HR

1. CORPORATE STRATEGY &POLICY
Nature of Corporate Planning –
Scope and Business Policy

2. Corporate Strategy-Definition
• Strategic Management can be defined as the
set of decisions and actions resulting in
formulations and implementations of Policies
designed to achieve the objectives of an
organisation.
• It is taking decisions about Products,Locations
and the Organisation’s Structure.
• Ask the question Why? To make the future
clear.

3. Corporate Strategy-Evolution
• The systematic study of strategic management
was pioneered by Igor Ansoff.
• His book ‘Corporate Strategy’ played a key role
• in the development of Strategic Planning.
• He introduced the concept of ‘gap analysis’
• and concept of synergy.
• Henry Mintzberg added a new dimension to the
Strategy by bringing the personal side of the
Manager into the picture.

4. Corporate Strategy-Evolution
• Peter Drucker introduced the concept of
Management by Objectives (MBO).With MBO the
focus shifted from processes to goals.
• Michael Porter introduced the generic strategies
like focus,cost leadership,cost differentiation to
reduce the uncertainities of the competitive
environment.
• His contribution to strategic management include
the ‘Five Forces Model’, ‘The Value chain’ and the
concept of ‘Generic Strategies’.

5. Corporate Strategy-Components
• The components of corporate strategy are
Vision, Company Mission, Company Profile,
External environment, Strategic Analysis and
Choice, Long term objectives, Annual
objectives, Grand Strategy,
Functional and Operational Strategies,
Policies,
Institutionalizing the Strategy, Control and
Evaluation.

6. Corporate Strategy-Components
• 1. Vision:- Gives a View of Future Direction and
course of Business activity.
• 2.Company Mission:-Identifies the scope of
company’s operations, Describe company’s
products, markets, technological areas of thrust,
and reflects the values and priorities of strategic
decision makers.
• 3.Company Profile:-Indicates the quantity and
quality of the company’s financial, human and
physical resources.Also assesses the strengths
and weaknesses of the company’s management
and organisational structure.

7. Corporate Strategy-Components
• 4.External Environment:Consists of all the
conditions and forces that affect an
organisation’s strategic options and defines its
competitive situation.
• 5.Strategic Analysis and Choice:Enable a firm
to identify a range of possible attractive
investment opportunites .Identify potential
options or strategic choices.

8. Corporate Strategy-Components
• 6. Annual Objectives:- Objectives that the firm
seeks to achieve in one year.
• 7.Long-term Objectives:Objectives that the firm
seeks to achieve in a number of years.
• 8.Grand Strategy:Is a statement of means that
indicates the methods to be used to achieve the
objectives.
• 9.Functional or Operational Strategies:The grand
strategy is split into srategies for each business
function or division.

9. Corporate Strategies-Components
• 10.Policies:Directives or Guidelines given to
Managers or Subordinates as the framework to
guide their thoughts, decisions, actions while
implementing the organization’s strategy.
• 11.Institutionalizing the strategy:Institutionalizing
is the implementation of strategy to become
day-to-day actvities of the company.
• 12.Control and Evaluation:-After the strategy is
implemented it should be monitored to
determine the extent of success.

10. Corporate Strategy-Levels of Planning
• Three levels of Planning:
• 1.Corporate Level:-Strategies are devised in an
attempt to exploit the firm’s distinct
competencies by developing long-terms plans for
business operations.
• 2.Business Level :Involves making decisions about
the competitive position of a single business unit.
Translate the general statements of corporate
strategic planners into exact, concrete, functional
objectives and strategies.

11. Corporate Strategy-Levels of Planning
• Functional Level: Consists of Managers from
Geographic, Product and Functional areas.
• Managers design short term strategies and fix
annual objectives in areas such as R&D,
Finance and Accounting, Marketing,
Production, Operations and Human Relations.
• The functional objectives are quantifiable and
are operational in nature and relate to a
particular period.

12. Corporate Strategy-Characterestics
• Three major parts:- Analysis,Formulation and
Implementation.
• The characterestics are :-
• 1.Strategic management integrates various
functions.
• 2.Strategic management considers a broad range
of stake holders.
• 3.Strategic management entails multiple time
horizons.
• 4.Strategic management is concerned with both
efficiency and effectiveness.

13. Corporate Strategy-Critical Tasks
Summary
• 1.Formulating the Company’s Mission
• 2.Developing Company Profile
• 3.Assessing company’s External Environment
• 4.Analysing Company’s options.
• 5.Identify the most desirable option.
• 6.Select long term objectives and Grand Strategies.
• 7.Developing annual objectives and short term
strategies.
• 8.Implementing the strategic choices.
• 9.Evaluating the success for future decision making.