Business Policy 490 Notes Business Policy is a case content course based on a union of functional integration, a top management perspective and stragegy. Business Policy is a simple central unifying concept of the business that defines the purpose and procedures of the business. Policies should be formally stated, incremental, and come with in the window of opportunity Its important to be able to place the companies in the models and the models in the process. Overview of the Process Formulation and Implementation Model / an overview of the subject Formulation Implementation environment structure resources >Strategy> systems values information responsibilities reward allocation leadership Environment The 5 Elemental Forces of Competition (Porter) / a way to analyze the competitive environment and find the most important forces. Industry Life Cycle (one of many models with this name)/ a way to examine the stage of industry development and what to expect next. | * | * | * | -------*-------------------- | * - | * - - | * - - - | - *- - | - - * ------ sales price |__________________________________________________ ****cost to make start up Price umbrella Shake out maturity Resources Financial Analysis / the ratios I want are the Current and Quick ratios to check liquidity Days sales in accounts receivable and inventory to check activity Debt to equity or assets to look at leverage & ROE and ROA to check on profitability Values of Management and Social Responsibility Do ethics Pay? A history of cultural evolution from the Neolithic agricultural revolution through Thou shalt not Love thy neighbor & The Bill of Rights in both the Judeo/Christian/Moslem tradition and the Hindu/Buddhist tradition Why it is in our self interest as citizens, the business class and individuals to be ethical. Seven deadly sins Strategy Ideas of competitive advantage and the value chain Generic Model Rumelt=s Model of Diversification Strategy Boston Consulting Group ( BCG) Model TQM Structure Why diversify? Who benefits? Risk control/ financial, operational, employment related opportunity synergy/ market, operations, mgmt/ must work to make it happen unrelated business multinational diversification/ economies of scale, world culture, R&D empire building Structural Types hair ball functional divisional matrix organization > < Largest Co.s small Centralized> < Decentralized products simple Related Unrelated Projects Systems/ The folly of rewarding A while hoping for B Information systems such as accounting, personnel, market research Reward systems such as salary, bonus, merit, retirement, Allocation systems such as capital budgeting, employee slots, sales territories General Electric Strategic Planning Model Goals & Assumptions Long term Plans Budgets Control & Evaluation Corp Level Business Level Functional Level -----------------------------------Feedback---------------------------------------------- Leadership A long term effort to infuse an organization with a sense of purpose and values. A mix of good decision making, integrity, behavioral, and political skills HOW TO GET A JOB Take the Employer's perspective Start NOW, Don't hide, You have an excuse to be unemployed now but you won't later. Discuss the process of Marketing yourself as an investment in a product that has been 20+ yrs in the making. The 4 P's of marketing Price , Product, Promotion and Physical Distribution The computer revolution is here in research, processing and distribution. Preparation /research Know the Company, institution and yourself Resume / Application /cover letter Distribution Interview First Job Career Prepare for your next job now