International Management Decision Making

[M001098]
Module Leader: Dr Noah Karley Email: Noah.Karley@anglia.ac.uk Room LAB322 Ext. 5739

Module Objectives
Provide an introduction to firms, managerial objectives, business plan and the decision making process Evaluate the ways in which economic, financial and regulatory forces impinge on management decision making within a multinational context. Critically assess the role of the market in the decision making process of the international manager. Apply appropriate quantitative and problem solving techniques to clarify the nature of managerial decision making.
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Module Structure
Lecture 1: Firms and Managerial Objectives Lecture 2: Managerial Decision Making Process Lecture 3: Economic Principles and Management Decision Making Lecture 4: Demand and Supply Estimations and Forecasting Lecture 5: Production Functions and Cost Estimation Lecture 6: Market Structures and Pricing Strategies Lecture 7: Financial and Investment Decisions Lecture 8: Macroeconomic Environment of Business Lecture 9: Business in the International Environment Lecture10: Government Regulations and Management Decisions

Assessment
This module is assessed by means of an assignment of no more than 4,000 words. The Assignment accounts for 100% of the overall module assessment The completed assignment must be submitted by 5pm GMT on Monday 6th January 2014. For this module you are required to submit your final assignment via Turnitin.
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Reading List
Key text
Baye, M., 2010. Managerial Economics and Business Strategy, 7th Edition, McGraw-Hill Sloman, J. (2012) Economics, 7th Edition, Prentice Hall, Pearson Education, Harlow.

Others texts
Sloman, J., Hinde, K., and Garratt, D., 2013. Economics for Business, 6th Edition, Pearson Education (EB); Griffiths, A., and Wall, S., 2012. Applied Economics, 12th Edition, Pearson Education (AE); Griffiths, A., and Wall, S., 2011. Economics for Business and Management ,13th Edition, Pearson Education (EB); Keat, P., and Young, P., 2009. Managerial Economics, 6th edition FT/Prentice Hall (ME).

Other useful resources

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Lecture 1 Introduction to the Module: Firms and Managerial Objectives

Session Outline
Goals and Objectives of a Firm Basic Business Functions Business Planning as a Function of Management Environmental Factors affecting Business Decisions Factors Influencing Business Success
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Goals and Objectives of a Firm

Background Definitions Differences Basic Rules

Background
The study of economics holds that all companies are in the business to maximize the wealth of its owners.

Most Admired Businesses: Balancing and exceeding the expectations of all its Stakeholders.
This requires quantitative methods to achieve
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Who are these stakeholders?

Shareholders and promoters Customers Employees Suppliers and partners (including Contractors and Agents) Government Society
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Definitions
Goals and Objectives are written or verbal declarations describing what the organization wants to accomplish in the short- or long-term (Vision). Goals and objectives are often used interchangeably.

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Differences
Goals and objectives are distinct concepts that cannot be attained without the help of the other. A goal is a long-term aim the company wants to achieve. Goals are more vague and less structured. Goals are very hard to measure Objectives are specific steps you take in reaching a goal. Objectives tend to be concrete in nature Objectives can be easily measured.
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Three Basic Rules

Goals and Objectives that measure success must meet three criteria Measurable and quantifiable Has set timeframe to be met They must be attainable/realistic. Thus goals must be S.M.A.R.T.
Specific, Measureable, Attainable Relevant and Time-Bound
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Achieving the 3Es

Maximize Efficient Use of Labour Optimize Price and Output Sustainable Competitive Advantage Human Resources Systems Solution Efficiency, Effectiveness, Equity

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Basic Business Functions

Organising Hiring/Human Resource Establishing Corporate Offices Funding Producing and inventory management Recording and reporting Growing Monitoring success
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Getting Organized

Have clear, specific idea of what you intend to sell, To whom and Strategies necessary to enter your target market.

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Hiring

Personnel decisions are cardinal in the corporate context. Useful to research the job market and select qualified professionals Hiring the right people can help expand your company in the long term.

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Establishing Corporate Offices and Funding Head Offices

Find appropriate premises for your corporate headquarters. Renting decisions depend on your
startup capital and the business size

Seeking Funds
Think about whether equity stakes is more appropriate for you than borrowing.
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Producing and managing inventories

Manufacture a Product or Provide a Service
Having a clear, focused idea of your product or service can help you efficiently adjust other strategies, such as pricing and distribution.

Manage Inventories
Depending on the line of business you're in, you may need to formulate an adequate strategy for storage and maintenance.

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Recording and reporting

Report Operating Data
Indicating to potential investors whether your business is gathering steam. Financial statements include a balance sheet, profit and loss, cash flows and equity capital.

Pay Taxes
Failure to pay taxes can be detrimental to your company,

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Growth and success

Think about Growth
Study your customers' needs and purchasing habits, focusing on how the competition operates. Think about how to improve customer loyalty and gain market share.

Measure Success
Measuring success may have different meanings for different people But in the modern economic environment, appraising your bottom line gives you a clear idea of your company's performance over a specific period, such as a quarter or fiscal year
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Business Planning as a Function of Management

Business Plan Planning and its purpose Effects of Planning Importance of Planning in business
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Business Plan
A business plan
Outlines business functions Lists your key personnel, Gives preliminary budget needs, Describes your sales and marketing approach Projects revenue.

Understanding the function of a business plan will help explain why you should put effort and resources necessary to create one
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What is Planning?
Process by which management teams and executives set business
Objectives Analyze the market and industry Determine the best ways to reach those goals.

Planning is ongoing
frequently evaluate work as compared to the plan clearly communicate plans to employees and be open to feedback and ideas to improve on the plan. Delegate work and oversee as it progresses and make changes to the plan when necessary.
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Purpose of Planning Plans are put in place to

Motivate employees Rally the company around a goal

Helps management efficiently organize

Tasks, Projects, resources, manage employees and designate tasks.

Planning gives direction to a company.

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Effects of Planning
It truly can make or break a company Set challenging, realistically achievable goals.
too high bars will set employees up for failure, which hurts morale. If goals are met, employees will take pride in their work, which is good for productivity.

Success improves the company

better off financially and Better positioned in the industry
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Uses of a Business Plan

Attracting Personnel Attracting Investment Company Blueprint
You create your business plan based on your initial vision for the company. It allows you to stay on track with your vision

Progress
Create ways of measuring progress. Develop milestones and set goals for them. Re-evaluation of your methods and an update 27

Environmental Factors Affecting Business Decisions

Internal Factors External Factors

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Internal Environmental Factors

Employees
The caliber, attitude and work ethic of a company's employees

Capital
quality of their capital with respect to their available money

Cash Flow
Company's ability to generate income and pay its bills Maintaining a steady cash flow is a balancing act.

Other Considerations
External factors like steep recession compels layoffs, takeover threat influence the company's well-being
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External Environmental factors Factors

Competitors Customers Suppliers Economics and Availability of Resources Government Regulation Infrastructure and Deliverability Geography and Natural Disasters Demographics
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Factors Influencing Success

Success is not a consequence of luck, nor is it a matter of mere genetics achieving success is the natural outcome of a set of common, identifiable traits
Napoleon Hill
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Success factors
Goals Positivity Mastery Risks

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Seminar Question
Meet with Module Tutor to discuss how weekly seminars are arranged. Note that the first seminar in week 2 to be handed over during this week seminar classes. Write up a Business Plan bearing in mind the ff:
A business plan
Outlines business functions Lists your key personnel, Gives preliminary budget needs, Describes your sales and marketing approach Projected revenue.
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