Deepa Final Project.docx

TABLE OF CONTENT Chapter

Topic name

1

INTRODUCTION

1.1

Introduction Of Topic (10)

1.2

Importance Of Study (5)

1.3

Explaination Of Study(10)

1.4

Strategic management functions (6)

1.5

Advantages and disadvantages of study and Concept of topic (15)

2

RESEARCH METHODOLOGY

2.1

Study of research on topic (5)

2.2

Objective of study(5)

2.3

Methodology(3/4)

2.4

Scope of study (5)

3

LITERATURE REVIEW (5)

4 Current

DATA

ANALYSIS & INTERPRETATION (10)

year take graphs from google graphs and its explaination/

data 2015-2018

TAKE ANY COMPANY STRATEGIC PLANNING

5.

SUGGESTIONS(1/2)

6.

CONCLUSION(1/2)

7.

REFERENCES(1)

7.1

Bilbiography

7.2

Webliography

CHAPTER -1 INTRODUCTION 1.1 INTRODUCTION OF TOPIC This chapter introduces the concept of business policy and strategic management. With the increased competition, the management of business has acquired strategic dimension. All professionals, including the chartered accountants, working towards growth of their businesses must possess sound knowledge of strategic management. Business policy and strategic management are highly intertwined. Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage. It is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving. Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved; evaluates its competitors and sets goals and

strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacement. Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives. The employees become more trustworthy, more committed and more satisfied as they can co-relate themselves very well with each organizational task. They can understand the reaction of environmental changes on the organization and the probable response of the organization with the help of strategic management. Thus the employees can judge the impact of such changes on their own job and can effectively face the changes. The managers and employees must do appropriate things in appropriate manner. They need to be both effective as well as efficient. One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well. Another role of strategic management is to keep a continuous eye on the goals and objectives of the organization. Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”. A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives. While planning a strategy it is essential to consider that decisions are not taken in a vaccum and that any act taken by a firm is likely to be met by a reaction from those affected, competitors, customers, employees or suppliers. Strategy can also be defined as knowledge of the goals, the uncertainty of events and the need to take into consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization that shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines the business the company is to carry on, the type

of economic and human organization it wants to be, and the contribution it plans to make to its shareholders, customers and society at large. Strategy is a well defined roadmap of an organization. It defines the overall mission, vision and direction of an organization. The objective of a strategy is to maximize an organization’s strengths and to minimize the strengths of the competitors. Strategy, in short, bridges the gap between “where we are” and “where we want to be”. An organization’s strategic intent is the purpose that it exists and why it will continue to exist, providing it maintains a competitive advantage. Strategic intent gives a picture about what an organization must get into immediately in order to achieve the company’s vision. It motivates the people. It clarifies the vision of the vision of the company. Strategic intent helps management to emphasize and concentrate on the priorities. Strategic intent is, nothing but, the influencing of an organization’s resource potential and core competencies to achieve what at first may seem to be unachievable goals in the competitive environment. A well expressed strategic intent should guide/steer the development of strategic intent or the setting of goals and objectives that require that all of organization’s competencies be controlled to maximum value. Strategic intent includes directing organization’s attention on the need of winning; inspiring people by telling them that the targets are valuable; encouraging individual and team participation as well as contribution; and utilizing intent to direct allocation of resources. Strategic intent differs from strategic fit in a way that while strategic fit deals with harmonizing available resources and potentials to the external environment, strategic intent emphasizes on building new resources and potentials so as to create and exploit future opportunities. strategy statement is the statement of the role by which an organization intends to serve it’s stakeholders. It describes why an organization is operating and thus provides a framework within which strategies are formulated. It describes what the organization does (i.e., present capabilities), who all it serves (i.e., stakeholders) and what makes an organization unique (i.e., reason for existence).

A strategy statement differentiates an organization from others by explaining its broad scope of activities, its products, and technologies it uses to achieve its goals and objectives. It talks about an organization’s present (i.e., “about where we are”). it serves the organization in long run, but it may become ambiguous with organizational growth and innovations. In today’s dynamic and competitive environment, mission may need to be redefined. However, care must be taken that the redefined mission statement should have original fundamentals/components. Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance. Organizational structure allocates special value developing tasks and roles to the employees and states how these tasks and roles can be correlated so as maximize efficiency, quality, and customer satisfaction-the pillars of competitive advantage. But, organizational structure is not sufficient in itself to motivate the employees. An organizational control system is also required. This control system equips managers with motivational incentives for employees as well as feedback on employees and organizational performance. Organizational culture refers to the specialized collection of values, attitudes, norms and beliefs shared by organizational members Developing an organization having potential of carrying out strategy successfully. Excellently formulated strategies will fail if they are not properly implemented. Also, it is essential to note that strategy implementation is not possible unless there is stability between strategy and each organizational dimension such as organizational structure, reward structure, resource-allocation process, etc. Strategy implementation poses a threat to many managers and employees in an organization. New power relationships are predicted and achieved. New groups (formal as well as informal) are formed whose values, attitudes, beliefs and concerns may not be known. With the change in power and status roles, the managers and employees may employ confrontation behaviour.

Strategy is consciously considered and flexibly designed scheme of corporate intent and action to achieve effectiveness, to mobilise resources, to direct effort and behaviour, to handle events and problems, to perceive and utilise opportunities, and to meet challenges and threats to corporate survival and success. In corporate strategy, the set of goals has a system of priorities; the combination, the sequence and the timing of the moves, means and approaches are determined in advance, the initiative and responses have a cogent rationale behind them, are highly integrated and pragmatic; the implications of decisions and action programmes are corporate wide, flexible and contingent. The very injection of the idea of strategy into business organizations is intended to unravel complexity and to reduce uncertainty of the environment. To the extent the term strategy is associated with unified design and action for achieving major goals, gaining command over the situation with a long-range perspective and securing a critically advantageous position. Its implications for corporate functioning are obvious. Strategy is meant to fill in the need of organizations for a sense of dynamic direction, focus and cohesiveness. Objectives and goals alone do not fill in the need. Strategy provides an integrated framework for the top

management

to

search

for,

evaluate

and

exploit

beneficial

opportunities, to perceive and meet potential threats and crises, to make full use of resources and strengths, to offset corporate weaknesses and to make major decisions in general. Top management operates in an environment of partial ignorance and uncertainty. Strategies are meant to fill in the need of enterprises for a sense of direction, focus and coherent functioning. Strategies provide an integral framework for management to negotiate its way through a complex and turbulent external environment. They provide a systematic basis for the enterprise to stand its ground in the face of challenge and change as also quickly adjust to them. They obviate the occasions for impulsive and crisis decisions, false starts, misdirected moves, wasted resource uses and the like. Without a network of well designed strategies, followed up by

policies, corporate objectives and goals tend to remain as mere aspirations and good intentions. Even if they get off the ground, they will be lacking drive and direction. The role of strategies thus stems from the fact that achievement of organizational objectives is best with uncertainties and pitfalls.

Strategies are formulated at the corporate, divisional and functional level. Corporate strategies are formulated by the top managers. They include the determination of the business lines, expansion and growth, vertical and horizontal integration, diversification, takeovers and mergers, new investment and divestment areas, R & D projects, and so on. These corporate wide strategies need to be operationalized by divisional and functional strategies regarding product quality

ranges,

prices,

product

lines,

promotion,

production

volumes,

market penetration,

purchasing sources, personnel development and like. However, strategy is no substitute for sound, alert and responsible management. Strategy can never be perfect, flawless and optimal. It is in the very nature of strategy that it is flexible and pragmatic; it is art of the possible; it does not preclude second-best choices, trade-offs, sudden emergencies, pervasive pressures, failures and frustrations. However, in a sound strategy, allowances are made for possible miscalculations and unanticipated events. The

strategies are not mutually exclusive. It is possible to adopt a

mix of the above to suit particular situations. An enterprise may seek stability

in

some

areas

of

activity,

expansion

in

some

and

retrenchment in the others. Retrenchment of ailing products followed by stability and capped by expansion in some situations may be thought of. For some organizations, a strategy by diversification and/or acquisition may call for a retrenchment in some obsolete product lines, production facilities and plant locations.

Strategic

thinking

involves

orientation

of

the

firm’s

internal

environment with the changes of the external environment. The competitive strategy evolves out of consideration of several factors that are external to the firm as shown in the figure - Context in which competitive strategy is formulated The economic and technical component of the external environment are considered as major factors leading to new opportunities for the organization

and

also

closing

threats.

Similarly

the

broader

expectation of the society in which the organization operates is again an important factor to determine the competitive strategy. The strengths and weaknesses of organizations are the internal factors, which determine the corporate strategy. It is to be analysed and find out in which functional area such as marketing, R & D, operations, etc. the organization has superiority over the competitors. The strength is to considered in the context of the opportunities arising in the external environment. The personal values of the key implementers also play major roles in formulating the competitive strategy.

STRATEGIC DECISION MAKING Decision making is a managerial process and function of choosing a particular course of action out of several alternative courses for the purpose of accomplishment of the organizational goals. Decisions may relate to general day to day operations. They may be major or minor. They may also be strategic in nature. Strategic decisions are different in nature than all other decisions which are taken at various levels of the organization during day-to-day working of the organizations. The major dimensions of strategic decisions are given below: ♦

Strategic issues require top-management decisions: Strategic issues involve thinking in totality of the organizations and also there is lot of risk involved. Hence, problems calling for strategic decisions require to be considered by top management.

♦

Strategic issues involve the allocation of large amounts of company resources: It may require huge financial investment to venture into a new area of business or the organization may require huge number of manpower with new set of skills in them.

♦

Strategic issues are likely to have a significant impact on the long term prosperity of the firm: Generally the results of strategic implementation are seen on a long term basis and not immediately.

♦

Strategic issues are future oriented: Strategic thinking involves predicting the future environmental conditions and how to orient for the changed conditions.

♦

Strategic issues usually have major multifunctional or multibusiness consequences: As they involve organization in totality they affect different sections of the organization with varying degree.

Good communication and feedback are needed throughout the strategic management process. Application of the strategic management process is typically more formal in larger and well-established organizations .Formality refers extent that participants, responsibilities, authority, duties, and approach are specified. Smaller businesses tend to be less formal. Firms that compete in complex, rapidly changing environments, such as technology companies, tend to be more formal in strategic planning. Firms that have many divisions, products, markets, and technologies also tend to be more formal in applying strategic-management concepts. Greater formality in applying the strategic management process is usually positively associated with the cost, comprehensiveness, accuracy, and success of planning across all types and sizes of organizations. The strategic management process, after deciding the vision, mission, goals and objectives of the organization, turns its focus to scanning of

environment in which all organizations work as sub-systems. That is environmental scanning covers both scanning of external environment and internal environment. The scanning of external environment leads to the identification of the opportunities and threats thrown open to organizations while the internal analysis leads to the study of strengths and weaknesses which will decide as to what extent each company is going to capitalize the opportunities and threats thrown open.

Strategy formulation is not a task in which managers can get by with opinions, good instincts, and creative thinking. Judgments about what strategy to pursue need to flow directly from solid analysis of a company's external environment and internal situation. The two most important situational considerations are (1) industry and competitive conditions and (2) a company's own competitive capabilities, resources, internal strengths and weaknesses, and market position.

The analytical sequence is from strategic appraisal of the company's external and internal situation, to evaluation of alternatives, to choice of strategy. Accurate diagnosis of the company's situation is necessary managerial preparation for deciding on a sound long-term direction, setting appropriate objectives, and crafting a winning strategy. Without perceptive understanding of the strategic aspects of a company's external and internal environments, the chances are greatly increased that managers will concoct a strategic game plan that doesn't fit the situation well, that holds little prospect for building competitive advantage, and that is unlikely to boost company performance. The strategic management process is dynamic and continuous. A change in any one of Business Policy and Strategic Management.

The major components in the model can necessitate a change in any or all of the other components. For instance, a shift in the economy could represent a major opportunity and require a change in long-term objectives and strategies; a failure to accomplish annual objectives could require a

change in policy; or a major competitor's change in strategy could require a

change

in

the

firm's

mission.

Therefore,

strategy

formulation,

implementation, and evaluation activities should be performed on a continual basis, not just at the end of the year or semi-annually. The strategic management process never really ends.

The strategic management process is not as cleanly divided and neatly performed in practice as the strategic management model suggests. Strategists do not go through the process in lockstep fashion. Generally, there is give-and-take among hierarchical levels of an organization. Many organizations conduct formal meetings semiannually

to

discuss and

opportunities/threats,

update

the

strengths/weaknesses,

firm's

vision/mission,

strategies,

objectives,

policies, and performance. Creativity and candour from participants.

It is encouraged in meeting. Good communication and feedback are needed throughout the strategic management process. Application of the strategic management process is typically more formal in larger and well-established organizations. Formality to

refers

the extent that participants, responsibilities,

authority, duties, and approach are specified. Smaller businesses tend to be less formal. Firms that compete in complex, rapidly changing environments, such as technology companies, tend to be more formal in strategic planning. Firms that have many divisions, products, markets, and technologies also tend to be more formal in applying strategicmanagement concepts. Greater formality in applying the strategic management process is usually positively associated with the cost, comprehensiveness, accuracy, and success of planning across all types and sizes of organizations.

1.2 Importance of topic Strategic management provides the framework for all the major business decisions of an enterprise such as decisions on businesses, products and markets, manufacturing facilities, investments and organizational structure. In a successful corporation, strategic planning works as the pathfinder to various business opportunities; simultaneously, it also serves as a corporate defence mechanism, helping the firm avoid costly mistakes in product market choices or investments. Strategic management has the ultimate burden of providing a business organization with certain core competencies and competitive advantages in its fight for survival and growth. It is not just a matter of projecting the future. It is not just a forecasting job; it is concerned with ensuring a good future for the firm. It seeks to prepare the corporation to face the future and even shape the future in its favour. Its ultimate burden is influencing the environmental forces in its favour, working into the environs and shaping it, instead of getting carried away by its turbulence or uncertainties. It is environmental uncertainty that makes strategy and strategic conduct essential in a business. Strategic planning and implementation have become a must for all organizations for their survival and growth in the present turbulent business environment. ‘Survival of fittest ‘as propagated by Darwin is the only principle of survival for organization, where ‘fittest’ are not the ‘largest’ or ‘strongest’ organization but those who can change and adapt successfully to the changes in business environment. Just like the extinction of the dinosaurous who ruled the earth one time but failed to survive in change condition of earth natural environment many organizational giants have also followed the path of extinction failing to manage drastic changes in the business environment. Also business follows the war principle of ‘win or lose’, and not necessarily winwin situation arises in business world. Hence the organization has to

build its competitive advantage over the competitors in the business warfare in order to win. This can be done only following strategic analysis, formulation and implementation.

The strategic management process can best be studied and applied using a model. Every model represents some kind of process. The model illustrated in the Figure: Strategic management model is a widely accepted, comprehensive. This model like any other modal of management does not guarantee sure-shot success, but it does represent a clear and practical approach for formulating, implementing, and evaluating strategies. Relationships among major components of the strategic management process are shown in the model. Identifying an organization's existing vision, mission, objectives, and strategies is the starting point for any strategic management process because an organization present situation and condition may preclude certain strategies and may even dictate a particular course of action. Every organization has a vision, mission, objectives, and strategy, even if these elements are not consciously designed, written, or communicated. The answer to where an organization is going can be determined largely by where the organization has been. While business management focusing on “who” are involved and “what” resources and outputs need to be managed in order to survive within the industry, strategic management add depth into “where” to play and “how” is the organization going to survive. Strategic management specifically needs to be understood by top management (such as board of directors) in order to implement it throughout the stakeholders. If you have a company and you have every resources you need to produce your product, you won't survive in such industrial competition without a certain strategic planning and management. You need to convice everyone you have a certain value Consider a strategic plan as a blueprint for success. Whether an outside consultant is brought in to facilitate this process for a company or it is done internally among leadership, a strategy is a long-term plan to help you manifest your vision. It can

include: goals and objectives; a mission statement; what services and products are being provided; target customers and clients; and plan revenue earning. A strategic plan should always be written as a living, breathing document. Changes should be encouraged as the company moves forward and evolves, based on when you reach critical business benchmarks. Strategic management is critical to staying competitive and standing out in a crowded marketplace. A good strategy helps management prioritize activities within the company and how resources get spent. It is a systematic way to execute a company's initiatives and goals under the guidance of its leadership. Peter Drucker, an Austrian-born American business management consultant and a significant thought leader in the area, believes that once a business has defined its goals and objectives, the owners should define the metrics that will be used to gauge progress, and should ensure they're used equally across all levels of management. But strategic management isn't all theoretical; it is a practical way to implement a company's decisions, vision and goals. For strategic management to be successful, the organization's leaders must have a thorough understanding and analysis of their company. A SWOT analysis should be conducted (strengths, weaknesses, opportunities and threats) to optimize the company's strengths and minimize the organizational weaknesses. It's also crucial for leaders to know what opportunities are on the horizon and how to address any threats that may be lurking. Strategic planning should be reflective of the company's beliefs and personality. And, while many leaders do spend money on creating such a plan, once it's done, it tends to be forgotten. Create a plan that is realistic and relevant and that provides a real service to your organization. No matter what industry your company is in, business is always changing. So while leaders may come and go, a well-executed plan could very well keep your business functioning like a well-oiled machine. By keeping your plan tied to the vision of your company, you'll be much more likely to reach your ultimate business goals. Gold has been published in a variety of capacities writing about everything from Kennebunkport and southern Maine municipal government, art and cultural events, to cloud technology and business transformation. Her experience extends to both corporate and freelance; she's a former Senior Editor at the B2B publication Accounting Today, writing about public accounting firms with a specialization in diversity, technology, best practices, and business

development. During her tenure, she was also co-founder and editor of Accounting Tomorrow, a blog focused on intergenerational workplace issues that is still thriving today. Most recently, Liz has been writing about accountants working in the cannabis industry on CPA Trendlines and reporting on cannabis trends for Southern Oregon Good Herb magazine in Oregon. Strategic planning is the most important key for solving strategic tasks; it is the process of developing, controlling and maintaining a strategic balance between organizational goals and resources in the market environment. A strategic plan is a set of activities that are geared towards an organizations growth and success. Strategic management refers to the art of business planning at the highest possible level implemented by the company's leader or leaders and is focused on building a solid underlying foundation for a company. Strategic planning is a 10-step process that begins with clearly stated goals that align with organizational goals and objectives.

1.3 EXPLAINATION OF TOPIC

1.

STRATEGIC ANALYSES

Strategy formulation is not a task in which managers can get by with opinions, good instincts, and creative thinking. Judgments about what strategy to pursue need to flow directly from solid analysis of a company's external environment and internal situation. The two most important situational considerations are (1) industry and competitive conditions and (2) a company's own competitive capabilities, resources, internal strength.

1. Strategic Management

What is involved in sizing up a company's overall situation and deciding on a strategy? The analytical sequence is from strategic appraisal of the company's external and internal situation, to evaluation of alternatives, to choice of strategy. Accurate diagnosis of the company's situation is necessary managerial preparation for deciding on a sound long-term direction, setting appropriate objectives, and crafting a winning strategy. Without

perceptive understanding of the strategic aspects of a company's external and internal environments, the chances are greatly increased that managers will concoct a strategic game plan that doesn't fit the situation well, that holds little prospect for building competitive advantage, and that is unlikely to boost company performance. Implementation is the execution of the necessary strategies to meet the objectives that have been set. To ensure success, all employees should understand their roles and responsibilities. Appropriate activity measures provide necessary feedback with facts that identify positive impacts and areas for change. In this phase, companies pay attention to details and monitor processes to implement quick changes as required. For example, if a common customer complaint is that products take too long to arrive, an analysis of the shipping process may reveal ways to expedite delivery, such as using pre-printed shipping levels to streamline packaging and carrier pickup of shipments at the store. Evaluating strategies used in the implementation phase serve as performance feedback. Some companies use a gap analysis to compare how the company performed to set goals. Analyzing present state compared to desired future state identifies the need for new products or additions to existing products. One example is a company comparing its anticipated consumer purchase response with the actual number of sales or comparing old shipping times to the delivery timeframe after new procedures were implemented. Marketing strategy involves mapping out the company's direction for the forthcoming planning period, whether that be three, five or ten years. It involves undertaking a 360° review of the firm and its operating environment with a view to identifying new business opportunities that the firm could potentially leverage for competitive advantage. Strategic planning may also reveal market threats that the firm may need to consider for long-term sustainability.[9] Strategic planning makes no assumptions about the firm continuing to offer the same products to the same customers into the future. Instead, it is concerned with identifying the business opportunities that are likely to be successful and evaluates the firm's capacity to leverage such opportunities. Obviously, there will be new approaches to financial management whose success will be measured by the extent to which each satisfies its stated objectives. The problem today is that

The school of academic thought (from traditionalists through to post-

modernists) has failed to convince practising financial managers that their approach is always better than another. A particular difficulty is that if their objectives are too broad they are dismissed as self evident. And if they are too specific, they fail to gain general acceptance. Perhaps the best way foreword is a trade-off between flexibility and uniformity, whereby none of the chronological developments outlined above should be regarded as mutually exclusive. As we shall discover, a particular approach may be more appropriate for a particular decision but overall each has a role to play in contemporary financial management. So, why not focus on how the various chronological elements can be combined to provide a more eclectic (comprehensive) approach to the decision process? Moreover, an historical perspective of the developments and changes that have occurred in finance can also provide fresh insights into long established practice. As an example, consider investors who use traditional published accounting data such as dividend per share without any reference to economic values to establish a company’s performance. In one respect, their approach can be defended. As we shall see, evidence from statistical studies of share price suggests that increased dividends per share are used by companies to convey positive information concerning future profit and value. But what if the dividend signal contained in the accounts is designed by management to mislead . As behaviourists will tell you, irrespective of whether a positive signal is false, if a sufficient number of shareholders and potential investors believe it and purchase shares, then the demand for equity and hence price will rise. Systematically, the firm’s total market capitalisation of equity will follow suit. Post-modernists will also point out that irrespective of whether management wish to maximise wealth, stock market participants combine periodically to create “crowd behaviour” and market sentiment without reference to any rational expectations based on actual trading fundamentals such as “real” profitability and asset values.

Strategic planning typically begins with a scan of the business environment, both internal and external, this includes understanding strategic constraints.An understanding of the external operating environment, including political, economic, social and technological

which includes demographic and cultural aspects, is necessary for the identification of business opportunities and threats.This analysis is called PEST; an acronym for Political, Economic, Social and Technological. A number of variants of the PEST analysis can be identified in literature, including: PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental); STEEPLE (adds ethics); STEEPLED (adds demographics) and STEER (adds regulatory). The aim of the PEST analysis is to identify opportunities and threats in the wider operating environment. Firms try to leverage opportunities while trying to buffer themselves against potential threats. Basically, the PEST analysis guides strategic decision-making. The main elements of the PEST analysis are: 

Political: political interventions with the potential to disrupt or enhance trading conditions e.g. government statutes, policies, funding or subsidies, support for specific industries, trade agreements, tax rates and fiscal policy.



Economic: economic factors with the potential to affect profitability and the prices that can be charged, such as, economic trends, inflation, exchange rates, seasonality and economic cycles, consumer confidence, consumer purchasing power and discretionary incomes.



Social: social factors that affect demand for products and services, consumer attitudes, tastes and preferences like demographics, social influencers, role models, shopping habits.



Technological: Innovation, technological developments or breakthroughs that create opportunities for new products, improved production processes or new ways of transacting business e.g. new materials, new ingredients, new machinery, new packaging solutions, new software and new intermediaries.



Strengths: distinctive capabilities, competencies, skills or assets that provide a business or project with an advantage over potential rivals; internal factors that are favourable to achieving company objectives



Weaknesses: internal deficiencies that place the business or project at a disadvantage relative to rivals; or deficiencies that prevent an entity from moving in a new direction or acting on opportunities. internal factors that are unfavourable to achieving company objectives



Opportunities: elements in the environment that the business or project could exploit to its advantage； external factors of the organization including: new products, new markets, new demand, foreign market barriers, competitors' mistakes, etc.



Threats: elements in the environment that could erode the firm's market position; external factors that prevent or hinder an entity from moving in a desired direction or achieving its goals. Typically the firm will attempt to leverage those opportunities that can be matched with internal strengths; that is to say the firm has a capability in any area where strengths are matched with external opportunities. It may need to build capability if it wishes to leverage opportunities in areas of weakness. An area of weakness that is matched with an external threat represents a vulnerability, and the firm may need to develop contingency plans.

1.4 FUNCTIONS OF TOPIC Functions of Strategic Management Mid-Term Planning The primary function of strategic management is to develop medium, or mid-term, strategies for the organization. Mid-term strategies are those which focus on the organizational leader's vision for the company with the mid-term range of 2 to 4 years, as opposed to short-term or long-term strategies. The strategic management process should be reviewed and adjusted periodically to ensure that these medium-term plans remain relevant to the organization’s desired position within the industry. Alignment Another essential function of strategic management is the alignment of day-to-day work activities with the overall mission of the organization. The strategic management process typically begins with the development of a mission statement, which articulates the organization’s reasons for being in existence. The mission statement defines why and how the business does what it does and sets the tone for the organization. Sustainable Competitive Advantage The creation and maintenance of a sustainable competitive advantage is another essential function of strategic management. This is commonly accomplished through the use of a SWOT analysis, gap analysis or a combination of both. Through the use of the SWOT analysis, leaders may identify internal strengths and weaknesses as well as external opportunities and threats which may help or hinder the organization’s ability to maintain a sustainable competitive advantage. Gap analysis, meanwhile, measures the gap between the organization’s current position and its desired position. Strategy Implementation No amount of strategic planning will be successful without effective implementation. The final function of strategic management is the implementation of strategies conceived throughout the process. These strategies -- which begin as abstract concepts at the uppermost echelons of the organization -- are finally disseminated downward through the ranks for implementation at the operational level. Strategy implementation typically occurs through the

use of policies and procedures developed to align the day-to-day functional and operational activities of the organization with its mission statement.

The Functions of a Corporate Strategy Department Corporate strategy identifies barriers to achieving company objectives and develops an approach that allows you to overcome the obstacles. When several individual departments implement strategies, corporate actions lack coordination and may act at cross-purposes. A corporate strategy department functions as a coordinating body, developing and implementing strategies that satisfy the objectives of individual dep Development A corporate strategy department surveys those responsible for company operations to gather information on challenges and objectives. It consolidates individual strategic aims into an overall approach and invites feedback from the departments concerned. If you are developing a corporate strategy, you have to achieve consensus on what obstacles the company faces and what strategic activities will be successful. Once there is broad agreement, you can communicate the final version of the corporate strategy and assign tasks required for carrying it out to the departments involved. Business planning defines the strategies the business will use to meet its goals and missions. Business planning provides details on the business’ operations, products and services, and marketing strategies as it relates to the inclusive industry. This process expounds the operation strategies from short- and long-term views while focusing on the overall activity of the company. The business plan does not identify specific employee strategies but rather provides industry strategies. Corporate Planning Corporate planning defines the strategies that the employees will take to meet the business’ goals and missions. This type of planning, also known as strategic planning, focuses on staff responsibilities and procedures. As with business planning, strategic planning requires a close look at the company’s missions, strengths and weaknesses. However, corporate planning identifies the step-by-step process of the business, such as the actual steps the staff will take to counteract challenges, train employees and achieve accomplishments. Corporate planning also provides specific, measurable goals with realistic time lines.

Interdependency Business planning and corporate planning are interdependent. Although business planning can exist without corporate planning, the goals of the business plan are much more attainable with corporate planning. As with business planning, the corporate plan can exist without a business plan. However, without business planning, the overall goals and missions of the business are not clear. Therefore, the corporate planning becomes incomplete. Effects There are many effects of business and corporate planning. Not only does the planning process help businesses to succeed, it helps businesses to determine when new directions and changes are needed. A close analysis can result in early recognition of potential issues and dangers, as well as help the company to quickly adapt to customer demand and needs. Considerations Business and strategic plans should be reviewed periodically. The plans should be reviewed to compare the business’ current standpoints against those that were outlined in the plans. Adjustments should be made, if necessary, to align the business’ actual activities to the defined plans. When analyzing needed changes, consideration should be given to the industry’s environment and trends, as well as the economy’s stability, customer demand and business needs. The balancing of the business and strategic plans should outline the moves or changes that the business will strive to implement and framework the strategies that the employees will use to meet the business’ missions and goals.

1.5 ADVANTAGES AND DISADVANTAGES Like any process or tool, there are both advantages and disadvantages to a strategic management process. Unfortunately, many of the disadvantages are because of inappropriate application (often by poor consultants) as opposed to inherent limitations. As with any tool or process, you as the client have the final responsibility to ensure that the strategic management process you are using is appropriate for your needs. While I believe that strategic management in some form can be beneficially applied

The Disadvantages of Strategic Management One of the major criticisms of strategic management is that it requires the organization to anticipate the future environment in order to develop plans, and as we all know, predicting the future is not an easy undertaking. The belief being that if the future does not unfold as anticipated then it may invalidate the strategy taken. Recent research conducted in the private sector has demonstrated that organizations that use planning process achieve better performance than those organizations who don't plan - regardless of whether they actually achieved their intended objective. In addition, there are a variety of approaches to strategic planning that are not as dependent upon the prediction of the future. There is no doubt that in the not-for-profit sector there are many organizations that cannot afford to hire an external consultant to help them develop their strategy. Today there are many volunteers that can help smaller organizations and also funding agencies that will support the cost of hiring external consultants in developing a strategy. Regardless, it is important to ensure that the implementation of a strategic management process is consistent with the needs of the organization, and that appropriate controls are implemented to allow the cost/benefit discussion to be undertaken, prior to the implementation of a strategic management process. Strategic management processes are designed to provide an organization with long-term benefits. If you are looking at the strategic management process to address an immediate crisis within your organization, it won't. It always makes sense to address the immediate crises prior to allocating resources (time, money, people, opportunity, cost) to the strategic management process. When you undertake a strategic management process, it will result in the organization saying "no" to some of the opportunities that may be available. This inability to choose all of the opportunities presented to an organization is sometimes frustrating. In addition, some organizations develop a strategic management process that become excessively formal. Processes that become this "established" lack innovation and creativity and can stifle the ability of the organization to develop creative strategies. In this scenario, the strategic management process has become the very tool that now inhibits the organization's ability to change and adapt.

A third way that flexibility can be impeded is through a well-executed alignment and integration of the strategy within the organization. An organization that is well aligned with its strategy has addressed its structure, board, staffing, and performance and reward systems. This alignment ensures that the whole organization is pulling in the right direction, but can inhibit the organization's adaptability. Again, there are a variety of newer approaches to strategy development used in the private sector (they haven't been widely accepted in the notfor-profit sector yet) that build strategy and address the issues of organizational adaptability. Strategic management is a long-term approach to growing a business, requiring careful planning that sets both macro and micro goals for a company. While long-term strategies can help a small business take more proactive steps to build its profits, the management of these strategies can also stall an entrepreneur’s ability to take advantage of short-term opportunities. For many strategic plans to work, all areas of a business must understand the strategic goals and operate together to achieve them. This means different functions or departments, such as marketing, production, information technology and human resources, must be educated about the company’s overall strategies and develop their own departmental strategies and tactics to contribute to the objectives. Each area must also take steps to make sure its actions don’t interfere with any other area’s. Because of the integration of different departments into a strategic plan, different functions might need to get approval or confirmation from other functions before they can act. For example, a production manager might want to change a product feature that is causing slowdowns in production and increased production costs. However, no matter how beneficial the change might seem, the production manager must check with the marketing department to make sure the feature isn’t something customers need or want. If marketing wants to make a change to a product, it might have to get approval from finance if the company has a strategic plan regarding profit margins and return on investment for its products. This need for ongoing strategic management can sap time from key managers and slow their ability to react to opportunities. This can be doubly dangerous if it slows the company's ability to react to a threat, such as a new competitor. Small-business owners often have short-term opportunities to make money that might not fit into a big-picture strategic plan. For example, a local restaurant might be able to take advantage of a technology convention that’s in town by putting out a welcome sign for the

attendees or running ads in local papers offering a discount. This might invite a relatively young target audience to come to the eatery. If the restaurant has a long-term strategy of trying to brand itself as a restaurant for seniors and middle-age empty-nesters, this marketing tactic could confuse its brand. The restaurant would have to forgo this chance to make easy money to manage its strategic brand strategy. If a business has a strategy of making a specific return on investment or percentage profit margin on products, it might have to forgo sales opportunities that don’t meet the strategic financial goals the company has set.

The process of strategic management includes a set of long term goals and objectives of the company – using this method helps the company in facing the competition in a better manner and also increase its capabilities. These are definitely some of the strategic management benefits but every coin has two sides – same is the case with strategic management. Here are some of the limitations of strategic planning in management. 1. Complex process: The strategic management includes various types of continuous process which checks all type of major critical components. This includes the internal and external environments, long term and short term goals, strategic control of the company’s resources and last but not the least it also has to check the organizational structure. This is a lengthy process because a change in one component can affect all the factors. Hence it is vital that one understands the issues with all the concerned factors. This generally takes time and at the end, the growth of the company is affected. Being a complex process it calls for lots of patience and time from the management in order to implement the strategic management. In order to have proper strategic management, there should be strong leadership and proper structured resources.

2. Time consuming process: In order to implement the strategic management it is necessary that the top management spends proper quality time in order to get the process right. The managers have to spend lot of time researching, preparing and informing the employees about this new management. This type of long term and time consuming training and orientation would hamper the regular activities of the company. The day to day operations are negatively impacted and in the long term it could affect the business adversely. For e.g. there are many issues which requires daily attention but this is not taken care because they are busy researching the details about the strategic management. In case, proper resolution of the problems are not done on time then there could be great amount of attrition increase. Besides this, the performance of the employees will also go down because they are not getting required resolution of their problems. This type of situation may lead the management to divert all their critical resources towards employee motivation and performance – while doing this your strategic management process will be sidelined. 3. Tough implementation: When we speak the word strategic management then it seems to be a huge and large word. But it is also a fact that the implementation of this management system is difficult as compared to other management techniques. The implementation process calls for perfect communication among the employees and employer. The strategic management has to be implemented in such a way that the employees have to remain fully attentive; there should be active participation among the employees and besides this the employees have to be accountable for their work. This accountability is meant not only for the

top management but for all employees across the hierarchy. The experts mention that implementation is difficult because they have to continuously strive to make the employees aware about the process and benefits of this system. For e.g. if a manager was involved in forming of the strategic process and he/she has not been involved in the implementation process then the manager will never be accountable for any processes in the company. 4. Proper planning: When we say management systems then it calls for perfect planning. You just cannot write things on paper and leave them. This calls for proper practical planning. This is not possible by just one person but it is a team effort. When these types of processes are to be implemented then you need to sideline various regular decision making activities which would adversely affect the business in the long run.

The Advantages of Strategic Management The first reason that most organizations state for having a strategic management process is that it discharges the responsibility of the Board of Directors. Strategic management provides a discipline that enables the board and senior management to actually take a step back from the day-to-day business to think about the future of the organization. Without this discipline, the organization can become solely consumed with working through the next issue or problem without consideration of the larger picture. Strategy provides a framework within which all staff can make day-to-day operational decisions and understand that those decisions are all moving the organization in a single direction. It is not possible (nor realistic or appropriate) for the board to know all the decisions the executive director will have to make, nor is it possible (nor realistic or practical) for the executive director to know all the decisions the staff will make. Strategy provides a vision of the future, confirms the purpose and values of an organization, sets objectives, clarifies threats and opportunities, determines methods to leverage strengths, and mitigate weaknesses (at a minimum). As such, it sets a framework and clear boundaries within which decisions can be made. The cumulative effect of these decisions (which can add up to thousands over the year) can have a significant impact on the success of the organization. Providing a framework within which the executive director and staff can make these

decisions helps them better focus their efforts on those things that will best support the organization's success. Allowing the board and staff participation in the strategic discussion enables them to better understand the direction, why that direction was chosen, and the associated benefits. For some people simply knowing is enough; for many people, to gain their full support requires them to understand. A strategic management process forces an organization to set objectives and measures of success. The setting of measures of success requires that the organization first determine what is critical to its ongoing success and then forces the establishment of objectives and keeps these critical measures in front of the board and senior management. Addressing operational issues rarely looks at the whole organization and the interrelatedness of its varying components. Strategic management takes an organizational perspective and looks at all the components and the interrelationship between those components in order to develop a strategy that is optimal for the whole organization and not a single component.

Strategic planning still has the connotation of a process that is discrete, separate, and independent from the business of an organization. While strategic management connotes the planning, implementation, evaluation, on-going maintenance, and adjustment of the organization's strategy. Because I believe that strategic management is an integral aspect of an organization's business and not just a once per every three-year retreat, I have used the term strategic management throughout this article.

1.6 Features of Strategy 1. Strategy is Significant because it is not possible to foresee the future. Without a perfect foresight, the firms must be ready to deal with the uncertain events which constitute the business environment. 2. Strategy deals with long term developments rather than routine operations, i.e. it deals with probability of innovations or new products, new methods of productions, or new markets to be developed in future. 3. Strategy is created to take into account the probable behavior of customers and competitors. Strategies dealing with employees will predict the employee behavior. Mission statement has three main components-a statement of mission or vision of the company, a statement of the core values that shape the acts and behaviour of the employees, and a statement of the goals and objectives. a. strategy must be feasible and attainable. It should be possible to achieve it. b. strategy should be clear enough so that any action can be taken. c. It should be inspiring for the management, staff and society at large. d. It should be precise enough, i.e., it should be neither too broad nor too narrow. e. It should be unique and distinctive to leave an impact in everyone’s mind. f. It should be analytical ,i.e., it should analyze the key components of the strategy. g. It should be credible, i.e., all stakeholders should be able to believe it.

1.7 GENERAL INFORMATION ABOUT STRATEGY MANAGEMENT

Strategic Management provides ♦

To provide a basis for motivating the use of the

organization’s resources. ♦

To develop a basis, or standard,

for allocating organizational resources.

♦

To establish

a general

tone or organizational

climate, for

example, to suggest a businesslike operation. ♦

To serve as a focal point for those who can identify with the organization’s purpose and direction, and to deter those who cannot form participating further in the organization’s activities.

♦

To facilitate the translation of objective and goals into a work structure involving the assignment of tasks to responsible elements within the organization.

♦

To specify organizational purposes and the translation of these purposes into goals in such

a

way

that

cost,

time,

and

performance parameters can be assessed and controlled. A company’s Mission statement is typically focused on its present business scope – “who we are and what we do”; mission statements broadly describe an organizations present capabilities, customer focus, activities, and business makeup.

Mission should contain elements of long-term strategy as well as desired out comes they often basic values and the philosophy of the organizations that is perceived by the senior managers at the senior level who write them. A good mission statement should be of precise, clear, feasible, distinctive and motivating. It should indicate major components of strategy. Following points are useful while writing mission of a company : ♦

The mission is not to make a profit.

♦

One of the roles of a mission statement is to give the organization its own special identity, business emphasis and path for development – one that typically sets it apart form other similarly situated companies.

♦

A company’s business is defined by what needs it trying to satisfy, by which customer groups it is targeting and by the technologies and competencies it uses and the activities it performs.

♦

Technology,

competencies

and

activities

are

important

in

defining a company’s business because they indicate the boundaries on its operation. ♦

Good mission statements are highly personalized – unique to the organization for which they are developed.

EXPLAIN DEFINE AND ELABORATE STAREGY MANAGE MENT AND WRITE FROM THE BOOK ( 5) PAGES

CHAPTER -2 RESEARCH METHODOLOGY

2.1 RESEARCH RELATED TOPIC

Research Methodology We address this gap in the literature by exploring the relationship between big data analytics

and EAM at the level of the individual components in the EA. These components were developed by: first, reviewing literature on big data analytics, EA and its management, and a set of EA frameworks to form a theoretical foundation; second, using the theoretical foundation to adapt requirements of big data analytics for strategic EAM; and third, consolidating these requirements into the existing EA framework in which benefits are highlighted. For this purpose, these basic architecture domains (layers) of The Open Group Architecture Framework (TOGAF) were used: business, data, application, and technology. TOGAF presents both the Architecture Development

Method (ADM)

and information

model for

architectural

description. The cyclic ADM is designed as reference method for performing an architecture project, which in the sense of TOGAF is the way of performing EAM (The Open Group, 2009). This paper employs a research method that follows the guidelines for Design Science Research (DSR) approach as described by Hevner et al (2004). DSR is a widely applied research approach and is concerned with developing useful artefacts. It is a problem-solving paradigm in which the boundaries of organizational capabilities to create new and innovative artefacts are extended together with the knowledge and understanding of a problem domain through the building and application of the design artefact (Hevner et al, 2004). In the context of EAM, it was previously applied by Aier, Gleichauf and Winter (2011). Aiming to provide a detailed overview to the issue of big data analytics for strategic management of EA, this paper is focused only on the first four steps of the DSR process while other steps will be described thoroughly in future research. In this regard, the objectives of this paper are: 1) discuss the preparedness of EA for big data analytics; 2) provide strategic alignment of big data analytics in the business ecosystem; 3) map these requirements on EA layers of TOGAF; and 4) propose a model containing components of big data analytics for strategic management of EA. The days of just using gut feelings for business strategy have gone. So too has the era of “Excel is all I need”. Now, business and its strategy are driven by data from many different sources. Fortunately, data analytics for insights and actions from that data can be made user-friendly for non-technical business users, while providing affordable power to tackle enterprise databases and big data. Now that you know 10 ways (at least) in which your business strategy can be revolutionized, your next step is clear – use data analytics for your own business benefit. Data analysis is a key element of the research process. Accordingly, appropriate doctoral training in data analysis is vital to the strategic management field's future. We used a

two‐study design to evaluate quantitative data analysis trends and doctoral training. An analysis of Strategic Management Journal articles from 1980 to 2001 reveals that, contrary to some predictions, the use of general linear model techniques such as regression has increased over time. However, the use of more specialized techniques, including those suitable for examining longitudinal data, discrete events, and causal structure, has also grown substantially. A survey of recent doctoral graduates shows that, although skilled with general linear models, many are ill prepared to use specialized techniques.

2.2 Nature of strategy

In 1985, Professor Ellen Earle-Chaffee summarized what she thought were the main elements of strategic management theory where consensus generally existed as of the 1970s, writing that strategic management: 

Involves adapting the organization to its business environment;



Is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses;



Affects the entire organization by providing direction;



Involves both strategy formulation processes and also implementation of the content of the strategy;



May be planned (intended) and unplanned (emergent);



Is done at several levels: overall corporate strategy, and individual business strategies; and



Involves both conceptual and analytical thought processes.

Chaffee further wrote that research up to that point covered three models of strategy, which were not mutually exclusive: 1. Linear strategy: A planned determination of goals, initiatives, and allocation of resources, along the lines of the Chandler definition above. This is most consistent

with strategic planning approaches and may have a long planning horizon. The strategist "deals with" the environment but it is not the central concern. 2. Adaptive strategy: In this model, the organization's goals and activities are primarily concerned with adaptation to the environment, analogous to a biological organism. The need for continuous adaption reduces or eliminates the planning window. There is more focus on means (resource mobilization to address the environment) rather than ends (goals). Strategy is less centralized than in the linear model. 3. Interpretive strategy: A more recent and less developed model than the linear and adaptive models, interpretive strategy is concerned with "orienting metaphors constructed for the purpose of conceptualizing and guiding individual attitudes or organizational participants." The aim of interpretive strategy is legitimacy or credibility in the mind of stakeholders. It places emphasis on symbols and language to influence the minds of customers, rather than the physical product of the organization.

2.3 SCOPE OF STUDY : Expansion strategy is implemented by redefining the business by adding the scope of business substantially increasing the efforts of the current business. Expansion is a promising and popular strategy that tends to be equated with dynamism, vigor, promise and success. An enterprise on the move is a more agreeable stereotype than a steady-state enterprise. It is often characterised by significant reformulation of goals and directions, major initiatives and moves involving investments, exploration and onslaught into new products, new technology and new markets, innovative decisions and action programmes and so on. Expansion also includes diversifying, acquiring and merging businesses. The strategy may take the enterprise along relatively unknown and risky paths, full of promises and pitfalls. For some firms, diversification is a means of utilising their existing facilities and capabilities in a more effective and efficient manner. They

may have excess capacity or capability in manufacturing facilities, investible funds, marketing channels, competitive standing, market prestige, managerial and other manpower, research and development, raw material sources and so forth. Another reason for diversification lies in its synergistic advantage. It may be possible to improve the sales and profits of existing products by adding suitably related or new products, because of linkages in technology and/or in markets.

2.4 OBJECTIVES OF STUDY A goal is a desired future state or objective that an organization tries to achieve. Goals specify in particular what must be done if an organization is to attain mission or vision. Goals make mission more prominent and concrete. They co-ordinate and integrate various functional and departmental areas in an organization. Well made goals have following featuresa. These are precise and measurable. b. These look after critical and significant issues. c. These are realistic and challenging. d. These must be achieved within a specific time frame. e. These include both financial as well as non-financial components. Objectives are defined as goals that organization wants to achieve over a period of time. These are the foundation of planning. Policies are developed in an organization so as to achieve these objectives. Formulation of objectives is the task of top level management. Effective objectives have following featuresa. These are not single for an organization, but multiple. b. Objectives should be both short-term as well as long-term. c. Objectives must respond and react to changes in environment There are many benefits of strategic management and they include identification, prioritization, and exploration of opportunities. For instance, newer products, newer markets, and newer forays into business lines are only possible if firms indulge in strategic planning.

Next, strategic management allows firms to take an objective view of the activities being done by it and do a cost benefit analysis as to whether the firm is profitable. Just to differentiate, by this, we do not mean the financial benefits alone (which would be discussed below) but also the assessment of profitability that has to do with evaluating whether the business is strategically aligned to its goals and priorities. The key point to be noted here is that strategic management allows a firm to orient itself to its market and consumers and ensure that it is actualizing the right strategy. Financial Benefits It has been shown in many studies that firms that engage in strategic management are more profitable and successful than those that do not have the benefit of strategic planning and strategic management. When firms engage in forward looking planning and careful evaluation of their priorities, they have control over the future, which is necessary in the fast changing business landscape of the 21st century. It has been estimated that more than 100,000 businesses fail in the US every year and most of these failures are to do with a lack of strategic focus and strategic direction. Further, high performing firms tend to make more informed decisions because they have considered both the short term and long-term consequences and hence, have oriented their strategies accordingly. In contrast, firms that do not engage themselves in meaningful strategic planning are often bogged down by internal problems and lack of focus that leads to failure. Non-Financial Benefits The section above discussed some of the tangible benefits of strategic management. Apart from these benefits, firms that engage in strategic management are more aware of the external threats, an improved understanding of competitor strengths and weaknesses and increased employee productivity. They also have lesser resistance to change and a clear understanding of the link between performance and rewards. The key aspect of strategic management is that the problem solving and problem preventing capabilities of the firms are enhanced through strategic management. Strategic management is essential as it helps firms to rationalize change and actualize change and communicate the

need to change better to its employees. Finally, strategic management helps in bringing order and discipline to the activities of the firm in its both internal processes and external activities. A typical dictionary will define the word strategy as something that has to do with war and deception of an enemy. In business organizational context the term is not much different. Businesses have to respond to a dynamic and often hostile environment for pursuit of their mission. Strategy seeks to relate the goals of the organization to the means of achieving them. A company’s strategy is the game plan management is using to stake out market position, conduct its operations, attract and please customers, compete successfully, and achieve organizational objectives.

2.5 DIFFERENCE BETWEEN STUDY CONCEPTS

i.e, STRATEGY FORMULATION

AND STRATEGY IMPLEMENTATION

Strategy Formulation

Strategy Implementation

Strategy Formulation includes planning and Strategy Implementation involves all those decision-making

involved

in

developing means related to executing the strategic plans.

organization’s strategic goals and plans. In short, Strategy Formulation is placing the In Forces before the action.

short,

Strategy

Implementation

is managing forces during the action.

Strategy Formulation is an Entrepreneurial Strategic Activity based on strategic decision-making.

Implementation

is

mainly

an Administrative Task based on strategic and operational decisions.

Strategy

Formulation

emphasizes Strategy

Implementation

emphasizes

on effectiveness.

on efficiency.

Strategy Formulation is a rational process.

Strategy

Implementation

is

basically

an operational process. Strategy Formulation requires co-ordination Strategy among few individuals.

Implementation

of initiative and logical skills. Formulation

Implementation.

co-

ordination among many individuals.

Strategy Formulation requires a great deal Strategy

Strategic

requires

precedes

Implementation

requires

specific motivational and leadership traits. Strategy Strategy Implementation follows Strategy Formulation.

CHAPTER -3 REVIEW AND LITERATURE(4)

CHAPTER 4 DATA ANALYSIS

CHAPTER 5 Conclusion In the recent years, most of the firms have understood the importance of strategic management – it plays a key role in the upbringing and downfall of any company. In a nutshell, we can conclude that the purpose of strategic management is possible if a company can provide dedicated resources and staff in order to formulate and implement the entire system. If strategic management is implemented in the company thoroughly then there is no doubt that the company will survive all types of odds and competition and remain in the market for a long period of time. This is required in the present situation for all companies. It just calls for proper planning and right people in order to implement them in the company. You need to keep a regular check on all external and internal factors affecting your industry; besides this check all your financial resources whether they are enough to expand your business. If you could keep in mind these things the implementation will become very easy and quick for any organization irrespective of their sizes.

Our principal contribution is a systematic approach dealing with the composition of architecture layers, components and relationships within agile and adaptable EA for big data analytics, by means of strategic management. In our paper, we applied the DSR approach to gain better understanding of EA’s strategic management through analysis of existing literature to build more agile and adaptable EA and identify components that capture the requirements of big data analytics. The novelty in our paper comprises new aspects for mapping benefits of big data analytics in the context of architecture layers of the existing EA framework TOGAF. The results of this study showed that it is important for executive decision-makers as well as developers and designers to understand how the requirements of big data analytics influence the strategic management of EA. A subsequent deeper evaluation and extension of our approach is planned as future work.

CHAPTER 6 SUGGESSTIONS IN this project I would like to suggest that the Strategic management provides overall

direction

to

organization's objectives,

an

enterprise

and

involves

developing policies and plans to

specifying achieve

the those

objectives, and then allocating resources to implement the plans. [4] Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics.[5] Strategic management is not static in nature; the models often[quantify] include a feedback loop to monitor execution and to inform the next round of planning. Make sure you communicate the company’s strategic plan and how that is linked to your strategic priorities for your department. Articulate strategies clearly and often, and explain how each person’s role is related to those strategies. The more your teams know about the bigger picture, the better able they are to shape their performance to meet those goals.

Open communication about your performance expectations and metrics for measuring performance is vital. All too often, the first time employees hear they are not meeting expectations is in a quarterly or annual performance review. This is counterproductive and disrespectful to your team members. Many employees who don’t meet expectations were perfectly capable of becoming valued performers if only they had the feedback they needed. Your failure to engage in regular and ongoing communications about performance expectations and metrics can result in high turnover, decreased productivity, and ineffective relationships. You will need to make important decisions on a daily basis and you should be able to articulate the legitimate business reasoning behind those decisions. All too often, managers don’t take time to think about how they would explain the decision-making process and therefore aren’t capable of articulating it clearly. This detracts from your trustworthiness in the eyes of your team. If you truly have engaged in sound business reasoning, you should be able to explain your criteria even before you are asked. Sharing this information lets employees feel included in the process, even if they don’t agree with the result. This suggestion is to targeted to help first-time managers or managers in new roles to consider some important management strategies. But as you can see, the content applies to anyone in a management role. Positioning yourself as a leader by using effective communications to enhance performance is appropriate for all managers, regardless of the length of your management career. It’s never too late to be self-regulatory and figure out what you can change so you are more effective in your role.

Hunkering down in your office means that you are disconnected and unaware of the work environment of your employees. You need to be accessible, and part of that is being present in their work space. Make it a habit to walk around, stop by people’s desks, have casual team lunches, and check in to see if anyone needs anything from you. Ask them for input and feedback and then give it appropriate consideration. If this sort of visible management is not a part of your personality, you have an opportunity to change for the better of your organization.

CHAPTER 7 REFERENCES BILBIOGRAPHY https://en.wikipedia.org/wiki/Strategic_management#Nature_of_strategy,