Business Policy
, and
Strategic Management
(Text and Cases)
PREFACE
Intensified competition among domestic private and public sector companies and multinational
companies consequent upon globalisation along with strides in information technology brought paradigm
shifts in strategic management of various companies. These shifts resulted in the emergence of new
concepts like strategic intent, virtual organizations, strategic alliances, value chain analysis and the like.
, The overwhelming response from the students, Lecturers, Professors and heads of various Business
Schools of various universities in India, Papua New Guinea and other countries to my earlier edition of
the book inspired me and my publishers to bring out this second and enlarged edition of the book on
‘Business Policy and Strategic Management’.
The current edition is endowed with latest information and developments including value chain
analysis, strategic intent, emergent strategies, internal and external environment analysis and the like in
multiple modes like up-dated text, Boxes, Figures, Tables, Exhibits and Cases.
The current edition covers a number of latest developments, in addition to presenting the following
new chapters:
• Global Strategic Management
• Functional Level Strategies
• Social Responsibilities and Ethics of Business
• Corporate Governance: A Strategy for Sustainable Development
• Corporate Strategic Failures
Many students particularly from Indian Universities, Business Schools and Management Institutes
and the School of Business Administration, UPNG, Papua New Guinea and students from other
universities across the developing countries provided on-line feedback for the earlier edition of the
book. I, immensely thank them for their support and encouragement. Particularly, I would like to
express my gratitude to Prof. Albert C. Mellam, Executive Dean and Prof. David Kavanamur, School
of Business Administration, University of Papua New Guinea, Papua New Guinea and Prof M.
Gangadhara Rao, my teacher and the Vice-Chancellor, GITAM University.
Mr. Niraj Pandey, Mrs. Ujjwale Pandey, Mr. Anuj Pandey, Mr. Vijay Pandey, Mrs. Poopathi and
Mrs. Nimisha of Himalaya Publishing House have provided immense support in bringing out this revised
edition. I thank all of them immensely.
My wife Mrs. Pulapa Rama Devi and my little friends Master Nitin Sai and Rohan Sai were put in
inconvenience during the period of revising this book. I express my gratitude to them.
I request the students, teachers and other readers to write to me with their comments and
suggestions via e-mail.
Port Moresby, Papua New Guinea Pulapa
Subba Rao
27th November 2009
pulapas@redi
ffmail.com
CONTENTS
• THE STRATEGIC MANAGEMENT PROCESS 1 – 30
• Why Strategy?
, • What is Strategy?
• Why is Strategy More Complex?
• Strategic Management
• Strategic Management Process: Strategic Fit vs. Strategic Intent
Points to be Remembered-Key Words- Questions for Discussion-References
• THE STRATEGIST AND STRATEGIC DECISION-MAKING 31 – 48
• The Manager: Tasks and Roles
• The Strategist: Shareholders, Board of Directors and the
CEO, Role of Executives in Strategic Management
• Strategic Decision-Making: Drivers of Success in, and Approaches to.
Points to be Remembered-Key Words- Questions for Discussion-References
• ESTABLISHING CORPORATE DIRECTION 49 – 83
• Introduction
• Vision
• Mission
• Business Definition
• Objectives
Points to be Remembered-Key Words- Questions for Discussion-References
• EXTERNAL ENVIRONMENT SCANNING AND INDUSTRY ANALYSIS
84 – 128
• Introduction
• International Environment
• Social and Cultural Environment
• Technological Environment
• Economic Environment
• Political Environment
• Natural Environment
• Industry Analysis
Points to be Remembered-Key Words- Questions for Discussion-References
• INTERNAL ENVIRONMENT: CAPABILITIES AND COMPETENCIES
1
29 – 162
• Resources and Capabilities
• Core Competencies
• Value Chain Analysis and Outsourcing
• Strengths and Weaknesses Analysis
• Competitive Strength Assessment
• Corporate Capability Factors
• Diagnosing Corporate Capabilities
Points to be Remembered-Key Words- Questions for Discussion-References
, and
Strategic Management
(Text and Cases)
PREFACE
Intensified competition among domestic private and public sector companies and multinational
companies consequent upon globalisation along with strides in information technology brought paradigm
shifts in strategic management of various companies. These shifts resulted in the emergence of new
concepts like strategic intent, virtual organizations, strategic alliances, value chain analysis and the like.
, The overwhelming response from the students, Lecturers, Professors and heads of various Business
Schools of various universities in India, Papua New Guinea and other countries to my earlier edition of
the book inspired me and my publishers to bring out this second and enlarged edition of the book on
‘Business Policy and Strategic Management’.
The current edition is endowed with latest information and developments including value chain
analysis, strategic intent, emergent strategies, internal and external environment analysis and the like in
multiple modes like up-dated text, Boxes, Figures, Tables, Exhibits and Cases.
The current edition covers a number of latest developments, in addition to presenting the following
new chapters:
• Global Strategic Management
• Functional Level Strategies
• Social Responsibilities and Ethics of Business
• Corporate Governance: A Strategy for Sustainable Development
• Corporate Strategic Failures
Many students particularly from Indian Universities, Business Schools and Management Institutes
and the School of Business Administration, UPNG, Papua New Guinea and students from other
universities across the developing countries provided on-line feedback for the earlier edition of the
book. I, immensely thank them for their support and encouragement. Particularly, I would like to
express my gratitude to Prof. Albert C. Mellam, Executive Dean and Prof. David Kavanamur, School
of Business Administration, University of Papua New Guinea, Papua New Guinea and Prof M.
Gangadhara Rao, my teacher and the Vice-Chancellor, GITAM University.
Mr. Niraj Pandey, Mrs. Ujjwale Pandey, Mr. Anuj Pandey, Mr. Vijay Pandey, Mrs. Poopathi and
Mrs. Nimisha of Himalaya Publishing House have provided immense support in bringing out this revised
edition. I thank all of them immensely.
My wife Mrs. Pulapa Rama Devi and my little friends Master Nitin Sai and Rohan Sai were put in
inconvenience during the period of revising this book. I express my gratitude to them.
I request the students, teachers and other readers to write to me with their comments and
suggestions via e-mail.
Port Moresby, Papua New Guinea Pulapa
Subba Rao
27th November 2009
pulapas@redi
ffmail.com
CONTENTS
• THE STRATEGIC MANAGEMENT PROCESS 1 – 30
• Why Strategy?
, • What is Strategy?
• Why is Strategy More Complex?
• Strategic Management
• Strategic Management Process: Strategic Fit vs. Strategic Intent
Points to be Remembered-Key Words- Questions for Discussion-References
• THE STRATEGIST AND STRATEGIC DECISION-MAKING 31 – 48
• The Manager: Tasks and Roles
• The Strategist: Shareholders, Board of Directors and the
CEO, Role of Executives in Strategic Management
• Strategic Decision-Making: Drivers of Success in, and Approaches to.
Points to be Remembered-Key Words- Questions for Discussion-References
• ESTABLISHING CORPORATE DIRECTION 49 – 83
• Introduction
• Vision
• Mission
• Business Definition
• Objectives
Points to be Remembered-Key Words- Questions for Discussion-References
• EXTERNAL ENVIRONMENT SCANNING AND INDUSTRY ANALYSIS
84 – 128
• Introduction
• International Environment
• Social and Cultural Environment
• Technological Environment
• Economic Environment
• Political Environment
• Natural Environment
• Industry Analysis
Points to be Remembered-Key Words- Questions for Discussion-References
• INTERNAL ENVIRONMENT: CAPABILITIES AND COMPETENCIES
1
29 – 162
• Resources and Capabilities
• Core Competencies
• Value Chain Analysis and Outsourcing
• Strengths and Weaknesses Analysis
• Competitive Strength Assessment
• Corporate Capability Factors
• Diagnosing Corporate Capabilities
Points to be Remembered-Key Words- Questions for Discussion-References
