Strategic management contribute to : develop competitive advances and reveals implementation practices and mechanisms of control Allow a long-term alignment and a progressive environment strategy Lead to globalization and strategic flexibility

1. POLICY & STRATEGY
COURSE
June 2014
By HEGAZI ,GHERISSI, Y
Philosophy PhD
Leadership development

2. COURSES OBJECTIVES
Develop ability to think strategically and globally
Applying policies in harmony to the real business problems
Gain knowledge of strategy framework and tools, to identify
critical issues
Integrate concepts to make effective the appropriate business
decisions

3. COURSE DESCRIPTION
“A satisfied customer is the best business strategy of all.”
Le Boeuf Michael
-Developing skills in strategic analysis and techniques that facilitate the
application of law
-Evolving communication skills that can face competitiveness and
globalization concepts
-Improving strategic management and functional disciplines to improve
business picture

4. ACTIVITIES TO CARRY OUT THE PLAN
STRATEGIC MANAGEMENT & BUSINESS POLICY
Strategic management contribute to :
develop competitive advances and reveals implementation
practices and mechanisms of control
Allow a long-term alignment and a progressive environment
strategy
Lead to globalization and strategic flexibility

5. BASIC MODEL OF STRATEGIC MANAGEMENT
Evaluation
& Control
Environmental
scanning
Strategy
Formulation
Strategic
Implementation

6. STRATEGY FORMULATION
Mission statement
Purpose and objectives
Customer orientation & business definition
Consumer oriented and oriented business
meaning

7. Distinctive
Competencies
Definition
of
Business
Consumer
Groups
Customer
Needs
By Parente Ronaldo -Chap.1 Wheelen & Hunger 10e edition

8. SELECTING STRATEGY
Corporate strategy
( stability & growth)
Business strategy
(competition & Cooperation)
Functional Strategy
(Technologies leadership & followership)
Defining policies
Guidelines for decision-making & formulation to
implementation

9. STRATEGY IMPLEMENTATION
CONTINUOUS PROCESS FOR EVALUATION & CONTROL
PROCEDURES
BUDGETS
PROGRAMS

10. STRATEGIC DECISION MAKING
Review
- Mission
- Objectives
• Implement
strategies
• Programs
• Budget
• procedures
Produce & evaluate
strategic
Alternative
Select &
Recommend Best
Alternative
• Evaluate and control

11. ROLES & RESPONSIBILITIES OF BUSINESS IN SOCIETY
Technological
environment
Political legal
environment
Socio-cultural
Environment
economic
environment
by Murdick G. Robert, Moor R. Carl , Babson C. Harold, Tomlinson H. William
- Business Policy & Strategy 2007-

12. GLOBAL ALLIANCES BENEFITS
Contribute to enlarge marketplace and formulate news industries that
develop news technologies
Some examples of strategic alliances :
Advanced Micro Devices (AMD) and Beijing University Founder Group
– Both companies want to increase their markets and expand them
beyond borders
Jamba and Chinadotcom – both companies want to expand their
mobile data services markets in China through Chinadotcom’s
presence in Hong Kong, the Mainland and Taiwan

13. WHY BUSINESS FAIL ? : THE LEGITIMACY OF THE
RESPONSIBILITIES OF BUSINESS IN SOCIETY
Research shows that many businesses large or small, have a short successful -
life duration. And executives focus on increasing gains of the companies where they work. -
Management has specific strategy that maintain the stamina of their organizations. -
In despite of their experiences in the area of Business and concepts practices, the CEOs -
are still meeting uncertainties due to lack of knowledge in the minimum detail of managing.
And according to Van Deusen and Williamson , authors of the book “Business policy and -
Strategy” 2007- management is reported unable to recognize ambiguities in some action
details . Management in fact is seen as proposing and evaluating actions and tracking the
crucial moment to take the right actions.
The authors compare managers to students in their difficulties to distinct -
between symptoms and problems . and they take the example of R.H. Eckhouse, a -
consultant in small business firms who states that the difficulties remain in recognizing the
interest of people in creating the right product.

14. Consequently managers of today generation concentrate their -
efforts on giving priorities for their own concerns, how to get help to
increase sales and how to realize more gains?. When they think
about to improve earnings , they are in fact thinking in the right way .
But they neglect the competitiveness of big markets that dominate
the marketplace .
Once business managers know about their superior competitors -
around them , they will study carefully other options that make them
maintaining their presence.

15. It’s only at this point that managers can look for practical -
accomplishments , such us remove low quality and low price, and
begin a new form of custom design that reach clientele taste .
Products should be ready in accurate time and percentage for
expenses and profit (10 per cent) must convey customers sales. And
quality and design must gaining the clients satisfaction.
There are many possible causes to business failures such as : -
1- Speculative credits decrease real land values
2- Neglecting competitive marketplaces
3- Increased completion weak other small businesses
4- Enlarging enterprise and implement manufactories liquidate a
major part of its resource in purchase

16. Causes of Business failures
by “the Internet Center for Management and Business Administration
Inc.”

17. THE EXTERNAL ENVIRONMENT GUIDANCE
by “the Internet Center for Management and Business Administration
Inc.”

18. a- Economics is seen as a dynamism that include
the overall market products and the country development ;
b- The political power should include humanistic actions,
free public opinions , reactions to events, engagements
of abroad rules , decisions of counts and state regulation of state ;
c- The socio-cultural factor is described as energy with
instructive norms , society values , public attitudes , social
groups and practices ;
d- The technology is assessed according to scientific discipline
criteria . it’s defined in information, technology improvement ,
computerizations and data processing .

19. CYCLES OF ECONOMIC GROWTH
Time
Configuration of a comprehensive economic activity with regular growth, a
highest or a paradox of below-average growth.
by “the Internet Center for Management and Business Administration Inc.”

20. INDICATORS OF THE BUSINESS CYCLE
The business cycle is linked to aggregate economic activity and
characterize the indicator standard in the US Gross Domestic Product.
The Domestic Product (GDP) is represented by two consecutive
quarters of negative GDP growth to indicate a decline . The GDP is a
quick and simple indicator of economic shrinkages.
Consequently the business cycle is tracking fluctuations on monthly
basis and the National Bureau of Economic Research (NBER) weighs
GDP (Gross Domestic Product) low as the principal business cycle
indicators . It’s linked to employment, personal income and industrial
production.

21. MODEL OF LABOR FORCE MOVEMENT
The diagram shows seven possible movements
by “the Internet Center for Management and Business Administration
Inc.”

22. FULL EMPLOYMENT AND THE NATURAL RATE OF
UNEMPLOYMENT
Policy makers use monetarist policy to aim full employment in the -
economy. And economy is seen as facing systematic unemployment even
during economic growth.
1- Frictional unemployment defines the time that take to find match
between employers and workers. Consequently time is consecrated
to a number of interviews in order to find the best candidate
possible.
In the same time unemployment insurance increases frictional
unemployment and decreases the opportunity cost of unemployment.
In this manner increasing income of job seekers increase enlargement of
job search
2- Structural unemployment increases unemployment due to incompatibility
between workers and jobs . Divergences are seen in the job place distance
or in the skills requested ..

23. EFFECTS ON TECHNOLOGICAL CHANGE
In taking in example that technological change can isolate worker’s from their
specialty or he may live a period of unemployment before to find an opportunity
to develop new skills and right adaptation.
Outcomes lead to increase quantity delivered than quantity requested .
Consequently this way decreases income laws , negotiations chances and
effective incomes.
All of these issues create higher earnings and attract more people to try labor
force when demand for labor decreases.
Milton Friedman used the term natural rate of unemployment to define the
reference indice of unemployment. He considers that unemployment can’t be
eluded .
And the natural rate of unemployment is the sum of the frictional and structural
unemployment rates. But when the unemployment rate decreases below its
normal rate, pressures on salaries increase and the economy risks to fall in
inflation.

24. It means when the rate comes below the natural
rate, inflation go faster. And the natural rate of
unemployment will be defined us non-accelerating
inflation rate of unemployment (NARU).
Public policy has an impact on the natural rate of
unemployment :
1- Unemployment insurance
2- Minimum salary laws
Both of these are disposed to increase the natural
rate of unemployment and there is a trade-off
between the benefits of such labor policies and an
increase natural rate of unemployment.

25. LIMITATIONS OF THE UNEMPLOYMENT RATE MEASUREMENT
-Unemployment rate is not ideal an indices of employment in the
economy.
-The reasons are :
-Hopeless workers like :
- people who want a job but give up after vain researches but
they don’t accept to work on labor force.
-Collecting benefits but not job seeking :
Office of unemployment can call for a person that search for a
job in order to collect unemployment insurance benefits .

26. IMPACT OF UNEMPLOYMENT
Unemployment is seen presenting problems for
individuals and for the whole economy such as :
Individual hardship :
Financial and psychological can play fundamental
roles. When a person needs a job and can’t find it, the
individual’s economic hardship became diminished by
the unemployment insurance benefits.
Total Economic output :
Is less than the potential GDP level due to loss of
production from those who are unemployed .

27. CONCLUSION
You must take personal responsibility. You cannot change the
circumstances, the seasons, or the wind, but you can change yourself.
That is something you have charge of.”
“Rohn Jim quotes”
(American Speaker and Author. He is famous for motivational
audio
programs for Business and Life. )
Business policy & strategy course emphasizes the competitive
environment in where managers and employees have to face . It’s no
doubt that decisions makers must adopt intellectual skills that allow
them to face business challenges.
However managers and employees should have a shared vision of long
term strategy that creates new opportunities and encourage the
legitimate competition

28. Consequently, corporations or organizations require a continuous
development in the technology of communication and in the data
processing.
Managers and staff must continue to improve their skills and learning
other advanced methods that adapt them to news situations.
Harmony and high coordination between managers and employees
allow them to take appropriate decisions to the environment change.

29. BIBLIOGRAPHY
East<>West Alliances. Strategic alliances .
www.ew-alliances.com
Internet Center for Management and Business Administration, INC 2012-
Published by Quick MBA Economics.
The economic growth showed by “the Internet Center for
Management and Business Administration Inc.”
The Business Cycle Model of Labor Force Movement
Murdick G. Robert, Moor R. Carl , Babson C. Harold, Tomlinson H.
William -Business Policy & Strategy 2007-
Parente Ronaldo – Wheelen & Hunger 10e Edition, 2011.
http://www.scribd.com/doc/
Van Densen Cheryl, Williamson Steven, Babson C. Harold- Business
Policy & Strategy : The Art of Competition 2007- Published by Auer Bach
Publications.