,Business Policy and Stratm m m
egic Management m
Francis Cherunilam
m
M.A.,mM.B.A.,mD.D.P.,mPh.D.
Director
MangalammManagement mStudies, mM
angalammCampus, mEttumanoor
m–m686631.
(FormerlymProfessor mandmChairman, mMarketingmArea, mIIMK;mDirec
tor, mSchoolmofmManagementmStudies,
CochinmUniversitymofmSciencem&mTechnology;mDirec
tor, mAlbertianmInstitutemofmManagement, mCochin;mDir
ector, mKochimBusinessmSchool, mCochin)
E-mail:
MUMBAIm⚫mNEWmDELHIm⚫mNAGPURm⚫mBENGALURUm⚫mHYDERABADm⚫mCHENNAIm⚫mPUNEm⚫ mLUCKNOW
⚫ AHMEDABADm ⚫m ERNAKULAMm ⚫m BHUBANESWARm ⚫m INDOREm ⚫m KOLKATAm ⚫m GUWAHATI
,© Author
No mpartmof mthismpublicationmmaymbemreproduced,mstoredminmamretrieval msystem,mormtransmitted minmanymf
orm mormbymanymmeans,melectronic,mmechanical,mphotocopying,mrecording mand/ormotherwise mwithoutmth
empriormwritten mpermission mof mthe mpublishers.
First mEdition :m 1999 Reprint :m 2006
Second mEnlarged mEdition m : m 2000 Reprint :m 2008
Third mRevised mEdition :m 2002 Reprint :m 2009
Reprint :m 2004 Reprint :m 2010
Reprint :m 2005 Fourth mEnlarged mand mRevised mEdition m : m 2015
Publishedmby :m Mrs.mMeena mPandeymformHimalaya mPublishingmHouse mPvt.mLtd.,
“Ramdoot”,mDr.mBhalerao mMarg,mGirgaon,mMumbaim-m400m004.
Phone:m 022-23860170/23863863,m Fax:m 022-23877178
E-mail:;mWebsite:mwww.himpub.com
BranchmOffices :
New mDelhi :m “Pooja mApartments”,m4-B,mMurari mLalmStreet,mAnsari mRoad,mDarya mGanj,
NewmDelhim-m110 m002.mPhone:m011-23270392,m23278631;mFax:m011-23256286
Nagpur :m Kundanlal mChandakmIndustrial mEstate,mGhatmRoad,mNagpurm-m440 m018.
Phone:m0712-2738731,m3296733;mTelefax:m0712-2721216
Bengaluru
:m No.m16/1 m(Oldm12/1),m1stmFloor,mNextmtomHotel mHighlands,mMadha
vamNagar,mRace mCourse mRoad,mBengaluru m-m560 m001.
Phone:m080-22286611,m22385461,m4113m8821,m22281541
Hyderabad :m No.m3-4-
184,mLingampally,mBesidesmRaghavendra mSwamymMatham,mKachiguda,mHyd
erabad m-m500m027.mPhone:m040-27560041,m27550139
Chennai :m New-20,mOld-59,mThirumalai mPillai mRoad,mT.mNagar,mChennai m-m600m017.
Mobile:m9380460419
Pune :m FirstmFloor,m"Laksha"mApartment,mNo.m527,mMehunpura,mShaniwarpeth
(NearmPrabhatmTheatre),mPune m-m411m030.mPhone:m020-
24496323/24496333;mMobile:m09370579333
Lucknow
:m House mNom731,mShekhupuramColony,mNearmB.D.mConventmSchool,
m Aliganj,mLucknow m-m226 m022.mMobile:m09307501549
Ahmedabad
:m 114,m“SHAIL”,m1stmFloor,mOpp.mMadhu mSudan mHouse,mC.G.mRoad,mNavra
ngmPura,mAhmedabad m-m380 m009.mPhone:m079-
26560126;mMobile:m09377088847
Ernakulam :m 39/176 m(New mNo:m60/251)m1 stmFloor,mKarikkamuri mRoad,mErnakulam,
Kochi m–m682011.mPhone:m0484-2378012,m2378016;mMobile:m09387122121
Bhubaneswar m :m 5mStation mSquare,mBhubaneswarm-m751m001 m(Odisha).
Phone:m0674-2532129,mMobile:m09338746007
Indore
:m Kesardeep mAvenue mExtension,m73,mNarayanmBagh,mFlatmNo.m302,mIIIrd
mFloor,mNearmHumptymDumptymSchool,mIndore m-
m452 m007 m(M.P.).mMobile:m09303399304
Kolkata
:m 108/4,mBeliaghata mMainmRoad,mNearmID mHospital,mOpp.mS
BImBank,mKolkata m-m700m010,mPhone:m033-
32449649,mMobile:m7439040301
Guwahati :m House mNo.m15,mBehind mPragjyotish mCollege,mNearmSharma mPrinting mPress,
P.O.mBharalumukh,mGuwahati m-
m781009,m(Assam).mMobile:m09883055590,m08486355
289,m7439040301
DTPmby :m Rajani mTambe.
Printedmat
:m Geetanjali mPressmPvt.mLtd.,mKundanlal mChandakmIndustrial mEstate,mGh
atmRoad,mNagpurm-m440m018.mOnmbehalf mof mHPH
, Preface To The Fourth Edition
m m m m
Thismis mamthoroughlymrevised, msignificantlymmodifiedmandmenlargedmedition. mEverymchaptermhasmu
ndergonemsomemormothermmodificationm–
mrevision, mrestructuring, melaborationmetc. mAmnumber mof mnewmdiagrams, mboxesmandm examples mhavembee
nmaddedmwithmamviewmtommakingmthembookmmoreminsightfulmandminteresting.
Themcurrentmeditionmhasm20mchapters, mcomparedmtom17mofmthempreviousmedition. mThemnewmchaptersmare:
mSocial, m Environmentalm andm Economicm Responsibilitiesm ofm Business; m Environmentalm Forecastingm andmA
nalysismandmKnowledgemManagement.
Chaptersm1mand m2mhavembeenmmodifiedmwithmadditionmofmnewmdiagrams, mboxesmand mexplanations.
mChaptersm3m andm4mhave mbeenm substantiallymrestructuredmandmenlarged, mmakingmthemmverymcontempor
ary. mThemchaptermonmBusinessmEnvironmentmis mcharacterisedmbymsubstantialmmodificationmofmthemconte
ntmandmremodelingmofmthempresentationmandmtreatmentmofmthe msubjectmmatter. mThemchaptermonmSWOTmA
nalysismandmStrategymFormulationmhasmbeenmmodifiedmandmenlarged.
Themadditionmofmthemtopicm‘rolemofmleadershipminmstrategicmmanagement’ mismthe msalientmmodificati
onm tomthemchaptermonm‘StrategymImplementation.’
Chaptersmwhichmhavembeen msubjectedmtomverymsubstantialmrestructuring, mrevisionmandmelaboration
mincludemMergersmandmAcquisitions, mTurnaroundmManagementmandmCorporatemRestructuringmandmGlo
balisation.
Amlotmofmthinkingmhasmgonemintomdecidingmaboutmthem casesmtombe mincludedminmthismbook. m Threemof
them 5mcasesmaremnew.
m
Improfuselymthankmthemacademic mcommunitymformthemusefulmfeedbacksmandmthemunstintedmencoura
gement. mWordsmfailminmthankingmthemHimalaya mPublishingmHouse mPvt. mLtd. mformthemconstantmencourag
ement.
Cochin,
18thmOctoberm2014
Dr. Francis Cherunilam
m m
egic Management m
Francis Cherunilam
m
M.A.,mM.B.A.,mD.D.P.,mPh.D.
Director
MangalammManagement mStudies, mM
angalammCampus, mEttumanoor
m–m686631.
(FormerlymProfessor mandmChairman, mMarketingmArea, mIIMK;mDirec
tor, mSchoolmofmManagementmStudies,
CochinmUniversitymofmSciencem&mTechnology;mDirec
tor, mAlbertianmInstitutemofmManagement, mCochin;mDir
ector, mKochimBusinessmSchool, mCochin)
E-mail:
MUMBAIm⚫mNEWmDELHIm⚫mNAGPURm⚫mBENGALURUm⚫mHYDERABADm⚫mCHENNAIm⚫mPUNEm⚫ mLUCKNOW
⚫ AHMEDABADm ⚫m ERNAKULAMm ⚫m BHUBANESWARm ⚫m INDOREm ⚫m KOLKATAm ⚫m GUWAHATI
,© Author
No mpartmof mthismpublicationmmaymbemreproduced,mstoredminmamretrieval msystem,mormtransmitted minmanymf
orm mormbymanymmeans,melectronic,mmechanical,mphotocopying,mrecording mand/ormotherwise mwithoutmth
empriormwritten mpermission mof mthe mpublishers.
First mEdition :m 1999 Reprint :m 2006
Second mEnlarged mEdition m : m 2000 Reprint :m 2008
Third mRevised mEdition :m 2002 Reprint :m 2009
Reprint :m 2004 Reprint :m 2010
Reprint :m 2005 Fourth mEnlarged mand mRevised mEdition m : m 2015
Publishedmby :m Mrs.mMeena mPandeymformHimalaya mPublishingmHouse mPvt.mLtd.,
“Ramdoot”,mDr.mBhalerao mMarg,mGirgaon,mMumbaim-m400m004.
Phone:m 022-23860170/23863863,m Fax:m 022-23877178
E-mail:;mWebsite:mwww.himpub.com
BranchmOffices :
New mDelhi :m “Pooja mApartments”,m4-B,mMurari mLalmStreet,mAnsari mRoad,mDarya mGanj,
NewmDelhim-m110 m002.mPhone:m011-23270392,m23278631;mFax:m011-23256286
Nagpur :m Kundanlal mChandakmIndustrial mEstate,mGhatmRoad,mNagpurm-m440 m018.
Phone:m0712-2738731,m3296733;mTelefax:m0712-2721216
Bengaluru
:m No.m16/1 m(Oldm12/1),m1stmFloor,mNextmtomHotel mHighlands,mMadha
vamNagar,mRace mCourse mRoad,mBengaluru m-m560 m001.
Phone:m080-22286611,m22385461,m4113m8821,m22281541
Hyderabad :m No.m3-4-
184,mLingampally,mBesidesmRaghavendra mSwamymMatham,mKachiguda,mHyd
erabad m-m500m027.mPhone:m040-27560041,m27550139
Chennai :m New-20,mOld-59,mThirumalai mPillai mRoad,mT.mNagar,mChennai m-m600m017.
Mobile:m9380460419
Pune :m FirstmFloor,m"Laksha"mApartment,mNo.m527,mMehunpura,mShaniwarpeth
(NearmPrabhatmTheatre),mPune m-m411m030.mPhone:m020-
24496323/24496333;mMobile:m09370579333
Lucknow
:m House mNom731,mShekhupuramColony,mNearmB.D.mConventmSchool,
m Aliganj,mLucknow m-m226 m022.mMobile:m09307501549
Ahmedabad
:m 114,m“SHAIL”,m1stmFloor,mOpp.mMadhu mSudan mHouse,mC.G.mRoad,mNavra
ngmPura,mAhmedabad m-m380 m009.mPhone:m079-
26560126;mMobile:m09377088847
Ernakulam :m 39/176 m(New mNo:m60/251)m1 stmFloor,mKarikkamuri mRoad,mErnakulam,
Kochi m–m682011.mPhone:m0484-2378012,m2378016;mMobile:m09387122121
Bhubaneswar m :m 5mStation mSquare,mBhubaneswarm-m751m001 m(Odisha).
Phone:m0674-2532129,mMobile:m09338746007
Indore
:m Kesardeep mAvenue mExtension,m73,mNarayanmBagh,mFlatmNo.m302,mIIIrd
mFloor,mNearmHumptymDumptymSchool,mIndore m-
m452 m007 m(M.P.).mMobile:m09303399304
Kolkata
:m 108/4,mBeliaghata mMainmRoad,mNearmID mHospital,mOpp.mS
BImBank,mKolkata m-m700m010,mPhone:m033-
32449649,mMobile:m7439040301
Guwahati :m House mNo.m15,mBehind mPragjyotish mCollege,mNearmSharma mPrinting mPress,
P.O.mBharalumukh,mGuwahati m-
m781009,m(Assam).mMobile:m09883055590,m08486355
289,m7439040301
DTPmby :m Rajani mTambe.
Printedmat
:m Geetanjali mPressmPvt.mLtd.,mKundanlal mChandakmIndustrial mEstate,mGh
atmRoad,mNagpurm-m440m018.mOnmbehalf mof mHPH
, Preface To The Fourth Edition
m m m m
Thismis mamthoroughlymrevised, msignificantlymmodifiedmandmenlargedmedition. mEverymchaptermhasmu
ndergonemsomemormothermmodificationm–
mrevision, mrestructuring, melaborationmetc. mAmnumber mof mnewmdiagrams, mboxesmandm examples mhavembee
nmaddedmwithmamviewmtommakingmthembookmmoreminsightfulmandminteresting.
Themcurrentmeditionmhasm20mchapters, mcomparedmtom17mofmthempreviousmedition. mThemnewmchaptersmare:
mSocial, m Environmentalm andm Economicm Responsibilitiesm ofm Business; m Environmentalm Forecastingm andmA
nalysismandmKnowledgemManagement.
Chaptersm1mand m2mhavembeenmmodifiedmwithmadditionmofmnewmdiagrams, mboxesmand mexplanations.
mChaptersm3m andm4mhave mbeenm substantiallymrestructuredmandmenlarged, mmakingmthemmverymcontempor
ary. mThemchaptermonmBusinessmEnvironmentmis mcharacterisedmbymsubstantialmmodificationmofmthemconte
ntmandmremodelingmofmthempresentationmandmtreatmentmofmthe msubjectmmatter. mThemchaptermonmSWOTmA
nalysismandmStrategymFormulationmhasmbeenmmodifiedmandmenlarged.
Themadditionmofmthemtopicm‘rolemofmleadershipminmstrategicmmanagement’ mismthe msalientmmodificati
onm tomthemchaptermonm‘StrategymImplementation.’
Chaptersmwhichmhavembeen msubjectedmtomverymsubstantialmrestructuring, mrevisionmandmelaboration
mincludemMergersmandmAcquisitions, mTurnaroundmManagementmandmCorporatemRestructuringmandmGlo
balisation.
Amlotmofmthinkingmhasmgonemintomdecidingmaboutmthem casesmtombe mincludedminmthismbook. m Threemof
them 5mcasesmaremnew.
m
Improfuselymthankmthemacademic mcommunitymformthemusefulmfeedbacksmandmthemunstintedmencoura
gement. mWordsmfailminmthankingmthemHimalaya mPublishingmHouse mPvt. mLtd. mformthemconstantmencourag
ement.
Cochin,
18thmOctoberm2014
Dr. Francis Cherunilam
m m
