ASSIGNMENT

Chapter # 4 : Developing : strategies Submitted to: Prof. khawaja amjad saeed Submitted by:
Ansa zahid Roll no 140 (Insurance and risk managemant)

HAILEY COLLEGE OF BANKING ANDFINANCE

DEVELOPING : STRATEGIES
There are three types of strategies which are followed by the organization 1. Corporate level strategies 2. Business unit strategies 3. Functional strategies

CORPORATE LEVEL STRATEGIES:

Internal growth. Horizontal growth. Restructuring. Stability strategy. Financial restructuring. Portfolio restructuring.

BCG Growth-share matrix:

BCG is the abbreviation of Boston Consulting Group. It is based on the observations that a companys business units can be classified into four categories based on competition of growth market and market share relative to the largest competitors, hence the name growth and share.

Star

Question marks

Cash cows

Dogs

Strategies Of Turned On Organization:

Enthusiastic customers Inspired people. Financial performance

financial performance

Enthusiastic customers

inspired people

BUSINESS UNIT STRATEGIES:

According to business unit strategies are developed for each segment of the business and evaluated across the following criteria:

Brand reputation. Product quality. Market share growth. Principal products- cost of products. Technology know-how. Factory capacity utilization Managerial talent. Market share. Profit earned.

FUNCTIONAL STRATEGIES:
It including following: Procurement. Personnel. Marketing. Production. Finance. Research & development.

Procurement:
In procurement strategic areas are: 1. 2. 3. 4. Purchase vs. production Procurement and sales coordination Selection vendors Process to be selected

Personnel policies:
1. Manpower planning 2. Selection

3. 4. 5. 6. 7. 8. 9.

Training Compensation Arrangements for work Employee service Industrial relations Human resource development Productivity consciousness

CBA constituents:
Collective bargaining agreements are negotiated between labour and management. There contain several aspects: Wages rates and allowances Union recognition Check off Insurance Retirement benmefits Time of benefit Disciplline Steikes Dispute settlement management rights

Motivation
According to McFarland: It refers to a way in which urges, drivers, desires, aspiration strivings, needs, influence the choice of alternatives in the behavior of human beings. Motivation= valence* expectance

Maslows Hierarchy of Needs:

A famous social scientist has categorized needs as under: 1. Physiological needs 2. Safety needs

3. Love needs 4. Esteem needs 5. Self-actualization needs

Theories of motivation:
1. Herzberg Hygiene Theory 2. McGregors Theory X and Y 3. Expectancy theory

Marketing Polices:
Strategic areas are identified below: 1. 2. 3. 4. 5. Production policies Selection of customers Pricing Sales appeals Sales promotion

Four Ps of stratagic approach:

Product Price Place Promotion

Production policies:
Strategic areas of interest are as under: 1. 2. 3. 4. 5. TQM approach Operations Smooth Capacity utilization Optimal Preventive maintenance To be implemented Clean up Periodical

6. Behavioral aspects (supervision, vigilance, motivation, result oriented, sharing result & benefits) 7. Obsolescence Avoid 8. Impact of robots wherever needed, use robots.

Finance polices:
It includes the following: 1. 2. 3. 4. Source of finance Uses of finance Protection of finance Distribution of earning

Risk management:
Risk can be defined as: 1: Lower yield on an investment than expected. 2: Loss of part or all of the actual. There are following categories of risk: 1. Known risk. 2. Predictable risk. 3. Unpredictable risk.

Process of risk management:

1. Risk identification. 2. Impact of risk. 3. Handling.

RMMM Plan:

Risk mitigation, monitoring and management plan is generally referred to as RMMM plan. This plan deals with the following strategic issues: 1. Risk avoidance. 2. Risk monitoring. 3. Risk management and contingency planning.

Research and development (R&D):

Some areas of strategic interest are listed below: Beliefs to be develop. Practice to be reflected. Financial commitment to be made. Service areacritical. Financial commitmentsto be demonstrated. Successful international practices a) USA b) Japan c) NICs d) Developing countries

DEVELOPING MASTER MANAGEMENT STRATEGY

A four point master management strategy for an enterprise is suggested below: 1. 2. 3. 4. Pick up particular role or niches Combine enterprises effects Setup sequences and timing of changes Provide for adaptation.

APOs Guidelines Role:

1. Financial. 2. Customer.

3. Business process. 4. Staff Learning & Growth.

Strategy for success in business:

1. Production and processes. 2. Operating methods. 3. Commercial aspects and planning.

Strategy for profit improvement:

1. 2. 3. 4. 5. 6. 7. 8. Simplification, standardization. Classification & coding. Work study etc. O&M techniques. Integrated data processing. Return on investment. Discounted cash flow. ABC analysis.

Wastage of time should de avoided in management functions namely: Planning Organizing Staffing Directing Controlling Communicating Decision making

Decision making:
Its means by which to administer, plan, organize, lead and control. Decide upon courses of action and implement their choice.

Types of decisions:

 Programmed decision Non-programmed decision

Divine decision making:

Its a style which is included in Holy Quran (36-82) which is as: Verily, when He intends a thing, his command is BE and becomes

PERSONAL QUALITIES FOR DECISION MAKING:

The personal qualities of decision making are: Experience. Judgment. Creativity. Quantitative skills.

IT AND STRATEGY:
IT has facilitated the development of strategy with productive results. In this respect some interested aspects are viewed below:

Computer:
Computer provides effective and efficient ways of processing data and they are a part of an information system. If we talk about its history, its started from abacus invented by a Chinese. With the passage of time it transformed as the most helping equipment of the world. Have numerous models, generations and regimes.

MANAGERIAL FUNCTIONS AND INFORMATION TECHNOLOGY:

Some aspects in this respect are stated below: 1. Procurement. 2. Personnel.

3. Production/operations:
Transformation Input (also known as throughput) Output

4. Marketing: It includes: a) b) c) d) 5. Legal aspects of marketing. Cost of marketing. Functions of marketing Institutional aspects of marketing. Finance.

It is consists of three parts, namely: a) Strategic system. b) Tactical system. c) Operational & transaction process system.

COMPUTER TECNOLOGY AND BUSINESS:

Moores law: Gordon Moore, founder of Intel, noted in 1965 that the performance of memory chips double every 18-24 months, whereas their size and cost remained roughly constant. He predicted that the trend would continue and that its impact on the world would be profound. Computer technology help in businessand increase profitability in several area including the following: Marketing strategies Inventory control Staffing patterns Distribution systems

Developing MIS:

a) b) c) d) e)

General. Guidelines. From where to start. Modus operandi. Analogy to MIS.

GUIDELINES FOR EFFECTIVE COMMUNICATION:

There are following five communication essentials: 1. 2. 3. 4. 5. Motivate. Inform. Stimulate questions. Checkup. Invite participation