Business Policy

Session 1

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
2. Problem
3. Areas of Consideration
4. Alternative Courses of Action
5. Recommendation
Total

1 point
3 points
2 points
2 points
2 points
---------10 points

Course Orientation
Paper - An evaluation of a Corporate Plan
Deadline for submission: April 6th
Maximum 20 pages

Topics that must be included in the paper:

1. Firm Background
2. Present the Strategic Plan
3. Present systems & structure supporting
implementation of the Strategic Plan
4. Analysis (using tools)/Evaluation/Recommendation

Course Orientation
n

You will be graded on the quality of your writing as well as

the content, i.e. how you write as well as what you write.
This will include
n

The ability to present your material in an appropriate

format (report, essay, exam).

The ability to present your work in grammatically correct

language.

Course Orientation

Academic depth which includes appropriate application

of frameworks and theories, critical thinking and
contrasting argumentation.

Please note that you must clearly identify all sources,

including the internet, and that you should communicate
your thoughts in your own words/diagrams/images rather
than reproducing the material of others.

Course Overview
Business Policy or Strategic Management?
Course design is for each one to function as a CEO or the
owner of an organization

it is an integration course!

Course Overview
Major task is to make strategic decisions and justify
those decision orally or in written communication
Strategic decisions accomplish 2 things:
1) determines future
2) determines competitive
direction
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 doing

things 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!

Systems Thinking & Critical Thinking???

Critical thinking
Critical thinking is that mode of thinking in which the
thinker improves the quality of his/her thinking by
skillfully analyzing, assessing, and reconstructing it.
CT is self-directed, self-disciplined, self-monitored, and
self-corrective thinking.
It presupposes assent to rigorous standards of excellence
and mindful command of their use.
It entails effective communication and problem-solving
abilities, as well as a commitment to overcome our native
egocentrism and sociocentrism.

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.

The Nature of Strategic Management

What is Strategic Management?

Formal
Systematic
Pervasive
Managerial process
Organized by time, responsibility & information
Goal is to direct & control the firms future

The Nature of Strategic Management

What is Strategic Management?
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!

The Nature of Strategic Management

What is Strategic Management?
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 the
90 s up to now

The Nature of Strategic Management

Stages of Strategic Management
1. Strategy formulation,
2. Strategy implementation
3. Strategy evaluation

The Nature of Strategic Management

The Strategic Management Model

The Nature of Strategic Management

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

The Nature of Strategic Management

Stages of Strategic Management - Strategy
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

The Nature of Strategic Management

Stages of Strategic Management - Strategy
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

The Nature of Strategic Management

Stages of Strategic Management - Strategy
Implementation

Implementation - requires personal discipline,

commitment & sacrifice.

Interpersonal skills, leadership and motivational skills

are critical to strategy implementation

The Nature of Strategic Management

Stages of Strategic Management - Strategy
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

The Nature of Strategic Management

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 Nature of Strategic Management

Benefits of Strategic Management- Financial &
Non-financial
- Improved Communication
- Increased Understanding
- Enhanced Commitment
- Greater Productivity
- More Effective Strategies
- Higher Productivity

-Allow Firm to Influence, Initiate,

and Anticipate
- Be Proactive Rather Than
Reactive
- More effective decisions
- Increased awareness of external
factors like competitors
strengths, productivity etc.

The Nature of Strategic Management

Pitfalls in Strategic Management

Using strategic planning to gain control over

decisions & resources

Doing strategic planning only to satisfy accreditation

or regulatory requirements

Too hastily moving from mission development to

strategy formulation

The Nature of Strategic Management

Pitfalls in Strategic Management

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

The Nature of Strategic Management

Pitfalls in Strategic Management

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

The Nature of Strategic Management

Pitfalls in Strategic Management

Viewing planning as unnecessary or unimportant

Becoming 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.

The Nature of Strategic Management

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

The Nature of Strategic Management

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 that & action that challenge the
assumptions underlying current strategy

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The Nature of Strategic Management

Guidelines for Effective Strat Management
Welcome bad news
Build a corporate culture where strat management
is central & its purposes are understood
Do not permit technicians to co-opt the process
It is a process for learning & action

The Nature of Strategic Management

Business Ethics & Strategic Management ?

Business Strategy & Military Strategy?

The Nature of Strategic Management

Sample Case :

Malabon Marketing

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