Business Policies and Strategic Management

8/4/2019 Business Policies and Strategic Management

1/14

Business Policies and Strategic

ManagementA

Recap Session

Presented by :

Mithilesh Chauhan 39Pooja Sharma 40


2/14

Strategic evaluations and controls


3/14

Strategic planning

Recapitulation :

Business strategic planning is the process of

deciding on the programs that the organization

will undertake and the resources that will be

allocated to each program over the next few

years.


4/14

Strategic planning cont.

Strategic planning is a top management led

process very much influenced by the CEO.

But no system will function if manager do not

perceive it as a vital process with contribution

and buy-in.


5/14

The 5 stage process is

1. Reviewing/ Updating last plan: results and

outcomes will never be exactly as planned,

2. Key assumptions & success factors: change,

3. First iteration of new plan: Numberization,

4. Analysis and repeat iterations: Match goals

& programs,5. Review and approve.


6/14

Corporate control over the Businesses

Input control Output/performance control

Primarly through performance

management system,including

operating budgets and HR appraisals

Primarly through strategic planning

system & capital expenditure approval

system

Monitobusiness ring and approving

level decision

Setting and monitoring the achievement

of the performance targets

Two basicapproaches


7/14

Introduction to strategic evaluation control

Control focuses primarily on strategic implementation.

3 different activities that require planning and control can bedefined:

Strategy formulation

Task control

Management control

Goals, Strategies, Policies

Performance of specific tasks

Implementation of strategies

Planning

Coordinating

Communicating

Evaluating

Deciding

Influencing

Strategy evaluation control does not necessarily require that all actions are as

per the previously determined plan;

It, however requires inducing people to act in pursuit of own goals in ways that

organizations goals are also met Goal congruence.


8/14

Human behavior and management

control

Management control hinges on the ability to influence humanbehaviour towards achievement of a firms strategic objectives,

i.e.

Goal congruence

Formal processes

Informal processes


9/14

Human behavior and management control

cont.

Informal FactorsExtrinsic/External:

work ethics norms of desirable behaviour that exist in the societyof the organization is a part of

Country influenceIndustry influence

Regional influence

Intrinsic/Internal:

o Culture

o (Management) styleo Informal organization

o Communication and perceptions

o Cooperation and Conflict


10/14

Introduction to strategy evaluation control

Strategic decision making process

Scan and assess the external environment

--opportunities and threats

Scan and assess the internal corporate environment

--Strength and weakness

Analysis strategis SWOT factors--pinpoint problem areas

--review and revise mission, objectives

Generate, evaluate and select best alternative strategy

Implement seleted strategies via:

ProgramBudgets

Procedure

Evaluate implemented strategies via feedback


11/14

Introduction to strategy evaluation

control cont.

Other types of control:

ISO

TQM

Management auditResponsibility centre:

Standard cost centre

Revenue centre

Expense centreProfit centre

Investment centre


12/14

Introduction to strategy evaluation

control cont.

Strategic information planning

Enterprise Resource Planning (ERP)

Strategic Audit


13/14


14/14

Documents

Business Policies and Strategic Management