Business Strategy

Strategy
Something or ways to win over enemy
Relates to and leads towards goals of
organisation.
Associated with unified design, long range
percpective.
Long range blueprint of organisations desired
image.
It answers
What an org. wants to be?
What it wants to do?
Where it wants to go?


Strategy is NOT
A substitute for sound, alert and responsible
management.

Strategy
Is Formulated at corporate, divisional and
functional level.
Is Partly proactive and partly reactive.
Is Flexible and pragmatic.
Includes multiple stakeholders in decision making.
Needs to incorporate short-term and long-term
perspectives.
Recognizes trade-offs between efficiency and
effectiveness.
Spells out the growth design of the firm.
Provides unified criteria for managers in function
of decision making.
Strategic Management
Strategic management consists of the analysis,
decisions, and actions an organization undertakes in
order to create and sustain competitive advantages.
Resources and capabilities_(Matched with)_Needs of
external environment_____(leading to) competitive
advantage.
A set of managerial decisions and actions that
determines the long-run performance of an
organization
A formula of success

Strategic Management involves
Analysis
Strategic goals (vision, mission, strategic
objectives)
Internal and external environment of the firm
Decisions
What industries should we compete in?
How should we compete in those industries?
Actions
Allocate necessary resources
Design the organization to bring intended strategies
to reality

VISION /MISSION STATEMENTS
MEAN
Statements that explain who we are
Type of organization
Products/services
Needs we fill
Statements that explain our direction, our
purpose, our reason for being
What difference do we make?
Statements that explain what makes us
unique
Values
People
Combination of products and services

VISION
Company vision
Massively inspiring
Overarching
Long-term
Driven by and evokes passion
Fundamental statement of the organizations
Values
Aspiration
Goals

A statement that clearly defines the firms reason
for being in business
Should significantly stretch the resources and
capabilities of the farm
Should inspire people in the organization to achieve
things they never thought possible
Should unite people in the organization toward the
pursuit of one common goal

VISION STATEMENT
COMPRISES OF
Core ideology
Core Values - timeless guiding principles
Core Purpose - reason for being
Envisioned future
Big Hairy Audacious Goals (BHAG) -
clearly articulated goals
Vivid description - a graphic description of what
success and the future will be like
Recognition of service to stakeholders
Owners/creditors
Employees
Customers

Vision statement of RIL
Through sustainable measures, create value for
the nation,
enhance quality of life across the entire socio-
economic
spectrum and help spearhead India as a global
leader in
the domains where we operate
Tata Motors
Most admired by our customers,employees,
business partners, and shareholders for the
experience and value they enjoy from being with
us.
MISSION
Mission statements
Purpose of the company
Basis of competition and competitive advantages
More specific than vision
Focused on the means by which the firm will compete

The mission statement of an organization is
normally short, to the point, and contains the
following elements:
Provides a concise statement of why the
organization exists, and what it is to achieve;
States the purpose and identity of the organization;
Defines the institution's values and philosophy; and
Describes how the organization will serve those
affected by its work.
Mission Statement of RIL
Create value for all stakeholders
Grow through innovation
Lead in good governance practices
Use sustainability to drive product development
and
enhance operational efficiencies
Ensure energy security of the nation
Foster rural prosperity
Tata Motors
To be passionate in
anticipating and providing the
best vehicles and
experiences that excite are
customers globally.
Values of RIL
Our growth and success are based on the ten
core
values of Care, Citizenship, Fairness, Honesty,
Integrity, Purposefulness, Respect, Responsibility,
Safety and Trust

STRATEGIC OBJECTIVES
Strategic objectives
Operationalize the mission statement
Measurable, specific, appropriate, realistic, timely,
challenging, resolve conflicts that arise, and yardstick
for rewards and incentives

VISION V/S MISSION
The vision is more broad and future oriented
the goal on the horizon
The mission is more focused how you will get to
the horizon

STRATEGIC MANAGEMENT
PROCESS