BusPol session1

8/13/2019 BusPol session1

1/12

Welcome!

Business Policy Class

Business Policy

Session 1

Course Orientation

1. Syllabus - Course description, objectives,course methodology

2. Course requirements - Midterms & finals,quizzes, cases, book review & a paper

3. Basis for grades - 40% - 40% - 20%

4. Required text & reference materials, cases, etc

5. Course Timeframe & Schedule

6. Absences & Tardiness
http://www.pdfcomplete.com/cms/hppl/tabid/108/Default.aspx?r=q8b3uige22


2/12

Course Orientation

Cases -will be pre-assigned -one week to prepare -everyone submits a type written report - group needs to present & discuss

Course Orientation

Case Report Format(3 pages maximum)

1. Point of View 1 point

2. Problem 3 points

3. Areas of Consideration 2 points

4. Alternative Courses of Action 2 points

5. Recommendation 2 points

----------

Total 10 points

Course Orientation

Paper - An evaluation of a Corporate Plan

Topics that must be included in the paper:

1. Firm Background2. Present the Strategic Plan

3. Present systems & structure supportingimplementation of the Strategic Plan

4. Analysis/Evaluation/Recommendation

Deadline for submission: Feb 21

Maximum 20 pages


3/12

Course Overview

Business Policy or Strategic Management?

Course design is for each one to function as a CEO or the

owner of the organization

it is an integration course!

Course Overview

Major task is to make strategic decisions or justify those

decision orally or in written communication

Strategic decisions accomplish 2 things:

1) determines future direction

2) determines competitive position of a firm in

the long term

Course Overview

Course competencies? Big picture and system thinking,

planning & forecasting.

Doing the right thing (effectiveness) as against doingthings right (efficiency).

You need to make a stand strategically & defend your

position using different tools. The rationale for your

decision is more important than the actual decision!


4/12

The Nature of Strategic Management

What is Strategic Management?

Art & science of formulating, implementing and

evaluating cross-functional decision that enable

an organization to achieve its objectives.



Formal

Systematic

Pervasive

Managerial process

Organized by time, responsibility & information

Goal is to direct & control the firms future



Purpose - to exploit & create new & different

opportunities for tomorrow (as against optimizing for

tomorrow the trends of today).

It is the company s game plan!


5/12



Started in the 50 s, became popular in the 60 s & 70 s ,was cast aside in the 80 s and was widely used again in the90 s up to now


Stages of Strategic Management

1. Strategy formulation,

2. Strategy implementation

3. Strategy evaluation


Stages of Strategic Management - Strategy

Formulation

Formulation - developing a vision & mission,

identifying firm s external opportunities & threats,

determining internal strengths & weaknesses,

establishing long term objectives, generating alternative

strategies & choosing strategies to pursue


6/12



Formulation

Strategy Formulation decisions commit an organization to

specific products, markets, resources and technologies over

time

Strategies determine long term competitiveness

Planning, forecasting, analytical and creative skills critical in

choosing right strategies



Implementation

Implementation - requires the establishment of annual

objectives, devise policies, motivate employees & allocate

resources to execute strategies

Includes creating an effective organizational structure,

redirecting marketing efforts, preparing budgets, developing

& using information systems & linking compensation to

organizational performance



Implementation

Implementation - requires personal discipline,

commitment & sacrifice.

Interpersonal skills, leadership and motivational skills

are critical to strategy implementation


7/12



Evaluation

Evaluation is primary means for getting information.

3 activities - review external & internal factors that are

bases for current strategy, measuring performance, taking

corrective action

Requires objectivity, critical thinking and the maturity to

accept what is wrong or what need to be changed


Stages of Strategic Management

Occurs at 3 hierarchical levels:

- Corporate

- Business unit level

- Functional

All aligned & working as one team towards achieving the

firms goals.


The Strategic Management Model


8/12


Benefits of Strategic Management- Financial &Non-financial

1. Initiates & influences ( rather than just respond to)

activities, thus exerting control over its own destiny

2. Helps formulate better strategies using a more systematic,

logical & rational approach

3. Can achieve greater understanding & commitment from

all managers & employees


Benefits of Strategic Management- Financial &

Non-financial

4. Produces more effective decisions

5. Increases profitability & success

6. Enhances awareness of external factors such as

competitor s strengths, productivity, resistance tochange etc.


Pitfalls in Strategic Management

Using strategic planning to gain control overdecisions & resources

Doing strategic planning only to satisfy accreditation

or regulatory requirements

Too hastily moving from mission development to

strategy formulation


9/12



Failing to communicate the plans

Top managers making intuitive decisions that conflict w/

formal plan

Top managers not actively supporting the strat planning

process

Failing to use plans as a standard for measuring

performance



Delegating planning to a planner rather than involving

all managers

Failing to involve key employees in all phases of

planning

Failing to create a collaborative climate supportive of

change



Viewing planning as unnecessary or unimportantBecoming so engrossed in in current problems that

insufficient time or no planning is done

Being so formal in planning that flexibility and

creativity are stifled.


10/12


Why not plan?

Poor reward structures, firefighting, waste of time, too

expensive, laziness, content w/ success, fear of failure,

overconfidence, prior bad experience, self interest, fear of

the unknown, honest difference in opinion, suspicion


Guidelines for Effective Strat Management

Evaluate the quality of the strat management process Keep it simple and as non-routine as possible Eliminate jargon & arcane planning language Stimulate thinking & action that challenge the

assumptions underlying current strategy


Guidelines for Effective Strat Management

Welcome bad news Build a corporate culture where strat managementis central & its purposes are understood

Do not permit technicians to co-opt the process It is a process for learning & action


11/12


Business Ethics & Strategic Management ?

Business Strategy & Military Strategy?


Q & A


Sample Case :

Malabon Marketing


12/12


End of Session 1

BusPol session1

Documents

Transcript of BusPol session1