Straman130 Assignment no.

Europa, Rose F.

1. The strategic model identifies concepts of strategy and the elements necessary for development of a strategy
enabling the organization to satisfy its mission. Historically, a number of frameworks and models have been
advanced which propose different normative approaches to strategy determination. However, a review of the
major strategic management models indicates that they all include the following elements:

• Performing an environmental analysis.

• Establishing organizational direction.

• Formulating organizational strategy.

• Implementing organizational strategy.

• Evaluating and controlling strategy.

2. Different models of various authors:

Wright, Kroll and Parnell Model

Thompson and Strickland Model

F.R David Model

Wheel and Hunger Model

Rayport and Jaworski Model
 The Hybrid Model

3. Forms of Business Organization

These are the basic forms of business ownership:

Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least
costly among all forms of ownership. The owner faces unlimited liability; meaning, the creditors of the
business may go after the personal assets of the owner if the business cannot pay them.

The sole proprietorship form is usually adopted by small business entities.

Partnership

A partnership is a business owned by two or more persons who contribute resources into the
entity. The partners divide the profits of the business among themselves.

In general partnerships, all partners have unlimited liability. In limited partnerships, creditors
cannot go after the personal assets of the limited partners.

Corporation

A corporation is a business organization that has a separate legal personality from its owners.
Ownership in a stock corporation is represented by shares of stock.
 The owners (stockholders) enjoy limited liability but have limited involvement in the company's
operations. The board of directors, an elected group from the stockholders, controls the activities of the
corporation.

Cooperative

A cooperative is a business organization owned by a group of individuals and is operated for their
mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or
unincorporated.

Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative banking,
credit unions, and housing cooperatives.

4. Definition of terms:

A conglomerate are large companies that are made up of independent entities that operate in multiple
industries. Many conglomerates are multinationals and multi-industry corporations. In a conglomerate,
one company owns a controlling stake in a number of smaller companies which conduct business
separately. Every one of a conglomerate's subsidiary businesses runs independently of the other business
divisions, but the subsidiaries' management report to the senior management of the parent company.

A mother or parent company is a company that has a controlling interest in another company, giving it
control of its operations. Parent companies can be either hands-on or hands-off owners of its
subsidiaries, depending on the amount of managerial control given to subsidiary managers.

A subsidiary or an affiliate is a company whose parent company is a majority shareholder that owns
more than 50% of all the subsidiary company's shares. Affiliate is used to describe a company with a
parent company that only possesses a minority stake in the ownership of the affiliate.

A diversified company is a type of company that has multiple unrelated businesses or products.
Unrelated businesses are those that: require unique management expertise. Have different products or
provide different services.