoring - are present and functioning. Effective
controls provide reasonable assurance regarding the accomplishment of established
objectives.
A. Control Environment
The control environment, as established by the organization's administration, sets the tone
of THE COMPANY and influences the control consciousness of its people. MANAGERS of
each department, area or activity establish a local control environment. This is the
foundation for all other components of internal control, providing discipline and structure.
Control environment factors include:
Integrity and ethical values;
The commitment to competence;
Leadership philosophy and operating style;
The way management assigns authority and responsibility, and organizes and develops its
people;
Policies and procedures.
B. Risk Assessment
Every entity faces a variety of risks from external and internal sources that must be
assessed. A precondition to risk assessment is establishment of objectives, linked at
different levels and internally consistent. Risk assessment is the identification and analysis
of relevant risks to achievement of the objectives, forming a basis for determining how the
risks should be managed. Because economics, regulatory and operating conditions will
continue to change, mechanisms are needed to identify and deal with the special risks
associated with change.
Objectives must be established before MANAGERS can identify and take necessary steps
to manage risks. Operations objectives relate to effectiveness and efficiency of the
operations, including performance and financial goals and safeguarding resources against
loss. Financial reporting objectives pertain to the preparation of reliable published financial
statements, including prevention of fraudulent financial reporting. Compliance objectives
pertain to laws and regulations which establish minimum standards of behavior.
The process of identifying and analyzing risk is an ongoing process and is a critical
component of an effective internal control system. Attention must be focused on risks at all
levels and necessary actions must be taken to manage. Risks can pertain to internal and
external factors. After risks have been identified they must be evaluated.
Managing change requires a constant assessment of risk and the impact on internal
controls. Economic, industry and regulatory environments change and entities' activities
evolve. Mechanisms are needed to identify and react to changing conditions.
C. Control Activities
Control activities are the policies and procedures that help ensure management directives
are carried out. They help ensure that necessary actions are taken to address risks to
achievement of the entity's objectives. Control activities occur throughout the organization,
at all levels, and in all functions. They include a range of activities as diverse as approvals,
authorizations, verifications, reconciliations, reviews of operating performance, security of
assets and segregation of duties.
Control activities usually involve two elements: a policy establishing what should be done
and procedures to effect the policy. All policies must be implemented thoughtfully,
conscientiously and consistently.
D.Information and Communication
Pertinent information must be identified, captured and communicated in a form and time
frame that enables people to carry out their responsibilities. Effective communication must
occur in a broad sense, flowing down, across and up the organization. All personnel must
receive a clear message from top management that control responsibilities must be taken
seriously. They must understand their own role in the internal control system, as well as how
individual activities relate to the work of others. They must have a means of communicating
significant information upstream.
E.Monitoring
Control systems need to be monitored - a process that assesses the quality of the system's
performance over time. Ongoing monitoring occurs in the ordinary course of operations, and
includes regular management and supervisory activities, and other actions personnel take in
performing their duties that assess the quality of internal control system performance.
The scope and frequency of separate evaluations depend primarily on an assessment of
risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies
should be reported upstream, with serious matters reported immediately to top
administration and governing boards.
Control systems change over time. The way controls are applied may evolve. Once effective
procedures can become less effective due to the arrival of new personnel, varying
effectiveness of training and supervision, time and resources constraints, or additional
pressures. Furthermore, circumstances for which the internal control system was originally
designed also may change. Because of changing conditions, management needs to
determine whether the internal control system continues to be relevant and able to address
new risks.
Components of the Control Activity
1.Internal controls rely on the principle of checks and balances in the workplace. The
following components focus on the control activity:
2.Personnel need to be competent and trustworthy, with clearly established lines of authority
and responsibility documented in written job descriptions and procedures manuals.
Organizational charts provide a visual presentation of lines of authority and periodic updates
of job descriptions ensures that employees are aware of the duties they are expected to
perform.
3.Authorization Procedures need to include a thorough review of supporting information to
verify the propriety and validity of transactions. Approval authority is to be commensurate
with the nature and significance of the transactions and in compliance with COMPANY
policy.
4.Segregation of Duties reduce the likelihood of errors and irregularities. An individual is not
to have responsibility for more than one of the three transaction components: authorization,
custody, and record keeping. When the work of one employee is checked by another, and
when the responsibility for custody for assets is separate from the responsibility for
maintaining the records relating to those assets, there is appropriate segregation of duties.
This helps detect errors in a timely manner and deter improper activities; and at the same
time, it should be devised to prompt operational efficiency and allow for effective
communications.
5.Physical Restrictions are the most important type of protective measures for safeguarding
COMPANY assets, processes and data.
6.Documentation and Record Retention is to provide reasonable assurance that all
information and transactions of value are accurately recorded and retained. Records are to
be maintained and controlled in accordance with the established retention period and
properly disposed of in accordance with established procedures.
7.Monitoring Operations is essential to verify that controls are operating properly.
Reconciliations, confirmations, and exception reports can provide this type of information.
=========================================================
#########################################################
3. Recently a very popular strategic alliance took place. Take the case of that alliance and
analyze it looking at the benefits of strategic alliances.

COMPANIES look for like-minded companies that understand

the complementary value and content solutions can bring to their customers.
By combining each company’s products and services, turn-key solutions
can be developed to efficiently address market needs and tap into new technologies.

Ultimately the Strategic Alliance Program really means one thing:

by participating in the alliance program your company has the potential to increase its
revenue and grow its sales and business opportunities.
The Strategic Alliance Program offers excellent opportunities -- regardless of company type
and size – by enabling companies to:
Expand the market opportunity for your business in the fast-growing collaboration market
space
Increase your company's knowledge base through access to collaboration experts
Partner with a proven, x-year leader in the content space.
ALLIANCE goal is to ensure the success of our combined efforts to grow our businesses
together by identifying and acting on ways to increase mutual revenue opportunities,
including:
Introductions to new customers and new markets
Issuance of joint press releases
Development of joint marketing collateral
Joint participation in tradeshows
Speaking opportunities at PUBLIC symposia
Preparation of joint proposals
Logo placement on corporate web site

Strategic alliances are common to any industry. Their presence is felt quite significantly in
the
airline industry.

1.JETAIRWAYS ---KLM
The guiding factors will be several that include formation of
blocs, resource scarcity, limits on foreign ownership and limitations imposed by
bilateral agreements. They further forwarded the argument that to be a part of an
alliance will become a necessity for an airline to survive in the future.

2.TOYOTA --- GM
-share auto technology.
-share the design facilities
-share the 6 cyl / 8 cyl alloy engine manufacturing
-share common parts supply
-share distribution points.

3.NIIT ---MICROSOFT

-NIIT IS THE CERTIFICATION / TRAINING

AGENT FOR MICROSOFT IN INDIA.

#############################################

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