Business Policy and Strategy
BUSINESS POLICY AND STRATEGY 7
BusinessPolicy and Strategy
BusinessPolicy and Strategy
Whatwill be the key developments in the global environment of businessduring the next five years?
Thekey developments in the global environment of business during thenext five years include:
shift of concentration of power from the north (developed countries) to south (developing nations)
adoption of new techniques of consumer engagement (for example mobile payments, social media and extensive use of digital technology)
embracing new business paradigms, continued innovation and changing business models
Revising the social contracts ( for example, citizens are demanding more services from their governments)
Global competition for talent ( the developing countries have many skilled workers than developed nations)
Onthe basis of these, what will be the greatest challenges that firmsfrom the advanced industrialized countries will face?
Basedon these challenges, firms located in advanced industrializedcountries will experience challenges such as adequate lack of localskilled employees, loss of former stronghold market to cheaper goodsproduced in developing countries and the necessity for hiringemployees from developing nations.
Whatstrategies will firms need to adopt in order to prosper in theenvironment you foresee?
Thesefirms can avoid these problems through:
Establishing local education institutions to train potential workers who will work in the companies
Give attractive remuneration packages that will prevent skilled employees from seeking better opportunities in other countries or organizations
Outsourcing some services from the cheaper developing markets
Shifting their operations in the developing nations where they can access affordable labor
Revising the migration and work policies to eliminate challenges that can hinder skilled employees who can fill the employment gap in the United States
Whatare the implications for these developments for firms’organizational structures, management systems, and leadership styles?
Thesefirms will compel firms to adopt new management systems,organizational structures and leadership styles that will match thenew regulation policies
Competitiveintelligence is an important approach to identifying current andfuture competitors and generally identifies how a firm shouldrespond. To what extent is a firm’s value approach helpful inassessing performance from an external point of view?
Afirm’s value approach in assessing performance from an externalperspective is fundamental, as organizations have to keep trackingthe changes occurring on the external environment, and then choosingsuitable changes that the company should concentrate on regulating inorder to ensure its survival.
Isit possible for managers to manipulate their firm’s value forstakeholders’ interests or for self-serving reasons?
Managerscan manipulate their firms’ value for stakeholders’ interestthrough identifying products that are in high demand in the market,introducing measures that increase an organization’s safety fromterrorists and blackmailers as well as, hiring skilled employeeswith capability of implementing strategic decisions for allowing abusiness to perform better in an environment. On the other hand,managers can manipulate their firms’ value for self-serving reasonsthrough preparing a managerial seminar aimed at advancing leadershipskills of company executives in a given company.
Arethere currently any trends in the business world to increase controland accountability for top managers and accounting firms?
Someof the current trends in the business world to increase control andaccountability for top managers and accounting firms includeemphasizing on disclosure and transparency, ethical and integritybehavior, hiring a highly experienced board of directors and ensuringto respect the rights as well as, giving equitable treatment on allthe stakeholders.
Afirm normally can identify its basic competencies and the desirableimprovements that it can make to help meet the requirements ofpotential customers within its intended market. After conducting aninternal analysis, what are some of the indications that tell topmanagement that the firm is able to generate a profit?
Someindications that tell top management that the firm is able togenerate a profit include return on investment (ROI), the level ofcompetition, a company’s capacity to expand into another market andthe market share and average sales of accompany in a given period.
Whathappens when the firm does not have the required competencies andresources?
Afirm with no crucial competencies and resources loses its marketshare to organizations with larger resources, operates at a loss andfinally it closes down
Basedon this perspective, would it help the firm to hire the top talent inthe field?
Thetop talent in the field cannot help a firm that lack competencies andresources to gain strategic advantage in a market because theemployees would require capital to market, train and evaluate abusiness’ operation strategy in order to identify weaknesses. Acompany with no resources cannot provide the required capital fordeveloping strategic knowledge for improving the position of abusiness in a market
Today`sbusiness environment requires companies to undergo changes almostconstantly and rapidly evolving technology forces businesses torespond in order to survive. When Technological changes occur, why dofirms react differently?
Firmsreact differently to technological changes since they requireadapting to using the new technologies. The complexity of technologyand ability to execute the technology in various firms may differdepending on the skills and attitude of employees. Moreover,implementation of new technologies is rather costly hence, firmswith no ready capital may take longer to execute the innovation thanan organization that has ready capital
Whatdetermines a firm’s ability to prosper?
Availabilityof the right team and talent, availability of capital and resources,providing clients with high quality services, developing efficientstrategies and creating a strong brand
Whatare the strategic implications of that shift?
Thestrategic implication of this shift is helping businesses to achievea stronger market position
Whenand how should the firm shift to the new technology?
Firmsshould shift to using new technology if it will accelerate theirgrowth and improve the quality of services an organization providesto clients. Firms should shift to new technologies gradually so thatemployees and clients can adapt to the changing operation strategiesof an organization
5.The process that a business takes in developing a strategy is one ofthe single most important tasks that a business will do. What do weuse strategy analysis for and how can we identify wither the strategyis a part of the Corporate level strategy or Business level strategy?
Strategyanalysis of a business helps top management to determine the positionof a business in a market as well as, identify techniques forimproving the competitive position of an institution.
Howcan we identify wither the strategy is a part of the Corporate levelstrategy or Business level strategy?
Corporatelevel strategy concerns evaluating factors that help an organizationto compete and survive efficiently in a given market. On the otherhand, business level strategy refers to a collection of objectivesthat firms undertake in order to improve the value of services anorganization gives to clients. In addition, it focuses on gainingcompetitive advantages in a market.
Howcan we identify if the strategy is a part of the firm or of the wholefirm competing in a specific market.
Wecan identify if a strategy is a part of the firm or of the whole firmcompeting in a specific market if it affects the external(opportunities and threats) and internal (strengths and weaknesses)factors of a business.