Name- Madhuri Lohiya (4th Sem)

Subject- Strategic Management

SID- 22347

1. What is the importance of Strategy?

Ans: A method or plan chosen to bring about a desired future, such

as achievement of a goal or solution to a problem.

Having a clear and focused strategy is critically important to the

success of your business, and without a well-defined strategy, yours
may stall or even fail.
If you can take the emotion out of your decision making process, you'll
have a business and a team that is more focused, more productive,
and more profitable.
A successful strategic plan does the following:
1. Provides Direction and Action Plans It establishes in a clear,
concise and strategically sound way
 the direction for the organization
 how this will be achieved, including detailed action plans
2. Prioritizes and Aligns Activities Strategic planning is about making
choices, establishing priorities, allocating resources to strategic
initiatives and coordinating to achieve desired results.

3. Defines Accountabilities It defines clear lines of accountability and

timelines for achieving expected results on the agreed strategic
initiatives.
4 .Enhances Communication and Commitment In clarifying the vision
and accountabilities, the strategic plan increases the alignment of all
organizational activities and fosters.

5. Provides a Framework for Ongoing Decision Making Since all

decisions should support the strategy, the strategy and the strategic
initiatives are the reference point for decision-making.
You have to have a plan for day to day business, but you also need to
spend time looking and listening to the changes that are happening in
your industry. It is a matter of having both a daily plan to get things
done and an overarching strategy to guide those daily plans so you
make progress towards your long-term goals.
If you don't have a business plan in place, you're not alone. Honestly,
it took me a while before I was willing to admit that a business plan
was what we needed to reach our goals as a company. It takes time
and energy to sit down and write something like this. Time and energy
that could be spent running and growing your business. I've been
there. I get it.
But let me ask you this: are you happy with how things are going? Do
you have an awesome product or service that you believe in? Is there
potential for more growth, more money, more effeciency in your
business?
A business plan can help you answer these questions and get a
plan for how to improve things.
Since making the decision to become more strategic about our own
business plan, I have seen my company double in size and revenue
with no signs of slowing down. Using a strategic approach to planning
has been the difference between us staying an Average Joe local
business and becoming a regional leader in I.T. services.
One area that many business either don't consider or don't want to
spend time creating a strategy around as part of their larger business
plan is disaster recovery. Disasters are a part of life - earthquakes,
tornadoes, rogue employees. But that doesn't mean you have to be
caught off guard.
Planning or designing a strategy involves a great deal of risk and
resource assessment, ways to counter the risks, and effective
utilization of resources all while trying to achieve a significant purpose.

An organization is generally established with a goal in mind, and this

goal defines the purpose for its existence. All of the work carried out
by the organization revolves around this particular goal, and it has to
align its internal resources and external environment in a way that the
goal is achieved in rational expected time.

Undoubtedly, since an organization is a big entity with probably a huge

underlying investment, strategizing becomes a necessary factor for
successful working internally, as well as to get feasible returns on the
expended money.
Strategic Management on a corporate level normally
incorporates preparation for future opportunities, risks and market
trends. This makes way for the firms to analyze, examine and execute
administration in a manner that is most likely to achieve the set aims.
As such, strategizing or planning must be covered as the deciding
administration factor.
Strategic Management and the role it plays in the
accomplishments of firms has been a subject of thorough research
and study for an extensive period of time now. Strategic Management
in an organization ensures that goals are set, primary issues are
outlined, time and resources are pivoted, functioning is consolidated,
internal environment is set towards achieving the objectives,
consequences and results are concurred upon, and the organization
remains flexible towards any external changes.

As more and more organizations have started to realize that

strategic planning is the fundamental aspect in successfully assisting
them through any sudden contingencies, either internally or
externally, they have started to absorb strategy management starting
from the most basic administration levels. In actuality, strategy
management is the essence of an absolute administration plan. For
large organizations, with a complex organizational structure and
extreme regimentation, strategizing is embedded at every tier.

Apart from faster and effective decision making, pursuing

opportunities and directing work, strategic management assists with
cutting back costs, employee motivation and gratification,
counteracting threats or better, converting these threats into
opportunities, predicting probable market trends, and improving
overall performance.

Keeping in mind the long-term benefits to organizations,

strategic planning drives them to focus on the internal environment,
through encouraging and setting challenges for employees, helping
them achieve personal as well as organizational objectives. At the
same time, it is also ensured that external challenges are taken care
of, adverse situations are tackled and threats are analyzed to turn
them into probable opportunities
2.Explain Core Value And Core purpose?

Ans: In the modern business era, we constantly hear the terms core
values, mission statements and culture and we have integrated them
in the business language among many other terms. But what are
company core values? Why are they so important? In this blog post
we are going to discuss the importance of core values and why it is
important to have core values in your organization.
Core values are what support the vision, shape the culture and
reflect what the company values. They are the essence of the
company’s identity – the principles, beliefs or philosophy of values.
Many companies focus mostly on the technical competencies but
often forget what are the underlying competencies that make their
companies run smoothly — core values. Establishing strong core
values provides both internal and external advantages to the
company:
Core values help companies in the decision-making processes.
For example, if one of your core values is to stand behind the quality
of your products, any products not reaching the satisfactory standard
are automatically eliminated.
Core values educate clients and potential customers about what the
company is about and clarify the identity of the company. Especially
in this competitive world, having a set of specific core values that
speak to the public is definitely a competitive advantage.
Core values are becoming primary recruiting and retention tools.
With the ease of researching companies, job seekers are doing their
homework on the identities of the companies they are applying for
and weighing whether or not these companies hold the values that
the job seekers consider as important.
"Core purpose. . . is the organization's fundamental reason for being.
When properly conceived, purpose is broad, fundamental and
enduring; a good purpose should serve to guide and inspire the
organization for years, perhaps a century or more"

"Core values are the organization's essential and enduring tenets - a

small set of timeless guiding principles that require no external
justification; they have intrinsic value and importance to those inside
the organization"

In the centuries since our founding, the meaning of a proper

education, the characteristics of the student body, and the definitions
of prosperity and community have changed considerably. The
curriculum has expanded from classical studies to include a wide
variety of arts and sciences and professional offerings at the
undergraduate and graduate level. The College has evolved from a
local institution to one that encompasses people and programs from
all over the globe.

The following list reveals the steps leading to finding what the core
values of your company are:
Select 5-7 people who have a gut-level understanding of your
core values, are distinguished as the highest performers, and are well
respected by their peers and management team. Why gut-level?
Core values are predisposed to your employees. You cannot “install”
the core values into people. These 5-7 people become your Mars
group.
Ask the Mars group to list what they think the core values of
the organization are. Then ask them the subsequent questions
relating to each of the core values they have chosen:
Are the core values that you hold to be fundamental regardless of
whether or not they are awarded?
If you woke up tomorrow morning with enough money to retire
for the rest of your life, would you continue to hold on to these core
values?
Can you envision these values being as valid 100 years from
now as they are today?
Would you want the organization to continue to hold these
values, even if at some point, they became a competitive
disadvantage?
If you were to start a new organization tomorrow in a different
line of work, would you build the core values into the new
organization regardless of its activities?