BM PBP Summaries

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BUSINSS MANAGEMENTSTRATEGIC MANAGEMENT AND PLANNING 1 Objectives of organisation 2 Strategy Formulation 3 Planning & Control 4 Strategic management ; the traditional approch 5 Other models of strg manag 6 SWOT & GAP analysis 7 Performance appraisal & analysis 8 Missions Goals & Objectives 9 Mergers & Acquisitions 10 Corporate Reorganisation Strategic Management n Planning from ATFL Strategic Management n Planning from ACCA Case Studies CORPORATE SOCIAL RESPONSIBILITY &BUSINESS ETHICS 11 Ethics & Social responsibility 12 Corporate Governance HUMAN RESOURCE MANAGEMENT 13 Human Resources 14 Individuals 15 Training & Development 16 Appraisal & Career Management 17 Management & Human resource 18 Groups in Organisations 19 Strategy for Critical periods 20 Introducing Change ATFL Same Topic ACCA Same Topic Case Studies MANAGEMENT OF THE WORKING ENVIRONMENT 21 The changing environment 22 The Global Competitive env MARKETING MANAGEMENT 23 Evolution of Marketing Concept 24 Strategic marketing and planning 25 Maketing Research 26 Product 27 Price 28 Place 29 Promotion ATFL Same Topic ACCA Same Topic Case Studies INTERNATIONAL BUSINESS 30 Globalisation 31 Global Strategy 32 Appraisal of overseas investment decision 33 Raising Capital overseas 34 Financial control within Multinatonals 35 Management of International Trade ATFL Same Topic ACCA Same Topic Case Studies



CHAPTER # 1 OBJECTIVES OF ORGANISATIONKEY TERMSStrategyA Course of action, Including the Specification of Resources required, to achieve a Specific objective Stgy is a pattern of activities that seek to achieve the objectives of the org , & adopt its scope , resources & operations to env changes in the long run

Strategic Financial ManagementIdentification of possible strategies Capable of maximising an Org's Net Present Value the allocation of Scarce Capital Resources among Competing Oppertunities & the implementation & monitoring of the chosen strategy so as to achieve stated Obj

Financial ManagementIt is the management of fins of business i.e Fin Planning n Controll to achieve Fin Objs of Bus


is the realtion of plants n other living creatures to each other

Stake holders invest in the effectiveness of a particular management team

REFERENCESJhonson & Scholes Cyret & March Granger Argenti Mendelew Characteristics of Strategic Decisions Concensus Theory 3 types of business objectives Various Objectives of Bus Stake holders mapping

SUMMARYCharacteristics of Strategic Decisions by J & SConcerned with Scope of org's activities Matching org activities with SWOT Allocation / Reallocation of Resources Affect Long term n Operational decisions Affected by Env , Resourse capability , Values & expectations of management Have implications of change throughout the org Complex in nature

Objectives Of Business3 types of business objectives Mission Corporate Objective Unit Objective Various Objectives of Bus Creation of Customers Servicing society Providing Employment Maximising Profit Granger


Levels of StrategyCorporate Business/Competitive Operational As per Argenti Obj Must be Expressed as Follows Identify the Beneficieries State Nature of Objective State the Size of Benefit Primary n Secondary Objs Hierarchy of Objectives Primary Corp objs Secondary objs Trade off Between Objectives Profitability not the best measure of objs Short term n Long Term Objs Multiple finanacial Objs Financial Objectives Main obj is to maximise wealth Fin targets Non Fin Objs Relationship between Fin n Non Fin Objs Green approach, Env Concerns etc

Determinants of StrategyStakeholders n Internal Coalitions Stake holder mapping Mendlew Level of interest Level of power General n Economic Influences External influences Nature of Business Org culture Economic Objectives Social Responsibilities CONSENSUS THEORY: Cyret & March Managers run a business but do not own it & that Organisations dont have objectives only ppl have Objectives emerge as a Consencus of differing stakeholders views n r not entirely contoled by managers Concept of Business Stake holders view Management view

Envirinmental AccountingEco Balance, Cleaner Technology, Corporate Libs, Perf Appraisal, Life cycle Assessment, Budgets etc

Financial management DecisionsInvestment Decisions Take over, Merger, Divestment etc Manager has to Identify oppertunity Evalute it Decide on optimum allocation of funds Financial Decisions Long term ( Cap structure ) Short term ( Working cap ) Dividend Decisions

Objectives of Publically owned n Non Commercial CosPrimary obj ------- not the maximisation of wealth but to contribute to national economy External financing limits Financial manageent 4 such groups is different coz they dont have competitors dont operate 4 profit decisons taken by polititions or civil servents

CHAPTER # 2 STRATEGY FORMULATIONKEY TERMSLong Term Strategic PlanningFormulation , Evaluation n Selection of Strategies for preparing a Long Term Plan of action to attain Objs

Planning HorizonIt is the furtherest time ahead 4 which plans can be Quantified

Strategic Planning -- AnthonyIt is the process of deciding-- on the objs of the org ,on changes in these objs, & on resources used to achieve these objective and the policies that are to govern these objs ( their acquisition , use n disposition)

Tactical or Management ControlIt is the process by which managers assure that resources are obtained n used -- Effectively n Efficiently in the accomplishment of the orgs objs

Operational Control ControlIt is the process to ensure that Specific tasks are carried out -- Effectively n Efficiently

ExpansionIt is the Growth of Existing Products and/or Development of Exiating Markets

REFERENCESDrucker Anthony 3 aspects of Strategic Planning Definition of Strategic Planning

SUMMARYBusiness PlanningManagers performance usually measured in short term Fin Plan should : Have Quantified Targets Cover 3-5 or 10 years Be a part of Strategic Plan Advantages Identification of fin reqs Prospective use of surplus cash Plans 4 raising required funds Future profitability of comp Optimum utilization of resources Set stds 4 measuring perf Bottom up Approach Top Bottom Apoproach Growth Strategies Integration or Related Diversification Horizontal Integration new markets existing product new product existing market Vertical Integration Farward Vertical integ Backward Vertical integ Diversification or Unrelated Diversification Concentric Diversification New product with similar technology or market etc Conglomerate Diversification New product for new customers Withdrawl or Abandonment Merger & Acquisitions Organic growth vs acquisition Pricing Short term pricing Competitive bidding Strategic pricing Regulatory Frame work of Accounting

Long Term Strategic PlanningDrucker describes 3 aspects of Strategic planning making risky decisions with future considerations organsing systematic efforts to carryout these decis Measuring results of these decisions

Rational ModelCovered with chp 4

Strategic Fund managementStrategic Cash flow Planning Simillar to cash budgeting except: longer planning horizons Uncertain future cashflows Emergeny plans Consistent with other policies Effect of new investments Cash Rich Comps Risk Management Working cap management Selling off nonessential assets Changing dividend policy

Financial Controls Levels of Planning Strategic Strategic vs Tactical Tactical Tactical vs Operational Operational

CHAPTER # 3 PLANNING & CONTROLKEY TERMSPlanningIt involves making choices between alternatives & is primarily a decision making activity

ControlIt involves measuring & Correcting actual performance to ensure that the alternatives that are chosen & the plans for implementing them are carried out

Feed BackThe term can b used to describe both "the Process of reporting back control information to mng and the control information itself

Budget CenterEach section of an org 4 which a budget is prepared

Responsibility AccountingIt is a system of accounting that segregates Revenue and costs into areas of personal responsibility in order to Monitor n Assess the perf of each part of org

Responsibility CentreIt is a unit of an org , headed by a manager , who has direct resp for its performance

Controllable CostsThe items of Expenditure which can be directly influenced by a senior manager within a given span of time

Competitive AdvantageC Adv is a profitable n sustainable position that exists in the minds of Consumers who believe that the value they receive from a product/service is greater than both the price they pay n value being offered by competetors

REFERENCESPorter & Miller Porter Porter Implications of IT on Competition 5 factor model 3 Generic Strategy to Achieve C Adv

SUMMARYPlanning & Control Cycle PlanningIdentify objectives Identify potential strategies Evaluate strategies Choose Alternative Course of Action Implement Long Term Plan

Controllability & Responsibility ReportingSteps in deciding a budget centre What shd b the B Centre? What inc , exp &/or Cap employment plans should each Budget centre prepare? Criteria for measuring performance Features of a well organised Sys Of Controls A hierarchy of Budget Centers Clerly identified Resps for achiving targets Resps for Rev, Cost n Cap employed Controllable n Non Controllable Costs Controllability of fixed costs Controllability n Apportioned Costs Controllability n Dual Responsibility Control Reporting Budgetary Planning n Control Systems Gen Obj is to ensure Communication , Coordination n Control in an org

ControlMeasure actual resultrs Comp