1.
BUSINESS
LAW
2.
INTERNATIONAL
BUSINESS
3.
BUSINESS
POLICY & STRATEGY
4.
ENTREPRENEURSHIP
DEVELOPMENT
5.
COST
ACCOUNTING
6.
FINANCIAL
ACCOUNTING
BUSINESS
POLICY AND STRATEGY
QUESTION 1:
Assume
that you are the strategic planning manager of a new organization. Discuss the factors that you will put into
consideration in formulating strategies for your organization.
SOLUTION:
The
factors to be considered in establishing strategies by an organization will
include the following:
a. The desired
return on investment and other performance criteria
Normally all entrepreneur will have in mind
the rate of returns he expects from an investment. This may be in the form of revenue, prestige
or any other criteria with which to measure the performance of the organization
based on the objectives earlier established.
The desired return will be propelling factor in establishing strategies
for an organization.
b. The Scope Of
the Strategy
This has to do with whether the strategy is
for short medium or long term; whether it is for a unit of the business or it is
for conglomerate and whether it is for a locality or to covert previous area of
operation. The strategies to establish
in each of these situations may of necessity differ.
c. The
Industries To Be Entered Into:
This will have to do with the nature of the industries,
the complexity and the entry requirements. If an organization wants to enter
into a fully developed and complex industry, the strategies to be formulated
will, of necessity, differ from those required in an infant industry, or an
industry that is relatively simple in nature.
Consider for instance establishing a pharmaceutical industry and a
poultry farm. While the requirements in terms of legal and standards of
operation for a pharmaceutical industry and its complexity are more demanding
than what a poultry farm and would entail, the strategies for either of those
businesses will have to differ.
d. Geographical
Location:
Areas of concern here will be nearness to raw
materials and market. If the raw
materials are bulky for instance, producing near the source of raw materials
might reduce costs of transportation.
Distribution costs will be reduced, if production is near the market or
consumer or the product.
e. The
Qualification of the Products to be Offered
Thing to consider here will be in the areas of
whether the products will be low price, low quality, special products or
products for special groups of people.
Will the product involve mass production or customized made product –
that is to specification and desire of the purchaser; will it be for the
purchaser; will it be for the rich; the poor or the middle class; will it be
for children, youths, adults or very old people?
All these factors will be put into
consideration in establishing strategies by an organization.
f.
The Role Of the Corporation in the total
Society
Society looks up to various organizations for
the provision of certain goods or services. These roles are expected to be
performed to meet the expectations of the general populace of specific segments
of society. Society expects some
organization to provide employment while making profits and so contribute to
the economic development of the nation. Others are; (i) The Occurrence of natural calamities such as earthquakes, cyclone etc.
and (ii) the basic actions in which the organization may want to engage.
