Strategy in management refers to a comprehensive plan or approach that an organization

develops to achieve its long-term goals and objectives. It involves making choices and decisions
about how the organization will allocate its resources, define its competitive advantage, and
respond to changes in its internal and external environments. Here are some key aspects of
strategy in management:
1. Setting Goals and Objectives: The first step in strategic management is to define clear,
measurable, and achievable goals and objectives. These goals should align with the
organization's mission and vision and provide a sense of direction.
2. Environmental Analysis: A crucial part of strategy development is analyzing the internal and
external factors that can impact the organization. This includes conducting a SWOT analysis
(Strengths, Weaknesses, Opportunities, and Threats) to identify key issues and challenges.
3. Competitive Advantage: Organizations need to identify their competitive advantage, which
could be based on factors like cost leadership, differentiation, or niche focus. Understanding
what sets them apart from competitors is essential for strategy formulation.
4. Strategy Formulation: Based on the environmental analysis and competitive advantage,
organizations can formulate their strategies. Common types of strategies include cost leadership,
differentiation, market expansion, product development, and diversification.
5. Resource Allocation: Effective strategy requires allocating resources such as finances, human
capital, and technology to support the chosen strategies. Resource allocation should be aligned
with the strategic priorities.
6. Implementation: Developing a strategy is just the first step. Effective implementation is
crucial. This involves setting action plans, assigning responsibilities, and monitoring progress
towards strategic goals.
7. Monitoring and Evaluation: Regularly assessing and evaluating the progress of the strategy
is essential to ensure it remains relevant and effective. Adjustments may be necessary based on
changing circumstances.
8. Risk Management: Strategies should include contingency plans to address potential risks and
uncertainties. Organizations should be prepared to adapt their strategies if unexpected challenges
arise.
9. Communication: Effective communication of the strategy throughout the organization is vital
to ensure that all employees understand and are aligned with the strategic goals.
10. Adaptability: In today's dynamic business environment, strategies must be adaptable.
Organizations should be prepared to pivot or adjust their strategies in response to changing
market conditions, technological advancements, or other external factors.
11. Long-term Perspective: Strategic management typically has a long-term focus, often
spanning several years. It's about creating a roadmap for the organization's future success.
12. Ethical Considerations: Ethical considerations should be integrated into the strategic
decision-making process. Strategies should align with the organization's values and ethical
principles.
13. Global Perspective: For organizations operating in a global context, international strategies
should consider the challenges and opportunities presented by the global market.
In summary, strategy in management involves a systematic process of planning, implementing,
monitoring, and adapting a course of action to achieve an organization's long-term goals while
considering its internal and external environment. Effective strategic management is essential for
an organization's sustainability and competitiveness.
Business strategy
Business strategy is a long-term plan that outlines an organization's goals and objectives and the
actions it will take to achieve them. It involves analyzing internal and external factors to make
informed decisions about resource allocation, market positioning, and competitive advantage.
It is increasingly important because:
1. Competitive Landscape: Businesses face intense competition, making a well-defined strategy
vital for differentiation and survival.
2. Rapid Change: Markets, technologies, and consumer preferences evolve quickly,
necessitating adaptive strategies.
3. Globalization: Expanding into international markets requires a robust strategy to navigate
diverse environments.
4. Resource Allocation: Limited resources need efficient allocation, and strategy helps prioritize
investments.
5. Innovation: Strategy encourages innovation, fostering growth and competitiveness.
6. Risk Management: It helps identify and mitigate risks, enhancing long-term sustainability.
In summary, business strategy is crucial in today's dynamic business environment for
maintaining competitiveness, growth, and resilience.

What do we mean by ‘strategic management’ and what is involved in the process?

Strategic management is the process of formulating, implementing, and evaluating an
organization's long-term goals and strategies to achieve a competitive advantage and fulfill its
mission. It involves several key components:
1. Analysis: Conducting internal and external assessments to understand an organization's
strengths, weaknesses, opportunities, and threats (SWOT analysis).
2. Strategy Formulation: Developing a clear and actionable strategy based on the analysis. This
includes defining goals, identifying target markets, and determining competitive positioning.
3. Strategy Implementation: Executing the chosen strategy through allocation of resources,
organizational restructuring, and aligning activities with the strategic plan.
4. Strategic Control: Monitoring progress towards strategic goals and making adjustments as
needed to ensure the strategy's success.
5. Evaluation: Continuously assessing the effectiveness of the strategy and its impact on the
organization's performance.
Strategic management is an ongoing, dynamic process that requires careful planning, execution,
and adaptation in response to changing internal and external factors. It is essential for an
organization's long-term sustainability and competitiveness.
What is the difference between an intended strategy and an emergent one, and why is the
latter more pragmatic?
Intended strategy refers to a deliberate, planned course of action that an organization adopts to
achieve its goals. It's the result of conscious decision-making by leadership.
Emergent strategy, on the other hand, evolves organically from an organization's day-to-day
activities and responses to changing circumstances. It may not have been initially planned but
emerges as a result of adaptability and learning.
Emergent strategy is often considered more pragmatic because it acknowledges the dynamic and
uncertain nature of the business environment. In complex and rapidly changing situations, rigid
adherence to an intended strategy may be less effective. Emergent strategies allow organizations
to be flexible, responsive, and adaptive, making them better equipped to seize unexpected
opportunities or navigate unforeseen challenges. They also encourage continuous learning and
adjustment, which can lead to more sustainable long-term success. However, a balance between
both intended and emergent strategies is often ideal to ensure a strategic direction while
remaining adaptable.
What is involved in making strategic decisions?
Making strategic decisions involves a comprehensive and systematic process to determine an
organization's long-term direction and allocate its resources to achieve specific objectives. Key
components of this process include:
1. Setting Objectives: Clearly define the organization's goals and objectives, both short-term and
long-term.
2. Environmental Analysis: Assess the internal and external factors that could impact the
organization, including SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis.
3. Generating Options: Identify various strategic alternatives or courses of action that could
help achieve the defined objectives.
4. Evaluating Options: Analyze each option's pros and cons, considering factors like feasibility,
risk, cost, and potential benefits.
5. Decision-Making: Select the most suitable strategy based on the evaluation, often involving
input from key stakeholders.
6. Implementation Planning: Develop a detailed plan for executing the chosen strategy,
including resource allocation and timelines.
7. Monitoring and Adaptation: Continuously monitor progress and adjust the strategy as
needed in response to changing circumstances.
8. Resource Allocation: Allocate necessary resources such as finances, personnel, and
technology to support the strategy.
9. Risk Management: Identify and mitigate potential risks associated with the chosen strategy.
10. Communication: Effectively communicate the strategy and its rationale to employees and
stakeholders to ensure alignment and buy-in.
11. Performance Measurement: Establish key performance indicators (KPIs) to track the
strategy's success and make data-driven adjustments.
12. Feedback Loop: Regularly review and reassess the strategy, making improvements based on
lessons learned and evolving conditions.
Strategic decision-making is a dynamic and iterative process that requires careful analysis,
flexibility, and adaptability to navigate an ever-changing business landscape. It involves aligning
the organization's actions with its overarching mission and vision to achieve sustainable success.
Many international businesses have expanded their operations in Asia. What are the
factors which international firms must consider when doing business in Asia?
Expanding operations in Asia presents both opportunities and challenges for international firms.
Key factors to consider include:
1. Cultural Diversity: Understanding diverse cultures, traditions, and business etiquettes is
crucial for effective communication and relationship-building.
2. Regulatory Environment: Comprehending complex and ever-changing regulations, including
trade policies, taxes, and intellectual property laws, is essential.
3. Market Research: Conduct thorough market research to grasp consumer preferences,
competitive landscapes, and local trends.
4. Infrastructure: Assess the availability and reliability of transportation, logistics, and
technology infrastructure.
5. Political Stability: Evaluate political stability and potential risks in the region, as political
changes can impact business operations.
6. Economic Factors: Consider economic stability, currency fluctuations, inflation rates, and
labor costs.
7. Local Partnerships: Collaborate with local partners or hire knowledgeable staff to navigate
cultural and business nuances.
8. Supply Chain Management: Optimize supply chains considering factors like sourcing,
manufacturing, and distribution.
9. Language Barriers: Overcome language barriers by employing bilingual staff or translators.
10. Ethical and Social Responsibility: Be mindful of social and environmental concerns and
demonstrate responsible corporate behavior.
11. Competition: Analyze the competitive landscape and adapt strategies accordingly.
12. Technology Adoption: Embrace technological advancements, as Asia is a hub for innovation
and digitalization.
13. Customer Preferences: Tailor products and services to meet the unique preferences of Asian
consumers.
14. Logistics and Distribution: Efficiently manage the movement of goods across diverse
geographies.
15. Crisis Preparedness: Develop contingency plans for natural disasters, health crises, and
other unforeseen events.
Adapting to these factors can help international firms succeed and prosper in the dynamic and
diverse markets of Asia.
What are the organisational resources and competences? Which of them are more closely
linked to the creation of competitive advantage? How they can become a source of
sustainable competitive advantage? Provide examples.
Organizational resources and competences are key elements that organizations leverage to create
competitive advantage.
1. Organizational Resources:
a. Physical Resources: Tangible assets like machinery, facilities, and technology.
b. Financial Resources: Capital, investments, and financial stability.
c. Human Resources: Skilled workforce, knowledge, and experience.
d. Intangible Resources: Intellectual property, brand reputation, and customer loyalty.
e. Information Resources: Data, analytics, and information systems.
2. Organizational Competences:
a. Technical Competence: Expertise in specific technologies or processes.
 b. Innovative Competence: The ability to develop new products, services, or processes.
c. Marketing Competence: Effective branding, advertising, and market positioning.
d. Operational Excellence: Efficient and streamlined operations.
e. Customer Relationship Management: Building strong customer relationships.
Competitive Advantage is closely linked to unique or rare resources and competences that are
difficult for competitors to imitate or substitute.
Sustainable Competitive Advantage occurs when these advantages are long-lasting. Here are
examples:
1. Apple has a sustainable competitive advantage through its design and innovation competence
(unique products) and its strong brand (intangible resource).
2. Coca-Cola has a sustainable competitive advantage due to its secret formula (intellectual
property) and global distribution network (physical resources).
3. Amazon has a sustainable competitive advantage through its advanced logistics and supply
chain operations (operational excellence) and customer data (information resource).
4. Toyota has a sustainable competitive advantage through its lean manufacturing processes
(technical competence) and strong culture of continuous improvement (competence).
These examples illustrate how a combination of unique resources and competences can lead to
competitive advantages that are hard for competitors to replicate, resulting in long-term success
and sustainability.
What are firm’s capabilities and how they are created? Provide relevant examples.
A firm's capabilities refer to its capacity to perform specific activities or tasks effectively and
efficiently, giving it a competitive advantage in the market. These capabilities are created
through a combination of resources, knowledge, skills, and organizational processes. Here are
some examples:
1. Technological Capabilities: Firms can develop expertise in using specific technologies. For
instance, Apple's ability to design and manufacture its custom processors (like the A-series chips)
has been a key technological capability that differentiates its products.
2. Innovative Capabilities: Firms that invest in research and development (R&D) create
innovative capabilities. Pharmaceutical companies like Pfizer develop new drugs, which are a
result of their R&D efforts.
3. Marketing and Branding Capabilities: Companies like Coca-Cola have exceptional
marketing and branding capabilities. They've built a strong brand over the years, which allows
them to charge premium prices for their products.
4. Supply Chain Management Capabilities: Companies like Amazon have developed
sophisticated supply chain capabilities, enabling them to deliver products quickly and efficiently
to customers.
5. Human Resource Capabilities: Firms can invest in training and developing their employees,
creating a skilled workforce. For example, Google's focus on hiring and retaining top talent is a
crucial capability for innovation.
6. Operational Efficiency: Companies like Toyota have mastered lean manufacturing and
operational efficiency, which allows them to produce high-quality products at lower costs.
7. Customer Service Capabilities: Zappos is known for its exceptional customer service, which
is a distinct capability that sets it apart in the online retail industry.
8. Financial Capabilities: Some firms excel in financial management, allowing them to manage
risks and make strategic investments. Berkshire Hathaway, led by Warren Buffett, is a prime
example.
These capabilities are often developed over time through investments, learning, and adaptation to
market conditions. They are a critical part of a firm's competitive advantage and play a vital role
in its success in the business landscape.
What is a ‘value chain’? How managers can use value chain analysis to make the firm more
cost effective? Provide relevant examples.
A 'value chain' is a concept in business management introduced by Michael Porter. It represents
the sequence of activities that a firm undertakes to create and deliver a product or service to
customers. These activities can be categorized into two primary types: primary activities (directly
related to production and distribution) and support activities (indirectly supporting the primary
activities).
Managers can use value chain analysis to enhance cost-effectiveness by identifying areas where
they can optimize processes, reduce costs, and improve overall value creation. Here's how they
can do it with examples:
1. Identifying Cost Drivers: Managers can pinpoint activities or processes that drive costs and
focus on cost reduction efforts. For example, a manufacturing firm might identify that the cost of
raw materials is a significant cost driver and seek ways to negotiate better prices or find
alternative suppliers.
2. Process Optimization: By analyzing each activity in the value chain, managers can identify
bottlenecks or inefficiencies and implement process improvements. For instance, a retail
company can streamline its inventory management processes to reduce carrying costs and
improve turnover.
3. Outsourcing and Vertical Integration: Value chain analysis can help managers decide
whether to outsource certain activities to external suppliers or vertically integrate by bringing
those activities in-house. For example, a technology company may choose to outsource
manufacturing to a specialized firm to reduce production costs.
4. Product Differentiation: Managers can use the analysis to identify areas where they can add
value to their products or services. For instance, a luxury car manufacturer may invest more in
the design and engineering stages to create a unique and premium product that justifies a higher
price.
5. Supply Chain Management: By examining the entire supply chain, managers can identify
opportunities to reduce lead times, minimize transportation costs, and optimize inventory levels.
For instance, a global logistics company might invest in advanced tracking and routing
technology to enhance efficiency.
6. Customer Value: Understanding the value chain helps managers align activities with
customer preferences and demands. A fast-food chain can use value chain analysis to offer value-
added services like drive-through or mobile ordering to enhance customer satisfaction.
In essence, value chain analysis enables managers to dissect their business operations, recognize
areas for improvement, and make strategic decisions that enhance cost-effectiveness while
delivering superior value to customers.
Why some strategies fail to deliver the intended results?
Several reasons can cause strategies to fail in delivering their intended results:
1. Poor Execution: Inadequate implementation, lack of clear action plans, or insufficient
resources can hinder a strategy's success.
2. Inadequate Planning: Strategies may fail due to insufficient analysis, unrealistic goals, or an
inability to adapt to changing circumstances.
3. Lack of Alignment: When a strategy isn't aligned with an organization's values, culture, or
resources, it can lead to failure.
4. External Factors: Economic changes, market shifts, or unforeseen events can disrupt
strategies.
5. Resistance to Change: Employees or stakeholders may resist changes associated with a
strategy, impeding its success.
6. Ineffective Communication: Poor communication of the strategy's objectives and importance
can lead to misunderstandings and failure.
7. Ignoring Feedback: Failing to gather feedback and adapt the strategy as needed can result in
its ineffectiveness.
8. Overambition: Pursuing too many objectives or trying to achieve too much too quickly can
overwhelm resources and hinder success.
9. Lack of Accountability: Without clear ownership and accountability for specific tasks,
strategies can falter.
10. Inflexibility: Strategies that are too rigid and cannot adapt to changing circumstances are
more likely to fail.
To enhance a strategy's chances of success, organizations should carefully plan, communicate,
execute, and continuously monitor and adapt their strategies as needed.