25. Organization’s strategies and their types.

Organizational Strategy - Vision, Mission, Competitive Advantage

The first critical strategy element is Vision, Mission and Competitive Advantage, which describe the business a company is in, it's current and long term market objectives and the manner in which it differentiates itself from the competition.

-Focused Purpose

Clearly defining short-term purpose

Ensuring mission is realistic

Serving the best interests of all stakeholders

Defining a point of differentiation

-Future Perspective

Clearly defining long-term outlook

Appealing to the long-term interests of the company's stakeholders

Providing a foundation for decision-making

-Strategic Advantage

Competitive advantage is a key driver to forming an organizational strategy

Competitive advantage is clearly understood by all stakeholders

Employees clearly understand how their role supports the company's organizational strategy

Types

1. Functional Strategy

2. Portfolio strategy

3. Business strategy

4) Concentrated growth strategy

5) Integrated growth strategy

6) Diversified growth strategy

7) Reduction Strategy

26. The function of planning. Types of plans and the planning process principles. The function of planning

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said “Well plan is half done”. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.

According to Urwick, “Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.

Types of plans

Objectives: Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations.They serve as a guide for overall business planning.

Strategy: strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions,

(a) determining long term objectives,

(b) adopting a particular course of action, and

(c) allocating resources necessary to achieve the objective.

Policy: They are guides to managerial action and decisions in the implementation of strategy.

Procedure: Procedures are routine steps on how to carry out activities. Procedures are specified steps to be followed in particular circumstances.

Method: Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed.

Rule: Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion.

Programme: Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action.

Budget: It is a plan which quantifies future facts and figures. It is a fundamental planning instrument in many organisations.