Business Policy and Strategy

1. Business Policy and Strategy Lecture-03

2. Recap • Nature of Business Strategy • Importance of strategic planning-Strategic Tools • Globalization • Benefits • Ecommerce • Advantages

3. Today’s Lecture • Important Terminologies in Business strategy and policy • Vision & Mission • Comparison of vision and mission • Long Term Objectives • Strategies • Policies • Strategists

4. Importance Terminologies • Adapting to change • Continuous monitoring of internal and external factors • Timely Decision • Incremental rise in degree of change 1. Technology 2. E-commerce 3. Merger-mania Example: Laser surgery, War on terrorism, economic recession, technology advancement

5. Importance Terminologies • Strategists • The main decision takers • chief executive officer, president, owner, chair of the board, executive director, chancellor, dean, or entrepreneur • Design strategies • Responsible for success or failure of venture • Differ from organization to organization • Philosophy, attitudes, values, ethics, willingness to take risks, concern for social responsibility, concern for profitability, concern for short-run, versus long-run aims and management style

6. Strategists • Strategists helps an organization: • To gather, analyze, and organize information • Track industry and competitive trends • Develop forecasting models and situation analyses • Evaluate corporate and divisional performance • Spot emerging market opportunities • identify business threats • develop creative action plans

7. Who is Strategist? Any manager who has responsibility for a unit or division, responsibility for profit and loss outcomes, or direct authority over a major piece of the business is a strategic manager

8. Important Terminologies • Vision Statement • What do we want to become? • Vision includes the basic concept of what the organization is all about—its purpose for being • Concentrates on the future • First step in strategic planning Our [Amazon's] vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." Amazon's

9. Important Terminologies • Mission Statement • A Mission statement talks about HOW you will get to where you want to be. • Defines the purpose and primary objectives related to your customer needs and team values • It answers the question, “What do we do? What makes us different” • A mission statement talks about the present leading to its future. “To inspire and empower people affected by cancer” Lifestrong

10. COMPARISION

11. Important Terminologies • SWOT Analysis • S: Strength • W: Weaknesses • Strengths and weaknesses are determined relative to competitors • Management, marketing, finance/accounting, production/operations, research and development, and computer information systems • O: Opportunities • T: Threats • Economic, social, cultural, environnemental, political, legal, governmental, technological, and competitive trends • Opportunities and threats are largely beyond the control of a single organization

12. Important Terminologies • Objectives can be defined as specific results that an organization seeks to achieve in pursuing its basic mission • Long-term objectives represent the results expected from pursuing certain strategies. • Strategiesrepresent the actions to be taken to accomplish long-term objectives. • Strategies are the means by which long-term objectives will be achieved • Annual objectives are short-term milestones that organizations must achieve to reach long-term objectives • Policies are the means by which annual objectives will be achieved

13. Summary • Important Terminologies in Business strategy and policy • Vision & Mission • Comparison of vision and mission • Long Term Objectives • Strategies • Policies • Strategists

14. Next Lecture • Intuition and analysis • Pillars of intuition • Benefits of intuition in decision making • Benefit of Strategic Planning