Strategy The term strategy has entered the management literature comparatively my. than its use in Military Sci . Game theorists have used strategy in the sams in which the term policy was used earlier. Therefore, the concept of strat ‘ various actions involved are quite confusing and, sometimes, even contras, first, the term strategy was used in management in terms of Military Science y, what a manager does to offset actual or potential actions of competitiors. The still being used in the same sense though by few only. Originally, the term s. has been derived from Greek word ‘strategos’ which means general. The Words egy, therefore, means the art of general. When the term strategy is used in military sense, it refers to actions thatg taken in the light of action taken by opposite party. According to the Oxford), nary, ‘military strategy is the art of so moving or disposing the instrume warfare (troops, ships, aircrafts, missiles, etc.) as to impose upon the enen place, time and conditions for fighting by oneself. Strategy ends, or yields tox/ when actual contact with enemy is made’. In management, the concept of strategy is mostly taken in a slightly di form rather than in military form; it is taken more broadly. However, event form, various experts of the field do not agree about the precise scope of stray earlier views, strategy was taken in a very comprehensive way. For example ( dler, who made a comprehensive analysis of the interrelationship amoy environment, strategy, and organisation structure has defined the term strate 1962 as follows: “Strategy is the determination of the basic long-term goals and objectives of terprise and the adoption of the course of action and the alleeation-of resour® necessary for carrying out these goals.” Similar views have been held by Professors at Harvard Business Sch’ have made considerable contributions in the development of strategic mam” One of them (Andrews) has defined strategy as follows: “Strategy is the pattern of objectives, purpose or goals and major policies ® plans for achieving these goals, stated in such a way, So as to define what busine the company is in or is to be and the kind of company it is or is to be.” The above two definitions of strategy are quite comprehensive and inc? jective setting as part of strategy. As against this, Stanford Research Instit takes a different view when it states that strategy is a way in which the fir™ ‘BY y TAlfred D, Chandler. Strategy and Structure, Cambridge, Mass: M.1:T. Press, 1962, p.13. *Kenneth R. Andrews, The Concept of Corporate Strategy, Homewood, I11.: Jones-lrwin, 1971?_ : ai AND OPERATIONAL PLANS — Stay i inci efforts in i wironment, deploys its principal resources and marshalls its main e = it of acattptals Akron! Sanne is held by Glueck who defines strategy as ing. “A strategy is a unified, comprehensiv. md advantages of the firm to the challenges of the environment. It is designed to mi ensure that the basic objectives of the enterprise are achieved.”” tion,» Two approaches of defining strategy, Particularly in terms of the actions in in strategy, are different with fo rmer approach including objective Setting as of the strategy while latter excluding it. This difference is likely to continue e, and integrated plan relating the strategic Strategy is course of action through w! hich an organisation relates itself with envi- Fonment so as to achieve its objectives. ry Scat is the right combination of facto; tio) an to its environment, the management must also cons: ider the tele internal factors too, Particularly its stren, i atioees ternal and internals In relating - tS gths and weaknesses, to take va: al. Tet Courses of action, rious Strategy is relative combination of actions. The combin: ation is to meet a Particu , OF to attain a desirable objective. It may Y take any form; for every situation varies and therefore, i somewh: ia ” eee ; " » Tequires a somewhat | ‘ . pn Strategy may even inv s Strategic action depends D 4 Manager may take an action today and revise reverse aeons tomorrow depending on the situations. tits nee i Js forwi ing. i i a tr re f ard leaking It has pei eo towards the future. Strategic ac- i Tequired ; sone and so Strategy is relevant only tothe Fins. cere can ¢ owen Forelevels of an organisation—corporate level, business Corporate management SBU top management Financial Personnel Middle t strategy strategy management the highest level of strategic decision-making and objective of the firm, acquisition and allocation of— PRINCIPLES AND PRACTICE OF ay %\ resources and coordination of strategies of various SBUs for optimal sand coordmade by top management of the organisation. The 2 Strategy. Businesslevel strategy is applicable in 5 which rleBY ent businesses and each business is treated business unit (SBU). The tin SBU is to identity gh, product/market segments served by an organisation. Since a ‘gment has a distinct environment, a SBU is created for «4! For example, Reliance Industries Limited operates in textile abi ‘and a variety of petrochemical products. For each product group, iy, Ket in terms of customers, competition, and marketing channe] diffeg “requires different strategies for its different product groups. Thus, ni ‘is applied, each SBU sets its own strategies to make the best i. (ite strategic advantages) given the environment it faces. At sud, fa comprehensive plan providing objectives for SBUs, alloca, mong functional areas and coordination between them for makings tribution to the achievement of corporate-level objectives. Such strategies n the overall strategies of the organisation. The corporate strate « ‘of the firm and the broad constraints and policies wit ‘operates. The corporate level will help the SBU define its scope o 9 limit or enhance the SBU’s Dee by the resources a & SRESS Se y * 4s a difference between corporate-level and business-level stag: | 4iman organisation of any size or diversity, corporate strategy usvally app | the'whole enterprise, while business strategy, less comprehensive, defins® choice of product or service and market of individual business within he ther words, business strategy relates to the ‘how’ and corporate strateg vt twhat’. Corporate strategy defines the business in which a company will crm! ) ly in a way that focuses resources to convert distinctive competes duce ; competitive advantage.”* devel Corporate strategy is not the sumtotal of business stra ‘but it deals with different subject-matter. While the corporation is and has ‘on business strategy, the former is concerned with the ‘balancing of growth and renewal rather than in market execution " Functional-level Strategy. Functional strategy, as is suggested toa functional operation and the activities involved there Jin the organisation are often described as tactical constrained by some overall strategic considerations. Fu ‘relatively restricted plan providing objectives for spec ® ‘of resources among different operations within that function ‘between them for optimal contribution to the achievement 0" " corporate-level objectives. Below the functional-level strate) ther _ tions-level strategies as each function may be dividend into sever! ut er ‘marketing strategy, a functional strategy, can be su! | Bon, sles, distribution, pricing stratezies with each subfunctio to functional strategy. ‘Strategies at all the three levels are interlinked in which 4 highe ‘a lower-level strategy and a lower-level strategy © of the objectives of higher-level strategy SURTGAES REGGzasEE aeover the period of time. Thy a ectrite ink their analysis to arrive at a decision, over these activities particularly in the context lete process of strategy formulation and imp é includes strategy formulation and its implem 0 as strategic management process. The same proces and uo, The figure suggests the various el foe the way they interact among themseli@ organisational mission and od Pasa identification of alternatives, the formulation is complete. However, ipl on in Crises: Why the Mighty Fall, Englewood, Cliffs, NJ:?™am related with formulation because it will Provide feedback for adjustin, —e of each element will be helpful to understand the i oe Organisational mission and objectives . As discussed earlier, mission is the lat sets it apart from other or. various soruces like various publi- » Spying, and forecasting. The pro- is undertaken on continuous basis part of the strategy formulation. lysis. While environmental analysis is the analysis of external analysis takes into account the internal factors. These together ace s, weaknesses, opportunities and threats) analysis. It is not to locate what opportunities and threats are offered by the env ion ly important is the analysis of how the organisation can take the of these. ities and overcome threats. Corporate analysis dis trengths and weaknesses of the organisation and points out the areas which business can be undertaken. Corporate analysis is performed by identityiny {he factors which are critical for the success of the present or future business of thy Sentesce then evaluating these factors whether they are contributing in post ‘way or in negative way. A positive contribution is strength and a negative contribution is a weakness, of Alternatives. Environmental analysis and corporate analysis will specify the various alternatives for strategy, Usually this proce: ; large ni of alternatives. For example, if an organisation is strong in f Tesources, these can be used in many ways, taking several projects. How —+ver, all the ways or projects cannot be selected. Therefore, some criteria should be ‘et up to evaluate each alternative. Normally the criteria are set in the light of mission and objectives. }-Choice of Strategy. The identification and evaluation of various alternatives wil chant down the range of strategies which can seriously be considered for choice is deciding the acceptable alternative among the several which fits with Banisational objectives. Normally at this stage, personal values and expec Q Stan maker play an important role in stratezy because he will decce the tian ‘on his own likings and dislikings. This happens because Houle Bemisational objectives reflect the personal philosophy of incl atthe top management level ; thew ots Tie ation: After the strategy has been chosen, itis put to implementation {bileimplemen ta j action. Choice of strategy is mostly analytical and ce sh for iettoN is operational or putting, into action. Various wae "Band fon are design of suitable organisation structure: SU Mt People to take up work, designing ¢ iil