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What is Strategic Planning

What is Strategic Planning
STRATEGIC PLANNING Strategic planning is the primary step in the process of strategic management [Strategic management is a comprehensive topic that covers almost all the functional aspects of the organization] which can be outlined from at least two perspectives: First, strategy is the “broad programme for defining and achieving the objectives of an organization and implementing its mission”. Secondly, “It is the pattern of the organization’s response to the external environment over a period of time”. A strategy that takes a broad and typically long range focus is called strategic planning. MBA Application Strategies for Top Business Schools Strategic planning is the process that classifies the long range goals of the organization and opts for the precise means (strategies and polices) for achieving these goals, allocates resources, and develops long range plans to reach the destination.  Overview of the Strategic Planning Process Erica Olsen, COO and Co-Founder of http://OnStrategyHQ.com illustrates the full strategic planning process in less than five minutes. Understand the importan… Watch this Video to Understand the Overview of Strategic Planning Process Time-Horizon: Strategic planning takes into account the extended time horizon. There may not be any immediate impact out of strategic planning, but the consequences in the long-run prove to be gradual and significant as well. It provides with the necessary action plans to make a difference in vital areas concerning development. You can always associate innovativeness with strategy since it explores new paradigms and tries to enhance the impact. When the size of organizations expands, they are broken down into strategic business units (SBU’S) for the purpose of functional excellence. These units are expected to operate as if they were relatively independent businesses. WHY STRATEGIC LEADERSHIP IS IMPORTANT A Tailor Made Approach:  A tailor made approach is essential when it comes to strategy development the systematic analysis of the factors associated with customers and competitors (the external environment) helps the organization to meet the challenges of modern society. More and more organizations are focusing on formal approaches and concepts for planning their long range process. Specifically these challenges are a result of increasing rate of change, the complexity of manager’s jobs, the increasing importance of fitting the organization into external environment, and the increasing lag between the preparation of plans and their implementation in future. Resource Allocation: Strategic planning is an organization’s process of defining its strategy or course, and making decisions on resource allocations to pursue this strategy. Managers must be adequately geared up for strategic planning. The goals of the organization must be made plain and not unclear. Each business unit should be categorized based on its performance level to decide on the resource share to be allocated. You need to infuse cash flow into ineffectual units and divest funds from dying units into other profitable ones. The ultimate aim is to build up star performers that will be the perennial source of income or revenue generation. There should be a strong linkage between planning and control. The assessment of strategic plans of the business units must be made periodically and effectively. TOP FIVE REASONS WHY STRATEGIC PLANS FAIL SWOT Analysis: SWOT analysis is a strategic planning technique used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats. Planning is the primary step for control as it provides several standards and benchmarks of control. Planning extracts commitment. Some times planning highlights the objectives only and the planning premises may not be fully reliable. Threats are to be considered as challenges and must be converted into opportunities. Two heads are better than one is the philosophy of brain storming where a group of people with knowledge and expertise assemble to lay out clear plans that will steer...
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TQM – Zero Defect Achievement

TQM – Zero Defect Achievement
Zero defect achievement – Striving towards perfection! What is TQM: Quality management is all about being proactive and concepts like total quality management and six sigma of recent origin reiterate the fact that hundred percent error free performance is possible the first time and every time. This is what is called as zero defect achievement which most of the companies at corporate level are headed for. The intention is to strive for perfection in work, the way an archer aims for the bull’s eye on a target. It is time for people to cast off their conservative and archaic business practices and think out of the box to enjoy a sustainable competitive advantage driven by quality. Zero defects seek top performance standards the first time and every time. Management scholars offer several suggestions to improve the zero defects programme: The idea of zero defects programme has to be communicated through out the organization right from the top to the bottom level including managers, supervisors and workers. This would harmonize the functions of line and staff. Prerequisites needed for the programme have to be determined and made available. The culture and climate of the firm should be conducive to accomplish the programme. Explain in simple terms about the functions to be accomplished. Design some solid system of recognition. Set up a time schedule as time lines are very important when it comes to product delivery. Spot all the bottlenecks and remove them. Training is absolutely essential– the skill set and mind set of the employees have to be attuned to the goals of the venture. Mock training and rehearsals are helpful. Standardization is the key to the success of this programme. Bench Marking: Total quality management is a process contributing towards quality and bench marking is a means to achieve high quality performance by setting some top notch industry performers as reference points or standards. It is a continuous systematic process employed by a business enterprise to develop business and working processes that integrate the best practices available in the industry. Bench marking is a crucial element in the process of quality management. Quality is one field of production, which reflects the ethical viewpoint and approach of business firms towards the society and other investors or stakeholders. Bench marking is a modus operandi used to: Identify and define customer requirements Plan and establish effective goals and objectives Develop time measures of productivity Become more competitive Determine industry’s best practice The initial step is to decide what is to be bench marked-the product, services, customers or business processes in various departments. The second phase of action is to identify and select your competitors who will set the necessary precedence. With that as reference, decide on your company’s strategies by making meaningful and valid comparisons. Judge the competitor strengths and weaknesses and compare them with that of your own to get a clear picture of your current performance levels and capabilities. This will give you a clear indication on the action plans to be developed and implemented in a phased manner by your organization. Quality management is likely to happen only when all the employees of the organization work as a team with unified principles. Quality demands deep commitment and responsibility from the members of organizations. It calls for intense training to imprint the perception of quality in the minds of...
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Roles of a HR Manager

Roles of a HR Manager
Roles of a HR Manager MANAGERIAL ROLES BY HENRY MINTZBERG AND PETER DRUCKER Henry Mintzberg, the canadian academic  observed a few managers and analysed their behaviors and arrived at some conclusions which are listed in the table below. He also identified and attributed ten managerial roles of significance in correlation with the managerial functions. S.No Management Functions % of time spent 1. Relating to external environment 1.8 2. Planning and setting Objectives 19.5 3. Decision-making 6.0 4. Organising 15.0 5. Leadership and inter-personal role 28.4 6. Communication 12.6 7. Control 12.7 8. Staffing 4.1 This table very clearly explains the role of a manager as a leader and the extent of  influence he exerts on his sub-ordinates. Proper planning and goal-setting are the key contributors for the successful functioning of a firm. LEADER VS. MANAGER Coming to the managerial roles, they can be classified as 1. Interpersonal roles 2. Informational roles 3. Decisional roles  Inter-personal roles: Figurehead role– The function is more of a ceremonial nature, like attending the family functions of employees, greeting visitors and a manager performs the symbolic duties of a head of the organization. Leader– He has to plan the HR requirements and motivates the staff to perform well. “Managers are people who do things right; leaders are people who do the right thing.” Remember a manager has to be a leader whereas it is not so in the case of a leader. Liaison– The manager acts as a link between the organization and the external environment to build image and rapport. Informational roles: Monitor– The manager has to update himself with the current scenario in order to utilize the information for organizing and prompt decision-making. Disseminator– The manager has to communicate and distribute information to his subordinates to effectively accomplish the enterprise objectives. Spokesperson– Efficiently has to communicate the company’s policies to prospective clients and others. Decisional roles: Entrepreneur– He has to be innovative by adapting  to the changes in the environment. He has to be adventurous, persistent and strategic during tough times. Disturbance handler– He has to find appropriate solutions to problems Resource allocator– He has to apportion and allocate resources properly besides delegating authority to the work force Negotiator– He has to negotiate resources outside and conflicts inside the organization. MANAGERIAL DIMENSIONS Managing:  Science or Art One perspective is Managing, like all other disciplines- whether medicine, music composing or even cricket is an art. It is “know-how.”  Still managers can use the organized knowledge about management to perform better. So let us put it this way, Managing as practice is an art; the organized knowledge underlying the practice may be referred to as a science. Let them be complementary to each other and be present in peaceful co-existence. Drucker “ON MANAGERIAL FUNCTIONS ”-A manager has to look after The specific purpose and mission of a firm Increase productivity by making the employees more productive Considerate about social impacts and social responsibilities In his view, the areas a manager has to focus and concentrate are 1. Market standing 2. Innovation 3. Productivity 4. Financial and Physical resources 5. Profitability 6. Manager performance and development 7. Worker performance and attitude 8. Public responsibility He says that business has only two functions- marketing and innovation. While others were concentrating on products and commodities, he concentrated on  people and their performance. His “management by objectives- MBO ” became a very popular concept though it faced criticism.  MBO according to Drucker is a philosophy that rests on a concept of human action, behaviour and motivation. It sets personal goals (both shortterm and longterm)  to be achieved by each individual working for the organization and coverts them into challenges to...
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International Trade and Finance

International Trade and Finance
International Trade and Finance What is Trade? Trade is the exchange of commodity and services. International trade represents business transactions taking place at the global level, and it is fundamentally different from domestic trade. Trade at international level demands huge investments, network of franchisees and proficient people to run the show. Many corporate giants are trying to capture Asian markets, especially Indian market, which has become the industrial hub for such economic activities. Economic liberalization has been the focus of many developing countries for the past two decades and this has allowed multinational companies with huge investment potential to enrich the weaker economies. What is International Trade? International trade tries to generate more foreign exchange, which is always good for the economy. Say, if a country has rich resources of petroleum, naturally it will try to sell the surplus to countries not endowed with such natural resources. JavaScript is not available. Because of #demonetisation move, the focus is all the more high on #digital payments as the way forward. https://t.co/V80587CvS4 That is why Middle East nations are prosperous and economically independent. The diversity in productive possibilities in different countries is due to the presence of limited natural resources. When a country gets a head start in a particular product, it can become the high volume, low cost producer. The economies of scale give it a significant advantage over other countries, which find it cheaper to buy from the leading producers than to manufacture the product themselves. Barriers for Effective Trade: Every nation must try to specialize in the production and export of those commodities, which are available in plenty and must import such products in the production of which they have a resource deficiency. It should be remembered that there are severe man made barriers in international trade such as, export duties, quotas, exchange restrictions etc.,that hinder the free movement of products. JavaScript is not available. UPI to create a boom in cashless economy. Giving way to the revolution of Digital Payments. Go Cashless Go Digital pic.twitter.com/0ODTrJbSqP Nevertheless, it is not also possible for a country to produce domestically every kind of product. In spite of all these restraining factors, global trade is thriving, thanks to the advanced technological aspects introduced in communication and faster means of transportation. Distance is no more a constraint and the world has become one small global village. Foreign Exchange Issues: All domestic transactions, say in a country like India take place in rupees, which is the legal tender in the country. However, in its trade with other countries like USA, Germany, Japan, France and Britain, the payments have to be made in terms of dollars, marks, yens, francs and pound sterling respectively. JavaScript is not available. Rupee hits record low of 68.86 against dollar – Click to see also ☛ https://t.co/r0M91S8Du8 … #rupeeVSdollar pic.twitter.com/gufuzwlDp3 The mechanism through which payments are effected between two countries having different currency systems is called foreign exchange. It may be also defined as the exchange of money or credit in one country for money or credit in another. Foreign exchange rates can affect relative prices and net exports. A rise in the a nation’s foreign exchange will depress that nation’s net exports and output, while a fall in the foreign exchange rate will increase net exports and output. Because of the significant impact of exchange rates on national economies, countries have entered into agreements on international monetary...
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Export is the Key to Growth

Export is the Key to Growth
Export can be in the form of merchandise (goods) or services (invisibles). When an entrepreneur wants to spread out his scope of business activity beyond the territory of his nation it is called export, whence he has to prepare himself to confront the challenges prevailing in the global market. How to go about Export? Business by itself calls for discipline whether you talk about your credit policy, quality of your product or services, on time delivery, payments, fund rotation, human resources management and the like. The taste of success in the domestic market gives you the necessary confidence to spread your wings far and wide. To be a part of the global market, you are expected to imbibe not only more discipline and order but you should be very thorough about the procedures and policies of the country, to which you are planning to export and the various legal formalities pertaining to your business activity. How to Export From India Pic Courtesy: Procedure to Start Export Business from India What will be your plan of action if your merchandise is disapproved of its quality after reaching the destination or the shipment gets destroyed due to some eventuality? To combat contingencies we have to have a representative working for us in the chosen place of activity who would report and handle the proceedings. Pre-Requisites for Exporting Goods: How many people do you think who have acquired the desire to export their products have a clear idea about the steps involved in starting an export business? First you have to secure the IEC CODE (import export code) from the DGFT (Director General of Foreign Trade) that comes under THE MINISTRY OF COMMERCE AND INDUSTRY. What is IEC Code? Import Export Code (also known as IEC) is a 10 digit identification number that is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. Info Courtesy: Shiprocket.in It is also known as Importer Exporter Code. It is mandatory for companies and businesses to obtain this code to start a business that deals with import and export in the Indian Territory. It is not possible to deal with export or import business without this code. While exporting you get the following edge over others: Exposure to forex marketExposure to diversified cultureExposure to varied laws and legal formalitiesExposure to business risks which you must take up as a challenge Having businesses in various countries is better than having all businesses in one country. It saves you during periods of economic recession. You experience market growth by entering into different and new markets; Asian and European markets are flooded with traders from all around the world since these regions enjoy a locational advantage in the world map and well connected through the sea and land. RBI Policies: Exporters must be aware of the fact that RBI policies are very severe when it comes to foreign exchange. So you should have proper informational inputs from the correct source and your capital has to be invested accordingly. Slide Courtesy: Import and Export Policies and Procedures Exploring unfamiliar and exotic markets is very difficult as they are always dynamic. You should see to it that you keep yourself posted with updates on INTERNATIONAL FINANCE, LENDING RATES etc. Also Read: 10 key steps to export success You can make a small business big and beautiful by adding some flavor to it like, Right time to launch your product in the global scenario, People’s preference being given priority by doing some demographic survey, Attractive campaigns and of course Your unendurable passion for business will do the rest to make your venture a successful one. Read...
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