CHIARA MARI S.

MANALO
Subject: Business Policy, Friday Class
Professor: Dra. Cristeta M. Carandang

Module 1 - Strategic Management and Business Policy

Activity I

Answer comprehensively:

1. What is the ultimate goal of business strategies?

- The ultimate goal of business strategies is to develop a plan to achieve to

achieve the desired result of a firm/organization. To maximize profits for
its owners or stakeholders while maintaining corporate social responsibility.

2. Why does business failed and succeed?

- Business fail because of (1) Poor cash flow management, it can lead to
demise of any business. Inadequate financing – or selecting the wrong type
of funding for your business – can also put it on the path to failure. (2) Losing
control of the finances, any business owner needs to be aware of their
financials and cash position at any given time. The accurate forecasting of
income and costs may lead to a few surprises, but it will ultimately help
support your cash flow. (3) Bad planning and a lack of strategy. (4) Weak
leadership, Poor leadership, on the other hand, leads to demotivated and
ineffective teams, which can easily cripple a business.

- Business succeed because of the following reasons: (1) Clear Mission and
Vision, a concise and clear mission vision is essential to make any business
successful. (2) Inspiring Company Culture, the culture of any company
should be inspiring for employees as well as management. It should meet
the needs of everyone related to the company – because a company's
reputation in the market depends a lot on the way a business is conducted.
(3) Clear Differentiation, when a company is able to provide a convincing
reason why customers should buy their products or services, then the
chances of success are improved to a great extent. (4) A business that is
unique is automatically separated from its competition. (5) Adequate
Financial Reserves, business can succeed only if it accumulates capital
from healthy a stream of profits. This will help in attracting more lending
resources and ownership capital to help the business grow.

3. Why has strategic management become very important to today’s

organization?

- It can improve understanding of competitor’s strategies, including the

awareness of threats.
 - It allows reducing resistance to change.
- It defines the management problems objectively.
- It provides a framework for a company to coordinate and control the
activities.
- It promotes the communication among the employees and managers.
- It encourages having a strategic mindset, inspiring people to think more
about the future of the company.

Module 2 - Planning: Foundation of Strategy

Activity II

1. What is the rationale of knowing the firm’s external environment?

- The external environment analysis process should be conducted in

continuous basis to stay attuned with the times. To develop strategies that
would exploit the most attractive opportunities and mitigate or lessen the
impact of the threats. Understanding the external environment will have
significant effect on the performance of the company. Knowing this can help
the firm to pursue strategies that will improve or defend the company’s
market position.

2. What are the elements of planning? What is the relevance of planning to

strategy formulation, implementation, evaluation?

- The elements of planning are Scanning, Monitoring, Forecasting and

Assessing. Planning is the art of creating specific strategies, implementing
them, and evaluating the results of the executing plan, in regard to a
company’s overall long-term goals or desires.

3. Is competition a threat opportunity? In what way can competitive advantage be

attained?

- Yes. Competition is a driving force for the firm to survive in the industry and
to be ahead of others. The market and economic environment would not be
encouraging for the growth and sustainability of businesses without their
competitors. An organization should be equipped and armed with the right
attitude and information towards change coupled with speed, flexibility, and
forward thinking.