Business Strategy

BBA (202)
ASSIGNMENT
WINTER 2014-2015

Manish Sharma (BBA 2)

Q1. Explain the following

(a) Functions of Business Strategy

(b) Strategic Analysis

Ans: (a) Functions of Business Strategies

1. Vision formulation

It shows the core purpose of the company. The first function of business
strategy is vision formulation .The vision of the organization combines 3
basic elements-the organization’s reason for existence, its core values and
the huge but achievable goals, which the organisation has set for itself in
the future. It needs to be descriptive and reachable.

2. Knowledge of mission

The another function of business strategy is knowledge of mission .Mission

is the most important function of the strategy Mission is board-based and
seeks to create an image of the country on the basis of its core values. The
mission statement of the company on the basis of its core values, beliefs
and philosophy of the company.

3. Setting of objective
Objectives are the goals and targets of the organization. They are the end
results of the organization. An objective is the end result of what the firm
wants to achieve in the long run. It helps to provide direction, co-ordination
and motivation for its members to pursue the benchmarks or success.
Objectives help to keep the organization on the right track.

4. Goal definition

Goals are the targets of the organization which should be achieved

effectively are efficiently. Goals are close-ended. They are specific and
concise. Goals can be short-term, medium-term or long-term. They must be
measureable, achievable, related and time bound. The achievement of
goals indicates that the organization is proceeding along the right course of
growth.

Q2. Define strategic management. What are the causes for failure of
Strategic Management?

Ans: Strategic Management

Strategy is an action that managers take to attain one or more of the

organisation’s goals. Strategic can also be defined as “A general
direction, set for the company and its various components to achieve
a desires state in the future. Strategic results from the detailed
planning process”.

Causes for failure of Strategic Management:

a) Strategic management is only a means to achieve the

corporate goals. So, if there is lack of realism it will be
reflected in the strategic. In other words, we should always
remember to be realistic while framing our mission statement
or declaring our objectives and not highly optimistic.
b) Many a time, the young Managers try to be over-ambitious
and start dreaming of success over night by adopting
strategic management techniques. This results in failure to
reach the goals set and causes frustration.
 c) Sometimes, the management may be always chanting the
‘mantra’ of strategic management and overlook or ignore
several lucrative opportunities and thereby fail.
d) Failure in implementing the strategy effectively will end up in
producing poor result.
e) Strategic planning requires high level of caliber, experience
and knowledge with the best vision. If people do not have
adequate experience, expertise and commitment, the
business organization may not succeed.
f) Often people complain about the cost associated with
planning and implementing, ignoring the benefits derived in
the medium and long term.

Q3. Write short notes on the following

(a) Core competencies and their importance

(b) Strategic leadership

Ans: (a) Core competencies and their importance

 Core competency means the collective learning and

coordination skills behind the firm’s product lines.
 The core competencies of an organisation led to the
development of core products, which in turn, can be used
for personalization of products for ends users.
 Core competencies are also essential to succeed in
global market. When the core competencies are matched
with the market opportunities, new businesses are
created.
 By combining and matching core competencies to
market opportunities, multiple business units together so
as to form a comprehensive to market portfolio.

(b) Strategic leadership :

 Strategic leadership refers to those leaders who are
responsible for the creation as well as the implementation
of the strategic vision of the organisation.
 A strategic leader has to be effective on both the
analytical and the human dimensions of the organisation.
He should be capable of understanding the aspects of
business as well as the minds of his employees.
 The challenge faced by the strategic leader is not just the
question of adopting the winning strategy but also to
ensure that the employees are motivated to understand
and execute the strategy.