Chapter one

1.Emergent strategy is an action model that describes a business strategy that

develops over time as a business balances its goals with changing

circumstances. These strategies emerge after a business carries out a set of

actions repeatedly to develop a pattern in its habits.

2.Characteristics of Strategic Management

A.Involvement of top management.

B.Handles long-term issues.

C.Offers competitive advantage.

D.Future-oriented.

F.Long-term implications.

G.It affects operational challenges positively.

H.Organisation-wide impact.

I.It tends to be complex.

3.Strategy evaluation is necessary because it provides essential information about the effectiveness of a
company's current strategy and allows for improvements if necessary .

4.The five stages of the process are goal-setting, analysis, strategy formation,

strategy implementation and strategy monitoring.

5.Four basic elements to create a tactical strategic management plan includes; situational analysis,
strategy development, strategy execution, and strategy evaluation .

6.The strategy level that is with the social and public issue is the corporate level. Its the main form of
strategy within a firm and it deals with issues affecting a company as a whole.

Characteristics of the corporate level.

I. Uncertain. This levels strategy is by nature uncertain since they are cultivated

and the fact that they involve all many different moving parts.

II. Complex. This is because they apply to all the departments within the company,

and thus, the process of its implementation becomes more

complicated.

III. Long term. The implementation of corporate strategy takes much longer;

therefore, it aims at the long term other than the short term goals.

7.A.Proactive planning means taking the initiative to plan in advance, schedule important events and
prepare for success

B.Proactive management is the approach to management where the leader runs

the company “proactively.” Meaning, rather they are active in terms of seeking

out new opportunities for the company and dealing with any threats of problems

before they even emerge.

C. strategy is all about integrating organizational activities and utilizing and

allocating the scarce resources within the organizational environment so as to meet

the present objectives.

D.Strategic management is the ongoing planning, monitoring, analysis and

assessment of all necessities an organization needs to meet its goals and

objectives.

8.The five stages of the process are goal- setting, analysis, strategy formation,

strategy implementation and strategy monitoring.

9.Here is a list of seven factors that influence business ethics in every workplace:

A.Culture

B.Personal Code of Ethics

C.Legislation

D.Government Rules and Regulations

E.Ethical Code of the Company

F.Social Pressures

G.Ethical Climate of the Industry

10.The four approaches to strategic management are :

A.Classical:The classical approach to strategy making is

the deliberate process of developing a strategy

to maximise profit.

B.Evolutionary:The evolutionary approach to strategy is based on the view that the organisation is
operating within an economic environment that is ever

changing.

C.Processual: The processual view is that the business environment is messy and largely

unpredictable (Richard Whittington, 2001). Additionally, with this approach, there is an

acknowledgement that decision-makers cannot act with pure reason and that only a

few factors affecting a decision can be dealt with.

Chapter Two

1.Direct stakeholders are involved in the team’s activities and can change the project’s

direction. Your team, managers, product owners, and others are direct stakeholders.

Individuals or groups that care more about the outcome of your project — rather than

its implementation — are indirect stakeholders. These include your

customers and suppliers. They aren’t involved in your activities, but they have

something at stake for how well (or poorly) you do.

2.Once you have the long list of people and organizations that are affected by your work.

Some of them may have the power either to block or advance. Some may be interested in

what you are doing, others may not care. This is where the Power-Interest grid comes in

handy in segregating/prioritizing the stakeholders. Doing this helps in identifying

stakeholders based on their power and interest in the project. When you plot your

stakeholders on a power/interest grid, you can determine who has high or low power to

affect your project, and who has high or low interest. People with high power need to be

kept satisfied, while people with high interest need to be kept informed. When a stakeholder

has both, make sure you manage her expectations very closely.
3.the following seven points illustrate the importance of a vision statement.

A. It Aids Decision Making

B.It Helps Attract and Motivate Talent

C.It Helps to Maintain Focus

D.It Creates a Legacy

F.It Prioritises Your Resources

G. It Helps Define Your Company Culture

H.It Instills Strategic Leadership

4.Reasons for Developing a Written Mission Statement

I. To ensure unanimity of purpose within the organization

II.To provide a basis, or standard, for allocating organizational resources

III. To establish a general tone or organizational climate

IV.To serve as a focal point for individuals to identify with the

organization’s purpose and direction, and to deter those who cannot from

participating further in the organization’s activities

V. To facilitate the translation of objectives into a work structure

involving the assignment of tasks to responsible elements within the

organization

VI. To specify organizational purposes and the translation of these purposes

into objectives in such a way that cost, time, and performance parameters can

be assessed and controlled.

5.a.A declaration of attitude :A mission statement is a declaration of

attitude and outlook . It usually is broad in scope for at least two major reasons.

First, a good mission statement allows for the generation and consideration of a

range of feasible alternative objectives and strategies without unduly stifling

management creativity.Second, a mission statement needs to be broad to effectively reconcile

differences among and appeal to an organization’s diverse stakeholders, the

individuals and groups of persons who have a special stake or claim on the

company.

b. Resolution of Divergent Views

I.Developing a comprehensive mission,statement is important because

divergent views among managers cannbe revealed and resolved through this

process.

II.. Considerable disagreement among an organization’s strategists over vision

and mission can cause trouble if not resolved.

III. An organization that fails to develop a vision statement as well as a

comprehensive and inspiring mission statement loses the opportunity to

present itself favorably to existing and potential stakeholders.

C. A Customer Orientation

1. A good mission statement reflects the anticipation of customers. Rather

than developing a product and then trying to find a market, the operating

philosophy of organizations should be to identify customers’ needs and then

to provide a product or service to fulfillbthose needs.

2. According to Vern McGinnis, missionbstatements should 1) define what the

organization is and what it aspires to be, 2) be limited enough to exclude

some ventures and broad enough to allow for creative growth, 3) distinguish

a given organization from all others, 4) serve as a framework for evaluating

both current and prospective activities,,and 5) be stated in terms sufficiently clear to be widely
understood throughout the organization.

3. Good mission statements identify the utility of a firm’s products to its

customers
d.A Declaration of Social Policy

1. The words social policy embrace,managerial philosophy and thinking at

the highest levels of an organization. For this reason, social policy affects the

development of a business mission statement.

2. Despite differences in approaches, most American companies try to assure

outsiders that they conduct business in a socially responsible way. The mission

statement is an effective instrument for conveying this message.

7.Components and Questions That a Mission Statement Should Answer 1.

Customers: Who are the firm’s customers? 2. Products or services:

What are the firm’s major products? 3.Markets: Geographically, where does the

firm compete? 4. Technology: Is the firm technologically current? 5. Concern

for survival, growth, and profitability: Is the firm committed to growth and

financial soundness? 6. Philosophy: What are the basic beliefs, values,

aspirations, and ethical priorities of the firm? 7. Self-concept: What is the firm’s

distinctive competence or major competitive advantage? 8. Concern for

public image: Is the firm responsive to social, community, and environmental

concerns? 9. Concern for employees: Are employees a valuable asset of the

firm?

8.Vision and mission statements differ in three main aspects: audience, purpose,

and time period.

Audience

Mission statements are aimed at both employees and customers.

Vision statements aim to motivate employees and relevant stakeholders

to see the value in their efforts.

Purpose
A mission statement has more specific, realistic goals that everyone

can understand. They might be about growth, financial metrics, products,

innovation, and consumer behavior.

A vision statement declares ambitious goals that might be impossible but are

worth striving for. The goal might be to change communities, economies,

or societies for the better.

Time period

Mission statements explain what the company is doing right now, and what

it plans to do in the next few years, to achieve its goals. Many mission

statements give a particular year the business plans to meet its goals.

Vision statements don’t always have a defined time period, but they will be

aimed toward the future. Because they cover big, abstract goals like

societal change, they’ll potentially imply work that takes a decade or

more.

9.Characteristics of Objectives

It must be understandable.

It should be concrete and specific.

It should be related to a time frame.

It should be measurable and controllable.

Different objectives must correlate with each other.

It must be set within constraints.

Issues in objective setting

Multiplicity – It deals with different number and different types of objectives w.r.t.

organizational level (higher/lower), ends (survival/growth), functions (marketing/

finance) and nature (organizational/personal).

Periodicity – Objectives can be long-term or short-term.

Verifiability – Each objective is tested on the basis of its verifiability.

Reality – Objectives can be official and operative. Official objectives are those which

an organization professes to attain while operative objectives are those which an

organization seeks to attain in reality.

Quality – Objectives can be good or bad on the basis of its capability to provide specific

direction and tangible basis for measuring performance.

Specifically – Objectives may be stated at different levels of specificity. Example at

macro level as goals and as target at the micro level

chapters five,six and seven

1.Corporate level strategies are the ‘big picture’ plans organisations employ to reach their

overarching objectives. These strategies usually span beyond one business unit or

product line and focus instead on overall company goals such as growth, stability, and

profitability.

The importance of a corporate strategy hinges on its being an effective means to

allocate a company’s resources, establish business expectations and improve a

company’s competitive position, as well as increase shareholder value to something

beyond the sum of its physical assets.

2.the different levels of diversification firms can pursue by using

different corporate level strategies include the lower level

diversification, moderate level diversification, and high-level diversification

3.Horizontal growth is the expanding of a firm's activities into other geographic regions and/or

by increasing the range of products and services offered to current markets. Vertical

growth, in contrast, involves a firm's taking over a function previously performed by a

supplier or a distributor. Concentric diversification, in contrast, is the addition of

products or divisions, which are related to the corporation's main business, but are added

because of the attractiveness of other industries rather than because they support

the activities of the current product lines.

4.Internal Growth Strategy Pro Can expand a competitive advantage and

increase market position. Potential to have returns on different investments.

Con Does not increase the company size. Does not increase the company

revenue immediately yet overtime.Loss Strategic focus on the market

External Growth Strategy Pro Increase the worth of the company Immediate

return on the companies investments.

Con The Cost of external growth is very expensive.

5.Stability refers to the act of being stable.When an organization is stable, it is likely to

be effective in its activities because it will make effective decisions. Conversely, lack

of stability within an organization leads to the organization's failure since the decisions

are not effective and efficient.so it is really a strategy.

6.purpose:A SWOT analysis is used to improve the performance of a specific

business, while a portfolio analysis is used to improve investments in several businesses.

Method:Portfolio analysis relies purely on numbers without the need to make

assumptions. Conversely, a SWOT analysis combines both quantitative and qualitative

measures. A SWOT analysis will take cold hard facts, like financial data, but these must

be interpreted by the analyst who determines the strengths, weaknesses, opportunities and

threats to the business.

Benefits:SWOT analysis very beneficial tool for small businesses that are looking to expand.

Portfolio analysis is generally used by investors and fund managers, but it can also

be used by businesses to determine their own investments; for example, it can be used to

select a portfolio of projects or external businesses to invest in.

7.Corporate parenting is choosing an overall direction for a business.Corporate parenting attempts to
answer the following two questions:

• What businesses should this company own and why?

• What organizational structure,management processes, and philosophy will foster superior

performance from the company’s business units?

This is especially important in a global industry in which a corporation must

manage interrelated business units for global advantage. Corporate parenting

is similar to portfolio analysis in that it attempts to manage a set of diverse

product lines/business units to achieve better overall corporate

performance.

Portfolio analysis is looking at all of the current investments and deciding

the best course of action moving forward.Itattempts to answer two similar, but different questions:

• How much of our time and money should we spend on our best products

and business units in order to ensure that they continue to be successful?

• How much of our time and money should we spend developing new

costly products, most of which will never be successful?

8.There are four most often cited reasons for diversification: the internal capital

market, agency problems, increased interest tax shield and growth opportunities.

9.Business level strategy is a sum of the strategic planning and implementation

activities that set and steer the direction of an individual business unit. These

activities will generally include how to gain a competitive advantage and create

customer value in the specific market the business unit operates in.

10.When determining a business- level strategy the firm

determines:1.) who will be served 2.) what needs those target

customers have that it will satisfy 3.) how those needs will be
satisfied.

Increasing segmentation of markets throughout the global

economy creates opportunities for firms to identify more

distinctive customer needs that they can serve with one of the

business-level strategies.

11.Cost leadership – competing with a wide range of businesses based on

price

Differentiation – competing by using a product or service with entirely unique

features

Focused differentiation – not only competing through differentiation

(uniqueness of product/service) but also by selecting a small portion of the

market to focus on

Focused low-cost – competing not only through price but by also selecting a

small portion of the market to focus on

Integrated low-cost differentiation –competing by using both low cost and

differentiation

12.Cost Leadership Minimal investment in technology could result in processobsolescence; firm misses
change in customers’ needs due to cost-only focus; competitors imitate strategy.

Differentiation Customers decide price differential between low cost producer anddifferentiator is too
large; too many features offered; product’smeans of differentiation no longer provides value to
customers;customer learning (experience) may change their perception of thevalue of differentiation;
counterfeit products displace the firm’sofferings

Focused Cost Leadership &Focused Differentiation Beyond the general risks noted for the low-cost
leader and thedifferentiator, focus strategies have the following risks:Competitor “outfocuses” the
focuser by defining a narrowersegment; a firm competing on an industry-wide basis may decidethat the
segment served by the focus strategy firm is attractive anddecides to pursue that segment; the needs of
customers within thenarrow segment may become more similar to all customers in themarket, reducing
or eliminating the advantages of a focus strategy.
Integrated Cost Leadership/Differentiation Product features not sufficiently valued by customers;
product is not sufficiently differentiated; product is too expensive to competewith low-cost leader’s
products.

13.

14.The owners or managers can contribute in the movement from

Stage I to Stage II by organizing different training programs that

would add to the functional skills of the employees. The employees

may be encouraged to take part in evening programs that could

be helpful in the movement from Stage I to Stage II . The owners-

manager should also start to delegate some responsibilities

and decision making.

15.I.by carrying out innovations in the firm and its

products and through cost reduction.

II.employ more experienced management and implement

effective leadership skills to the organization

III.take steps to improve the planning process and frame

effective and SMART (Specific, Measurable, Attainable, Realizable and Time-bound) plans

and carry out their implementation

IV.The firm could come up with product or line extensions, new and

improved versions, new applications, or repositioning.

16.Reengineering is the fundamental rethinking and radical redesign of

business processes to achieve dramatic improvements in critical,

contemporary measures of performance, such as cost, quality,

service, and speed.

Reengineering is not just another management fad. Business Process

Reengineering (BPR) has been around for a little over a decade and even
though it has gone through some permutations it still has a lot to offer

organizations engaged in transforming their processes.

17.Even though the modular structure and network structure share most of their

characteristics, it is essential to note that they have some differences. One of the

differences is that units are not completely independent in modular organizational

structure because they have to connect their processes to produce a product. On

the other hand, units of a network organizational structure are entirely independent of each other;
hence, the organization is more flexible compared to a modular organization.

18.1. Increased speed in decision making .

2. Better employee engagement.

3. Less wasted resource.

4. Improved self-governance.

5. Less customer confusion.

6. Increased leadership credibility and respect.

7. Greater resource visibility

8. Optimize talents and skills

9. Safe risk taking.

10. A dynamic culture.

19. seven s model is a tool that analyzes firm’s organizational design by looking at seven

key internal elements: strategy, structure, systems, shared values, style, staff and

skills, in order to identify if they are effectively aligned and allow organization to

achieve its objectives.The most common uses of the framework are:

To facilitate organizational change.

To help implement new strategy.

To identify how each area may change in a future.

To facilitate the merger of organizations.

1. The Financial Perspective:Timely and accurate funding data will always be

a priority, and managers will make sure to provide it.

2. The customer perspective:an increasing realization of the importance of customer focus and

customer satisfaction in any company.

3. The Business Process perspective:This perspective refers to internal business processes.

Measurements based on this perspective will show the managers how well their business is running, and
whether its products and services conform to customer requirements.

4. Learning and Growth perspective This perspective includes employee training and corporate cultural
attitudes related to both individual and corporate self-improvement.