Components of Mission Components of Mission statementstatement

Stages of Strategic Stages of Strategic managementmanagement

1. Formulation 1. Formulation 2. Implementation2. Implementation3. Evaluation3. Evaluation

Strategy Strategy FORMULATIONFORMULATION issues issues includeinclude::

Deciding what new business to enterDeciding what new business to enter What business to abandonWhat business to abandon How to allocate resources How to allocate resources Whether to expend or diversifyWhether to expend or diversify Whether to merge or to form a JV Whether to merge or to form a JV

Strategy Implementation Strategy Implementation Issues include:Issues include:

Developing a strategy supportive Developing a strategy supportive culture culture

Creating an effective organizational Creating an effective organizational structurestructure

Redirecting market effortRedirecting market effort Developing and utilizing information Developing and utilizing information

systemsystem Linking employee compensation to Linking employee compensation to

organizational performanceorganizational performance

Strategy evaluation issues Strategy evaluation issues include:include:

Measuring performanceMeasuring performance Reviewing external and internal Reviewing external and internal

factor that are bases for the current factor that are bases for the current strategiesstrategies

Taking corrective action for futureTaking corrective action for future

Strategic management Strategic management modelmodel

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4 5 6 7

Formulation ImplementationEvaluation

The New Economic Reforms The New Economic Reforms in Indiain India

Total departure from earlier Total departure from earlier Industrial policy (IPR of 1956)Industrial policy (IPR of 1956)

It led Indian business to a dynamic It led Indian business to a dynamic and turbulent environment.and turbulent environment.

Following are the two major Following are the two major category in economic reform:category in economic reform:

1.1. Liberalization measuresLiberalization measures2.2. Macro-economic reforms and Macro-economic reforms and

structural adjustmentsstructural adjustments

Liberalization measuresLiberalization measures

A.A. New Industrial policyNew Industrial policy

B.B. New trade policyNew trade policy

New industrial policies include:-New industrial policies include:-

1.1. Liberalization of industrial Liberalization of industrial licensinglicensing

2.2. FERA LiberalizationFERA Liberalization

3.3. MRTP LiberalizationMRTP Liberalization

4.4. Curtailment of public sectorCurtailment of public sector

Liberalization of industrial Liberalization of industrial licensinglicensing

DelicensingDelicensing DecontrolDecontrol DeregulationDeregulation Broad banding Broad banding Abolition of registration( abolition of Abolition of registration( abolition of

DGTD & CCI&E)DGTD & CCI&E)

FERA LiberalizationFERA Liberalization

Liberalization of foreign investment.Liberalization of foreign investment. Automatic clearance for foreign Automatic clearance for foreign

equity up to 51 percent in 34 high equity up to 51 percent in 34 high priority industries, priority industries,

only condition: the total equity of the only condition: the total equity of the existing company and the foreign existing company and the foreign equity must come through payment of equity must come through payment of foreign exchangeforeign exchange

Liberalization of technology import.Liberalization of technology import.

MRTP LiberalizationMRTP Liberalization

Abolition of threshold asset limitAbolition of threshold asset limit No MRTP clearance for expansion and No MRTP clearance for expansion and

mergersmergers

Curtailment of the role of Public Curtailment of the role of Public sectorsector

Only Eight core industries remained reserved for the Only Eight core industries remained reserved for the public sectorpublic sector

Preview of BIFR (Board for industrial and financial Preview of BIFR (Board for industrial and financial reconstruction) extended to the public sector.reconstruction) extended to the public sector.

Several industry were opened up for the private sector.Several industry were opened up for the private sector.

New Trade PolicyNew Trade Policy

Lowering import tariffs (30% less in almost all Lowering import tariffs (30% less in almost all goods)goods)

Abolition of import licenses.Abolition of import licenses. More open EXIM policy (tariff and exchange More open EXIM policy (tariff and exchange

rates as an instrument)rates as an instrument) Convertibility of rupees ( dual exchange rate Convertibility of rupees ( dual exchange rate

system/partial convertibility )system/partial convertibility ) Encouragement to FI (abolition of export Encouragement to FI (abolition of export

duties, cheaper and sustainable growth of duties, cheaper and sustainable growth of export)export)

Integrating India's economy with the global oneIntegrating India's economy with the global one