Elements of political-legal environment

Political legal environment consists of :

1. Political environment :It is concerned with natural and direction of political forces related to management of public affairs.The elements of political environment that influence organization are :

A)Political system :It consists of ideological forces.Political,election procedures,and power center .A stable,efficient and honest political system is essential for the growth of organization.

B)Political industry :They consists of legislature,executive and judiciary.

• The legislature enacts laws that guide organizational activities.
• The executive implements the decisions of the legislature.It lays down policies,regulations and procedures that influence the of organization.
• The judiciary service as a watching.Its rulings influence organizational practices.It settles disputes and carries out judicial review.

C)Political philosophy :The political ideology can be democratic,totalitarian or a mix of both.Democracy vests power in the hands of people.Totalitarian vests power in the hands of the state.
Political philosophies influence organization's activities.Democracy provides greater role to private sector.Totalitarianism provides greater role to state.Mixed philosophies provide roles to both private sectors and state.
2. Legal environment :Legal environment refers to all the legal surrounding that affects organization's activities.It consists of an array of acts,rules,regulations,precedent,institutions and processes.It defines what organizations can be cannot do.

Legal environment is concerned with.

• Protecting the rights and interests of organizations,consumers,employees,and the society.Intellectual property rights are also produced.
• Providing grounds on which organizations activities can be carried out.It encourage of restrains activities by providing facilities to low abide rs.It gives punishments to low breakers.
• Regulations activities through legal provisions relating to licencing,employment,monopoly,foreign investment,foreign exchange,environment protection,consumer protection,product safety,industrial location,imports,exports,pricing,and taxation etc.
• Organization must ensure that there activities conform to the low of the land.They must comply with legal provisions in force.Changes in lows affects strategy.

The elements of legal environments that influence organization are:
A) Laws :They consist of an array of lows enacted by the parliament.They also protect the rights and interests of consumers labour,business,and society .They affects business organizations.
B) Courts of low :Courts are institutions established buy law solve legal.The supreme court is at the national level and is the highest levels of district courts are at district level.
C) Law administrators :Various law enforcement agencies ensure implementation of laws and the judgment of the courts of law.Governments agencies,lawyers,police and jail play important role in law administration.

Dynamics of internal environment

The dynamic forces in internal environment consists of :

1. Resources :Organization work with resources.They have a strategic importance.Organization resources can be :

• Human resources :They consist of managers and employees.Unique human resources provides strategic advantage.
• Physical resources :They consist of physical assets.They can be building,plants,equipment,production capacity,technology and ownership of natural resources.
• Financial resources :They consists of capital,cash,debtors creditors and loans.
• Intellectual resources :They are knowledge based. They can be patent,trademark,copyright,brand,software,goodwill and relationship.
• Information resources :Information is power.Its acquisition,storage,analysis and retrieval are very important.Recent developments in information communication technology have increase its importance.

2. Competencies :Competencies are possessed by available human resources in organization.They are represented by knowledge,skills,attitudes,experience and potential for development.Unique competencies possessed by employees provide strategic advantage.
3. Cultural :Cultural refers to shared values,norms,belief,customs,symbols and artifacts that guide behavior.Organization must operate within the framework of organization culture.It affects strategies.
4. Stakeholders :They have a stake in the performance of the organization.They can be:

• Customers :They buy and consume products of the organization.They can be consumers,business and institutions.
• Supplies :They supply resources and inputs.
• Competitors :They directly compete with the organization in the market place.
• Intermediaries :They are middleman,financial institution ,facilitators and service agencies.
• Labour unions :They are organization of workers acting collectively to protect their interests.
• Pressure group :They are interest groups that pressurize organizations to protect their rights and interests.Organizations must fulfill stakeholder expectations.
  

Environment and strategy

Environment influence strategic in the following ways :

1. Swot :Environment is the sources of strategic,weakness,opportunities and threats.Strategic combine strengths with opportunities.
2. Competition :Environment is the source of competition.The structure of industry impacts the natural of competition.
3. Resources :Environment influence the availability of unique resources.Demographic trends influence availability of employees and customers.
4. Returns :Environment affects the likely returns from alternative investment.

• Strategies must be adjusted to reflect changes in environment.Environment analysis is an important part of strategy formulation.
• External environment :It is located outside the organization.It is uncontrollable by the organization.It consists of political legal,economics,social cultural and technological forces.It provides opportunities and threats to the organization.
  

Nature of environment

The nature of environment is as follows :

1. Complex :Environment is complex.It is unpredictable .It consist of interacting events,conditions and influences arising from varied sources.Complexity provides uncertainly
   to environment.
2. Dynamic :Business environment is dynamic.It is continually changing is shape and character.Technological change greatly influence it.Globalization has brought competition everywhere its.Influence differs from industry to industry and firms within an industry.
3. Multi-faceted :Environment is multi-faceted.Different people perceive environmental changes differently.A particular change in the environment can be an opportunity for one organization but threat for another organization.
4. Far-reaching impact :Environment exerts far-reaching impact on organizations.It impact there capacity to achieve objectives.It provides strengths,weakness,opportunities and threats to the organization.
   

Meaning of environment

Organization are the product of environment.They operate in a dynamic environment.There environment is full of uncertainly,diversity,complexity, and high pace of technological change.Environment creates surprises.
Strategic management involves understanding and managing environmental forces.Organizations identify meaningful opportunities in the environment and match them with strengths to achieve strategic fit.
Environment refers to all internal and external forces which have a being on the development,performance,and outcomes of an organization.Such forces influence its ability to achieve objective.

• According to Jauch and Glueck :Environment includes factors outside the form which can lead to opportunities for or threats to firm.
• According Keith Davis :Business environment is the aggregated of all candidates,event and influence that surround and affect it.
• According to Robbins and Coulter :Environment refers to institutions of forces that effect the organization's performance.
  

Role of chief executive in strategic management

The chief executive is the executive head of the organization.He represents the management.
The
chief executive's principle duty is to define long-term direction and scope of the organization.He has ultimate responsibility for its success.He leads the formulation and implementation of the strategy. He guided by the board of directors.

• Formulation of strategic
• Implementation of strategic

1. Formulation of strategies :Strategy provides future direction and scope to the organization for gaining competitive advantage.The roles of chief executive in strategic formulation are :

• Key strategic role :The chief executive plays the role of chief architect in defining vision,mission,and objective of the organization.He conceptualizes and crafts strategic to achieve objectives.
• Decision making role :The chief executive makes strategic decisions related to strategy formulation .He makes strategic choice from among strategic options for achieving objectives.This role involves risk-taking.
• Resources planing role :This role of chief executive involves coordinated allocation of significant resources to planes.such plans can be organization wide or related to strategic business units or function.Resources can be people,money,technology,time and information.
• Negotiator role :Strategic must fulfill the expectation of various stakeholders of the organization.The chief executive balance there conflicting interest by negotiating disputes.The stakeholder can be owners,customers,employees,suppliers,government,labour unions,and financial institution.

2. Implementation of strategic :Implementation is putting strategy into action.The chief information about strategy to the implementers within the organization.He serve as a spokesperson for strategic implementation.

• Leadership role :The chief executive assumes overall leadership for the implementation of strategy.He inspire trust and self-confidence among implements of strategy.He ensures there participation.He motivates them for higher productivity.He provides direction for implementation of strategy.

• Organizer role :The chief executive is an organization builder.He determines the structure for strategy implementation.He establishes reporting relationship and span of control.He assigns authority and responsibility for petitions and people in the organization for key result areas.
• Resources manager role :The chief executive ensures officiant and effective mobilization,allocation and utilization of resources for implementation strategy.Budgets are preppier for management or resources.
• Monitoring :The chief executive monitors and evaluates the performance results of strategy implementation.He takes corrective actions to resolve performance problems.He handles unexpected distributors and crisis situation.
  

Dimentions of business

A business is an organization engaged in production and marketing of products.It achieve its objectives through customer satisfaction.It provides value to stakeholders.The dimension of business are :

1. Objectives :Profit is the main objective of business.Modern business organizations multiple objectives such a profit,growth,survival,market leadership ,social responsibility.
2. Customer groups :Customers occupy a central place in business.Business exits to satisfy customer needs.Customer group can be:

• Consumers :They are individuals and household.They buy products for ultimate use.
• Organizations :They buy products for business use,resell or to make other products.They can be industries,retailers,government and non-government organization.

3. Customer function :A business performance various functions related to customers.They can be related to product,price,place and promotion.They can be related to services to customers.Relationship management with customers in an important function of business.
4. Technologies :Business uses technologies to transform input into output.They are knowledge,skills,equipment,techniques and process required to perform customer functions.They can be high-tech or low-tech.
5. Change :Modern business organizations are constantly undergoing change.Technological advances,information communication technology evaluation,globalization and changing forces in environment produce change.

• Strategic management should carefully considered the above dimension business.

Process of strategic management

The process of strategic management consists of the following steps :

1. Understanding strategic position :Environmental dynamics,organizational capabilities and stakeholder expectation provide a basis for understanding the strategic position of a organization.Environment scanning service as the basis for understanding the strategic management position.It monitors and evaluates the changes and developments in the external and internal environment .External environment provides strengths and weakness.Their impact on strategy is assessed.
2. Making strategic choices :The strategic management involves making strategic choices from among alternative.They serve as the basis for formulation the following strategic.

• Corporate level strategy:It is organization wide.it provides overall direction and scope to the organization.it is concerned with adding value to the organization.
• Business level strategy :It is about how to compete successfully in a particular market.It aims to achieve advantage over competitors.
• Functional strategy :It is function-specific,such as marketing,finance,research and development.It is concerned with resources,processes and people.

3. Implementing strategy :Strategic management is concerned about turning strategic into action.It involve :

• Designing structure :The structure for strategic management is determined.It est abilities reporting relationship,span of control,chain of command.Human resources and acquired.
• Resources planing :Resources consist of people,money,technology,time and information.Resources are matched with opportunities .
• Management system :A strong management team is put together.Competent human resources are acquired ,develop,utilized and recanted.

4. Strategic control :This aspect strategic management is concerned with monitoring of performance result.Corrective actions are taken to resolve performance problem.It takes steps to make strategy work.
5. Feedback :It provides information for revision or improvement of strategic as needs.Evaluation and control serve as the sources of performance information.Environmental changes also necessitate the revision of strategic.

Importance of strategic management

Strategic management is important due to following reasons:

1. Participative management :Strategic management involves interaction at all levels of organization.It promotes participant management .It empowers employees.
2. Problem prevention :Strategic management enhances problem prevention capabilities of the organization.Problems anticipated and addressed during strategy formulation stage.This facilities problem presentation during strategy implementation.
3. Better options :Group interaction generated better strategic options at alternatives for strategic choice.
4. Motivation :Employees are motivation by performances reward relationship .This improves productivity and goal directed behaviour.
5. Reduced gaps and overlaps :Strategic management takes an integrated approach to resources allocation.This reduces gapes and overlaps in activities.Rules and responsibilities are clearly specified.Strategic fit facilitates effective resources utilization.
6. Change management :Strategic management reduces Resistance to change.The participative approach promotes participation and communication .Uncertainly is reduced.Strategic change is facilitated.
7. Financial benefit :Strategic management leads to higher profitability.
   
   
   

Characteristics of strategic management

They are:

1. Uncertain :Strategic management deals with future-oriented non-routine situation.They create uncertainly.Managers are unaware about the consequences of their decisions.
2. Complex :Uncertainly brings complexity for strategic management.Managers face environment which is difficult to comprehend.External and internal environment is analysed.
3. Organization wide :Strategic management has organization wide implication.It is not operation specific.It is a systems approach.It involves strategic choice.
4. Fundamental :Strategic management is fundamental for improving the long-term performance of the organization.
5. Long-term implication :Strategic management is not concerned with day-to-day operation.It has long-term implications.It deal with vision,mission and objective.
6. Implication :Strategic management ensure that strategic is put into action,implementation is done through action plans.
   

Concept of strategic management

Strategic is something that is important,critical,central and long-term for future direction.
Management gets the job done by working through people to achieving objectives effectively.
Strategic management refer to strategic decisions and actions of top management.It is concerned with implementation of strategic to achieve long-term objectives.It involves decision about allocation of significant resources which impact the long-term performance of the organization.Resources can be people,money,technology,time and information.

• According to Wheelen and Hunger :Strategic management is that set of managerial decision and action that determines the long-term performance of a corporation.
• According to Jauch and Glueck :Strategic management is a stream of decisions actions which lead to the development of an effective strategy or strategies to help achieve corporate objective.
• According Pearce and Robbinson :Strategic management is the set of decision and actions that result in the formulation and implementation of planes designed to achieve a company's objectives.
• According to Johnson and scholes :Strategic management included understanding the strategic position of an organization,strategic choices for the future,and turning strategic into action.

Strategic management provides guidance and future direction to organization.It makes strategic decisions.It facilitates coordinated allocation of the organization by turning strategic into action.

• Strategic management emphasizes environment and strategic factors.

Factors affecting objective formulation

Important factors affecting objective formulation are:

1. Size of the organization :Bigger size makes that objective formulation process complex.
2. Value system of top management :The objective formulation is affective by the value system of top management. Their philosophy,attitudes,aspiration and needs influence objective.

• Philosophy reflects the creed of the organization.It specific basic beliefs,values,aspiration and philosophical priorities of managers.

3.Level of management :Organizational objectives are set by managers.Different levels of managers set different kinds of objectives.

• Top level managers(board of director/general managers) :They are involved in determining vision,mission,strategy and overall objectives.
• Middle level managers (SBU managers ):They are involved in setting key result area objectives for strategic business units.
• Lower level managers (Functional heads):They are involved setting specific operational objectives for functions.

4. Organization culture :Culture is a system of shared set of values,beliefs and norms that guide behavior.
Organization culture is indicated by autonomy,mutuality of interests,climate of trust,feeling of belongings,team work,open communication,collaboration,performance based reward system risk taking and human focus.Objective formulation is affected by organizational culture.
5. Environment forces :External environment forces affect objective formulation.They ca be:

• Political, such as government policies and regulation,lows.
• Economics,such as competition in the market place an economics polices.
• Social-cultural, such as population forces and social cultural values.
• Technological,such as level of technology0gy and speed of technical change.

Internal environmental forces that affect objective formulation are resources availability,competency and power relationship within the organization.
6. Past situation :The objective formulation process is very much affective by situational variable.Objectives deffer according to situation.Situation keep on changing.So do objectives.Past situation of the organization serve as precedent for objective formulation.

Issues in formulating objective

They key of issues in formulation objective are :

1. Reluctance to establish objective :Lack of confidence,fair of failure or avoidance accountability make managers reluctant to established objectives.They serves as an issues to effective objective formulation.
2. Residence to change :Change is making things different.People resist change.The reason can be fear or unknown,poor communication,loss of job security.Lack of participation or vested interests.Resistance to change serves as an issue n objective formulation.
3. Improper reward system :Improver reward system for achieving objectives services as an issue their formulation.Similarly,too much emphasis on short term performance at the cost of long-term performance can be an issue is objective formulation.So can be reward for poor objective formulation behavior.
4. Environmental dynamism :Rapidly changing environment can be an issue in objective formulation.Technological innovations and intense competition pose difficult in assessing future opportunities and threats.
5. Constraints :constraint limit what organization can do.They may related to lack of resources,government or legal restriction,increasing competition,and time constraint.Constraint become issues for objective formulation.
6. Approach :The issue is what approach should be used for objective formulation.They can be :

• Top down approach :It is top management-driven.Top level managers determine the objectives.The assumption is that overall corporate objectives should direct the objective formulation process at middle and lower level.
• Bottom up approach :It is subordinate-driven.Middle and lower level manager set objectives for their position and present them to to-level managers.The assumption is that top managers need information from subordinates for overall objective formulation.
• Management by objectives(MBO) approach :It is driven by both management and subordinates.MBO is used as an approach to objective formulation.Superior and subordinate jointly set time -bound measurable specific objective.
  

Hierarchy of objective

Objective have a hierarchy.They can be set at different levels of organization.They can be at following levels :

1. Corporate level objectives :They are strategic objective set by top management.They defined long-term desired outcomes.They consist of vision,mission and strategy.They are stated broadly.

• Vision :It states the reason for the existence of the organization.It defends the scope and boundaries of the present business of organization.It is the purpose of the organization.
• Strategy :It is a broad action plan for achieving objectives.It provide long-term direction and scope to an organization.

2. Business units level objective :They are set for each strategic business unit(SBU).They defined the business of the organization.They are desired outcomes for each SBU over long term in particular markets.They are set for key result areas,such as profit,market share,sales.They follow from corporate level organization.
SBU level objectives deal with the following aspects for each SBU:

• Long-term profanity
  
• Market share growth
• product category scope:product line and items
• Positioning among competitive
  
• Now business opportunity,etc.

3. Function level objective :They set specific targets for each function of SBU.The function can be operation,marketing,finance,human resources,research and development.They follow from SBU objectives.

• Lowering cost of production
  
• Market coverage in the chosen segment
• Level of customer satisfaction
  
• Fund generation
  
• Programmes for human resources development
• New products to be launched
  
• Advertising and sales promotion targets,etc.

4. Individuals level objective :They are related to daily or weakly perforation of each employee.They follow from functional objectives.They deal with :

• Level of output per employee
  
• Reject and waste
  
• Sales per salesperson
  

• Career planing and development,etc.

Objective of strategic planing

Objectives are desired outcomes or end result to be achieved.Strategic planing is about setting long-term objectives.Organizations are created to achieves.They are guided in their decisions and actions by objectives.Objectives are future-oriented.

1. According to Jauch and Glueck :Objective are the ends the organization seeks to achieve through us existence and operation.
2. According to wheels and Hunger :Objectives are the ends results of planed activity.
3. According to Johnson Scholes :Objective are statement of specific outcomes that are to be achieved.

Business organization purpose multiple objectives at the same time.They can be :

• Profitability :Profit is excess of income over expenditure.It is return on investment or earning per share.
• Survival :It is staying alive by avoiding liquidation.
• Growth :It is all round growth in terms of profit,sales,market share.It is increase in assets and maximization of shareholder's wealth.It is essential for organization sustainability.
• Efficiency :It is low cost operations for higher productivity in relation to competitors.It is input-output relationship with quality assurance.
• Leadership :It is technological leadership through innovation,creativity and quality products.Market leadership in terms of market share and competitive position.
• Social responsibility :It is contribution to society by safeguarding interested of stakeholder and general public.It is to become responsible corporate citizens.
• Reputation :It is to gain image of "top firm" or to have environment friendly image.
• Personal needs of top management :It is to provide employment to friends and relative.
• Employee relations and development :It is to maintain harmonious labour relationship and increase competency of employees.

Characteristics of mission statement

Mission statement should have the following characteristics.

1. Feasible :It should be realistic and available.Resources should be available.
2. Precise :It should be neither too broad,nor too narrow.It should be state precisely.
3. Clear :It should be clear for action purpose.
4. Motivation :It should be motivate employee and stakeholders.Employees should feel worthwhile working for the organization.
5. Distinctive :It should be distinct compared to competitors.
6. Strategy :Mission statement should be indicated strategic to followed and objective to be achieving.

Our mission is to sell fashion to well-to-do upper class in urban areas.We are in the picture business to preserve and improve human life.our mission is total customer satisfaction.Our mission is to provide any customer a means of moving people and things up,down,and sideways over short distance with higher reliability.

Mission (purpose statment)

Mission states the reason for the existence of the or organization.It defines product,market and competitive scope for the long term.It describes values,beliefs,philosophies,priorities and commitment of the organization.It projects the image of the organization.It addresses the executions of stakeholders.Mission spells out vision.It answers "what is our business?" It defined the business and its sources of competitive advantage.

Focus of mission statements

Mission statement can focus one or more of the following components :

• Customer :Sensitivity to customer needs satisfaction."customer is our top property." (Johnson and Johnson)
  
• Quality :Concern for quality "quality is our number one job." (Ford Motor CO.)
• Technology :Technological innovation and improvement."Let's make things better"(Philips)
• Geographical Domain :Extent of globalization ."We deliver in more than 220 countries."(DHL)
• philosophy :Beliefs,values,creed."We believe in honesty."
• Image :Improvements in quality of life,equal opportunity,environment-friendly."We are responsive to social concerns.""its Sony"
  

Steps in strategic planing.

Strategic planing is a systematic approach to analyze the opportunities and threats in the environment ,assessing organization's strengths and weakness,identifying opportunities of competitive advantage,and matching them with organization's resources in a long-term perspective.It aims to developing a fit between organization's resources and activities with changing opportunities in the environment.It makes strategic choice.
The step planing are:

1. Defined organization's vision,mission,objective,strategies

• Vision :It states where the organization wants to be in a long-term perspective.It is also known as strategic intent.It is the aspiration of the organization.
• Mission :It states the reason for existence of the organization.It defines the nature and competitive scope of the organization.It provide direction to the organization for the long-term.
• Objectives :They are desired outcomes.They are end results to be achieving in the long-term.
• Strategic :They are broad action plans for achieving objective.They identify sustainable competitive advantages.The provide direction and scope.

2.Analyse External environment :External environment analysis is done to detect and create scenarios.It consist of political,economics,social-cultural and technological forces.It provides opportunities and threats to the organization.

3.Identify opportunities of competitive advantage :Such opportunities provide position of superiority in relation tom competitors.They can be items of superior skills,technology,resources,and customer value.

4.Analyse internal environment :This focuses on resources and competency analysis. Resources can be human,financial,physical and informational.Organization's resources capability is analyzed.Resources availability is determined.

5.Identify strengths and weakness :International environment of the organization provides strengths and weakness.Assessment of this factor is done to identify core competencies.Core competencies is strength that provide competitive edge to that organization.

6.Match strengths with opportunities :Based on SWOT analysis,organization's strengths are match with opportunities of competitive advantage to formulate strategic plan.

Characerisetics of strategic planing

1. Future :Long-term future direction and scope,not day-to -day takes;road map for future.
2. Environment :Strategic fit ,between the business and its environment.
3. Opportunities :Ex point opportunities of competitive advantage for the organization.
4. Core competencies :Create core competencies for sustainable competitive advantage.
5. Portfolio :Decide portfolio of strategic.Business units and their product-market scopes.
6. Interrogation :Organization as a system,not a particular function.
7. Strategic decision :Strategy-related unique decision,not function.
8. Vision,Mission,Objective,Strategies :They are the output of strategic planing.
   

Concept of strategic planing

• Planing is predetermining future.It is the prices of setting objectives and choosing the actions to achieving them.It defines the future paths of the organization.It the framework for carrying but the future achieving.
• Strategic plan is a road map for the future of the organization.It is a long range plan for five years and more.It is organization wide.It is prepared by top management.IT is with formulation strategic.
• Strategic plan established mission,objectives and strategic for an organization.
• It makes strategic choice about future course of action from among the relevant strategic options.
• Mission is the reason for the existence of an organization.It defined the scope for product,and competitive advantage.
• Objective are desired outcomes in terms of results to be achieved.Strategic are broad action plans to achieve objective.
• Strategic planing facilities coordinated resource allocated.It relates the organization to its environment by making it responsive to environment changes.
• According to Azher Kzmi :Strategic planing results in action desired to implement a strategic.
• According to Steiner and Miner :Strategic planing is the formalized,long range planing prices used to defined and achieve organization goals.
• The thrust of strategic planing is to search sustainable competitive advantage for the organization.The search sustainable competitive advantage can be based on.
• Distinctive competitive of people in the organization.
• Unique technology,innovation,quality
  
• Desired public image of organization
  
• Key market and target customers
• Products service offered
  
• Profitability desired_price,cost,return on investment.

Process of strategic decisions making

The process of strategic decision making consists of :
Awareness of strategic issues :Issues are problems.

1. Strategic decisions maker must have awareness of strategic issues.Such awareness is the result of:

• Previous experience and "got feeling"of decisions makers.
• Deviations in sales,profit performance,productivity.
• Budget variance.
• Customer relation on quality,prices,and services.

2.Formulation of strategic decisions :Strategic decisions maker should formulate and defined strategic decisions issues.It can be based on :

• Information gathering and analysis
  
• Debate and discussion of issue with stakeholder
  
• Making sense of information,debated and discussion about strategic issue
  
• Formulation of key strategic issue 3.Solution development :Alternative solution for strategic problem are developed.They ca be based on:
• Known and tried solution servicing as precedents
• drawing on experience
  
• collective wisdom of management
• strategic work shop to developed alternative solution

4.Solution selection :Strategic choice for solution selection is made from among the alternative solution.It can be based on :

• Judgement :experience,hunch and rule of thump of managers.
• Negotiation :with stakeholder.

• Bargaining :With various SBUs and functions.

Strategic decisions are very much outcome of managerial experience within a social,political an cultural context.

Process of strategic decisions making

Chracteristics ofstrategic decisions

Characteristics of strategic decisions
The following are the characteristics of strategic decisions.
• Non-programmed :Strategic decisions are unique and rare.They deal with complex,novel and non-routine problem situations.
• Future-oriented :Strategic decisions are future oriented.They are concerned with long-term direction and scope of the organization.The decision environment is uncertain.
• Dynamic :strategic decisions take place within a changing external environment.Changing political,economics,socio-cultural and technological forces increase complexity in strategic decision making.
• Top-management Orient :Strategic decisions are made by top management greatly affect strategic decisions.
• Strategic Fit :strategic decisions are concerned with strategic fit.They match activities and resources of the organization with the opportunities in the environment.
• Commitment :Strategic decisions involve long-term commitment of large amounts of resources.
• Choice :Strategic decisions involve choice from among strategic alternatives.The judgement of the decision maker is important in making the choice.

strategic decisions

A decisions is a choice among alternative.It is a course of action chosen from acceptable alternatives to achieve objectives.Strategy formulation requires strategic decision making.
Strategy
decision making is to make a choice about course of action for the long term future.It is based on strategic alternative.
Strategic decision are made by top management.strategic decisions are unique and non- programmed decisions.strategic decisions are made in uncertain decision making environment.decision makes are unaware about the consequences of decisions.
strategic decisions are related to the choice of mission,objective,strategic and policies.Mission states the reason for the existence of the organization.Objectives are desired outcomes of the organization.Strategic deal with broad action planes to achieve objectives.Policies provide guidelines for decisions making.
strategic decisions are primarily concerned with matching organization resources with opportunities in the environment.They defined the scope of business activities,market to be saved,product to be offered,resource are committed,and capabilities to be developed.They aim for competitive advantage.
According to Mathe Johnson and Scholes :strategic decision are normally about typing to achieve some advantage for the organizations over competitions.They are concerned with the scope of an organization activities.
strategic decision search for strategic
positioning in relation to competitors.Positioning describes how an organization products differ in relation to it competitors in the minds of target customers.They are concerned with the future scope of an organization's activities.

Level of strategy

Strategy can be formulated at three level .

1. Corporate strategy
   
2. Business strategy
3. functional strategy

1. Corporate strategy :It is organizations wide overall strategy.It provides long term direction and scope to the organization.It aims to create shareholder value.It defines.

• current and future business.
  
• product to be offered and their scope.
• customer and market segments to be served.
• value to be added for competitive advantage.
  
• Resource allocation to business units.
• Ways for environmental adaptation

According to Johnson and schols :Corporates level strategy is concerned with the overall purpose and scope of an organization and how value will be added the different parts of the organization.
2.Business strategy:large business organizations operates several business.
Business level strategy.classifies such business into strategy business unit.It is generally based
on product category ,such as food,electronic,clothing.It follow from corporate strategy . It aims to create competitive advantage.
According Johnson and schols :business unit strategy about how to compete successfully particulars market.
3.Function strategy :It is concerned function of SBU.It deals with operation of the organization.Function strategy spells out specific strategic for each strategy.it involves technical designs .it follows from business level.
According to Johnson and schols :operational strategy are concerned with how the component parts of organization deliver effectively the corporate and business level strategy in term of resource,process and people.

Characteristics of strategy

Strategy has the following characteristics

1. Long-term Horizon :strategy is concerned with the long term direction and scope of the organization.It is not concerned with day-to-day operation.It is forward looking.
   
2. Action oriented :strategy is concerned with unified and integrated board action plans.The action plan aim at objective achievement.priorities are decided among action plans.
   
3. Value-addition :strategy aims at adding values.It provides advantages for the organization over competitors.It seeks customer satisfaction.
4. strategy decisions :strategy is based on strategy decisions such decisions defined the organization's activities They define products and markets.They allocate resources.They pinpoint organization capabilities.
5. Environmental adaptation :strategy facilities environmental adaptions.it matches resources and activities to the changing forces in the environmental.It aims at strategy fit by matching organization's resources with market opportunities .
6. stakeholder expectations :strategy fulfills the expectations of the stakeholder of the organizations.The can be owners,employers,supplies,customer,government ,labour unions,and financial institutions.They have interest in the performance of the organizations.
   

concept of business strategy

Environmental changes are having far reaching impact on modern business organization.The challenges come from;

• Globalization :The world is becoming on big market.
• Information communication technology :The world is becoming on small village.
• Political -economics grouping :integration among counties is increasing.
• socio-cultural shift :cross-culture influence are increasing. Business organization need a long-term horizon to cope with the emerging challenges.They need strategic orientation to achieve objectives effectively to meet the expectation of multiple stakeholders. Strategy is a means to achieving long-term objectives. It is a broad action plan.It provide long term direction and scope to the organization.it is a road map for future actions .Strategy focuses on matters of strategic importance.Its thrust is to search competitive for the organization .It is based on strategic advantage in resource strength,human resource capabilities and core competencies.