Lesson 1 strat

• Business policy- in

  the world of business, the set of rules that guides the decisions and actions of the members of the organization.

  the world of business, the set of rules that guides the decisions and actions of the membersof the organization.
• Informal- this are the day to day given policies by your superior

  or the people around you in your organization.

  ●
• Formal/ written- basis policy of an organization where you

  involved
• Strategy (Thompson and Strickland)- operational level referring to it as a set of competitive moves and business approaches that management is employing to run the company
• Game plan to achieve: ● Attract and please customers; ● Stake out a market position; ● Conduct operations;

  Complete successfully
• ) Business policies exist amidst absence of business strategy and strategies may exist without established business policies. B) Business policies are generally directional in nature and strategy is more operational in context. C) Business policies are often formal or written and strategies may be informal and not necessarily written and often confidential
• Jeffrey Bracker of Gergia State University- he elaborated the concept of strategic management and cited that the term strategy was mentioned in the Old Testament and largely treated as semantic issue.
• According to Bracker strategy originated from the Greek word “stratego” referring to a “general” which in turn traces its root from the word “army” and “lead”. Stratego means “to plan the destruction of one’s enemies through effective use of resource.”
• Evolution of Strategic ManagementVon Neuman and Morgenstern (1947)- was the first modern writers to relatethe concept of strategy to business with their theory of games.
• Strategic Management (Williamson, Jenkins, et al. (2004)- as framework that evolves around the of shaping the destiny of an organization, it is about:
• Strategic Management (Wright, Kroll and Parnell)- continuous process.
• 1. Defender- this includes companies with a limited product line that focus on improving the efficiency of their existing operations.
• Prospectors- this type of companies includes firms with fairly broadproduct lines that focus on product innovation and market opportunities.
• Analyzers- this type includes business organizations that operate in at least two different product- market areas, one stable and one variable.
• Reactors- this type includes companies that lack a consistent strategy- structure- culture relationship.
• Legal mandate- this refers to formulating policies on the basis of the

  provision of the charter or legal basis for creation or existence of the

  business organization including the applicable provisions of the laws and

  policies or pronouncement of the government and its statutory or

  regulatory body.
• Vision and mission statement- refers to the leadership bias as well as sense of direction and mission for which the organization was conceived or established.
• Specific objectives- these are the corporate objectives purposelydeveloped for the organization and for its members or employees at largeto pursue.
• Programs and policies- these are specific programs and policies set forthby the organization’s policymakers in pursuit of short and long- term goalsgiven certain considerations at hand.
• Policy / strategy profile- this approach involves a systematic examinationof present company policy/ strategy- implicit and explicit.
• Gap Analysis- in this approach, the stimulus is an examination of whetheran end that has been established is likely to be achieved.
• Competitive Strategy Analysis- this involves a thorough analysis of thecompetitive forces operating in a firm’s environment and searching for analternative option.
• Richard Whittington (2001)- theorized that strategy comes in four genericapproaches that differ fundamentally along two dimensions: the outcome of thestrategy and the process by which is made.
• This figure shows that to have the outcome of profit maximization the firm must use classical approach of strategy.
• Strategic Decision - Usually take into account a lot of external factors and deal with the long- run future of the entire organization.
• Top- bottom approach- comes from the top management with rank and file tasked to implementing or following the policies and strategy
• Bottom- top approach - emanate from the bottom or rank and file from which top management develop strategy for the lower ranked employees
• Top- bottom- top top management filter down to lower ranked personnel for consultation the return back to tom management
• Rare unusual and typically have no precedent to follow
• Consequential commit substancial resources and demand a great deal of commitment from people at all levels
• Directive set precedent for lesser decision and future action throughout the organization
• Entrepreneurial mode- in this mode, strategy is made by one powerful individual and the focus is on opportunities; problems are secondary.
• Adaptive mode- sometimes referred to as “muddling through’, this mode ischaracterized by reactive solutions to existing problems rather than proactivesearch for new opportunities.
• Planning mode- this decision- making mode involves the systematic gathering ofappropriate information for situation analysis, the generation of feasiblealternative strategies, and the rational selection of the most appropriate strategy.
• Logical mode- it can be viewed as a synthesis of planning, adaptive, and, to a lesser extent, the entrepreneurial mode.