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Notes for mba (strategic management) unit i • 1. STRATEGIC MANAGEMENT ___ Semester III UNIT – I STRATEGY AND PROCESSConceptual Framework for Strategic Management, The Concept of Strategy and the Strategy FormationProcess – Stakeholders in Business – Vision, Mission and Purpose – Business Definition, Objectives andGoals – Corporate Governance and Social Responsibility – Case Study CONCEPTUAL FRAMEWORK FOR STRATEGIC MANAGEMENTIn earlier times, the managers focused on “today‟s decisions for today‟s business”. However therapid changes experienced by companies have made the managers to anticipate the future andprepare for it. They have prepared systems, procedures and manuals and evolved budgets andplanning and control systems, which included capital budgeting and management by objectives.The inadequacy of these techniques has led to the emergence of long range planning which inturn gives rise to strategic planning subsequently to strategic management.Strategic management deals with decision making and actions which determine an enterprise‟sability to excel survive or die by making the best use of a firm‟s resources in a dynamicenvironment.
The main purpose of study of strategic management is to examine why someorganization succeed while others fail and yet others completely change.Consider the following examples: Bharat Heavy Electricals Ltd. (BHEL) is now planning to expand its range to 800 MW supercritical power projects. LG Electronics India Ltd. The longest day colorized download. (LGEIL) signed a MOU with Maharashtra government to expand manufacturing facility at Pune for Rs.900 crores. GAIL India has received an offer from China Gas Holdings for participation in a gas based petrochemical project to be set at Humor in Mangolia.