BUS 4951, Business Policy and Strategic Management 1 .docx

BUS 4951, Business Policy and Strategic Management 1
Course Learning Outcomes for Unit IV
Upon completion of this unit, students should be able to:
1. Analyze the nuances of strategic management.
2. Correlate the characteristics of vision and mission to business
success.
5. Diagram the strategy analysis process.
5.1 Describe the strategy analysis process.
Reading Assignment
Chapter 5:
Strategies in Action
Chapter 6:
Strategy Analysis and Choice
Unit Lesson

Previously, we have discussed how to assess your internal and
external factors. In this unit, we are going to
expand on that by discussing strategies.
Chapters 5 and 6 will really focus on past strategies that have
been successful and effective. These will
include formulation and an introduction of the SWOT analysis.
This unit will also begin laying the framework
for a successful strategic plan. The final project for this course
will be initiated during this unit and will build
upon each section as we move forward in the term together.
Strategy Formulation
Every strategy also encompasses long-term and short-term
objectives. We will begin with a discussion of
long-term objectives and how these impact the strategy. A long-
term objective is defined as the results
expected from pursing specific strategies. These objectives
generally take between two to five years to attain.
The objectives must be attainable and realistic for the
organization to achieve. Common long-term objectives
include growth, profitability, earnings, and social
responsibility. Each level within the organization can have
long-term objectives. This includes the levels of corporate
(highest level), division (middle level), and function
(lowest level) within an organization. An example of a long-
term oriented company could be your local taxi
company and its plans to remain competitive in the digital age.
For example, Yellow Cab of Boston could
strive to have interactive apps that allow riders to request a
ride, split fares, and even receive a digital receipt.
Financial Objectives

Financial objectives are similar to long-term objectives but are
more specific to financial themes. Examples of
financial objectives include growth in revenues, profit margins,
cash flow, and other financial considerations.
There is a delicate balance when considering financial
objectives. An organization may create a short-term
objective that may be harmful or even detrimental to the
organization in the long term. Let us use Kodak as an
example; their short-term objective led to their overall failure.
Kodak has been around for several decades as
the lead photo developer. They produced an array of products to
include the introduction of the digital
camera. What Kodak failed to do was to ensure they remained
technologically savvy with their digital camera
UNIT IV STUDY GUIDE
Strategy
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production and trademarks. Ultimately, the digital camera (their
own creation) put them out of business.
Because Kodak did not have the foresight to create a long-term
(and financial) objective, they were not able
to remain relevant to consumers and ultimately failed.

Strategic Model
There are many different models that can be incorporated into
an organization’s strategy. Most organizations
incorporate one strategy to achieve their goals and expected
outcomes. A few examples of different types of
strategies include: forward integration, market penetration,
product development, and liquidation. Below are
examples of how these strategies could be applied:
the customer to be validated and pay for
physical merchandise from a brick and mortar retailer via his or
her phone.
and bottles with individual names and
catch phrases, which has increased the popularity of the brand
and are an example of this strategy.
This personalization has increased Coca Cola’s bottom line and
presence in the domestic and
international households.
a vaccine to prevent Ebola. This product
would serve a specific purpose and, if successful, would benefit
many.
all of their merchandise before closing all
of their stores. This is an opportunity to pay creditors and
investors a portion of what is owed before
dissolving.

strategy, but it is a potential strategy to
assist an organization restructure or dissolve itself. There are
five varying types of bankruptcy in the
United States. The specific types are Chapter 7, Chapter 9,
Chapter 11, Chapter 12, and Chapter 13.
The below chart outlines the different chapters of bankruptcy:
Bankruptcy Chapter Description
Chapter 7 All of the organization’s assets are wiped out in
order to eliminate debt.
Chapter 9 Municipalities or incorporated areas that file this
bankruptcy do not have to shut down vital
operations.
Chapter 11 This type allows for reorganization and a
comeback. An example is an airline that
reorganized and comes back.
Chapter 12 This provides special relief to family farmers.
Chapter 13 Similar to Chapter 11, this provides relief to small
businesses.
The specific chapter a company may choose would depend on
its size and goals. For example, Kodak would
not file for Chapter 12 bankruptcy as it applies to family farms.
The company must also consider whether or
not they want to dissolve the business or try and start fresh.
However, in looking to start fresh, the company
must determine how it will reorganize itself to avoid future

issues.
You may be thinking of how the aforementioned strategies can
be applied in the real world. The video below
will show you what this could look like. As you watch the
video, consider which strategy you feel it best aligns
with:
iRobot: Competitive strategy of home robots. (2012). [Video
file]. Retrieved from
http://media.pearsoncmg.com/ph/bp/bp_video_links/2013/mgmt/
strat/Strat2012_iRobot_Competitive.
html
You may have heard of this company before and know that they
are famous for their Roomba, a robot that
vacuums the floors, but you may have never considered their
strategy. You may have guessed that iRobot
uses the product development strategy based on their desire to
“change how people perceive robots” (iRobot,
2012, 1:18). They created robots that will help people care for
their homes, and their target audience is one
that enjoys technology, as well as a clean home. They were the
first of their kind, and although there are
competitors, they remain focused on their strategy, “We know
who we are and what we strive to do, and we
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stay on our game” (iRobot, 2012, 4:03). By focusing on this one
concept, iRobot has found success and
expanded their product line to include other robots capable of
completing household chores.
Strategy Analysis
The SWOT matrix is a tool to assist managers and leaders
identify strategies within and outside their
organization. The strength, weakness, opportunity, and threat
(SWOT) model has four strategies used to
evaluate and compare the organization related to its strength
and weaknesses. This analysis is often used to
compare and contrast an organization against other competing
organizations. The analysis is also used to
evaluate its internal operations to determine where
improvements can be made. The chart below outlines the
functions of a SWOT matrix:
Strategy Description
SO: Strength-opportunity Evaluation of the organization’s
internal
strengths to identify external
opportunities
WO: Weakness-opportunities Improving internal weaknesses by
taking
advantage of external opportunities
ST: Strength-threats The reduction of external threats

WT: Weakness-threats Reducing internal weaknesses
The SWOT matrix and strategy go hand-in-hand. Play close
attention to this as you watch the video below on
how Acer has managed to become so successful:
Atma Global. (2011). Acer Vs. HP: Can Acer surpass HP?
[Video file]. Retrieved from
ib/AcerVsHP.html
Acer’s restructuring is part of the reason why they have found
success. Although they have competitors, they
have been able to use the strength-opportunity strategy by
purchasing multiple brands. As Acer notes,
““multiple brands equal worldwide growth” (Atma Global,
2011, 6:46). They noticed the opportunities around
them and took advantage of them. Acer is also very conscience
of their competitors.
The essence of strategy formulation is an assessment of whether
an organization is doing the right
things and how it can be more effective in what it does. . . .
An organization with no sense of
direction or no coherent strategy precipitates its own demise.
(David, 2015, p.194)
You are taking this course to develop the skills and mindset to
avoid those situations the textbook talks about.

References
Atma Global. (2011). Acer Vs. HP: Can Acer surpass HP?
[Video file]. Retrieved from
ib/AcerVsHP.html
David, F. R., & David, F. R. (2015). Strategic management
concepts and cases: A competitive advantage
approach [VitalSource Bookshelf version] (15th ed.). Retrieved
from
https://www.vitalsource.com/textbooks?term=9780133740356
iRobot: Competitive strategy of home robots. (2012). [Video
file]. Retrieved from
strat/Strat2012_iRobot_Competitive.
html
Suggested Reading
The chapter presentations below will provide you with
additional information on this unit’s concepts:
Click here to access the PowerPoint version of the Chapter 5
presentation.
Click here to access the PDF version of the Chapter 5
presentation.

https://online.waldorf.edu/CSU_Content/Waldorf_Content/ZUL
U/Business/BUS/BUS4951/W15Cc/UnitIV_Chapter5_Presentati
on.ppsx
on.pdf
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Click here to access the PowerPoint version of the Chapter 6
presentation.
Click here to access the PDF version of the Chapter 6
presentation.
on.ppsx
on.pdf
Assignment 1
It should be free from plagiarism.
Late submission will not be graded.
Q1. What is The “Make-or-Buy” Decision? And why it is

important decision for companies to make?
Q2. Why a company should not outsourced its core element
within a product? What other factors can be outsourced?
Q3. What is characteristic of virtual enterprise?
.
PSY 3490, Industrial Organizational Psychology 1
Course Learning Outcomes for Unit IV
Upon completion of this unit, students should be able to:
1. Differentiate between the major theories of motivation
2. Compare and contrast the different components of equity
theory, the two-factor theory, and
reinforcement theories of motivation.
3. Discuss the expectancy theory of motivation.
4. Define job satisfaction.
5. Evaluate the major approaches for measuring job satisfaction.
6. Analyze the relationship between job satisfaction and other
factors (e.g., job performance, turnover,
etc.)
7. Discuss the different types of commitment exhibited in the
workplace.
8. Describe and apply job characteristics to the person-job fit.

Reading Assignment
Chapter 8:
Theories of Employee Motivation
Chapter 9:
Feelings About Work: Job Attitudes and Emotions
Unit Lesson
Employee Motivation, Satisfaction, and Commitment
In the previous unit, you learned ways to conduct a performance
appraisal, which is a major aspect of
employee performance management (Seiden & Sowa, 2011).
Often, employee performance depends on the
extent to which they are able to perform their job activities
well, as well as the degree to which they are willing
to put forth the effort to perform well. In this unit, we will
discuss ways to increase the latter, by motivating
employees and creating the conditions necessary for employees
to feel satisfied and committed to their job.
We will discuss specific ways to improve and/or maintain
employee performance and enhance the well-being
of employees through increasing positive work attitudes, such
as job satisfaction. I/O psychologists use a
variety of methods to do this, such as redesigning jobs,
rewarding good performance, and ensuring that
employees are treated fairly.
Employee Motivation
Employee motivation refers to, “an internal state that induces a
person to engage in a particular behavior,”

(Spector, 2012, 194). When employees are motivated, they make
choices to act in a certain way or direction,
exerting intense efforts, persistently, over time (Spector, 2012).
I/O psychologists recognize and apply a
variety of motivation theories relevant to work settings.
Organizations and work groups often face challenges
with regard to employee motivation. An organization may hire
an I/O psychologist as a consultant to assess
employee motivation, satisfaction, and other attitudes and to
intervene in order to improve these. The
consultant would refer to research and theories of motivation to
help diagnose and address the situation. Let’s
review a few of the major theories of work motivation.
Need theories are based on the notion that human beings are
driven to satisfy certain desires, with some of
these being essential, such as the need to eat. According to
these theories, employees are most likely to
UNIT IV STUDY GUIDE
Performance Management
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behave in ways that will allow them to fulfill their needs. Some
theories, such as Maslow’s Hierarchy of

Needs, suggest that these needs are universal. It suggests that
everyone has basic needs, including
physiological, safety, love, esteem, and self-actualization needs.
According to the theory, we are motivated to
fulfill these needs in a certain order, beginning with
physiological needs, and we will be distracted by these
needs and unable to focus fully on fulfilling higher order needs
until lower order needs are met. This theory is
often applied in the workplace. For example, an implication of
this theory is that managers should ensure that
employees are provided adequate access to nutritious meals and
time to eat at regular intervals to reduce
distractions of physiological needs. Another example would be
ensuring that employees are able to work free
from threats of harassment or bullying in the workplace. There
are a variety of need-based theories of
motivation which have implications for the workplace, and I/O
psychologists can use to increase employee
motivation.
Reinforcement theories of motivation suggest that employees
are motivated to behave in certain ways
depending on the rewards and/or consequences associated with
different choices of behavior. Much research
has explored the effects of different types of reward systems.
For example, incentive systems reward
employees differently depending on their performance (e.g., a
car salesperson may receive a small base pay
and make most of their money when they actually sell a car).
These systems can be effective, although it may
be much more difficult to apply an incentive system to other
types of jobs (e.g., a school bus driver). The
rewards can also be based on attendance and other factors
(Spector, 2012).
Studies show that, while pay and benefits are not the only

important factors involved in employee motivation,
they do make a difference. For example, one study suggests that
employees are more motivated to stay with
the organization if they are receiving benefits such as pensions
and health care benefits. Organizations
should strive to ensure that they are paying employees
comparable to others in their industry (Towers
Watson, 2010).
Expectancy Theory
By this theory, motivation is explained as a function of three
factors, referred to as expectancy, valence, and
instrumentality. Expectancy refers to the degree to which the
employees believe they have the ability to do
the behavior or perform the task. The more they believe in their
ability to do the job, the more motivated they
will be to put forth the effort needed to do well. Valence refers
to the extent to which the employee v alues the
reward. The more employees value or like the reward, the more
motivated they will be to put forth the effort
needed to do well. Instrumentality refers to the degree to which
employees believe that if they perform well,
they will actually get the reward (e.g., is there competition for
the reward?). If employees believe that if they
perform well, they will automatically get the reward, they will
be more motivated to put forth the effort needed.
These are just a few of the theories that I/O psychologists use to
understand employee motivation; there are
many others, such as self-determination theories, goal-setting
theories, and justice theories. Emerging areas
of motivation research are even looking at the use of internal
marketing approaches to increase employee
motivation. For example, Cardy and Lengnick-Hall (2011)
suggest approaching employees as you would

customers, recognizing that employees are likely comparing
their organization’s “brand” as an employer to
that of competitors. The researchers suggest that, just as
customers may become attached to brands such as
Coca-Cola, they may be more motivated to stay with an
organization that espouses certain values that are
consistent with their own. Therefore, it is important for
organizations and managers to understand their
employees and to develop a work culture that reflects these
values. They also suggest that employees are
looking for a good deal. They want to know that they are getting
a good bargain (e.g., pay for what they
contribute to the organization) from their current employer,
compared to the deal that they could get working
for other employers. These research findings can be applied to
create interventions and to set strategies for
organizations to improve employee motivation.
Job Satisfaction and Commitment
Job satisfaction refers to, “the extent to which people like their
jobs,” (Spector, 2012, p. 216). It is related to
organizational commitment, which refers to, “the attachment of
the individual to the organization,” (Spector,
2012, p. 235). Both job satisfaction and organizational
commitment are predictors of job performance, among
many other positive outcomes (Spector, 2012). Research shows
that there are strategies organizations can
take to increase employee satisfaction and commitment. For
example, Cardy and Lengnick-Hall (2011)
suggest that organizations are more likely to retain employees
when they offer certain services (e.g., career

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planning resources), provide room for advancement, and reward
employees for staying with the organization.
There are a variety of other approaches that organizations can
take to increase positive employee attitudes.
Flexible Work Arrangements
Many organizations are using flexible working arrangements to
increase employee job satisfaction and to
retain good employees. Grobler and Bruyn (2011) suggest that
these practices can help organizations retain
employees, reduce employee absences and tardiness, while
increasing employee job satisfaction,
commitment, and morale. Specific examples of these practices
include offering the option for employees to
work part-time, allowing two employees to share one job,
offering telework options, allowing employees to
work their typical weekly hours within a shorter time frame
(e.g., working 10 hours a day for four days each
week), and allowing employees to dress casually.
Job rotation
Another strategy that organizations use to increase positive
employee attitudes is job rotation. This involves
rotating employees through different jobs, as opposed to
keeping the same employees working in the same
position permanently. For example, a manager may work with

the marketing department on a project lasting
six months, followed by six months working in sales, etc. This
can prevent boredom, and it is particularly
helpful when employees plateau, or reach the highest level
within their current job (McCleese & Eby, 2006)
Career Development
When organizations provide employees with opportunities to
develop their skills, in ways that are both aligned
with the needs of the organization and with the career goals of
the employee, they are likely to increase
satisfaction and commitment. For example, Schnake, Williams,
and Fredenberger (2007) suggest offering
resources and tools for employees to engage in career
development. Organizations can offer workshops for
employees to engage in career development, provide examples
of different career paths within the
organization, as well as provide mentoring opportunities.
These are just a few examples of the ways in which
organizations can increase employee satisfaction and
commitment. Employee attitudes, such as job satisfaction, are a
central focus in I/O psychology. Employee
attitudes are associated with a variety of other outcomes, and
there is evidence suggesting that interventions
to enhance these attitudes are effective. Research also suggests
that ensuring that employees are a good
match for the position, “person-job fit,” can help to facilitate
job satisfaction (Spector, 2012).
References
Cardy, R. L., & Lengnick-Hall, M. L. (2011). Will they stay or

will they go? Exploring a customer oriented
approach to employee retention. Journal Of Business &
Psychology, 26(2), 213-217.
Grobler, P. A., & de Bruyn, A. J. (2011). Flexible Work
Practices (FWP) -- An effective instrument in the
retention of talent: A survey of selected JSE-listed companies.
South African Journal Of Business
Management, 42(4), 63-78.
McCleese, C. S., & Eby, L. T. (2006). Reactions to job content
plateaus: examining role ambiguit and
hierarchical plateaus as moderators. Career Development
Quarterly, 55(1), 64-76.
Schnake, M. E., Williams, R. J., & Fredenberger, W. (2007).
Relationships between frequency of use of
career management practices and employee attitudes, intention
to turnover, and job search
behaviour. Journal Of Organizational Culture, Communications
& Conflict, 11(1), 53-64.
Seiden, S., & Sowa, J. E. (2011). Performance management and
appraisal in human service organizations:
management and staff perspectives. Public Personnel
Management, 40(3), 251-264.
Spector, P. E. (2012). Industrial and organizational behavior:
Research and practice (6th ed.). Hoboken, NJ:

John Wiley & Sons, Inc.
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Towers Watson (2010). Retirement Attitudes. Retrieved from
http://www.towerswatson.com/assets/pdf/2717/Towers-Watson-
Retirement-Pt3-Attitudes.pdf
Unit 4
Use this text book to answer Question 1.
Course Textbook: David, F. R., & David, F. R. (2015). Strategic
management: A competitive advantage approach, concepts and
cases [VitalSource Bookshelf version] (15th ed.). Retrieved
from
https://www.vitalsource.com/textbooks?term=9780133740356
Question 1
If a company has $1 million to spend on a new strategy and is
considering market development versus product development,
what determining factors would be most important to consider?
Explain your reasoning.
Use this text book to answer Questions 2-3

Course Textbook Spector, P. E. (2012). Industrial and
organizational psychology: Research and practice (6th ed.).
Hoboken, NJ: Wiley
Question 2
Explain the relationship between job satisfaction and other
outcomes (e.g., job performance). Analyze the role of job
satisfaction in each of these outcomes. Consider the research
evidence, and draw conclusions regarding the strength of these
relationships and the state of research supporting each.
Your response should be at least 200 words in length.
Question 3
Choose three motivation theories discussed in the book.
Compare and contrast the theories. Of the three, which do you
believe is more accurate, and why? Are there certain
circumstances in which this theory or approach would not work
or would not apply? Please describe.
Your response should be at least 200 words in length.

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