ASSIGNMENT 2

(Motivators and Drivers of Strategic Management)

In a two-column table please identify the different motivators and drivers of strategic
management. Write the motivators and drivers on the first column and how each factor
motivates, drives, impact and influence the strategic business operations on the second column.
You may also categorize these drivers to internal and external business environment.

Motivators and Drivers of Strategic How it motivates, drives, impact and

Management influence the strategic business operations

All businesses experience changes in the

general sales environment at some point.

These changes could affect the entire economy

- such as a recession or economic downturn -

1. The changing taste of the market or they might only affect a specific industry or

sector. It motivates the company to be alert to

possible changes and amending your forecasts

and plans to compensate for them in order to

avoid potential cash flow problems.

2. The impact of global developments This decreases the cost of manufacturing or

vis-à-vis the local markets producing the product. This is because

companies can lower goods/services at a lower

price to consumers. Business owners will have

increased competition between local and

 foreign businesses, investment of

multinational companies especially in

developing countries, and employment

opportunities. This would motivate both local

and foreign companies to formulate business

strategies that would give them the advantage

than its competitors such as cutting down

unnecessary costs to lower the cost of

production and cost of the product or staying

with the original cost but improving the quality

of products by investing more in the research

and design.

3. The changes in the conduct of Changes in the conduct of business brings shift

business in the business operations. Drivers of change

can be Political, Economical, Social, and

Technological (PEST factors). These changes

will bring different challenges into the

organization’s hierarchy, operations, or

management. Business owners must foresee

all of the possible changes and amend plans or

forecasts if necessary. This would help the

organization to develop an efficient and

effective ways in gaining competitive

 advantage in the market. This would affect an

organization due to the sudden shifting of

plans. An example of this is the COVID19

pandemic wherein there is a sudden shifting of

norm. Some businesses did not expect this

event resulting to losses due to the lack of

forecasting or risk assessment of the

organization that is very essential to formulate

plans and strategies.

Motivates companies to produce formal plans

and programs to deal with social and political

Sociopolitical Changes change. Unfortunately, public opinion is

moving against business, action groups inside

and outside companies are challenging the

authority of management, and public officials

and politicians are already framing new laws

and regulations.

It motivates firms to meet more refined and

personalized customer tastes, as well as

The ever-changing market conditions society's mutual needs, as expressed through a

broad range of associative and democratic

mechanisms. Our economy is constantly

changing both technological and market

conditions depending on the trend in the

market. Business strategies must be

formulated accordingly bound to respond with

these changes. With this being said, these

changes will result in a certain situation

wherein this drives and motivates other

competitors in the market to do the same

resulting in a much rigid competition inside

and outside of its sector or industry