Assignment 1:

1-3. Why is strategic management considered important for global market competition?

For global market competition, strategic management is considered important because in

competing in a global market you have to employ a strong strategy to drive efficiency and innovation. It
is not just competing local businesses but as well as internationals. Strategic management is a set of
managerial actions and decisions focusing on determining the long-term performance of a company, it is
also focused on emphasizing the true competitive advantage of the company which is vital in competing
in a global market. That’s why strategic management is a vital component for competing to giant
companies. Many companies can have high performance but not all can survive in a global market, you
have to have a strong strategic management to remain in the market for a long-term period and able to
build new ideas, new strategies and unique products and marketing as your edge. This is all part of
having a strong strategic management.

1-4. What is the impact of sustainability on business practice?

Sustainability is the use of business practices to manage the triple bottom line. Triple bottom
line refers to a business’s sustainability – Traditional profit/loss, people account (social responsibility of
the company), and planet account (the environmental responsibility of the company). With the
sustainable approach of the company, there’s an increase in risk mitigation and innovation and an
overall feeling of CSR. With the changes in how industry works, the society as well as the physical
environment, companies has to thrive best and must focus on how they should implement their strong
strategies.

1-5. Define strategic flexibility and explain its implications. Why is organizational learning important to
the long-term development of strategic flexibility of organizations that intend to enter overseas
markets?

Strategic flexibility is the ability to shift from one dominant strategy to another. It enables the
firms to deliver innovative solutions to the dynamic and complex environment, not only proactively
influence and adapt to the environment. With this ability, firms will be able to realize and come up with
different strategic actions to be able to survive in a competitive arena. Firms will also be able to build a
sustainable competitive advantage and become proactive firms where they can protect themselves from
threats and can take opportunities better than the over firms. Organizational learning is important to
the long-term development of strategic flexibility of firms in entering global markets because in global
markets it has a dynamic and competitive environment which also needs organizational learning which
is a critical component of competitiveness. Also, organizational learning is essential to innovation and
development of a new product.

1-6. What is a triggering event? List a few triggering events that stimulate strategic changes.

Triggering event is an event that acts as a stimulus for a change in strategy. The following are
some of the triggering events that stimulate strategic changes.

1. External intervention. When a key customer complains about a serious product defect.
2. Performance gap. When performance and expectations does not meet.
 3. Threat of a change in ownership. When there’s a takeover in the firm by another firm by buying
the company’s common stock.
4. Strategic infection point. When a major change takes place dues to the introduction of new
technologies etc.
5. There’s a new CEO.

1-7. What is the most preferred planning mode of strategic decision-making for organizations competing
internationally?

In most situations, planning mode of strategic decision-making for organizations is preferred

when competing internationally because it includes the basic elements of the strategic management
process. Planning mode is more rational, better tested and more complete method for decision-making.
It is more appropriate in dealing with complex and ever-changing environment. Planning mode is not
just concerned with the solutions nor the problem but it focusing on both. It is in search of new
opportunities as well as to reactive solutions of the existing problems.