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MB0036 - Strategic Management & Business Policy Assignment Set-1
MB0036 - Strategic Management & Business Policy Assignment Set-1
Policy
Assignment Set- 1
a) Intensive Growth:
It refers to the process of identifying opportunities to achieve further
growth within the company’s current businesses. To achieve
intensive growth, the management should first evaluate the
available opportunities to improve the performance of its existing
current businesses.
b) Integrative Growth:
It refers to the process of identifying opportunities to develop or
acquire businesses that are related to the company’s current
businesses. More often, the business processes have to be
integrated for linear growth in the profits. The corporate plan may
be designed to undertake backward, forward or horizontal
integration within the industry.
The classic examples for this would be engineering and textile firms
setting up software development centres or Call Centres with new
service clients.
Situation Analysis
Sales Improvement Strategies:
a) A supplier of computer stationery invests in a computer
stationery manufacturing unit.
b) A vendor supplying engine boxes to Maruti decides to supply the
same with modifications to Hyundai.
c) A company dealing in computer floppies plans to set up a
Software Technology Park.
Financing Section
Management Section
Outline your organizational structure and management team here.
Include the legal structure of your business whether it is a
partnership, corporation or limited liability corporation. Include
resumes and biographies of key players on your management team.
Show staffing projection data for the next few years.
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1. Idea Researching
In this stage, you are researching your idea. The object of your
research is to find out who is marketing the same product or
service in your area, and how successful the marketer has
been. You can accomplish this by a Google search on the
Internet, launching a test-marketing campaign, or conducting
surveys. Also, you are attempting to find what the level of
interest is in the products (or services) you wish to market.
i) Executive Summary
ii) Company and Product Description
iii) Market Description
iv) Equipment and Materials
v) Operations
vi) Management and Ownership
vii) Financial Information and Start-Up Timeline
viii) Risks and Their Mitigation
3. Financial Planning
Financial planning involves thinking about the financial costs
of starting and maintaining your business. According to the Biz
Ed website, you should consider such issues as the costs of
running the business; the prices you wish to charge your
customers; cash flow control; and how you wish to set up
financial reserves in case of an emergency or an event
causing significant loss to the business. This includes the
planning of whether to take any loans or make personal
investments in the company.
4. Advertising Campaign
Here in this case more than TV, a better advertising media will
be road side sign boards placed close to the auto companies
for getting the deals to manufacture their spares. As TV is
useful only to reach the common man and he is not our target
customer. Hence sign boards are the feasible solution and
also pamphlets circulated across the pioneers. This apart
personal marketing is much more suggested.
Thus these are all the stages that I would consider performing if
incase I plan to start a manufacturing unit producing automobile
components.
The definition of CSR used within an organization can vary from the
strict "stakeholder impacts" definition used by many CSR advocates
and will often include charitable efforts and volunteering. CSR may
be based within the human resources, business development or
public relations departments of an organization, or may be given a
separate unit reporting to the CEO or in some cases directly to the
board. Some companies may implement CSR-type values without a
clearly defined team or program.
The business case for CSR within a company will likely rest on one
or more of these arguments:
Human resources
A CSR program can be an aid to recruitment and retention,
particularly within the competitive graduate student market.
Potential recruits often ask about a firm's CSR policy during an
interview, and having a comprehensive policy can give an
advantage. CSR can also help improve the perception of a company
among its staff, particularly when staff can become involved
through payroll giving, fundraising activities or community
volunteering. See also Corporate Social Entrepreneurship, whereby
CSR can also be driven by employees' personal values, in addition to
the more obvious economic and governmental drivers.
Risk management
Managing risk is a central part of many corporate strategies.
Reputations that take decades to build up can be ruined in hours
through incidents such as corruption scandals or environmental
accidents. These can also draw unwanted attention from regulators,
courts, governments and media. Building a genuine culture of 'doing
the right thing' within a corporation can offset these risks.
Brand differentiation
In crowded marketplaces, companies strive for a unique selling
proposition that can separate them from the competition in the
minds of consumers. CSR can play a role in building customer
loyalty based on distinctive ethical values. Several major brands,
such as The Co-operative Group, The Body Shop and American
Apparel are built on ethical values. Business service organizations
can benefit too from building a reputation for integrity and best
practice.
License to operate
Stakeholder priorities
Increasingly, corporations are motivated to become more socially
responsible because their most important stakeholders expect them
to understand and address the social and community issues that are
relevant to them. Understanding what causes are important to
employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased
employee engagement (i.e. more loyalty, improved recruitment,
increased retention, higher productivity, and so on). Key external
stakeholders include customers, consumers, investors (particularly
institutional investors), communities in the areas where the
corporation operates its facilities, regulators, academics, and the
media.
The financial investor represents the past. Its money is the result of
past - right and wrong - decisions. Its orientation is short term: an
"exit strategy" is sought as soon as feasible. For "exit strategy" read
quick profits. The financial investor is always on the lookout,
searching for willing buyers for his stake. The stock exchange is a
popular exit strategy. The financial investor has little interest in the
company's management. Optimally, his money buys for him not
only a good product and a good market, but also a good
management. But his interpretation of the rolls and functions of
"good management" are very different to that offered by the
strategic investor. The financial investor is satisfied with a
management team which maximizes value. The price of his shares
is the most important indication of success. This is "bottom line"
short termism which also characterizes operators in the capital
markets. Invested in so many ventures and companies, the financial
investor has no interest, nor the resources to get seriously involved
in any one of them. Micro-management is left to others - but, in
many cases, so is macro-management. The financial investor
participates in quarterly or annual general shareholders meetings.
This is the extent of its involvement.
The strategic investor, on the other hand, represents the real long
term accumulator of value. Paradoxically, it is the strategic investor
that has the greater influence on the value of the company's shares.
The quality of management, the rate of the introduction of new
products, the success or failure of marketing strategies, the level of
customer satisfaction, the education of the workforce - all depend
on the strategic investor. That there is a strong relationship
between the quality and decisions of the strategic investor and the
share price is small wonder. The strategic investor represents a
discounted future in the same manner that shares do. Indeed,
gradually, the balance between financial investors and strategic
investors is shifting in favour of the latter. People understand that
money is abundant and what is in short supply is good
management. Given the ability to create a brand, to generate
profits, to issue new products and to acquire new clients - money is
abundant.