Bp & Strategic Management

Components of Mission statement

Stages of Strategic management

1. Formulation 2. Implementation 3. Evaluation     

Strategy FORMULATION issues include: Deciding what new business to enter What business to abandon How to allocate resources Whether to expend or diversify Whether to merge or to form a JV

Strategy Implementation Issues include: 

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Developing a strategy supportive culture Creating an effective organizational structure Redirecting market effort Developing and utilizing information system Linking employee compensation to organizational performance

Strategy evaluation issues include:  

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Measuring performance Reviewing external and internal factor that are bases for the current strategies Taking corrective action for future

Strategic management model 2

1

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3 Formulation

Evaluation Implementation

The New Economic Reforms in India   

4. 5.

Total departure from earlier Industrial policy (IPR of 1956) It led Indian business to a dynamic and turbulent environment. Following are the two major category in economic reform: Liberalization measures Macro-economic reforms and structural adjustments

Liberalization measures New Industrial policy B. New trade policy New industrial policies include:4. Liberalization of industrial licensing 5. FERA Liberalization 6. MRTP Liberalization 7. Curtailment of public sector A.

Liberalization of industrial licensing     

Delicensing Decontrol Deregulation Broad banding Abolition of registration( abolition of DGTD & CCI&E)

FERA Liberalization Liberalization of foreign investment.  Automatic clearance for foreign equity up to 51 percent in 34 high priority industries, only condition: the total equity of the existing company and the foreign equity must come through payment of foreign exchange  Liberalization of technology import. 

MRTP Liberalization  

Abolition of threshold asset limit No MRTP clearance for expansion and mergers

Curtailment of the role of Public sector 

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Only Eight core industries remained reserved for the public sector Preview of BIFR (Board for industrial and financial reconstruction) extended to the public sector.

New Trade Policy 

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Lowering import tariffs (30% less in almost all goods) Abolition of import licenses. More open EXIM policy (tariff and exchange rates as an instrument) Convertibility of rupees ( dual exchange rate system/partial convertibility ) Encouragement to FI (abolition of export duties, cheaper and sustainable growth of export) Integrating India's economy with the