1. Business Policy and Strategy
Lecture-03

2. Recap Nature of Business Strategy
Importance of strategic planning- Strategic Tools
Globalization
Benefits
Ecommerce
Advantages

3. Today’s Lecture
Important Terminologies in Business strategy and policy
Vision & Mission
Comparison of vision and mission
Long Term Objectives
Strategies
Policies
Strategists

4. Importance Terminologies
Adapting to change
Continuous monitoring of internal and external factors
Timely Decision
Incremental rise in degree of change
1. Technology
2. E-commerce
3. Merger-mania
Example: Laser surgery, War on terrorism, economic recession, technology advancement

5. Importance Terminologies
Strategists
The main decision takers
chief executive officer, president, owner, chair of the board, executive director, chancellor, dean, or entrepreneur
Design strategies
Responsible for success or failure of venture
Differ from organization to organization
Philosophy, attitudes, values, ethics, willingness to take risks, concern for social responsibility, concern for profitability, concern for short-run, versus long-run aims and management style

6. Strategists Strategists helps an organization:
To gather, analyze, and organize information
Track industry and competitive trends
Develop forecasting models and situation analyses
Evaluate corporate and divisional performance
Spot emerging market opportunities
identify business threats
develop creative action plans

7. Who is Strategist?
Any manager who has responsibility for a unit or division, responsibility for profit and loss outcomes, or direct authority over a major piece of the business is a strategic manager

8. Important Terminologies
Vision Statement
What do we want to become?
Vision includes the basic concept of what the organization is all about—its purpose for being
Concentrates on the future
First step in strategic planning
Our [Amazon's] vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online." Amazon's

9. Important Terminologies
Mission Statement
A Mission statement talks about HOW you will get to where you want to be.
Defines the purpose and primary objectives related to your customer needs and team values
It answers the question, “What do we do? What makes us different”
A mission statement talks about the present leading to its future.
“To inspire and empower people affected by cancer”
Lifestrong

10. COMPARISION Mission Statement Vision Statement
A Mission statement talks about HOW you will get to where you want to be.
A Vision statement outlines WHERE you want to be.
It answers the question, “What do we do? What makes us different”
It answers the question, “Where do we aim to be?”
A mission statement talks about the present leading to its future.
A vision statement talks about your future.
Your mission statement may change, but it should still tie back to your core values, customer needs and vision.
Your vision should remain intact, even if the market changes dramatically, because it speaks to what you represent, not just what you do.
It lists the broad goals for which the organization is formed.
It lists where you see yourself some years from now. 

11. Important Terminologies
SWOT Analysis
S: Strength
W: Weaknesses
Strengths and weaknesses are determined relative to competitors
Management, marketing, finance/accounting, production/operations, research and development, and computer information systems
O: Opportunities
T: Threats
Economic, social, cultural, environnemental, political, legal, governmental, technological, and competitive trends
Opportunities and threats are largely beyond the control of a single organization

12. Important Terminologies
Objectives can be defined as specific results that an organization seeks to achieve in pursuing its basic mission
Long-term objectives represent the results expected from pursuing certain strategies.
Strategies represent the actions to be taken to accomplish long-term objectives.
Strategies are the means by which long-term objectives will be achieved
Annual objectives are short-term milestones that organizations must achieve to reach long-term objectives
Policies are the means by which annual objectives will be achieved

13. Summary Important Terminologies in Business strategy and policy
Vision & Mission
Comparison of vision and mission
Long Term Objectives
Strategies
Policies
Strategists

14. Next Lecture Intuition and analysis Benefit of Strategic Planning
Pillars of intuition
Benefits of intuition in decision making
Benefit of Strategic Planning