The best Letter Example

Dear CEO Of Frank’s Real Estate,

We as students that have taken this course have heard you are interested in sending your management team to take this advanced business policy course at Northern Kentucky University. We think this is a really smart idea, and we will tell you why. 

This course has a lot of important information and tools to offer your management team that will help them in situations down the road. This course covers the different ways a team or organization can come together and strategize to achieve a common goal. It also teaches people a little bit of other types of business practices, such as internal and external audit. It also dives into finance, research and development, and about information systems. A big part of this course though is how to handle issues in your home country and internationally. A few chapters in this course talk about business ethics and social responsibility. These are two big points that an employer wants their employees to have. Integrity is an important part of a person’s character and this course would be a good step in the right direction to further enforce this idea. We who have taken this course believe it is in your best interest to have your whole management team come to Northern Kentucky University and take part in this course as well. This course could shine light on your employee’s and encourage them to work harder and smarter.

Thank You,

Porter’s Five-Forces Model is very important for a company to understand. These five forces can apply to every single business or market. These forces tell a company if their company will survive in a certain market and if they will make or lose money in a market.

First, we have bargaining power of suppliers. This is key to a business that relies upon suppliers. Very few supplies will allow suppliers to drive up prices, and a lot of suppliers will allow businesses to get better prices. Bargaining power of consumers relates to the ability of consumers to make the prices go down. This is a very important idea to a consumer because you want the lowest price as possible.

 Rivalry is big in producing a product. If another company can do what you do, your power will not be as strong and you will have to mark your price around the area of the competitors to survive. However, if you are the only one in the industry you have all the power and can do what you want with the price. Potential development of substitute products is something to watch out for when you have your own industry. If someone is able to make a substitute product of yours you will need to lower your prices, or create a better product. Potential entry of new competitors can be avoided if it is hard to enter your sector of business and survive without having to take out lots of money. However, if your business sector is very easy to enter you may be in trouble and need to lower prices to accommodate for this in the future.

In contrast to Porter’s 5 forces which takes an industry perspective, the PEST analysis is a strategic business tool which is focused more on macro-economic factors or the geography of a business. The PEST Analysis helps a company identify 

            The Strengths-Weaknesses-Opportunities-Threat (SWOT) Matrix is a matching tool that can be extremely useful to managers. This tool enables managers to formulate four types of strategies: strengths-opportunities (SO) strategies, weaknesses-opportunities (WO) strategies, strengths-threats (ST) strategies, and weaknesses-threats (WT) strategies. Management is able to develop these strategies by identifying the internal and external factors that are affecting their company.

Although identifying these internal and external factors is one of the most challenging parts of creating a SWOT matrix as it requires good judgement, once these factors are identified a SWOT matrix can be a very useful tool. Through the four different strategies, this tool can help companies use their internal strengths to take advantage of external opportunities, aim at improving weaknesses by taking advantage of external opportunities, us a company’s strengths to reduce the impact of  external threats and create defensive tactics directed at reducing internal weaknesses and avoiding external threats. SWOT Analysis are very useful to managers as it enables them to focus on the most important factors that are affecting a business and create strategies that are specifically tailored to these factors. 

The other important tool for the companies to measure and analyze their business policy and strategy is McKinsey 7S Tool. There are total 7 elements described in this tool, and few of them are considered hard, and others soft elements. But they all work together for an organization to know that which effects they will be having due to future changes and what improvements can be made by the organization.

These 7 elements can even be applied to a project or even to a single team as well, and they can deliver results for all. The managers can easily identify as well as influence the three hard elements named as systems, structure & strategy. The other four elements, which are soft in nature, they are not easy ones to be described, because they are less tangible to be identified, and organizational culture will actually define them. These four elements are staff, style, skills & shared values. It is important for managers to keep in mind that all these seven elements are connected to each other and depend on each other in so many ways.

The other important tool for managers in terms of dealing with market research as well as consumers is the Gallop Survey. This survey organization helps companies to get market research for their relevant industry, location and area of products targeting the targeted consumers. The Gallop Survey can help companies to get accurate market data with dedicated results regarding consumers and their behavior towards a certain product or business. For instance, before launching a business in an area, the managers should use Gallop Survey to get required market data to see what opportunities they will have, and what they must do to catch the attention of consumers in that particular area.