Professional Documents
Culture Documents
STRATEGY: y The determination of the mission or purpose and the basic long-term objectives of an enterprise, followed by the adoption of courses of action and allocation of resources necessary to achieve these aims.
POLICIES: y General statements or understandings that guide managers thinking in decision making y They ensure that the decisions fall within certain boundaries SIMILARITIES: y They give direction y They are frame work for plans y They are the basis of operational plans y They affect all areas of managing
2.
MAJOR DIFFERENCE: y The essence of policy is discretion y Strategy concerns the discretion, in which human and material resources will be applied in order to increase the chance of achieving selected objectives y Tactics: the action plans through which strategies are executed.
Inputs: People, Capital, Managerial skills, Technical Skills, Others Industry Analysis
Goals of Stake holders: Employees Consumers Suppliers Stock holders Govt Community Others
Enterprise Profile
Implementation
Leadership Control
The competition and its kinds available Possibility of new firms entering Availability of substitute products or services Bargaining position of the suppliers and buyers Mission Geographic orientation (would it operate in home country or in different countries Competitive position of the company itself
3. ENTERPRISE PROFILE
y y y
6. 7.
8. y y y y y y y
Current and Future conditions in respect of economy, politics, financial regulations, new products, services and technology
The most successful strategy, utilizing the orgs strengths to take adv of opportunities
Energy shortages, competition and other areas like conditions mentioned above
APPLICATION OF THE TOWS MERGER MATRIX FOR MERGERS, ACQUISITIONS, JOINT VENTURES AND ALLIANCES
products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. y Management have to think hard about "question marks" which ones should they invest in? Which ones should they allow to fail or shrink? y Dogs - the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. y Criticism:
y Its too simplistic y The growth rate criterion is insufficient for the evaluation of
an industrys attractiveness y The market share is also insufficient for estimating the competitiveness
y Environmental Forecasting
y Human and material resources and their opportunities
compel thinking ahead, looking to the future, and providing for it y Preparation of forecast may disclose areas where necessary control is lacking y Forecasting, especially when there is participation throughout the organization, helps unify and coordinate plans. By focusing attention to the future, it assists in bringing a singleness of purpose to planning y The areas of forecasting; usually are economic, social, political/ legal, and technological environments
colleagues at the RAND corporation for technological forecasting y The process is as follows:
y A panel of experts on a particualr problem area is selected, y y y y y
usually from both inside and outside the organization The experts are asked to make a forecast (anonymously) in terms of discoveries and developments The answers are compiled and fed back to the audience Further estimates of future are made collectively Repetitions take place if required for further additions When a convergence of opinion begins to evolve, the results are then used as an acceptable forecast