B.env. Unit 1 Part 5

MANAGING DIVERSITY
Diversity means differentiation., AS we know

that there is diversity in nature of the people,
habits of the people, culture of the society,
language of the people in different states, and
case of the people etc. Sectors are generally
classified in three ways
1. PRIMARY SECTOR
2. SECONDARY SECTOR
3. TERTIARY SECTOR
BENEFITS OF MANAGING DIVERSITY
1. LOWER COSTS
2. BETTER STAFFING
3. MARKETING ADVANTAGE
4. CREATIVITY
5. PROBLEM SOLVING
6. FLEXIBILITY
7. PRODUCTIVITY
8. ORGANISATION REPUTATION
9. RISK MITIGATION
10. RECRUITMENT AND RETENTION
FRAMEWORK FOR MANAGING DIVERSITY
1. MANAGING CULTURAL DIVERSITY
2. MANAGING INDIVIDUAL DIVERSITY
3. MANAGING WORKFORCE DIVERSITY
SCOPE OF BUSINESS
Business is an economic activity which
involves regular production and /or
exchange of goods and services with the
main purpose of earning profits through the
satisfaction of human wants.
WHAT IS BUSINESS ACTIVITY
 The activities or operations carried out by a
business, example making goods, selling
goods, providing a service.
 Any activity that is engaged in for the primary
purpose of making a profit. Business

activities can include things like production,
operations, marketing and administration.
CATEGORIES OF BUSINESS ACTIVITIES
1. Activities related to production of goods

2. Activities related to rendering of services.
3. Activities related to distribution of goods.
4. Activities rendering distribution Assistance.
5. Activities which render Financial Assistance.
BUSIENSS ACTIVITIES
 Top Management responsibility
 Allocation of large amount of resources
 Impact on long term prosperity of the firm
 Future oriented
 Multi-functional or multi-business
consequences.
 Consideration of factors in the external
environment.
STRATEGIC MANAGMENT
 Strategic management is a set of management
decisions and actions that determines the long-
run performance of a corporation. It includes
environmental scanning, strategy formulation,
strategy implementation and evaluation and
control to achieve the objectives of an
organization.
 The study of strategic management emphasizes
the monitoring and evaluating of external
opportunities and threats in light of a
corporation’s strengths and weaknesses.
PROCESS OF STRATEGIC MANAGEMENT
STEP 1 :STRATEGIC INTENT
 VISION Vision is the statement that
expresses organization’s ultimate long-run
objectives. It is what the firm ultimately like
to become. Vision once formulated is for
forever and long lasting for years to come.
Vision is closely related with strategic intent
and is a forward thinking process. Eg. –
Microsoft – ‘A computer software on every
desk and in every home.’
 MISSION It tells who we are and what we
do as well as what we’d like to become.
Mission of a business is the fundamental,
unique purpose that sets it apart from other
firms of its kind and identifies the scope of
its operations in product and market terms.
Eg- Microsoft – ‘Empower every person and
every organization on the planet to achieve
more.’
 OBJECTIVES These are the end results of
planned activity that state what is to be
accomplished by when and should be
quantified if possible and their achievement
should result in the fulfillment of a
corporation’s mission. Objectives state
specifically how the goals shall be achieved.
Following are the areas for setting objectives
– profit objective, marketing objective,
production objective etc.
STEP 2 STRATEGY FORMULATION
 Strategy formulation refers to the process of
choosing the most appropriate course of
action for the realization of organizational
goals and objectives and thereby achieving
the organizational vision. For choosing most
appropriate course of action, appraisal of
organization and environment is done with
the help of SWOT analysis.
 Environmental Appraisal The environment of any
organization is “the aggregate of all conditions,
events and influences that surround and affect
it.” It is dynamic and consists of External and
Internal Environment. The external
environment includes all the factors outside the
organization which provide opportunities or
pose threats to the organization. The internal
environment refers to all the factors within an
organization which impart strengths or cause
weaknesses of a strategic nature.
 Organizational Appraisal It is the process of
observing an organizational internal
environment to identify the strengths and
weaknesses that may influence the
organization’s ability to achieve goals. The
analysis of corporate capabilities and
weaknesses becomes a pre-requisite for
successful formulation and reformulation of
corporate strategies. This analysis can be
done at various levels: functional, divisional
and corporate.
STRATEGY IMPLEMENTATION
 Strategy implementation is the action stage of
strategic management. It refers to decisions
that are made to install new strategy or
reinforce exiting strategy.
 Designing structure, process & system
Strategy implementation includes the making

of decisions with regard to organizational
structure, developing budgets, programs and
procedures in order to accomplish certain
activities.
STRATEGY IMPLEMENTATION
 Functional Implementation Functional implementation
is carried out through functional plan and policies in
five different areas – marketing, finance, operation,
personnel and information management.
 Behavioral Implementation It denotes mobilizing
employees and managers to put and formulate
strategies into action and require personal discipline,
commitment and sacrifice. It depends upon
manager’s ability to motivate employees.
 Operationalizing strategy I includes establishing
annual objectives, devising policies, and allocating
resources.
STRATEGY EVALUATION & CONTROL
 Strategy Evaluation It is the primary means
to know when and why particular strategies
are not working well. It is the process in
which corporate activities and performance
results are monitored so that actual
performance can be compared with desired
performance. Thus strategic evaluation
activities include reviewing external and
internal factors that are the basis of current
strategies.
STRATEGY EVALUATION & CONTROL
 Strategic controlIn this step, organizations
determine what to control, i.e., which
objectives the organization hopes to
accomplish, set control standards, measure
performance, Compare the actual with the
standard, determine the reasons for the
deviations and finally taking corrective
actions and review the policies and activities
if needed.
PROCESS OF ENVIRONMENTAL ANALYSIS
1. Scanning It means to get relevant, proper or

complete information from the available all
information. With the help of relevant
information, an organisation can make a good
strategy through which our missions and
objectives of success will be achieved.
2. MonitoringAfter collecting relevant
information, the second step is to monitor or
check the nature of the environmental factors.
It is a follow up process after scanning.
3. Analysing It requires data, tools and

techniques through which we can analyse the
collected relevant information or determine
whether the scan information is useful for an
organisation or not. SWOT analysis means
strength, weakness, opportunity, and threat
analysis and ETOP means environmental
threat and opportunity profile technnique,
used for environmental analysis. WE can use
analysing tools such as correlation,
regression, multiregression, factor etc.
4. Forecasting Forecasting is a technique of finding

future possibilities based on the past results and
present scenario. Modern management employs a
number of forecasting techniques to cope with the
real world business problems. The aim of
forecasting is to reduce the risk that the firm faces
in its short term operational decision – making
and in planning for its long term growth.
Forecasting is necessary to predict about future
event before any strategic plans are formulated.
Forecasting is made for economic, social, political
and technological elements of environement.
LIMITATIONS OF ENVIRONMENTAL ANALYSIS

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MANAGING DIVERSITY

Diversity means differentiation., AS we know

purpose of making a profit. Business

1. Activities related to production of goods

Strategy implementation includes the making

1. Scanning It means to get relevant, proper or

3. Analysing It requires data, tools and

4. Forecasting Forecasting is a technique of finding

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