STRATEGIC MANAGEMENT STUDY ON FUNCTIONAL STRATEGIES OF THREE DIFFERENT COMPANIES SUBMITTED BY PRADNYA S WAKODE ROLL NO. 1515059 M.COM (BUSINESS MANAGEMENT) [Semester 1] MULUND COLLEGE OF COMMERCE MULUND (W) – 400081. SUBMITTED TO UNIVERSITY OF MUMBAI ACADEMIC YEAR 2015-16 PROJECT GUIDE PROF. SAMEER VELANKAR DECLARATION I, Miss PRADNYA S WAKODE (Roll No. 1515059), of Mulund College of Commerce of M.Com (Business Management) (Part 1) [Semester 1], hereby declare, that I have completed my project titled, ‘Study on functional strategies of three different companies’ The information submitted herein is true and original to the best of my knowledge. ________________________ Signature of Student PRADNYA S WAKODE MULUND COLLEGE OF COMMERCE, MULUND (W)-400 081. CERTIFICATE This is to certify that, Ms. PRADNYA S WAKODE, of M.Com Business Management Semester 1(2015-2016) has successfully completed the project of Strategic management on study of functional strategies of three different companies under the guidance of Prof. SAMEER VELANKAR. ______________________________ Principal [Dr. Parvathi Venkatesh] ______________________________ Course Coordinator [ Prof .Shivaji Pawar] ________________________ ______ Internal Examiner [Prof Sameer Velankar] ______________________________ [ External Examiner] ACKNOWLEDGEMENT I, PRADNYA S. WAKODE,the student of Mulund College Of Commerce studying in first year Master Of Commerce in Buisness Management would like to express my sincere gratitude to Principal Dr. Mrs PARVATHI VENKATESH for her constant encouragement and support during thecompletion of this project. I also take this opportunity to thank our co- ordinator prof .SHIVAJI PAWAR. I extend my heartiest thanks to Prof. SAMEER VELANKAR for enlightening my path.without his advice this project was impossible I also feel grateful and elated in expressing my indebtedness to my parents, my friends and all those who have directly or indirectly helped me in accomplishing this research. Objective Of Study To study the strategic management and its process To highlight the organisational frame strategies in all functional areas To study functional strategies of companies INDEX CHAPTER PARTICULARS PAGE NO. NO. 1 Introduction to Recruitment & Factors affecting Recruitment 6 2 Sources of Recruitment 9 3 Internal sources of recruitment 10 4 Advantages 11 5 Disadvantages 12 6 External Sources of Recruitment & its methods 13 7 Advantages 15 8 Disadvantages 16 9 Introduction to Selection 17 10 Selection procedure & steps 18 11 Advantages & Disadvantages of Selection 19 12 Introduction to Indian Tobacco Co. ( Products & Brands ) 21 13 History of ITC 23 14 Need, Objective & Scope of the study 27 15 Recruitment & Selection practices at ITC 28 16 Data analysis & Interpretation 31 17 Questionnaire 35 18 Findings & suggestions 38 19 Bibliography 39 20 Webliography 40 INTRODUCTION MEANING AND DEFINITION : The word strategy has derived from the greek word ‘Strategos’. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage.It is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving. Strategic management is a continuous process that evaluates and controls the business and the industries in which an organization is involved; evaluates its competitors and sets goals and strategies to meet all existing and potential competitors; and then reevaluates strategies on a regular basis to determine how it has been implemented and whether it was successful or does it needs replacementOrganization exist for a purpose. The mission is articulated in a broadly defined but enduring statement of purpose that identifies the scope of an organization’s operations and its offerings to affected groups and entities. Most organizations of a significant size or stature have developed a formal mission statement. Strategy refers to top management’s plans to develop and sustain competitive advantage—a state whereby a firm’s successful strategies cannot be easily duplicated by its competitors. STRATEGIC MANAGEMENT PROCESS Strategic management process has following four steps: 1. Environmental Scanning - Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. External Analysis: Analyze the opportunities and threats, or constraints, that exist in the organization’s external environment, including industry and forces in the external environment. Internal Analysis: Analyze the organization’s strengths and weaknesses in its internal environment. Consider the context of managerial ethics and corporate social responsibility . 2. Strategy Formulation- Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies. 3. Strategy Implementation - Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and managing human resources. 4. Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial / corrective actions. Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives The Advantages of Strategic Management Discharges Responsibility Many organizations undertake a strategic management process in order to discharge their responsibilities. There is an expectation from shareholders, stakeholders and the general community at large, that a well-managed organization has a strategic management process that guides its future success. Allows an Objective Assessment Strategic management provides a discipline that allows the senior management team to take a step back from the day-to-day business and think about the future of the organization. Without this discipline, the organization can become solely consumed with working through the next issue or problem without consideration to the larger picture, longer-term trends and associated operational and environmental alignment. Provides a Framework for Decision-Making It is not possible for senior management to know all the operational decisions staff make on a day-to-day basis. The cumulative effect of these day-today decisions, can have a significant impact on the success of the organization. Providing a framework within which staff can make these day-to-day decisions helps better focus their efforts on those activities that will best support the organization's success. Facilitates Measurement of Progress Establishing performance measures that are aligned with the strategy and provide timely and meaningful information is critical to breaking through the excessive “information noise”. It helps ensure timely, informed strategic decisions to be made. Strategy sets the direction and enables an organization to align its objectives and performance measures. These objectives and performance measures allow meaningful information to be provided to decision-makers regarding the organization’s progress through such vehicles as scorecards and dashboards. Enhances Strategic Agility (Innovation) An organization is deemed to have “Strategic Agility” when it can successfully capitalize upon opportunities resulting from unanticipated and significant change. When formulated appropriately, strategy can improve the ability of the organization to respond effectively to significant change. Organizational strategy is both formulated and formed. Disadvantages of Strategic Management Complex Process Strategic management involves continuous assessments of critical components, such as external and internal environments, short-term and long-term objectives, organizational structure, and strategic control. The external factor, which is the poor economy, changes the internal environment, which is the number of people employed. Then, a company may need to review objectives and make necessary