strategic planning


Strategic Management is important to organizations to develop a competitive advantage and provide a sense of direction to the organization so that they know where to spend their efforts. Strategies are large-scale plans to achieve long-term goals. Strategic management consists of all the basic management functions – planning, organizing, putting into effect and controlling.

Here we present Strategic Planning of Chem Phos Ltd. Case Study For Practice:

Chem Phos Ltd. was selling chemicals. Its chief executive officer Mr. Dave believed in top to bottom style of management. The company incurred losses to the extent that it reached the stage of liquidation. A new chief executive officer, Mr. D’souza was appointed who took the following steps:

i) He adopted turnaround strategy to convert the loss making company into profit making one.

ii) He developed manpower planning process to review policies with respect to appointments, dismissals and performance appraisals.

iii) He implemented a management accounting system to cut down costs at divisional level.

In the personnel department, change in strategy resulted in reduction in work force by about 15 percent. A new policy of promotions from within was also introduced to provide incentives to the existing workforce to increase their efficiency. As a result, sales doubled and return on equity almost tripled.


1) Which grand strategy the new chief executive officer adopted? – 5 marks

2) What other alternative strategic options were available to him? – 5 marks

3) Which was the appropriate strategy if company carried on more than one line of business? – 5 marks

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