Strategic Management : Types of Policies

TYPES OF POLICIES A. Manufacturing policies

B. Finance policies

(1) Inspection and quality control

(1) Capital structure long term sources of capital

(2) Purchasing of supplies and materials

(2) Dividends ( stocks and cash)

(3) Size of inventories (4) Rate of turn over

(3) Extension of credit

(5) Verification and evaluation

(4) Collections of receivable (5) Insurance

(6) Equipment replacement

(6) Special funds

(7) Additional and improvement

(7) Budgetary costs and control

(8) Plant maintenance (9) Security whether to manufacture or purchase components C. Industrial relations – policies

D. Marketing policies on

(1) Large payment scale

(1) Product line

(2) Rates plan

(2) Standardization - standard, criteria, norms

(3) Stabilization of employment - stability of tenure =6 mos.

(3) Show items

(4) Employees training and development - to develop knowledge, skills, abilities, attitudes and behavior.

(4) Channels of distributions - marketing language, 4 P’s in marketing (price, product, place and promotion)

(5) Retirement and pension plan

(5) Territorial expansions

(6) Relocation of displaced employees.

(6) Customer relations

(7) Benefit program

(7) Sales and quantity discounts

(8) Recognition and staffing

(8) Incentive, compensation

(9) Organizational planning

(9) Advertisement

(10) Working condition

(10) Sales training

E. General policies (1) Span of management control - number of workers that a manager can control (2) Salaries and bonuses (3) Research and development (4) Corporate organizational structure and personnel (5) Replacement of top management personnel (6) Plant construction and expansion (7) Centralization or decentralization (8) Executive pensions and retirement

Policies - are general plans or action that serves as guide of the management to decision making Strategic Planning - concerned with defining long-term position of a firm in its environment. Budgeting - translation of programs to financial and often quantitative data. Goals - statements about desired and states expresses in general terms Objective – statements about desired accomplishment expressed in more specific and measurable. Project – is a plan with pertains to design activity unit which has a specific starting and ending point. Programs - complex of goals - refer to activity unit Policies – general statements that guide the company Rules – specific instructions to be taken or not Forecasting - the process of developing assumptions about the future. Strategy includes the following factors: (1)

Consumer orientation - identifying the best interest of the consumer are endeavor to meet their demands by creating products suited for contemporary taste and lifestyle

(2)

Quality first and finest - It refers to consumer opinion of product thus company must consistently enhance quality level and extend technological capabilities in order to make the first product