BUSINESS POLICY 490

Business Policy 490

Business Policy 490

Answer 1. They are level objectives of the organization; serve to define the direction of the company. They are usually for a period of five years and three at least. Each strategic objective requires a series of tactical objectives.

Long term objectives and goals should be measurable, i.e. they must be quantitative and be linked to a time limit. For example, instead of the goal: "to increase sales," a measurable objective would be: "increase sales by 20% next month." However, it is possible to use broad objectives, but as long as they are accompanied by targets or measurable together to achieve the generic.

Two examples:

Raise production efficiency by 20%the next month.

Purchase 2 new machines for the second semester.

Answer 2. Management by extrapolation is a managerial practice to collected data to draw conclusions drawn on a development. The conclusions drawn are not fully hedged. An example of an extrapolation, the extrapolation of election results shortly after the polls closed. It closed by a small percentage result the votes counted so far, already on the complete result of the election. For extrapolations usually resorted to extensive experience of the past. In some elections will be involved, radical parties that voters are less likely to confess their voting behavior as voter-established parties - in accordance with these people are overweight in an inflated bill.

Answer 3. Managing by Hope is one of the managerial practices that help the managers to take the risk, without thinking about the future, based on experience.

Answer 4. Business integration refers to the alignment of strategies, objectives, processes, systems, technology infrastructure and the firms operations with the changing market and the customer needs. Organizations all over the world use different strategies and models of business integration in accordance with the nature of their business and market. Some of the widely implemented strategies include vertical Integration, horizontal integration and conglomerate structures. They have their own set of advantages and drawbacks. Numerous factors must be taken into account by the management when deciding upon the appropriate strategy of integration.

Backwards vertical integration, which is also called upstream vertical integration. An organization is following the philosophy of backward or upstream vertical integration if it is managing its subsidiaries, which manufacture a proportion of the input necessary for the production of its products.

Forward vertical integration, which is also known as downstream vertical integration. Forward integration seeks to control or acquire control over distributors or retailers.

Horizontal integration is a theory of ownership and control. It is a strategy used by a corporation looking to sell a product in numerous markets. To reach this market coverage, many companies create subsidiaries. The horizontal integration also seeks to control or acquire ownership of competitors.

Horizontal integration is a development strategy by which the activities are expanded through and the union, purchase or alliance with another company that performs the same activities.

Answer 5. There are three types of diversification strategies, concentric, horizontal and conglomerate. Diversification strategies become less popular, as companies find it more difficult ...