Lecture-1

1. What is Strategy?

Strategy means a proper plan to achieve a goal. It is like a step-by-step method that helps
someone reach a future target from the present situation.

Example: A student making a study routine to do well in exams.

2. What is Organizational Strategy?

Organizational strategy means a company’s long-term plan to reach its goals by using resources
properly. It includes:

• setting company goals

• using resources wisely
• matching market demand
• helping top management take good decisions

Example: Apple invests a lot in R&D because innovation is their main strategy.

3. What is Strategic Management?

Strategic management is the process of managing an organization to ensure long-term success.

It includes:

• analyzing internal and external environment

• making strategies
• implementing strategies
• checking performance and controlling results

4. Phases of Strategic Management

This topic explains how companies gradually move from simple planning to advanced strategic
management.

(1) Basic Financial Planning

• Companies only plan based on the annual budget.

• The planning period is usually 1 year.
• Managers focus only on short-term money matters.

Example: Preparing next year’s income and expense budget.

(2) Forecast-Based Planning

• Companies start planning for the next 5 years.

• They predict future trends based on current information.
• They collect some external market information but not regularly.

Example: Predicting sales growth for the next 5 years.

(3) Externally Oriented (Strategic) Planning

• Top management controls the planning.

• Planning is focused on market competition and customer demand.
• Special planning staff and consultants help to make strategic plans.

This stage happens because companies realize normal forecasting is not enough.

(4) Strategic Management

This is the most modern and best stage. Here:

• Managers and employees from different departments participate

• Strategies focus on action plans, implementation, evaluation, and control
• Instead of only forecasting, companies prepare different scenarios and backup strategies
• Strategic thinking becomes continuous throughout the year.

5. Guidelines for Strategic Management

These are the important rules for effective strategic management: Main guidelines:

• Set clear goals.

• Strategy must match mission and vision.
• Involve stakeholders (employees, customers, investors).
• Always adapt to change.
• Scan the environment continuously.
• Assign roles and responsibilities properly.
• Communicate strategy clearly.
• Measure performance regularly.
• Encourage innovation culture.
• Top management must support and guide strongly.

These guidelines help organizations to successfully implement strategies.

6. Benefits of Strategic Management

Strategic management is useful because it gives organizations many advantages.

Major benefits:

• Clear direction and vision= Employees understand where the company is going.
• Better decision making= Managers take decisions based on analysis, not guessing.
• Better coordination=Departments work together smoothly.
• Improved adaptability=Companies can quickly respond to market changes.
• Employee motivation=Workers feel involved and important.
• Risk management=Organizations can identify future threats early.
• Competitive advantage=The company becomes stronger than competitors.

7. Challenges of Strategic Management

Even though strategic management is helpful, organizations face many problems.

A) Impact of Globalization= Globalization means doing business worldwide.

Challenges include:

• cultural differences
• language barriers
• legal and regulatory issues
• managing supply chains internationally
• complex matrix business structure

B) Impact of Innovation and Technology= Technology changes very fast.

Challenges:

• need for new innovation regularly

• upgrading systems and machines
• high cost of technology
• risk of becoming outdated

But it also creates opportunities for growth.

C) Impact of Sustainability

Sustainability means running business in a way that protects future generations.

It focuses on the Triple Bottom Line:

• Profit (financial success)

 • Social responsibility (stakeholder satisfaction)
• Environmental responsibility (protecting nature, obeying environmental laws)

So companies must balance profit with society and environment.

8. Theories of Organizational Adaptation

This topic explains how organizations survive in changing environments.

(1) Population Ecology Theory. This theory says:

• once a company is established, it becomes rigid

• it cannot easily change
• if environment changes, the company may fail and disappear

Example: Some old companies went bankrupt because they could not adapt.

(2) Institutional Theory. This theory says:

• Companies can adapt by copying successful companies

• They follow similar strategies, culture, and structure

Example: Many companies copied Amazon’s delivery system.

But the problem is: it does not explain how new strategies are created.

(3) Strategic Choice Perspective. This theory says:

• Organizations can adapt and even influence the environment

• Management decisions play a big role in success

Example: Apple created a new market by introducing iPhone.

(4) Organizational Learning Theory. This theory says:

• Organizations learn from experience

• They use knowledge to improve performance
• Employees at all levels contribute ideas

So learning becomes a competitive advantage.

 Lecture-2
1. Discuss the Strategic Management Model

Strategic management model explains the full process of strategy-making. It has 4 main
elements:

(1) Environmental Scanning

Environmental scanning means collecting and analyzing information from:

External environment:

• competitors
• customers
• economy
• government laws
• technology

Internal environment:

• Employees
• Management
• Finance
• Production system

The goal is to identify strategic factors. The easiest tool is SWOT Analysis.

(2) Strategy Formulation

This is the stage where organizations make strategies. It includes:

• identifying competitive advantage

• setting mission and vision
• setting objectives
• creating policies and guidelines

This is basically the “planning stage”.

(3) Strategy Implementation

This stage means turning strategy into real action. It includes:

 • preparing programs
• making budgets
• setting procedures
• changing structure and culture if needed
• assigning responsibilities

Even the best plan will fail if implementation is weak.

(4) Evaluation and Control

This stage means checking the results. Managers compare:

• actual performance vs expected performance

If there are problems, corrective actions are taken. This step is important because it improves
the strategy process again.

2. Vision, Mission, and Goals

This is a very important topic.

Vision

• Vision means what the company wants to become in the future. It gives inspiration and
long-term direction.

Example: Tesla wants to lead the world into electric vehicles.

Mission

• Mission means why the company exists. It explains what the company offers and its
purpose.

Example: Unilever wants to make sustainable living common.

Goals

• Goals are specific targets that help achieve the mission and vision. They are SMART
(Specific, Measurable, Achievable, Relevant, Time-based).

Example: Increasing market share or profit.

Vision = What, Mission = Why, Goals = How

3. Components of Mission Statement

A good mission statement should include many important parts. Main components:

• Customer – who the company serves

• Product/Service – what the company offers
• Market – where the company operates
• Technology – what technology it uses
• Core competency – what the company is best at
• Organizational culture – values and beliefs
• Survival and growth – future sustainability
• Public perception – company image in society
• Employee management – how employees are treated

Example: Johnson & Johnson mission focuses on customer satisfaction and service quality.

4. Competitive Market Dynamics

This part discusses competition in business. Competition depends on five forces called Five Forces
Model:

Five Forces

1. Customers

• Customers want low price and high quality.

• Strong customers reduce company profit.

2. Suppliers

• Suppliers can increase price of raw materials.

• Strong suppliers increase company cost.

3. Substitute Products

• Other alternative products can replace the company’s product.

• Example: Tea is substitute of coffee.

4. New Entrants

• New companies entering the market increase competition.

5. Competitive Rivalry
 • Competition among existing firms (price war, marketing war, innovation war).

These forces affect how profitable and competitive an industry is.

5. What is SWOT Analysis and How It is Used in Business Policy Formulation?

SWOT analysis is a tool used to understand a business position. SWOT stands for:

S = Strengths

• Internal advantages.

Example: strong brand, skilled employees.

W = Weaknesses

• Internal limitations.

Example: weak management, low capital.

O = Opportunities

• External chances to grow.

Example: new market, increasing demand.

T = Threats

• External dangers.

Example: competitors, inflation, new laws.

# Use of SWOT in Business Policy. SWOT helps companies to:

• use strengths to capture opportunities

• reduce weaknesses
• prepare for threats
• make better strategies and policies

SWOT connects internal capability with external environment.

 Lecture-3
1. What is Environmental Scanning?

Environmental scanning means collecting and analyzing information from both inside and
outside the organization. Main purpose

It helps a company to:

• understand its environment

• identify problems early
• find opportunities
• take better strategic decisions

There are mainly two environments:

• External Environment
• Internal Environment

2. Types of External Environment

(A) Natural Environment

This includes things related to nature such as: climate, natural resources, wildlife, ecological
system These factors affect business because industries depend on nature for raw materials
and survival.

(B) Societal Environment

This refers to society-related forces that do not affect daily business directly but affect long-
term business decisions. It includes 4 major forces:

1. Economic forces

These include:

money flow, inflation, income level, exchange of goods and services

2. Technological forces

These include: inventions, innovation, new technology that makes work easier

3. Political-Legal forces

These include: government rules, laws, regulations, taxation policies

4. Sociocultural forces

These include: people's lifestyle, values, beliefs, customs and traditions

(C) Task Environment

Task environment includes groups or people that directly affect the business, such as:

customers, suppliers, competitors, employees/labor unions, government, creditors, trade

associations, special-interest groups, local communities.

This environment is mostly connected with the industry where the company works.

3. Industry Analysis

Industry analysis means studying an industry deeply to understand competition and success
factors. Michael Porter made this popular. It helps a company identify which external factors
can lead to:

• success
• failure
• industry growth or decline

4. Eight Current Sociocultural Trends

These are modern trends in society that affect business:

1. People are more aware about the environment

2. People are becoming more health conscious
3. Senior citizen market is growing
4. Millennials have strong influence
5. Mass market is declining (people want customized products)
6. Lifestyle pace and location is changing
7. Household structure is changing
8. Workforce and markets are becoming more diverse

5. Porter’s Five Forces Model

This model explains how competitive an industry is. Five forces are:

1. Threat of New Entrants

• How easy it is for new companies to enter the market.

• High entry cost reduces this threat.
2. Threat of Substitutes

• Customers may shift to alternative products.

Example: Tea vs Coffee.

3. Bargaining Power of Buyers

If buyers are powerful, they can demand:

• lower price
• better quality

4. Bargaining Power of Suppliers

• If suppliers are few, they can increase prices.

5. Rivalry Among Existing Competitors

If competition is strong, companies may face:

• price wars
• heavy advertising
• reduced profit

Lecture-4
1. What is Internal Scanning?

Internal scanning means analyzing the internal environment of a company to identify:

• Strengths, Weaknesses

Internal scanning helps management understand:

• what the company is good at

• where it lacks resources
• how to improve competitive advantage

2. Internal Environment

Internal environment includes all factors inside the company that management can control in the short
run.

Example: employees, management system, finance, technology, culture

3. Resources

Resources are company assets. Types of Resources

A) Tangible Resources

Physical assets such as: land, building, machinery, equipment, cash, investment, location

B) Human Resources

Employees and their qualities: skills, experience, motivation, training

C) Intangible Resources

Non-physical assets: brand image, reputation, patents, copyrights, organizational culture

4. Capabilities

Capabilities mean the company’s ability to use resources effectively.

Capabilities are based on: business process, routines, coordination

Example:

A company may have good employees, but if they cannot work together, capability is weak.

5. Competency

Competency is when different capabilities work together to achieve good performance.

Example: New product development requires:

• marketing capability
• R&D capability
• production capability
• information system capability

6. Core Competency

Core competency is a special competency that:

• works across different divisions

• is very strong
• provides long-term competitive advantage

Example: If a company is excellent in innovation in every department, innovation becomes its core
competency.
7. Distinctive Competency

Distinctive competency is when the company’s core competency is much better than competitors.

Example: General Electric is famous for management development.

8. Barney’s VRIO Framework

VRIO framework checks whether a resource can provide sustainable competitive advantage.

VRIO meaning:

V = Value

Does the resource create value for customers?

R = Rareness

Is it rare or unique?

I = Imitability

Is it hard or expensive to copy?

O = Organization

Is the company structured and organized to use it properly?

If all 4 conditions are satisfied, then the company gains strong competitive advantage.

9. Value Chain

Value chain means the series of activities that add value to a product.

It starts from: raw material from suppliers and ends at: final product delivered to customers

Value chain includes: inbound logistics, operations, marketing, distribution, after-sales service

It is useful because it helps a company understand where value is created and where cost can be
reduced.

10. Industrial Value Chain

Two major parts:

Upstream activities

• supplier side
• raw materials
Downstream activities

• distribution
• marketing
• customer delivery

11. Corporate Value Chain

Corporate value chain means value chain activities of the whole corporation (all divisions and
departments).

12. Organizational Structure (Functional Resources & Capabilities)

The lecture includes different organizational structures:

1. Simple structure

Small company, one boss controls everything.

2. Functional structure

Organization divided into functions like: HR, Marketing, Finance, Production

3. Divisional structure

Divided based on: products, regions, customer groups

4. Strategic Business Units (SBUs)

Large divisions that work like independent businesses.

5. Conglomerate structure

A large company owning many unrelated businesses.

13. Corporate Culture

Corporate culture means the company’s working style and environment.

It includes: values, rules, beliefs, behavior of employees

Culture affects employee motivation and performance.

14. Strategic Functional Issues

Lecture 4 also discusses important internal functional areas:

Strategic Marketing Issues

segmentation, market position, marketing mix, product life cycle, brand image
Strategic Financial Issues

budgeting, financial planning, profit analysis

Strategic R&D Issues

research, innovation, new product development

Strategic Operations Issues

production efficiency, quality management, supply chain

Strategic HRM Issues

employee recruitment, training and development, motivation and evaluation

Strategic Information System Issues

IT infrastructure, technology management, data systems

15. Strategic Decision Making for a Multinational Company

This part gives an 8-step process for better decisions:

• Evaluate current performance (profit, ROI, mission etc.)

• Review corporate governance (board and top management performance)
• Scan external environment (Opportunities & Threats)
• Scan internal environment (Strengths & Weaknesses)
• Analyze factors and revise mission/objectives if needed
• Select best strategy
• Implement strategy using budget, programs, procedures
• Evaluate and control strategies using feedback system

16. SWOT Analysis

SWOT is used to identify company situation.

SWOT meaning:

• Strengths = what company does best

• Weaknesses = what company lacks
• Opportunities = chances in market
• Threats = dangers in environment

Why SWOT is useful?

Because it helps:
 • identify competitive advantage
• find opportunities that company can use
• understand problems and threats

Limitations of SWOT:

• mostly opinion-based
• strengths can become weaknesses
• opportunities can become threats
• no proper customer focus
• only works for one-time situation

Lecture-5 & 6
1. Strategy Formulation

Strategy formulation means making long-term plans for an organization. It includes deciding the
company’s mission, goals, strategies, and policies.

First, the organization analyzes its situation by checking:

• Internal strengths and weaknesses

• External opportunities and threats

The aim is to match what the company is good at with market opportunities while avoiding
risks.

2. Considerations for Setting Objectives

When an organization sets objectives, they should be:

• Realistic – achievable in real life

• Clearly stated – easy to understand
• Aligned with strategy – support overall plans
• Regularly reviewed – updated when needed
• Helpful for goals – lead toward success

Objectives should be SMART:

Specific, Measurable, Accurate, Relevant, Time-bound

3. Types of Strategy

a) Corporate Strategy

This is the highest-level strategy, made by top management. It decides:

• Which businesses to enter or leave

• How to grow (merger, acquisition, partnership)
• How to use company resources

The main goal is long-term profit and competitive advantage.

b) Business Strategy

This focuses on how to compete in a specific market or industry.

It answers: How will we win against competitors?

c) Functional Strategy

These are department-level plans, such as:

• Marketing strategy
• Financial strategy
• HR strategy

They support business and corporate strategies.

4. Porter’s Competitive Strategies

Michael Porter suggested three generic strategies:

a) Cost Leadership

Producing goods or services at the lowest cost compared to competitors.

b) Differentiation

Offering unique products or services, such as better quality, features, or service.

c) Focus

Serving a specific market segment or group better than competitors.

5. First Mover Advantage

The first mover advantage means the benefit a company gets by entering the market before its
competitors. Being the first allows a firm to shape customer expectations and market
standards.

• Market orientation: First movers understand customer needs early and design products
accordingly. This helps them set trends in the market.
• Brand value: Customers remember the first brand they see. This builds strong brand
image and trust.
• Customer loyalty: Early customers often stay loyal, making it harder for new
competitors to attract them.
• Strategic advantages: First movers can secure better locations, suppliers, and
partnerships.
• Economies of scale: Producing early and in large quantities reduces cost per unit.
• Supply chain management: First movers can build strong supplier networks, creating
entry barriers for others.

Example: Tesla entered the electric vehicle market early and became a market leader with
strong brand recognition.

6. Outsourcing

Outsourcing refers to hiring external firms to perform certain business activities instead of
doing them internally. Companies use outsourcing to improve efficiency and reduce operational
burden.

A business solution

→ Outsourcing solves problems like skill shortage or high internal cost.

Asset utilization

→ Companies do not need to invest heavily in machinery or infrastructure.

Access to greater expertise and better technology

→ Outside firms often have skilled professionals and advanced technology.

Lower costs

→ Labor and operational costs are reduced.

Less development time

→ Work is completed faster by specialized vendors.

Elimination of peaks-and-valleys usage

→ Firms avoid underuse or overuse of resources.

7. Boston Consulting Group (BCG) Matrix

The BCG Matrix helps analyze a company’s product or business portfolio using:

• Market growth rate

• Market share

a) Question Marks

• High growth, low market share

• Need heavy investment
• Risky but may become stars

b) Stars

• High growth, high market share

• Strong performers
• Generate good profit

c) Cash Cows

• Low growth, high market share

• Generate excess cash
• Support other products

d) Dogs

• Low growth, low market share

• Weak position
• Usually sold or discontinued

Limitations of BCG Matrix

• Too simple
• Market share does not always mean profit
• Growth rate is not the only factor
 • Ignores small but growing competitors

8. Managing a Strategic Alliance Portfolio

A study of 25 leading European corporations identified four important tasks for managing
multiple alliances successfully.

1. Developing and implementing a portfolio strategy

→ Corporate level sets general alliance rules while business units manage specific alliances.

2. Monitoring the alliance portfolio

→ Alliances are evaluated based on goals, financial performance, and partner contribution.

3. Coordinating the portfolio

→ Coordination avoids conflicts and creates synergy among alliances.

4. Establishing an alliance management system

→ Formal systems, tools, and departments support alliance management.

9. Grand strategy selection matrix

1. Quadrant I: Strong Position & High Growth

Market penetration

Market penetration means selling more of the same product in the same market. The company
tries to increase sales by attracting more customers, improving promotion, or offering better
prices.

Market development

Market development means selling existing products in new markets. This can be entering new
areas, regions, or targeting new types of customers.

Product development

Product development means introducing new or improved products for existing customers. This
helps the company meet changing customer needs and stay competitive.

2. Quadrant II: Weak Position & High Growth

Need strategy change

This means the company must change its current strategy because it is not performing well in a
fast-growing market.

Improve competitiveness

Improve competitiveness means becoming stronger than competitors by improving quality,

reducing cost, or using better marketing strategies.

3. Quadrant III: Weak Position & Low Growth

Cost cutting

Cost cutting means reducing unnecessary expenses to control losses and improve efficiency.

Asset reduction

Asset reduction means selling unused or unprofitable assets to reduce financial pressure.

Diversification or liquidation

Diversification means moving into new businesses or markets to survive.

Liquidation means closing the business and selling assets if no improvement is possible.

4. Quadrant IV: Strong Position & Low Growth

Diversification

Diversification means entering new markets or industries to find growth opportunities when
the current market is slow.

Joint ventures

Joint ventures mean working with another company to share resources, risks, and benefits.

Use strong cash flow for new opportunities

This means using excess cash generated by the business to invest in new projects or growing
markets.
 Lecture-7
1. What is Strategy Implementation?

It means putting the plan into action. After making a strategy, the company must actually do
the work using programs, budgets, and rules to achieve goals.

2. Common Problems During Strategy Implementation

Organizations often face problems like:

• Work takes more time than planned

• Unexpected problems appear
• Poor coordination between departments
• Employees are not skilled or trained enough
• Managers give weak leadership
• External issues (economy, market, etc.) cause trouble
• Tasks are not clearly defined
• Weak information systems

These problems make strategy execution difficult.

3. Who Implements Strategy?

Strategy is implemented by everyone in the organization:

• Top managers
• Department managers
• Supervisors
• Employees

So, implementation is a team effort.

4. What Must Be Done in Strategy Implementation?

Managers must create:

• Programs & Tactics → Action plans to do the work

• Budgets → Money planning to check if the strategy is realistic
• Procedures (SOPs) → Step-by-step rules for doing tasks properly

These help the strategy work smoothly.

5. Competitive Tactics

Tactics are small action plans used to apply strategy. Two types:

• Timing tactic → When to compete (first mover advantage)

• Market location tactic → Where to compete (offensive or defensive market action)

Good tactics help companies succeed.

6. Functional Strategy (Detailed but Easy Explanation)

Functional strategy means each department makes its own plan to support the company’s main
business goal.

1. Marketing Strategy

This focuses on:

• How to attract customers

• Pricing of products
• Advertising and promotion
• Market research

Example: A company gives discounts to increase sales.

2. Finance Strategy

This focuses on:

• Managing money
• Budgeting
• Investment decisions
• Reducing cost

Example: The finance department decides how much money can be spent on new projects.

3. HR (Human Resource) Strategy

This focuses on:

• Hiring good employees

• Training workers
• Employee motivation
• Performance evaluation
Example: HR arranges training programs to improve employee skills.

4. Operations Strategy

This focuses on:

• Production process
• Quality of products
• Supply chain management
• Delivery system

Example: A factory improves its production process to produce faster.

5. Technology Strategy

This focuses on:

• Using new technology

• Innovation
• Automation
• Digital systems

Example: A company uses software to manage customer service better.

7. Synergy (Detailed but Easy Explanation)

Synergy means: “Together we perform better than alone.” When departments or units work
together, the total result becomes stronger.

1. Sharing Knowledge

Departments share ideas, experience, and skills.

Example: Marketing shares customer feedback with product designers to improve the product.

2. Sharing Resources

Different departments use the same machines, office, or staff.

Example: Two departments use the same IT team instead of hiring separate teams.

3. Coordinating Strategies

All departments follow a common direction instead of working separately.

Example: Marketing and Sales work together for the same campaign.
4. Reducing Cost Through Scale

Producing more together reduces cost.

Example: Buying raw materials in large quantity gives discount.

5. Stronger Bargaining Power

Large combined buying power gives advantage in negotiation.

Example: A company buys supplies in bulk to get lower price from suppliers.

6. Creating New Business Ideas

When departments combine knowledge, new ideas are born.

Example: Technology team + Marketing team create a new mobile app for customers.

8. Six Sigma (Easy Detailed Explanation)

Six Sigma is a quality improvement method. Its main goal is to reduce errors, save cost, and
improve customer satisfaction. A good Six Sigma process tries to produce almost zero defects
(about 3.4 defects per million opportunities).

1. Find the Problem (Define)

This step means clearly identifying:

• What is the problem?

• Where is the problem happening?
• Who is affected by the problem?

Example: Customers are complaining about late delivery.

2. Measure Performance (Measure)

Here, the company collects data to understand the current situation:

• How often does the problem occur?

• How serious is the problem?

Example: Delivery is late in 20 out of 100 orders.

3. Analyze the Cause (Analyze)

In this step, the company tries to find the root cause of the problem.
 • Why is this problem happening?
• What is the real reason behind it?

Example: Delay happens because there are not enough delivery staff.

4. Improve the Process (Improve)

Now the organization takes action to fix the problem:

• Change the system

• Provide training
• Use better technology

Example: Hiring more delivery staff to reduce delay.

5. Control to Avoid Future Errors (Control)

This step ensures the problem does not come back again:

• Set rules and procedures

• Monitor performance regularly
• Use quality checks

Example: Monthly performance review of delivery time.

In one simple line: Six Sigma helps organizations identify problems, fix them properly, and
maintain quality.

Lecture-8
1. Stages of Corporate Development

As companies grow, they usually pass through some common stages:

• Small beginning: One person or a few people do all the work.

• Functional stage: The company grows and creates departments like marketing,
production, and finance.
• Divisional stage: The company becomes very large, adds many products, and creates
separate divisions for different businesses.

2. Organizational Life Cycle

Organizations grow and change over time, just like products. The stages are:
 • Birth: The organization is new.
• Growth: The organization expands quickly.
• Maturity: Growth becomes stable.
• Decline: Performance starts falling.
• Death: The organization may close down.

3. Types of Organizational Structures

Organizational structure means how work, authority, and responsibilities are arranged in a
company.

Traditional Structures

These are more fixed and formal.

Departmentalization means dividing work into departments:

• Functional: Based on work type (marketing, finance, production).

• Product: Based on products or services.
• Process: Based on steps of production.
• Customer: Based on customer type.
• Geographic: Based on location or region.

4. Line-and-Staff Organization

• Authority flows from top managers to lower employees.

• Clear chain of command.
• Managers control both main work and supporting work.

5. Contemporary Structures

These are more flexible and modern.

Matrix Structure

• Combines functional and product structure.

• Employees work on projects.
• Employees report to two managers: functional manager and project manager .

Advantages:

• Encourages teamwork.
• Uses resources efficiently.
 • Flexible and adaptable.
• Improves performance and skill development.

Disadvantages:

• Conflicts between managers.

• Confusion about authority.
• Team members may not work well together.

6. Committee Structure

• Decisions are made by a group, not one person.

• Committees may advise or take decisions.
• Helps coordination in the organization

7. Designing Effective Organizational Structures

Designing an effective organizational structure means arranging jobs, authority, and

responsibilities in a way that helps the organization achieve its goals efficiently. While designing
the structure, managers should consider the following points:

Clear goals

The organization must have clearly defined goals. The structure should help employees
understand what the organization wants to achieve and how their work contributes to those
goals.

Market needs

The structure should match market demands. If customers’ needs change frequently, the
organization should have a flexible structure to respond quickly.

Type of work

Different types of work need different structures. For example, routine work may need a formal
structure, while creative work needs a flexible structure.

Flexibility

The structure should be flexible so that changes can be made easily when needed, such as
changes in technology or market conditions.

Specialization
Work should be divided based on skills and expertise. Specialization increases efficiency and
improves the quality of work.

Accountability

The structure should clearly define who is responsible for what. This helps in controlling work
and evaluating performance.

Innovation

The structure should encourage new ideas and creativity, especially in competitive and dynamic
industries.

Future growth

Managers should design the structure by considering future expansion so that the organization
can grow without major problems.

8. Action Planning

Action planning is the process of deciding what actions will be taken, who will perform them,
when they will be done, and what results are expected. It helps turn plans into real actions.

Action Plan for a New Advertising Program

An action plan for a new advertising program should include:

What actions to take

Specific actions such as contacting advertising agencies and asking them to prepare proposals.

Time schedule

Clear starting and ending dates for each activity so that work is completed on time.

Responsible person

A specific person should be assigned responsibility for carrying out each action.

Monitoring person

Someone should be responsible for checking whether the work is being done on time and
properly.

Expected cost and results

The estimated cost of the program and the expected benefits, such as increased sales or brand
awareness.

Backup plan if things fail

Alternative plans should be prepared in case the original plan does not work successfully.

9. Management By Objectives (MBO)

Management By Objectives (MBO) is a management system where managers and employees

work together to set goals, and performance is measured based on how well those goals are
achieved.

Features of MBO

• Goals are set jointly by managers and employees.

• Employees clearly understand what is expected from them.
• Performance is evaluated based on results, not effort.

Steps of MBO

1. Set organizational goals

Top management sets overall goals for the organization.

2. Set individual goals

Managers and employees jointly set personal goals that support organizational goals.

3. Make action plans

Specific action plans are prepared to achieve the set goals.

4. Review performance regularly

Performance is reviewed periodically to see whether objectives are being achieved and to make
necessary corrections.
 Lecture-9
1. Role of Accounting in Strategic Business Planning

Accounting helps managers plan the future of the business. It provides financial information that
supports good decisions.

• Forecasting & planning: Predicts future income, cost, and profit.

• Budgeting: Helps plan how money will be spent.
• Risk management: Identifies financial risks and how to reduce them.
• Use of resources: Ensures money and assets are used properly.
• Regulatory compliance: Makes sure laws and rules are followed.
• Performance evaluation: Measures whether the business is doing well or not.
• Advisory role: Accountants advise management in decision-making

2. Role of IT in Strategic Business Planning

Information Technology supports strategy by improving speed, accuracy, and efficiency.

• Competitive advantage: Helps companies stay ahead of competitors.

• Digital transformation: Moves business processes to digital systems.
• Efficiency: Saves time and reduces cost.
• Innovation: Helps create new products and services.
• Data-based decisions: Uses data analytics for better decisions.
• Inventory automation: Controls stock automatically.
• Compliance: Helps follow rules and regulations.
• Customer experience: Improves service quality and satisfaction

3. How to Develop Strategic Plans

Strategic planning means deciding how the company will achieve its goals.

• Set mission and vision clearly.

• Analyze environment using SWOT.
• Define clear objectives.
• Create a unique value proposition.
• Prepare action plans and set priorities.
• Use resources efficiently.
• Involve stakeholders.
• Encourage teamwork.
• Focus on sustainability.
 • Use updated technology.
• Monitor and review plans regularly.
• Control performance and evaluate results

4. Role of Strategic Decision Maker in a Multinational Company

A strategic decision maker adds value by following a structured decision process.

1. Review current performance and strategies.

2. Evaluate corporate governance and management.
3. Analyze external environment (opportunities & threats).
4. Analyze internal environment (strengths & weaknesses).
5. Identify problems and adjust mission and goals.
6. Select the best strategy.
7. Implement strategies through budgets and programs.
8. Monitor results and control performance.

This process helps in handling complex and changing business environments.

5. Purpose of an Organization in Value Creation

Modern organizations aim to create value for all stakeholders, not only profit.

• Customers: Quality products and services.

• Employees: Fair salary and job security.
• Investors: Good return on investment.
• Creditors: Timely repayment.
• Government: Taxes and legal compliance.
• Regulators: Following rules.
• Society: Social responsibility and sustainability

6. How Accountants Add Value to an Organization

1. Help in Investment Decisions

Accountants analyze financial data to help management decide where and how to invest
money wisely.

2. Act as Strategic Partners

They support top management by giving financial advice for long-term business planning and
strategy.
 3. Control and Reduce Costs

Accountants identify unnecessary expenses and help reduce costs to increase profit.

4. Ensure Accurate and Timely Reporting

They prepare correct financial reports on time so stakeholders can make proper decisions.

5. Evaluate Performance

Accountants measure business performance using profit, cost, and efficiency indicators.

6. Manage Risks

They identify financial risks and suggest ways to reduce losses and uncertainty.

7. Provide Consultancy Services

Accountants advise on taxation, budgeting, sustainability, and financial improvement.

8. Maintain Internal Control Systems

They help set rules and procedures to prevent fraud, errors, and misuse of resources.

9. Support Financial Planning

Accountants help prepare budgets, forecasts, and future financial plans for the business.

Lecture-10
1. Strategic Planning and Policy for IT

This topic is about how an organization plans the use of technology to support its business
goals.

• Strategic planning means making a future plan for IT.

• IT policy means rules for using technology.
• It helps in decision making, setting rules, and aligning IT with business goals

2. IT Strategic Planning and Policy Checklist

This is a list of important things to include when making an IT plan:

• Executive summary → short overview of the plan

• Business assessment → understanding current business
• Alignment → making sure IT supports business goals
 • Vision and mission → future direction
• IT governance → who controls IT decisions
• Risk management → handling possible problems
• Timeline → plan schedule
• KPIs → how success will be measured
• Budget → cost planning
• Control mechanism → monitoring and control system

3. Strategic Approach to Connectivity

This topic explains how an organization plans its communication and network systems. It
focuses on:

• Strategic fit → matching technology with goals

• Infrastructure → network and system structure
• Security management → protecting data
• Individual skill → employee technical ability
• Collaboration → teamwork using technology
• Decision support system → systems that help managers make decisions

4. Strategic Planning for End-User Computing (EUC)

This means planning how employees use technology like laptops, apps, and data. Its benefits
are:

• Flexibility → work from anywhere

• Business agility → faster work
• Increased security
• Reduced cost
• Talent retention → employees stay happy with good tools

6. Sure! Here is the simple comparison table between VDI and DaaS:

Topic VDI (Virtual Desktop Infrastructure) DaaS (Desktop as a Service)

Virtual desktops managed by the Virtual desktops provided by a cloud

Meaning organization company
 Topic VDI (Virtual Desktop Infrastructure) DaaS (Desktop as a Service)

Managed by service provider (e.g., AWS,

Management Managed by internal IT team Azure)

Infrastructure Needs own servers and data center No need for own infrastructure

Cost High initial setup cost Lower upfront cost, pay as you use

Control More control over data and systems Less control compared to VDI

Organization responsible for updates and

Maintenance security Provider handles updates and security

Scalability Harder to scale Easy to scale up or down

Company runs virtual desktops on its own

Example server Using Microsoft Azure Virtual Desktop

Lecture-11
1. Why Information is Crucial for Any Organization?*

Information is very important because it helps organizations to:

• plan future activities

• take correct decisions
• communicate goals properly
• solve problems quickly
• grab new opportunities

If managers have too little information, they make decisions based on guessing.

If they have good quality information, they can manage better

2. Control of Information

Control of information means managing information so that it stays:

• accurate
• safe
• private
• accessible only to the right people

It includes formal control like:

• authorization
• verification

And informal control like:

• restriction
• blocking access

3. Principles of IT Related Control

These are the main principles used to control IT systems:

1. Security

Only valid users can access system and data.

2. Confidentiality

Secret business information must be protected (example: trade secrets).

3. Privacy

Personal information of customers/employees must be protected.

4. Processing Integrity

Data must be processed correctly, completely, and on time.

5. Availability

System should always be available when needed.

4. Internal Controls

Internal controls are the rules and procedures used to ensure the organization runs properly
and safely.

Internal controls help to:

• protect company assets

• keep accurate records
• ensure reliable information
• prepare correct financial reports
• improve efficiency
• follow company rules
• follow laws and regulations

Types of Internal Controls

1. Preventive Controls

Stops problems before happening. Example: hiring skilled workers, separating duties.

2. Detective Controls

Finds problems after they happen. Example: bank reconciliation, checking calculations.

3. Corrective Controls

Fixes problems and reduces damage. Example: backup system, correcting wrong entries

5. Information Management

Information management means collecting, storing, organizing, and using information properly.

It helps an organization to:

• make better decisions

• increase productivity
• ensure security
• keep information accessible

It manages both:

• digital data
• physical documents
6. Challenges in Information Management

Organizations face problems like:

• following laws and regulations

• too much data (data overload)
• difficulty in integrating new technology
• maintaining quality and consistency
• high cost

7. Prospects (Future Scope) of Information Management

In the future, information management will become more advanced because of:

• strong use of AI
• predictive analysis (forecasting future results)
• blockchain technology
• more advanced technologies

This will make information management more powerful and transformative.

Lecture 12
1. What is Strategic Risk? What are the sources of Strategic Risk?

Strategic risk means unexpected problems that reduce a company’s ability to carry out its
planned strategy.

Sources of Strategic Risk: There are **three main sources**:

a) Operations Risk

This risk comes from problems in daily operations or production.

Examples:

• Defective products
• Machine breakdown
• Wrong transaction processing
• Food or medicine contamination

If such problems are serious, they can harm the company’s strategy.
b) Asset Impairment Risk

Assets are things a company owns to earn future money (machines, buildings, patents). Asset
impairment risk happens when these assets lose value.

Types:

• Financial impairment – loss of asset value

• Intellectual property impairment – loss of patents, trademarks
• Physical impairment– damage to buildings or machines

c) Competitive Risk

This risk comes from changes in the market or competition.

Examples:

• Strong competitors
• New substitute products
• Changes in customer taste
• New laws or regulations

2. Franchise Risk

Franchise risk is not a direct risk, but a result of very high risk in operations, assets, or
competition.

It happens when customers, suppliers, or regulators lose trust in the company.

In serious cases, the whole business may fail.

3. Risk Assessment Techniques

Risk assessment means identifying possible risks before they occur.

Common techniques:

• Brainstorming – team discussion to find risks

• Checklists– using past experience to list risks
• SWOT analysis – strengths, weaknesses, opportunities, threats
• Delphi technique– expert opinions collected anonymously
• Root cause analysis – finding reasons behind past problems
• Interviews – talking with experts and stakeholders
4. Risk Management Techniques

Risk management means controlling and reducing risks.

a) Beliefs and Boundaries

Employees are empowered to make decisions but must balance profit, growth, and ethics.

b) Business Conduct Boundaries

These are rules about what employees must not do.

Examples:

• No conflict of interest
• No price fixing
• No sharing confidential information
• No insider trading
• No illegal payments

c) Incentives for Compliance

Rewards and punishments encourage employees to follow rules.

d) Internal Controls

Internal controls protect the organization from errors and fraud.

Types:

• Structural safeguards – clear authority and responsibility

• System safeguards – proper procedures and reports
• Staff safeguards – trained and skilled employees

e) Strategic Boundaries

These prevent wasting resources on activities that do not support company strategy.
5. Integrating Risk Assessment with Strategy

Risk management must be linked with strategy. Steps:

• Define risk limits

• Measure strategic performance
• Identify key risk indicators (KRIs)
• Develop risk response strategies
• Promote risk-aware culture
• Regular review
• Continuous monitoring

6. Impact of IT on Organization

Information Technology (IT) greatly affects businesses.

Positive Impacts

• Business strategy– supports e-commerce

• Organization culture– easy information sharing
• Structure – virtual and network organizations
• Management – better decision-making
• Work– changes job nature
• Workplace – remote work possible

Challenges

• High cost
• Need for training
• Technical risks
• Possible job loss
• Resistance to change

Lecture 13
1. What is Change Management?

Change management means planning and managing changes in an organization so that

employees can adapt easily and changes are successful.
2. Components of Effective Change Management

Important elements include:

• Understanding why change is needed

• Explaining change to stakeholders
• Building a strong team
• Creating a communication plan
• Involving employees continuously
• Reducing cultural stress
• Using proper tools
• Managing resistance
• Achieving quick results
• Continuous improvement

3. Steps in Change Management Process

The change process follows these steps:

• Preparing the organization

• Setting mission and vision
• Implementing change
• Making change permanent
• Reviewing and controlling change

4. Relationship between Performance and Control

Performance and control work together.

Steps:

• Set standards
• Measure performance
• Compare with standards
• Take corrective actions
• Promote connected policies

Good control systems help improve organizational performance.