Module 1: Basic Concepts

Unit 1: Introduction - Meaning and definition of strategy - Levels of strategy - Strategy and
tactics - Characteristics of strategy - Strategic plan and strategic planning – Values - Strategic
choices, Strategic analysis - Business Process objectives – KRAs -Strategy implementation -
Strategic stretch - Fit and Leverage - Strategic decision making

Case Let 1: Peak Innovations - Navigating Strategic Shifts

In the heart of Silicon Valley, Peak Innovations, a tech start-up founded by Alex Turner, was on
the brink of a strategic transformation. The company, known for its cutting-edge mobile
applications, was facing increasing competition and market saturation. Alex understood the need
for strategic management to navigate this challenging landscape.
Situation Analysis:
Peak Innovations conducted a thorough analysis of the market and recognized the shifting
dynamics. New entrants and evolving customer preferences indicated the need for a strategic shift.
The company's strengths lay in its talented workforce and a strong brand reputation for innovation.
Vision and Mission:
Alex and his leadership team formulated a new vision that emphasized not just developing
applications but creating an ecosystem of interconnected solutions. The mission was to empower
users with seamless and personalized experiences across multiple devices.
Strategic Planning:
The team developed a strategic plan outlining key objective, such as expanding product offerings,
entering new markets, and enhancing customer engagement. They identified strategic partnerships
and collaborations to bolster their capabilities.
Organizational Alignment:
Communicating the new vision to employees was critical. Regular town hall meetings, training
sessions, and a transparent communication approach helped align the entire organization with the
strategic goals. Employees were encouraged to contribute ideas, fostering a culture of innovation.
Implementation:
Peak Innovations rolled out a series of new products, emphasizing cross-platform integration. They
invested in research and development to stay ahead of emerging technologies. Marketing
campaigns were revamped to highlight the holistic user experience.
Monitoring and Adaptation:
Regular performance reviews and customer feedback were monitored closely. Key performance
indicators were tracked, and the leadership team remained agile, adapting strategies based on real-
time market responses.
Results:
The strategic shift bore fruit as Peak Innovations witnessed increased market share and customer
satisfaction. Revenue streams diversified, and the company became a leader in the integrated tech
solutions space.
Lessons Learned:
 1. Anticipate Change: Recognize market shifts and be proactive in adapting strategies to
stay relevant.
2. Communicate Effectively: Ensure all stakeholders understand and align with the new
strategic direction.
3. Encourage Innovation: Foster a culture where employees feel empowered to contribute
innovative ideas.
4. Continuous Monitoring: Regularly evaluate the performance of implemented strategies
and be ready to adjust course as needed.
Peak Innovations' journey showcased the transformative power of strategic management in
navigating challenges and seizing new opportunities, emphasizing the importance of adaptability
and innovation in a rapidly changing business landscape.

INTRODUCTION
The top management of an organization is concerned with selection of a course of action from
among different alternatives to meet the organizational objectives. The process by which objectives
are formulated and achieved is known as strategic management and strategy act as the means to
achieve the objective. Strategy is the grand design or an overall ‘plan’ which an organization
chooses in order to move or react towards the set objectives by using its resources. Strategies most
often devote a general programme of action and an implied deployment of emphasis and resources
to attain comprehensive objectives. An organization is considered efficient and operationally
effective if it is characterized by coordination between objectives and strategies. There has to be
integration of the parts into a whole. Strategy helps the organization to meet its uncertain situations
with due diligence. Without a strategy, the organization is like a ship without a rudder. It is like a
tramp, which has no particular destination to go to. Without an appropriate strategy effectively
implemented, the future is always dark and hence, more are the chances of business failure.
MEANING OF STRATEGY
The word ‘strategy’ has entered in the field of management from military where it refers to apply
the forces against an enemy to win a war. Originally, the word strategy has been derived from
Greek ‘strategos’ which means generalship. The word was used first time around 400 BC. The
word strategy means the art of the general to fight in war. The dictionary meaning of strategy is,
“the art of so moving or disposing the instrument of warfare as to impose upon enemy, the place
time and conditions for fighting by one self.”
In management, the concept of strategy is taken in more broader terms. According Glueck,
“Strategy is the unified, comprehensive and integrated plan that relates the strategic advantage of
the firm to the challenges of the environment and is designed to ensure that basic objectives of the
enterprise are achieved through proper implementation process.”
It lays stress on the following:
a) Unified comprehensive and integrated plan.
b) Strategic advantage is related to challenges of environment.
c) Proper implementation ensures achievement of basic objectives.
Another definition of strategy is given below which also relates strategy to its environment.
“Strategy is organization’s pattern of response to its environment over a period of time to achieve
its goals and mission.”
This definition lays stress on the following:
a) It is organization’s pattern of response to its environment.
b) The objective is to achieve its goals and mission.
However, various experts do not agree about the precise scope of strategy. Lack of consensus has
lead to two broad categories of definitions: strategy as action inclusive of objective setting and
strategy as action exclusive of objective setting.
Strategy As Action Inclusive of Objective Setting
In 1960s, chandler made an attempt to define strategy as “the determination of basic long term
goals and objective of an enterprise and the adoption of the courses of action and the allocation of
resources necessary for carrying out these goals.”
This definition provides for three types of actions involved in strategy:
i) Determination of long term goals objectives
ii) Adoption of courses of action
iii) Allocation of resources.
Strategy As Action Exclusive of Objective Setting
This is another view in which strategy has been defined. It states that strategy is a way in which
the firm, reacting to its environment, deploys its principal resources and marshalls its efforts in
pursuit of its purpose. Michael Porter has defined strategy as “Creation of a unique and valued
position involving a different set of actives. The company that is strategically positioned performs
different activities from rivals or performs similar activities in different ways.”
The people who believe this version of the definition call strategy a unified, comprehensive and
integrated plan relating to the strategic advantages of the firm to the challenges of the environment.
After considering both the views, strategy can simply be put as management’s plan for achieving
its objectives. It basically includes determination and evaluation of alternative paths to an already
established mission or objective and eventually, choice of best alternative to be adopted.

NATURE OF STRATEGY
Based on the above definitions, we can understand the nature of strategy. A few aspects regarding
nature of strategy are a follow:
1. Strategy is a major course of action through which an organization relates itself to its
environment particularly the external factors to facilitate all actions involved in meeting
the objective of the organization.
2. Strategy is the blend of internal and external factors. To meet the opportunities and threats
provided by the external factors, internal factors are matched with them.
3. Strategy is the combination of actions aimed to meet a particular condition, to solve certain
problems or to achieve a desirable end. The actions are different for different situations.
 4. Due to its dependence on environmental variables, strategy may involve a contradictory
action. An organization may take contradictory actions either simultaneously or with a gap
of time. For example, a firm is engaged in closing down of some of its business and at the
same time expanding some.
5. Strategy is future oriented. Strategy actions are required for new situations which have not
arisen before in the past.
6. Strategy requires some systems and norms for its efficient adoption in any organization.
7. Strategy provides overall framework for guiding enterprise thinking and action.
ESSENCE OF STRATEGY
Strategy, according to a survey conducted in 1974, includes the determination and evaluation of
alternative paths to an already established mission or objective and eventually, choice of the
alternative to be adopted. Strategy is characterized by four important aspects.
1. Long term objectives
2. Competitive Advantage
3. Vector
4. Synergy
LONG TERM OBJECTIVES
Strategy is formulated keeping in mind the long term objectives of the organization. It is so because
it emphasizes on long term growth and development. Strategy is future oriented and therefore
concerned with the objectives which have a long term perspective. The objectives give directions
for implementing a strategy.
COMPETITIVE ADVANTAGE
Whenever strategy is formulated, managers have to keep in mind the competitors of the
organization. The environment has to be continuously monitored for forming a strategy. Strategy
has to be made in a sense that the firm may have competitive advantage. It makes the organization
competent enough to meet the external threats and profit from the environmental opportunities.
The changes that take place over a period of time in the environment have made the use of strategy
more beneficial. While making plans, competitors may be ignored but in making strategy
competitors are given due importance.
VECTOR
Strategy involves adoptions of the course of action and allocation of resource for meeting the long
term objectives. From among the various courses of action available, the, managers have to choose
the one which utilizes the resources of the organization in the best possible manner and helps in
the achievement of the organizational objectives. A series of decisions are taken and they are in
the same direction.
Strategy provides direction to the whole organization. When the objective have been set, they bring
about clarity to the whole organization. They provide clear direction to persons in the organization
who are responsible for implementing the various courses of action. Most people perform better if
they know clearly what they are expected to do and where the organization is going.
SYNERGY
In strategic management, synergy refers to the combined effect of two or more elements that result
in a greater outcome than the sum of their individual effects. It is the idea that the whole is greater
than the sum of its parts. Synergy can be achieved by aligning different strategies and resources
towards a common goal, which can lead to increased efficiency, productivity, and overall success.
When there is synergy in strategic management, the organization can achieve its objectives more
effectively and efficiently.

STRATEGY V/S POLICIES

Strategy has often been used as a synonym of policy. However, both are different and should not
be used interchangeably. Policy is the guideline for decisions and actions on the part of
subordinates. It is a general statement of understanding made for achievement of objectives.
Policies are statements or a commonly accepted understandings of decision making. They are
thought oriented. Power is delegated to the subordinates for implementation of policies. In general
terms, policy is concerned with course of action chosen for the fulfillment of the set objectives. It
is an overall guide that governs and controls managerial actions. Policies may be general or
specific, organizational or functional, written or implied. They should be clear and consistent.
Policies have to be integrated so that strategy is implemented successfully and effectively. For
example, when the performance of two employees is similar, the promotion policy may require the
promotion of the senior employee and hence he would be eligible for promotion.
Strategies on the other hand are concerned with the direction in which human and physical
resources are deployed and applied in order to maximize the chances of achieving organizational
objectives in the face of environmental variable. Strategies are specific actions suggested to
achieve the objectives. Strategies are action oriented and everyone in the organization are
empowered to implement them. Strategy cannot be delegated downward because it may require
last minute decisions. Strategies and polices both are the means towards the end. In other words,
both are directed towards meeting organizational objectives. Strategy is a rule for making decision
while policy is contingent decision.
STRATEGY V/S TACTICS
Strategies are on one end of the organizational decisions spectrum while tactics lie on the other
end. Carl Von Clausewitz, a Prussian army general and military scientist defines military strategy
as ‘making use of battles in the furtherance of the war and the tactics as “the use of armed forces
in battle”. A few points of distinction between the two are as follows:
(i) Strategy determines the major plans to be undertaken while tactics is the means by which
previously determined plans are executed.
(ii) The basic goal of strategy according to military science is to break the will of the army, deprive
the enemy of the means to fight, occupy his territory, destroy or obtain control of his resources or
make him surrender. The goal of tactics is to achieve success in a given action and this forms one
part of a group of related military action.
(iii) Tactics decisions can be delegated to all the levels of an organization while strategic decisions
can not be delegated too low in the organization. The authority is not delegated below the levels
than those which possess the perspective required for taking decisions effectively.
(iv) Strategy is formulated in both a continuous as well as irregular manner. The decisions are
taken on the basis of opportunities, new ideas etc. Tactics is determined on a periodic basis by
various organizations. A fixed time table may be made for following tactics.
(v) Strategy has a long term perspective and occasionally it may have a short term duration. Thus,
the time horizon in terms of strategy is flexible but in case of tactics, it is short run and definite.
(vi) The decisions taken as part of strategy formulation and implementation have a high element
of uncertainty and are taken under the conditions of partial ignorance. In contrast tactical decisions
are more certain as they work upon the framework set by the strategy. So the evaluation of strategy
is difficult than the evaluation of tactics.
(vii) Since an attempt is made in strategy to relate the organization with its environment, the
requirement of information is more than that required in tactics. Tactics uses information available
internally in an organization.
(viii) The formulation of strategy is affected considerably by the personal values of the person
involved in the process but the same is not the case in tactics implementation.
(ix) Strategies are the most important factor of organization because they decide the future course
of action for organization as a whole. On the other hand tactics are of less importance because they
are concerned with specific part of the organization.

STRATEGY AND PROGRAMMES, PROCEDURE & RULES

In this subsection, the relationship of strategy is explained with programmes, procedure
and rules.
PROGRAMMES
A programme is a single use comprehensive plan laying down the principal steps for
accomplishing a specific objective and sets an approximate time limit for each stage. It is
concerned with providing answers to questions like: By whom will the actions be taken up? When
will the actions be taken? Where will the actions be taken?
Programmes are guided by organization’s objectives and strategies and cover many of the other
types of plans. Therefore, they provide a step-by-step approach to guide the action necessary to
meet the objectives as set in the strategy. Programmes provide the sequence of activities in proper
order which are designed to implement polices.
Programmes are the instruments for coordination as they require system, thinking and action. They
also involve integrated and coordinated planning efforts.
PROCEDURE
In general terms, a procedure can be defined as “A series of functions or steps performed to
accomplish a specific task or undertaking.” Strategies, programmes, policies, budgets etc. need to
be supplemented with detailed specifications i.e. how they are to / would operate. A procedure is
a precise means of making a step by step guide to action that operates within a policy framework.
Most companies have hundreds of procedures like for selection, promotion, transfer etc. They are
essential for smooth operation of the business activities. For example, procedure may include
calling tenders for purchasing materials, keeping them in stock room and issuing them against
requisition slips. Procedures are concerned with communication of tasks to be performed,
organization interfaces and the responsibilities of the individuals involved.
They describe the customary method for handling a future activity. It gives sequence of actions
directed at a single goal (usually short term) that is repeatedly pursued, i. g. adopting budget,
making procedures or granting sick leave to an employee against medical certificate etc. Procedure
are more rigid and allow no freedom as against strategies which are flexible and are not concerned
with fixed steps.
RULES
A rule is principle to which an action or a procedure conforms or is intended to conform. It is a
standard or a norm to be followed in the conduct of a business in a particular situation. It is more
rigid and demands a specific action with respect to particular situation. It does not mention any
kind of time estimate or sequence as in the case of procedures. It is much more specific than a
policy. It allows no liberty or leniency and does not tolerate much deviation. Rules have to be
strictly followed and non compliance may entail penalty or punishment. For example, “No
Smoking” is a rule which has to be adhered to by all the levels of management.
LEVELS OF STRATEGY
It is believed that strategic decision making is the responsibility of top management. However, it
is considered useful to distinguish between the levels of operation of the strategy. Strategy operates
t different levels:
1. Corporate Level
2. Business Level
3. Functional Level

There are basically two categories of companies- one, which have different businesses organized
as different directions or product groups known as profit centers or strategic business unit(SBUs)
and other, which consists of companies which are single product companies. The example of first
category can be that of Reliance Industries Limited which is a highly integrated company
producing textiles, yarn, and a variety of petro chemical products and the example of the second
category could be Ashok Leyland Limited which is engaged in the manufacturing and selling of
heavy commercial vehicles. The SBU concept was introduced by General Electric Company
(GEC) of USA to manage product business. The fundamental concept in the SBU is the
identification of dicrete independent product/ market segments served by the organization.
Because of the different environments served by each product, a SBU is created for each
independent product/ segment. Each and every SBU is different from another SBU due to the
distinct business areas (DBAs) it is serving. Each SBU has a clearly defined product/market
segment and strategy. It develops its strategy according to its own capabilities and needs with
overall organizations capabilities and needs. Each SBU allocates resources according to its
individual requirements for the achievement of organizational objectives. As against the multi
product organizations, the single product organizations have single Strategic Business unit. In
these organizations, corporate level strategy serves the whole business. The strategy is implanted
at the next lower level by functional strategies. In multiple product company, a strategy is
formulated for each SBU (known as business level strategy) and such strategies lie between
corporate and functional level strategies.

The three levels are explained below.

CORPORATE LEVEL STRATEGY
At the corporate level, strategies are formulated according to organization wise polices. These are
value oriented, conceptual and less concrete then decisions at the other two levels. These are
characterized by greater risk, cost and profit potential as well as flexibility. Mostly, corporate level
strategies are futuristic, innovative and pervasive in nature. They occupy the highest level of
strategic decision making and cover the actions dealing with the objectives of the organization.
Such decisions are made by top management of the firm. The example of such strategies include
acquisition decisions, diversification, structural redesigning etc. The board of Directors and the
Chief Executive Officer are the primary groups involved in this level of strategy making. In small
and family owned businesses, the entrepreneur is both the general manager and chief strategic
manager.
BUSINESS LEVEL STRATEGY
The strategies formulated by each SBU to make best use of its resources given the environment
it faces, come under the gamut of business level strategies. At such a level, strategy is a
comprehensive plan providing objectives for SBUs, allocation of resources among functional areas
and coordination between them for achievement of corporate level objectives. These strategies
operate within the overall organizational strategies i.e. within the broad constraints and polices
and long term objectives set by the corporate strategy. The SBU managers are involved in this
level of strategy. The strategies are related with a unit within the organization. The SBU operates
within the defined scope of operations by the corporate level strategy and is limited by the
assignment of resources by the corporate level. However, corporate strategy is not the sum total
of business strategies of the organization. Business strategy relates with the “how” and the
corporate strategy relates with the “what”. Business strategy defines the choice of product or
service and market of individual business within the firm. The corporate strategy has impact on
business strategy.
FUNCTIONAL LEVEL STRATEGY
This strategy relates to a single functional operation and the activities involved therein. This level
is at the operating end of the organization. The decisions at this level within the organization are
described as tactical. The strategies are concerned with how different functions of the enterprise
like marketing, finance, manufacturing etc. contribute to the strategy of other levels. Functional
strategy deals with a relatively restricted plan providing objectives for specific function, allocation
of resources among different operations within the functional area and coordination between them
for achievement of SBU and corporate level objectives. Sometimes a fourth level of strategy also
exists. This level is known as the operating level. It comes below the functional level strategy and
involves actions relating to various sub functions of the major function. For example, the
functional level strategy of marketing function is divided into operating levels such as marketing
research, sales promotion etc.
Three levels of strategies have different characteristics as shown in the following table.

TABLE 1 STRATEGIC DECISIONS AT DIFFERENT LEVELS

LEVELS CORPORATE BUSINESS FUNCTIONAL
DIMENSIONS
Type of decision Conceptual Mixed Operational

Impact Significant Major Insignificant

Risk Involved High Medium Low

Profit Potential High Medium Low

Time Horizon Long Medium Low

Flexibility High Medium Low

Adaptability Insignificant Medium Significant

Importance Of Strategy
With the increase in the pressure of external threats, companies have to make clearer strategies
and implement them effectively so as to survive. There have been companies like Martin Burn,
Jessops etc. that have completely become extinct and some companies which were not existing
before they have become the market leaders like Reliance, Infosys, Technologies etc. The basic
factor responsible for differentiation has not been governmental policies, infrastructure or labour
relations but the type of strategic thinking that different companies have shown in conducting the
business. Strategy provides various benefits to its users:
1. Strategy helps an organization to take decisions on long range forecasts.
2. It allows the firm to deal with a new trend and meet competition in an effective manner.
3. With the help of strategy, the management becomes flexible to meet unanticipated future
changes.
4. Efficient strategy formation and implementation result into financial benefits to the
organization in the form of increased profits.
 5. Strategy provides focus in terms of organizational objectives and thus provides clarity of
direction for achieving the objectives.
6. Organizational effectiveness is ensured with effective implementation of the strategy.
7. Strategy contributes towards organizational effectiveness by providing satisfaction to the
personnel.
8. It gets managers into the habit of thinking and thus makes them, proactive and more
conscious of their environments.
9. It provides motivation to employees as it pave the way for them to shape their work in the
context of shared corporate goals and ultimately they work for the achievement of these
goals.
10. Strategy formulation & implementation gives an opportunity to the management to involve
different levels of management in the process.
11. It improves corporate communication, coordination and allocation of resources.
12. With all the benefits listed above, it is quite clear that strategy forms an integral part of an
organization and is the means to achieve the end efficiently and effectively.
Strategic plan and strategic planning
Strategic Planning is defined by Harvey as “long-range planning which focuses on the organization
as a whole. Managers consider the organization as a total unit and ask themselves what must be
done in the long-run to attain organizational goals. The most successful managers are those who
are able to encourage innovative strategic thinking within their organizations.” A strategic plan is
a document used to communicate with the organization the organizations goals, the actions needed
to achieve those goals and all of the other critical elements developed during the planning exercise.

Core Values And Core Purposes

These concepts are very important in the process of envisioning. Collins and Porras have
developed this concept for better philosophical perspective. As has already been discussed, a well-
conceived vision consists of core ideology and envisioned future. Core ideology rests on core
values and core purpose. Core Values are the essential and enduring beliefs of an organization.
They may be beliefs of top management regarding employee’s welfare, customer’s interest and
shareholder’s wealth. The beliefs may have economic orientation or social orientation. Evidences
clearly indicate that the core values of A are different from the core values of B or C. The entire
organization structure revolves around the philosophy coming out of core values.
Core Purpose is the reason for existence of the organization. Its reasoning needs are to be spelt
clearly. The characteristics of core purpose are as follows:
• It is the overall reason for the existence of organization.
• It is ‘why’ of an organization.
• This mainly addresses to the issue which organization desires to achieve internally.
• It is the broad philosophical long term rationale.
• It is the linkage of organization with its own people
Strategic choices
For a business group, it may be possible to choose all strategic alternatives but for a single
organization it is quite difficult. The strategic alternatives have to be matched with the problem.
While making a choice, two types of factors have to be considered.
These are:
• Objective factors
• Subjective factors
Objective factors are the ones which can be quantified while subjective factors are the ones which
cannot be quantified and are based on experience and opinion of people. Strategic choice is like a
decision making process.
There are three objective ways to make a choice
: • Corporate Portfolio Analysis
• Competitor Analysis
• Industry Analysis
Corporate Portfolio Analysis
When the organization is in more than one business, it can select more than one strategic
alternative depending upon demand of the situation prevailing in the different portfolios. It is
necessary to analyze the position of different business of the business house which is done by
corporate portfolio analysis. This analysis can be done by using any of the seven technologies
given below:
1. Experience curve
2. PLC concept
3. BCG Matrix
4. GE nine cell Matrix
5. Space Diagram
6. Hofer’s product market evaluation matrix
7. Directional Policy Matrix
Depending upon the stage of the product life cycle of the business, one can make a strategic choice
for different portfolio.
Competitor Analysis
In this analysis, we try to assess what the competitor has and what s/he does not have. We explore
everything with respect to the competitor. In competitor analysis, focus is on external environment
as one of the components of external environment is the competitor. The difference between
SWOT analysis and competitor analysis is that in competitor analysis we are concerned with only
one component of the environment i.e. competitor while in SWOT analysis we take about all the
factors of the environment.
Industry Analysis
In industry analysis, all the competitors belonging to the particular industry with which the
organization is associated are looked at. All the members of the industry are considered as a whole.
In competitive analysis, only the major competitors are assessed while in industry analysis all the
competitors belonging to the industry are looked at.
The strategic choice is a decision-making process which looks into the following steps:
Focusing on strategic alternatives
Evaluating strategic alternatives
Considering decision factors – objective factors and subjective factors.
Finally, making the strategic choice.
Strategic analysis
Strategic analysis involves the analysis of the internal and external environment of the
organization. It is conducted to ascertain the circumstance under which the organization is
operating for the purpose of strategy formulation.
The major components of strategic analysis are
• Conducting the environmental analysis
• Assessing the existing strategies to check whether they fulfill the goals
• Evaluate various strategic alternatives
• Adopting the most viable strategy.
Environmental analysis involves assessing all the forces and factors which surrounds the
organization. They are divided into internal and external environment analysis. The internal
environment of an organization comprises of the factors which only affects that particular
organization whereas external environment comprises of all the factors which affect the whole
industry and all the organizations of that industry. There are various techniques used for analyzing
the environment. A SWOT analysis is the most preferred technique for assessing the internal
environment of an organization with respect to the external environment. A SWOT analysis is used
for evaluating the strengths and weakness of an organization in accordance with the opportunities
offered and threats posed by the external environment. It helps in integrating strengths and
weaknesses with opportunities and threats for maximum utilization of already available resources.
A PESTLE analysis is a technique used for analyzing the external environment. It helps in
evaluating Political environment, Economic environment, Socio-cultural environment,
Technological Environment, Legal environment and Ecological environment. This analysis of the
external environment helps in assessing the opportunities and threats in the external environment.
It helps in assessing the conditions prevailing in the industry and hence enables an organization to
take necessary actions as a response to those conditions. The other techniques of analysis which
can be adopted by the organization are Porter’s five force model for industry analysis and Value
chain analysis for achieving core competencies
Business process objectives
Business process objectives refer to specific goals and targets set for the improvement,
optimization, or transformation of key processes within an organization. Business processes are
the structured activities that organizations use to produce goods or services, manage resources, and
achieve their overall strategic objectives. Setting objectives for these processes is essential for
enhancing efficiency, effectiveness, and overall performance.
Here are key aspects to consider:
a) Efficiency Improvement: One common business process objective is to enhance efficiency.
which may involve streamlining workflows, reducing unnecessary steps, automating manual tasks,
or optimizing resource utilization. Efficiency improvements contribute to cost reduction and
increased productivity.
b) Quality Enhancement: Another objective is to improve the quality of products or services.
This may include implementing quality control measures, refining production processes, or
establishing quality assurance standards. Higher quality can lead to increased customer satisfaction
and loyalty.
c) Cost Reduction: Business process objectives often include targets for cost reduction. This could
involve identifying areas of waste, negotiating better supplier agreements, implementing cost-
effective technologies, or finding ways to operate more efficiently.
Key Results Area
Key Results Areas (KRAs) are an important concept in strategic management They help
organizations define and measure the most critical outcomes that contribute to the achievement of
strategic objectives. KRAs are often used to align individual and team goals with the overall
strategic goals of the organization. In the context of strategic management, KRAs play a crucial
role in ensuring that efforts are focused on the most important areas that drive success.
Each KRA is associated with measurable outcomes or key performance indicators (KPIs). These
metrics provide a basis for evaluating performance and progress in the respective area. The use of
specific, measurable, achievable, relevant, and time-bound (SMART) criteria is common when
defining KRA-related objectives
Examples of KRAs:
In a sales department, a KRA could be "Increase sales revenue by 20% in the next fiscal year."
In a customer service team, a KRA might be "Achieve a customer satisfaction rating of 90% or
above."
For a product development team, a KRA could be "Launch three new products in the upcoming
quarter."
Strategy implementation
Strategic implementation is the stage where the formulated strategies are executed. This is the
phase of activating the strategies. Implementation of strategies involves exercising control over
strategies while they are being implemented. Strategic implementation is the process of converting
strategies into practices.
This stage involves the following phases:
i. Setting goals
ii. Develop plans
iii. Structuring the organization
iv. Allocating resources
v. Communicating the plans and goals
vi. Motivating the employees
vii. Establishing leadership
The process of strategic implementation consists of three main elements as shown in the figure

Operationalizing of strategy is concerned with setting up of targets and plans, objectives, allocation
of resources and communication of strategies. Establishing the organization structure and
leadership leads to the institutionalization of strategies. Success is not only ensured by formulating
a good strategy but it also requires effectively implementing the formulated strategies. The key
factor to effectively implement a strategy is proper allocation of resources. The institutionalization
of strategies requires a complete blend of strategies into the organization. This requires collective
efforts at all levels of management and by all the employees of the organization.
Strategic Stretch
"Strategic stretch" refers to the intentional pursuit of ambitious goals or objectives that go beyond
an organization's current capabilities and resources. It involves pushing the organization beyond
its comfort zone to achieve higher levels of performance, innovation, and competitiveness.
Strategic stretch is a proactive approach that encourages companies to reach for more ambitious
targets, fostering growth, adaptability, and long-term sustainability.
Key aspects of strategic stretch include:
1)Ambitious Goals: Organizations engaging in strategic stretch set ambitious and challenging
goals that require them to stretch their current capabilities. These goals are usually aligned with
the organization's long-term vision and strategic objectives.
2)Innovation and Creativity: Strategic stretch often involves a commitment to innovation and
creativity. Companies may need to explore new technologies, business models, or market
opportunities to achieve their ambitious goals.
3)Risk-Taking: Pursuing strategic stretch involves a level of calculated risk-taking. Organizations
must be willing to take on new challenges and uncertainties, understanding that not all initiatives
may succeed. This risk is managed through thorough analysis and strategic planning.
4)Resource Allocation: Companies engaging in strategic stretch may need to reallocate resources,
including financial resources, human capital, and technology investments, to support the pursuit
of their ambitious goals. This may involve prioritizing certain projects or business units over
others.
Strategic Fit
Strategic fit" refers to the alignment or compatibility between different elements of a business
strategy. It involves ensuring that various components of an organization's strategy work
harmoniously together to support the overall goals and objectives. Strategic fit is crucial for
achieving coherence and synergy across different aspects of the business
a) Alignment with Mission and Vision The strategy of an organization should align with its
overarching mission and vision. This ensures that the company is moving in a direction that is
consistent with its long-term purpose
b) Consistency Across Functional Areas Strategic fit requires consistency across different
functional areas of an organization, such as marketing, finance, operations, and human resources.
All departments should work cohesively to support the overall strategic direction.
c)Fit with External Environment The strategy should be in harmony with the external
environment, including market conditions, industry trends, and regulatory factors. Organizations
need to adapt their strategies to changes in the external environment to maintain strategic fit
d) Resource Allocation:Strategic fit involves aligning resource allocation with strategic priorities.
This includes financial resources, human capital, technology, and other assets. Efficient resource
allocation ensures that the organization can effectively execute its strategy.
Strategic decision making.
Strategic decision concept is based on strategy which is a major action in an organization. Strategic
decision making is a major choice of actions concerning allocation of resource and contribution to
the achievement of organizational objectives. It has following characteristics: -
(i) The strategic decision affects the whole part of organization and largely relates to the
responsibilities of senior management.
(ii) It contributes directly to the achievement of objectives.
(iii) It has normally three elements ----
(a) Action element, which specifies the work to be done
(b) Result element, which specifies the desired result to be achieved through the implementation
of decision.
(c) Commitment element, which directs to undertake the course of action, makes personnel
involvement for attaining the objective and allocates resources to them.
It is normally a non programmed decision which is made under the condition of partial ignorance.
The fundamental strategic decision relates to the choice of a mission. With regard to objective
setting, the senior management is faced with alternatives regarding the different criteria to measure
performance. Then they select the strategy from a number of strategic alternatives in order to adopt
one specific course of action for achievement of goals and realization of mission.