bochins.

paw

BUSINESS MANAGEMENT
Presented
Presented by:
by:
Sheherazade
Sheherazade G.
G. Bardoquillo
Bardoquillo
 Strategic Management

Merchandise Management

Administrative Management
Strategic Management
Strategic Management

Strategic management is a set of management

decisions and actions that determines the long-
run performance of a corporation. It includes
environmental scanning, strategy formulation,
strategy implementation, evaluation and control
to achieve the objectives of an organization.
 As per Fred R. David

Strategic management is an art and science of

formulating, implementing and evaluating cross
functional decisions that enable an organization
to achieve its objectives.
Strategic Management Process
Step 1: Strategic Intent

Vision: is the statement that expresses

organization’s ultimate long-run objectives. It is
what the firm ultimately like to become. Vision
is closely related with strategic intent and is
forward thinking process.
Step 1: Strategic Intent

Mission: It tells who we are and as what we’d

like to become. Mission of a business is the
fundamental, unique purpose that sets it apart
from other firms of its kind and identifies the
scope of its operation in product and market
terms.
Step 1: Strategic Intent

Objectives: These are the end results of planned

activity that state what is to be accomplished by
when and should be quantified if possible and
their achievement should result in the fulfilment
of a corporation’s mission. Objective state
specifically how the goals shall be achieved.
 Strategy Formulation

Refers to the process of choosing the most appropriate

course of action for the realization of organizational
goals and objectives and thereby achieving the
organizational vision.
For choosing most appropriate course of action,
appraisal of organization and environmental is done
with the help of SWOT analysis.
 Environmental
Appraisal
The environment of any organization is “the aggregate of all
conditions, events and influences that surround and affect it’’.
It is dynamic and consists of External and Internal
Environment.
The external environment includes
all t all the factors outside the
organization which provide opportunities or pose threats to
the organization.
The internal environment refers to all the factors within an
organization which impart strengths or cause weaknesses of a
strategic nature.
 Organizational
Appraisal
It is the process of observing an organizational
internal environment to identify the strengths and
weaknesses that may influence the organization’s
ability to achieve goals. all t

The analysis of corporate capabilities and weaknesses

becomes a pre-requisite for successful formulation
and reformulation of corporate strategies.
 Strategy Implementation

is the action stage of strategic management. It

refers to decisions that are made to install new
strategy or reinforce existing strategy.
Designing structure, process and system

Strategy implementation includes the making of

decision with regard to organizational structure,
developing budgets, programs
all t
and procedure in order
to accomplish certain activities.
 Functional Implementation

Is carried out through functional plan and policies in

five different areas – marketing, finance, operation,
personnel and informationall tmanagement.
 Behavioral Implementation

It denotes mobilizing employees and managers to put

and formulate strategies into action and require
personal discipline, commitment
all t and sacrifice. It
depends upon manager’s ability to motivate
employees.
 Operationalizing strategy

It includes establishing annual objectives,

devising policies, andall allocating
t
resources.
Merchandise Management
 In order to be successful, retailers must make
competent decisions over what is to be bought,
in what quantities and at what time. The overall
choice of merchandise also presents a clear
message to consumers about the type of
company they are purchasing from. As such the
selection and presentation of merchandise
enables a key source of difference to exist which
will allow one store to differentiate itself from
another.
Merchandise Management

Focus on the planning and controlling of the

retailer’s inventories. The role has to balance
the financial requirements of the company with
a strategy for merchandise purchasing.
Main objective of the store layout is to maximize
the interface between customers and
merchandise. It provides
all t easy accessibility to
the customers to view the offerings of the store.
 Merchandise Plan Consideration

1. Marketing Consideration
2. Merchandise Strategy Opinion
3. Type of Customer allBase
t
4. Financial Consideration
5. Merchandise Assortment Search
 Stock-to-Sales Method

It is an approach to maintain a specified ratio of

goods on hand to sales.
Stock to Sales ratios can
all t be calculated from a
retailers own historical results or from external
sources as long as these are reliable.
Shrinkage – is the difference between the
amount of merchandise that is reported on the
inventory stock system and what is available for
sale or on the shelves. all t
Markdowns – are lowering of the prices of the
merchandise so that the reduction acts as a
promotion.
Employee discounts- reduction and offer value
to the employee in working at the store.
 Merchandise
Management System

all t
AdministrativeManagement
Managing a business or organization is a
challenging and complex job. For a company’s
administration to succeed, they need to have
strategies specific to theirallparticular
t
employer and
workplace.
 WHAT IS ADMINISTRATIVE
MANAGEMENT?
The term “administrative management” refers to the act of
running and maintaining a business or organization. The core
objective of administrative management
all t is to create a formal
structure that facilitates success for a particular business or
organization. Administrative management employees create a
hierarchy of authority, decide on their key functions, assign
the different areas of responsibilities and divide labor across
the company’s departments.
 Fayol’s Principles of Administrative
Management

Henri Fayol was a theorist who introduced 14

principles of administrativeall management
t
based on his
experience as an engineer and a director of a mining
company in the 1800s. Fayol’s 14 principles are
considered to be one of the earliest theories of
administrative management. These principles include:
Division of Work: Dividing tasks evenly among employees
Authority: Deciding how the chain of command functions
in the organization
Discipline: Setting policies on how standards of behavior are
enforced all t

Unity of Command: Selecting a single individual or team to

be the executive branch
Unity of Direction: Maintaining unified goals and vision
Subordination of Individual Interests: Sacrificing personal
needs for the good of the organization
Order: Communicating expectations and instructions
Equity: Prioritizing fair and just treatment and dealings
Stability of Personnel: Maintaining
all t long-term relationships
between employee and employer
Initiative: Taking advantage of every opportunity and acting
with a sense of urgency
Administrative management is the key to ensure the smooth
operation of a business, and that is why administrative
managers are required to have a broad understanding of all
stages of the management process. No one strategy makes
administrative management complete.
all t Effective
administrative management requires the implementation of
multiple strategies that are based on the individual
organization’s mission, vision and goals.
 bochins.paw

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