role of strategic_management

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Question1: A well- formulated strategy is vital for growth and development of any

organization. Explain corporate strategy in different types of organizations.

A well-formulated strategy is vital for growth and development of any Organization—

whether it is a small business, a big private enterprise, a public sector company, a

multinational corporation or anon-profit organization. But, the nature and focus of

corporate strategy in these different types of organizations will be different, primarily

because of the nature of their operations and organizational objectives and priorities.

Small businesses, for example, generally operate in a single market or a limited number of

markets with a single product or a limited range of products. The nature and scope of

operations are likely to be less of a strategic issue than in larger organizations. Not much of

strategic planning may also be required or involved; and, the company may be content with

making and selling existing product(s) and generating some profit. In many cases, the

founder or the owner himself forms the senior/top management and his (her) wisdom gives

direction to the company.

In large businesses or companies whether in the private sector, public sector or

multinationals — the situation is entirely different. Both the internal and the external

environment and the organizational objectives and priorities are different. For all large

private sector enterprises, there is a clear growth perspective, because the stakeholders

want the companies to grow, increase emarket share and generate more revenue and

profit. For all such companies, both strategic planning and strategic management play

dominant roles.

Multinationals have a greater focus on growth and development, and also diversification in

terms of both products and markets. This is necessary to remain internationally competitive

and sustain their global presence. For example, multinational companies like General

Motors, Honda and Toyota may have to decide about the most strategic locations or

configurations of plants for manufacturing the cars. They are already operating multi

location (country) strategies, and, in such companies, roles of strategic planning and

management become more critical in facilities, resource allocation and control.

In public sector companies, objectives and priorities can be quite different from those in the

private sector. Generation of employment and maximizing output may be more important

objectives than maximizing profit. Stability rather than growth may be the priority many

times. Accountability system is also very different in public sector from that in private

sector. There is also greater focus on corporate social responsibility. The corporate planning

system and management have to take into account all these factors and evolve more

balancing strategies.

In non-profit organizations, the focus on social responsibilities is even greater than in the

public sector. In these organizations, ideology and underlying values are of central strategic

significance. Many of these organizations have multiple service objectives, and the

beneficiaries of service are not necessarily the contributors to revenue or resource. All these

make strategic planning and management in these organizations quite different from all

other organizations. The evaluation criteria is also different.

Question 2: Businesses need to be planned not only for today, but also for tomorrow, that

is, for the future which implies business continuity. Write the importance of business

continuity planning. Explain any two strategies for business continuity planning.

Business continuity planning (BCP) “identifies an organization’s exposure to internal and

external threats and synthesizes hard and soft assets to provide effective prevention and

recovery for the organization, while maintaining competitive advantage and value system

integrity”. It is also called business continuity and resiliency planning

BCP means proactively working out a means or method of preventing or mitigating the

consequence of a disaster- natural or manmade and managing it to a limit to the level or

degree that a business unit can afford.

Importance of business continuity planning

Business today can be exposed to different types of threats- natural or manmade. Major

threats are:

 Natural disasters like flood or earthquake or accidents

 Manmade threats like sabotage or terrorism

 Financial crisis or disaster can be partly manmade or partly due to environmental

factors

BCP prepares companies to prevent or respond to such situations so that the damage or

losses are minimized and the business or company survives. Thus BCP plays a critical role in

a business- its survival and sustainability.

Strategies for business continuity planning

There are five different strategies:

1. Prevention

2. Response

3. Resumption

4. Recovery

5. Restoration

Prevention: Prevention is the best strategy. Companies can adopt many control measures as

safeguards. Common preventive control measures are:

1. Security controls: manned surveillance at the location

2. Infrastructure Controls: Use of UPS/Back up power, Smoke/fire detectors etc….

3. Personnel Controls: Skilled/ trained personnel posted to an sensitive zones where

key resources are located

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Question1: A well- formulated strategy is vital for growth and development of any organization. Explain corporate strategy in different types of organizations. A well-formulated strategy is vital for growth and development of any Organization— whether it is a small business, a big private enterprise, a public sector company, a multinational corporation or anon-profit organization. But, the nature and focus of corporate strategy in these different types of organizations will be different, primarily because of the nature of their operations and organizational objectives and priorities. Small businesses, for example, generally operate in a single market or a limited number of markets with a single product or a limited range of products. The nature and scope of operations are likely to be less of a strategic issue than in larger organizations. Not much of strategic planning may also be required or involved; and, the company may be content with making and selling existing product(s) and generating some profit. In many cases, the founder or the owner himself forms the senior/top management and his (her) wisdom gives direction to the company. In large businesses or companies whether in the private sector, public sector or multinationals — the situation is entirely different. Both the internal and the external environment and the organizational objectives and priorities are different. For all large private sector enterprises, there is a clear growth perspective, because ...
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