Economics of Human Resources: Why a Minimum Wage is Needed for Employees
What is a Minimum Wage and Why is it so Contentious? Many of us would be familiar with the term Minimum Wage which is often argued as being necessary by labor union activists and worker federations. However, how many of us would know that this concept of a Minimum Wage is highly contentious not only […]
Estimating Project Cash Flows: Part 3
Continuing from the previous two articles, we will look at some more counterintuitive steps that need to be taken to calculate the cash flows which should then be discounted to arrive at the worth of the project. This article will cover the concepts of how sunk costs should be treated as well as how allocated […]
Origin of CRM
CRM originated in early 1970s when the business units had a manifestation that it would be advisable to become ‘customer emphatic’ rather that ‘product emphatic’. Birth of CRM was because of this heedful perceptiveness. The famous writer and management consultant Peter Drucker wrote; ‘The true business of every company is to make and keep customers’. […]
Strategic Finance and Competitive Advantage
Globalization has led to increased competition. Artificial boundaries no longer stop competitors from entering markets and even dominating them. This is the reason that having a distinct and clear competitive advantage has become important for most organizations. However, a lot of companies do not have this competitive advantage. This is because competitive advantages do not […]
What is Learned Helplessness and How it Harms the Victims of Workplace Discrimination
What is Learned Helplessness and How it Prevents Women from Speaking Out It is a known fact that most organizations have some forms of covert and overt sexism and harassment as well as discrimination along racial, ethnic, and sexual lines. Indeed, sexual and other forms of harassment are so rampant in many organizations that most […]
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.
The process of strategy formulation basically involves six main steps. Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order.
Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there.
Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives.
While fixing the organizational objectives, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions.
It is essential to conduct a qualitative and quantitative review of an organizations existing product line. The purpose of such a review is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their own strengths and weaknesses as well as their competitors’ strengths and weaknesses.
After identifying its strengths and weaknesses, an organization must keep a track of competitors’ moves and actions so as to discover probable opportunities of threats to its market or supply sources.
A critical evaluation of the organizations past performance, present condition and the desired future conditions must be done by the organization.
This critical evaluation identifies the degree of gap that persists between the actual reality and the long-term aspirations of the organization. An attempt is made by the organization to estimate its probable future condition if the current trends persist.
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