This is an important but not the only objective of business. We normally set-up business to achieve profits but it’s not be done at the cost of rules and regulations. Corporate social activity is an important function of all organizations. Sports View- Formula 1 mein sabko 1st aana hai toh overtaking karenge...arey par aisi overtaking bhi nahi karni chahiye jaha pe bada accident ho jaaye ya dusre driver ko chot lag jaaye...

Hume lambi race ka ghoda hona chahiye. Jab bhi soccho long-term soccho aur aisa koi kam na karo jisse abhi toh profit ho par baad mein survival pe hi khatra ho jaaye. So survival is the basic objective of business organizations. It has more importance during initial stage of set-up and economic adversity. Iska matlab aap market mein A/c's ke naye teacher ho toh pehle toh aap survive karna chahoge aur baad mein kamayi.Aise hi koi particular sector doob raha hai toh sabse imp. survival ho jaata hai. Survival hi nature of ownership and competence of management batata hai. Par ab survival se aage sochte hai kyunki ye akela objective nahin hai...Sports View-Test match ka last day..90 overs to play...200 runs ka target aur 4 wicket haath mein...target ko dekho bhi mat...sirf wicket bachao..survive....

It is a cautious and a conservative approach. Har kadam fook-fook kar rakhna hai. It is the strategy of least resistance in a hostile environment. Isme company apna SWOT analysis karti hai.

We try to achieve the best in our field. Efficiency in terms of Labour productivity, energy consumption and quality control. Kam kharcha karke best quality ka maal banana hi efficiency hai...Team ke all rounders...ek player mein do ka faayda..

Profit bade, Revenue bade , Production , Employees and  prosperity. It is equated with dynamism, promise and success. Assets bad gaye, better manufacturing. facilities, better market share ya acquisition of other enterprise. Par isme risk aur promise dono hai...F1 ki Force India team...

All these factors don’t exist in isolation but interact with each other to create a different influence. Due to large no. of factors, it becomes difficult to understand which factors constitute a given environment.Hum env. ko in parts toh samajh sakte hai par uske saare factors ko totality mein samajh pana mushkil hai...

Yaar market , region ya country jisme humari

Logo mein latest technology ka craze hai. Internet ne toh sab change kar diya hai. Iski wajah se kayi naye business aa gaye hai aur kafi ka band baj gaya hai. Toh technological change ka analysis karo. Kya opportunity hai, kya risk hoga aur role of R&D. Ex. Dell computers apna inventory mgnt computerised kar diya hai yaani less paper work..

Basic aim of business is to create and retain customers. Graahak bhagwaan hota hai .right?

• Who are the customers?
• What benefits are they looking for?
• What are their buying patterns !!!!!!!!!!

Self analydsis of organisation is the most important thing. organisation must know its vision, mission, objective, goal, and above all, its TRIGGERS and DRIVING FORCE.

Jang-e -maidaan ..........Some important issues in market study:

• Cost structure of market
• Price senstivity of market
• technological structure of market
• Existing distribution system in market
• is market mature? matlab ready for marketing!

It influences business in great quantum. Customers ke saath connection intermediaries hi karwaate hain !!! Example : Big bazaar!!!

Competitors wo sabhi dusri business entities hai jo compete karte hai for resources and market stake!!

• Who are the competitors?
• What’s their present and future strategy and their business objective?
• Who are the MOST AGGRESSIVE & Powerful Competitors?

• GUIDELINES for achieving predetermined goals and objectives
• Can be VERBAL or WRITTEN
• Developed on the basis of the organisation's RESOURCES and CAPABILITIES
• Draw the SCOPE OF DECISION MAKING
• DYNAMIC in nature
• Generally MEANT for SUB-ORDINATES
• Can be developed for WHOLE organisation or SEPARATELY for each functional area

STRATEGY AND SM

It is believed that strategic decision making is the responsibility of top management. However, it is considered useful to distinguish between the levels of operation of the strategy.

Strategy operates at different levels viz-à-viz:

• Corporate level

• Business level

• Functional level

There are basically two categories of companies; one, which have different businesses organized as different directions or product groups known as profit centres or strategic business units (SBUs) and other, which consists of companies which are single product companies. Eg. Reliance Industries and Ashok Leyland Limited.

The SBU concept was introduced by General Electric Company (GEC) of USA to manage product business. The fundamental concept in the SBU is the identification of dicrete independent product/market segments served by the organization. Because of the different environments served by each product, a SBU is created for each independent product/segment. Each and every SBU is different from another SBU due to the distinct business areas (DBAs) it is serving.

Each SBU has a clearly defined product/market segment and strategy. It develops its strategy according  to its own capabilities and needs with overall organizations capabilities and needs. Each SBU allocates resources according to its individual requirements for the achievement of organizational objectives. As against the multi product organizations, the single product organizations have single strategic  business unit. In these organizations, corporate level strategy serves the whole business. The strategy is implanted at the next lower level by functional strategies. In multiple product company, a strategy is formulated for each SBU (known as business level strategy) and such strategies lie between corporate and functional level  strategies.

The three levels of strategy are explained as follows;

Corporate level strategy:

At the corporate level, strategies are formulated according to organization wise policies. These are value oriented, conceptual and less concrete than decisions at the other two levels. These are characterized by greater risk, cost and profit potential as well as flexibility. Mostly, corporate level strategies are futuristic, innovative and pervasive in nature. They occupy the highest level of strategic decision making and cover the actions dealing with the objectives of the organization. Such decision are made by top management of the firm. The examples of such strategies include acquisition strategies, diversification, structural redesigning, etc. The board of directors and chief executive officer are the primary groups involved in this level of strategy making. In small and family owned businesses, the entrepreneur is both the general manager and the chief strategic manager

Business Level Strategy:

The strategies formulated by each SBU to make best use of its resources given the environment it faces, come under the gamut of business level strategies. At such a level, strategy is a comprehensive plan providing objectives for SBUs, allocation of resources among functional areas and coordination between them for achievement of corporate level objectives. These strategies operate within the overall organizational strategies i.e within the broad constraints and policies and long term objectives set by the corporate strategy. The SBU managers are involved in this level of strategy. The strategies are related with a unit within the organization. The SBU operates within the defined scope of operations by the corporate level strategy and is limited by the assignment of resources by the corporate level. However, corporate strategy is not the sum total of business strategies of the organization. Business strategy relates with the “how” and the corporate strategy relates with the “what”. Business strategy defines the choice of product or service and market of individual business within the firm. The corporate strategy has impact on business strategy.

Functional  level Strategy:

This strategy relates to single functional operation and the activities involved therein. This level is at the operating end of the organization. The decisions at this level within the organization are described as tactical. The strategies are concerned with how different functions of the enterprise like marketing, finance, manufacturing, etc contribute to the strategy of other levels. Functional strategy deals with a relatively restricted plan providing objectives for specific function, allocation of resources among different operations within the functional area and coordination between them for achievement of SBU and corporate level objectives

Sometimes a fourth level of strategy also exists. This level is known as the operating level. It comes below the functional level strategy and involves actions relating to various sub functions of the major function. For example, the functional  level  strategy of marketing function is divided into operating levels such as marketing research, sales promotion, etc

The three levels of strategies have different characterstics as shown below;

• Coz it helps in knowing mission
• helps in forming the vision.
• helps in setting the objective.
• helps in crafting the goal.
• IT sets a benchmarks and process to fill up the gap.

• current product?
• core product?
• secondary product?

• hamare competitors kaun hai?
• their strategies
• wat they think of themselves
• and wats your competitive advantage

• listing down the wishes
• focusing on available opportunities
• focus on strength on which business can rely upon  and can bring some major changes in business.

• the internet and the new e-commerce opportunities and threats it breeds in the industry.
• increasing globalization.
• changes in the long-term industry growth rate.
• product innovation.
• marketing innovation.
• entry or exit of major firms.
• diffusion of technical know-how across more companies and more countries.
• changes in cost and efficiency.

Ansoff's product/market matrix

• The terminology is more acceptable, especially the portion covering the harvest and / or divest section of the matrix.

• Multiple factors are taken into account in determining where a business fits on the two dimensions.

• Further the 3 categories for industry attractiveness and business strength result in finer distinctions among businesses, especially those that are average. (9 option available)

* The ADL matrix from Arthur D. Little is a portfolio management method that is based on product life cycle thinking.   The ADL portfolio management approach uses the dimensions of environmental assessment and business strength assessment. The environmental measure is an identification of the industry's life cycle. The business strengths measure is a categorization of the corporation's SBU's into one of five (6) competitive positions: dominant, strong, favorable, tenable, weak (and non-viable). This yields a 5 (competitive positions) by 4 (life cycle stages) matrix. Positioning in the matrix identifies a general strategy.   In the ADL approach, the line of business or SBU is not especially defined by a product or organizational unit. The strategist must identify discrete businesses by finding commonalties among products and business lines using the following criteria as guidelines: Common rivals Prices Customers Quality/Style Substitutability Divestment or liquidation This assessment of the industry life cycle stage of each business is made on the basis of: Business market share, Investment, and Profitability and cash flow.   The competitive position of a firm is based on an assessment of the following criteria: Dominant: Rare. Often results from a near monopoly or protected leadership. Strong: A strong business can usually follow a strategy without too much consideration of moves from rivals. Favorable: Industry is fragmented. No clear leader among stronger rivals. Tenable: Business has a niche, either geographical or defined by the product. Weak: Business is too small to be profitable or survive over the long term. Critical weaknesses. Known limitations of the ADL matrix include: There is no standard length of life cycles, Determining the current industry life cycle phase is awkward, Competitors may influence the length of the life cycle.