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? It gives a clear vision of internal and external
environment of a business firm
? Focus on what is most important and how it is to
be managed for success of business.
? Understanding of problem, its nature ,its threats,
its controls and implications.
? Appropriate decisions to implement the
strategies evolved to achieve the desirable
objectives.
? A continuous monitoring and evaluation of the
progress through the path to the goals
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¦. Clarifying the mission of corporation
2. Defining the business
3. Surveying the environment
? acro environmental factors


  
   

’atural Technological Legal Govt Policies

? Environmental factors specific to business

concerned
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Supplier Factors Govt. Policies
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? Spotting the opportunities & threats

? Checking the attractiveness and probability
position of these opportunities
? Highlighting those opportunities the pursuit of
which will help the firm bridge its strategic
planning gap
? Developing the opportunities-threats profiles
(OTP)
4. Internal appraisal of the firm.
? Assessing the firm¶s capabilities/strengths &
weakness in the various areas:

 
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Operations R&D General anagement
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J Developing the strength-weakness profile

J Appraising the individual businesses/strategic
businesses units (SBU) of the firm
J Identifying the competitive advantage and core
competencies and developing the competitive
advantage profile (CAP).
J Examining the capability gap (gap between the
existing capabilities and the ones needed for
pursuing spotted opportunities)
Ñ. Setting the corporate objectives.
‡ Framing the broad aims of the corporation ,using the
corporate mission as the guide.
‡ Examining the strategic planning gap and checking the
growth scope
‡ Fixing the growth objective
‡ Setting the objectives in all major areas:
-Growth in assets, sales, profits, market shares

Profitability Competitive Position Technology

Productivity R&D and Innovation Human Resources
Corporate Image Social Responsibilites

‡ Prescribing the hierarchy /Rank / Priorities of the objectives

ÿ. Formulating the corporate strategy : Exploring generic
alternatives.
‡ Examining which generic strategy the firm should opt for:
‡ Stability ?
‡ Expansion ?
‡ Divestment ?
‡ Combination ?
‡ Understanding the effect of the alternatives in terms of
changes /additions / deletions to the firms existing product
market posture.
‡ Clarifying the competitive advantage and synergy which
each alternative would require / use.
-. Formulating the corporate strategy : Strategy Choice

‡ Evaluating the strategy alternatives

‡ Keeping the OTP, the growth objective and CAP as the
reference frame, examining what strategy would be the
best
‡ Reviewing the existing businesses
Assessing the prospects of each SBU
Examining what to do with each SBU
-Build ? aintain ? Harvest ? Divest ?
-To what extent ?
-At what pace ?
‡ Examining which new businesses are to be taken up
‡ Examining the resource requirement of the different
strategy options and checking the resource availability
‡ ake the final choice of the strategy / Strategy Spectrum
‡ Translating the strategy in terms of what is to be done with
each SBU
-Assigning the priorities to the SBUs , existing as well as
new ones
-Clarifying what is expected to each SBU
- Allocating resources to the SBUs
8. onitoring the strategy.