Download - Business Policies and Strategic Management
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Business Policies and Strategic
ManagementA
Recap Session
Presented by :
Mithilesh Chauhan 39Pooja Sharma 40
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Strategic evaluations and controls
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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.
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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.
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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.
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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
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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.
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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
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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
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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
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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
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Introduction to strategy evaluation
control cont.
Strategic information planning
Enterprise Resource Planning (ERP)
Strategic Audit
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