Business Policy and Strategy

Question: Discuss about the Business Policy and Strategy. Answer: The benefit of strategic management in decision making. Strategic management is the process of making company goals on a long-term basis, depending on the position one expects the company to be in the future. By the fact that the process is influenced by the business activities; then it also impacts decision making in the business. The main advantage of strategic management in decision-making is that it helps one narrow down to the best and wise decision. This is achieved by the fact that strategic management gives on the visualization of the future, and without clear goals, in the future, all ideas seem to make the best outcome. For instance, the type of projects to invest in will depend allot on the expected financial position to the companys future. Staffing strengths and two examples of staffing weaknesses Staffing is the recruitment, selecting, developing and training employees in an organization. It mostly deals which person is best for appraisal or particular department instead of the current working position of the employee (Tanova, C, 110 (2003). Strengths It helps in building a healthy workforce that has the maximum ability to perform and produce quality output. Mostly on the technical part like accounting and technology departments where it was difficult to source the best personnel. Staffing improves the morale and job satisfaction of the employees; this is achieved through the training, promotion and the compensation aspects done by the organization, which in turn develops the feeling that employees are appreciated in accordance with their effort. Weakness The fact that it uses seniority as a way to categories the staffs for promoting, to which even inefficient employees get promoted too many senior positions, which can damage the companys prospects The staffing process blocks new and original ideas from new staff members with experience from gaining access into the organization, this probability blocks the company from diverse ways of doing things, yet there is a chance to improve. Market penetration: This is the activity or process that company employees so as to introduce a new product in the market or increase the market share of a particular product. For example the Coca-Cola company, which tries to increase its market share by developing new products like the coke zero soda, also by intense promotion and marketing. For instance how they associate Coca-Cola with Christmas (Arkolakis, C.,1160, 2010.) Market development This is the strategy of developing new markets for particular products by targeting new customers, in a particular region. For example adding new features to the existing product, and having deferent quality levels in the market depending on the buying power of the target market. A good example of such is the Samsung smartphones where the company improved the RAM and the processor of the current phones, and by that, they were able to win more customers. Product development: this is the rebranding of the introduction of a new product from an existing company. This is arrived at on the basis of customer needs, the nature of the market and the kind of competition from other players in the industry. For example, the banking sector which has switched more into the money transfer system using your phone, to transact and withdraw money from the bank accounts. A functional or divisional structure management The functional structure means that the reporting relationship towards the top manager of the organization is split based on their functions areas, while the division structure the organization functions are split according to the service line, product or the market base. It is more of a specialized division than a functional structure. As for me, the functional structure is the best to implement because, it is cheap compared to division structure, as it lowers the reputation of resources and also the structure maximizes the functional performance all through because all the human skills and knowledge are all concentrated to one working subdivision in the business setup. Therefore harvesting all the possible potential without duplication of the limited resources (Miles, R and Snow, C. 45, 1984) Developing a code of business conduct The code of conduct in business is a management tool used to set out the expected values, responsibilities and the ethical obligations of a company of business. The code is important as it helps employees to handle ethical dilemmas while working for the organization and also have in mind the expectations of the company while delegating their responsibilities. The answer to the question is that I would implement a code of business conduct in reference to the compliance to the legal regulations, personal responsibilities, the projected management support, and the company values on the day to day activate (Kaptein, and Schwartz, 115, 2008) Reference Kaptein, M. and Schwartz, M.S., 2008. The effectiveness of business codes: A critical examination of existing studies and the development of an integrated research model. 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