Micro Link Information Technology and Business College

Post Graduate Program (MBA) 1st Year

Individual Assignment of Strategic Management

Prepared By : Berhe Teklehaymanot Welegebriael 1 stYear MBA

Section: D

Submitted to: Asmachew

Submission date: Dec--------/2023
 1. What are the four major types of resources allocated to different work sections or
functional areas during the strategy implementation? Give one example for
each.

The question asks about the four major types of resources allocated during strategy
implementation in a business context. Strategy implementation involves the execution of a
plan designed to achieve an organization's long-term objectives. Resources are vital for this
process as they support various work sections or functional areas in an organization. The four
major types of resources typically allocated are: All organizations have at least four major
types of resource allocation that can be used to achieve desired objectives:

 Financial resources
 Physical resources
 Human resources and
 Information resources
Allocating resources to particular divisions and departments does not mean that strategies
will be successfully implemented. A number of factors commonly prohibit effective
resources allocation, including an over protection of resources to great an emphasis on
short run financial criteria, organizational politics, vague strategy targets, a reluctance to
take risks, and lack of sufficient knowledge.

1. Human Resources: These include the personnel required to execute the strategy. They are
essential for carrying out operations, making decisions, and providing services or manufacturing
products. For example hire of additional marketing staff for a new product launch campaign.

2. Financial Resources: This refers to the money required to support strategy implementation.
These resources are critical for funding operations, marketing, research and development, and
other strategic initiatives. An example is allocating budget for research and development in a
tech company.

3. Physical Resources: These encompass the tangible assets used in the execution of a strategy.
This includes facilities, equipment, raw materials, and technology. For instance, purchase of new
machinery for increasing production capacity in a manufacturing unit.
4. Information Resources: Information and data are crucial for making informed decisions and
strategies. This includes market research data, customer feedback, competitive intelligence, etc.
An example could be investing in market research to understand consumer preferences for a new
product line.

Each of these resources plays a unique and crucial role in ensuring the successful implementation
of a business strategy.

1. Human Resources - Example: Hiring additional marketing staff for a new product launches
campaign.

2. Financial Resources - Example: Allocating budget for research and development in a tech
company.

3. Physical Resources - Example: Purchasing new machinery for increasing production capacity
in a manufacturing unit.

4. Information Resources - Example: Investing in market research to understand consumer

preferences for a new product line.

2. Briefly explain Rumelt’s4 Criteria for Strategy Review, Evaluation, and Control.

Rumelt's 4 criteria for strategy review, evaluation, and control are a set of guidelines developed
by Richard Rumelt, a renowned strategy scholar. These criteria help organizations assess the
effectiveness of their strategies and make necessary adjustments.

1. Consistency: This criterion emphasizes the need for coherence and alignment within a
strategy. It requires that the various components of a strategy, such as goals, actions, and resource
allocation, should be mutually reinforcing and not contradictory. A consistent strategy ensures
that all efforts are directed towards a common purpose, avoiding confusion and inefficiency.

2. Consonance: Consonance refers to the compatibility between a strategy and the external
environment in which an organization operates. It involves assessing whether the strategy takes
into account the prevailing market conditions, customer needs, competitive landscape, and other
external factors. A strategy that is in consonance with the external environment is more likely to
be successful and adaptable.
3. Advantage: This criterion focuses on the uniqueness and competitive advantage of a strategy.
It requires organizations to evaluate whether their strategy offers a distinctive value proposition
or competitive edge that sets them apart from competitors. A strategy that leverages unique
capabilities, resources, or market insights is more likely to create sustainable competitive
advantage.

4. Feasibility: Feasibility refers to the practicality and achievability of a strategy. It involves

assessing whether an organization has the necessary resources, capabilities, and skills to
implement the strategy successfully. Feasibility also considers potential constraints, such as
financial limitations or technological barriers. A feasible strategy is one that can be realistically
executed given the organization's capabilities and resources.

While all four criteria are important, it is worth noting that the feasibility criterion is particularly
crucial. Even if a strategy is consistent, in consonance with the external environment, and offers
a competitive advantage, it may not be feasible if an organization lacks the necessary resources
or capabilities to implement it effectively. Therefore, organization must carefully evaluate and
adjust their strategies based on these criteria to ensure long-term success.

3. Write the differences between intended and emerged strategies. How could a
strategist use both types of strategies so as to succeed in his or her endeavor?

Intended strategies refer to the deliberate and planned actions that an individual or organization
sets out to pursue in order to achieve their desired goals. These strategies are carefully thought
out, formulated, and implemented based on a predetermined plan. Intended strategies are
typically based on thorough analysis, market research, and a clear understanding of the desired
outcomes. They are often documented in formal strategic plans and serve as a roadmap for
decision-making and resource allocation.

On the other hand, emergent strategies are unplanned and evolve over time as a result of various
factors such as unexpected opportunities, changing circumstances, or unforeseen challenges.
These strategies emerge organically through a process of adaptation and learning. Emergent
strategies are often a response to the dynamic nature of the environment and the need to adjust or
pivot in order to stay competitive or achieve success. They may arise from experimentation,
feedback, or insights gained from ongoing activities.

While intended strategies provide a structured and proactive approach to achieving goals,
emergent strategies allow for flexibility and adaptability in response to changing conditions.
Both types of strategies can be valuable in different situations. Intended strategies provide a clear
direction and focus, while emergent strategies enable individuals or organizations to seize
unforeseen opportunities or navigate unexpected obstacles.

In summary, intended strategies are planned and deliberate, while emergent strategies emerge
over time in response to changing circumstances. Both types of strategies can contribute to
success, and the key lies in finding the right balance between planned actions and the ability to
adapt and respond to the evolving environment. The difference between intended and emergent
strategies lies in their approach and development within the context of achieving success in one's
endeavors.

4. What is difference between strategic mgt and strategic planning?

 Strategic planning is usually more formal, structured, and analytical, while strategic
management is typically more flexible dynamic and responsive.
 Strategic planning is conducted periodically, often annually or quarterly, while strategic
management is continuous, often done daily or weekly.
 Strategic management is the process of implementing, monitoring, and making
adjustments as needed it involves executing your strategies, measuring your performance
and reviewing your progress. Strategic management helps you ensure that your actions
are consistent with your plan, and that you are achieving your goals and objectives, or
changing them if necessary.
 Strategic planning is the process of defining your long term vision goals, and objectives
for your business and how you will achieve them. It involves analyzing you’re your
internal and external environment, identifying your strengths, weaknesses, opportunities
and time lines. Strategic planning helps you align your resources capabilities, and actions
with your desired outcomes. And communicate them to your stakeholders.
5. Why some companies do not have strategic management? Explain the reasons behind.
What could be the consequence of not having strategic plan?

There can be several reasons why some companies do not have strategic management or fail to
implement effective strategic planning. Here are a few possible reasons:

1. Lack of Awareness: Some companies may not fully understand the importance of strategic
management or may not be aware of the benefits it can bring. They may focus more on day-to-
day operations and fail to recognize the long-term advantages of strategic planning.

2. Resource Constraints: Strategic planning requires time, effort, and resources. Smaller
companies or startups with limited resources may prioritize immediate needs and struggle to
allocate resources for strategic management activities.

3. Short-term Focus: Companies that are solely focused on short-term goals and immediate
results may overlook the significance of strategic planning. They may prioritize short-term gains
over long-term sustainability and growth.

4. Resistance to Change: Implementing strategic management often requires organizational

change and a shift in mindset. Some companies may resist change due to fear of the unknown,
internal politics, or a lack of leadership commitment to drive the process.

The consequences of not having strategic planning can be significant:

1. Lack of Direction: Without a strategic plan, companies may lack a clear direction and
purpose. This can lead to confusion among employees, inconsistent decision-making, and a lack
of alignment towards common goals.

2. Missed Opportunities: Strategic planning helps companies identify and capitalize on

opportunities in the market. Without a strategic approach, companies may miss out on potential
growth prospects, lose market share, or fail to adapt to changing customer needs.

3. Reactive Decision-making: Without a strategic plan, companies may be forced to make

reactive decisions based on short-term circumstances rather than a well-thought-out long-term
vision. This can lead to inefficiencies, wasted resources, and missed competitive advantages.
4. Lack of Competitive Advantage: Strategic planning enables companies to differentiate
themselves from competitors and develop a sustainable competitive advantage. Without a
strategic approach, companies may struggle to stay ahead in the market and may be easily
surpassed by more strategic competitors.

In summary, the absence of strategic management can result in a lack of direction, missed
opportunities, reactive decision-making, and a diminished competitive advantage. It is crucial for
companies to recognize the importance of strategic planning and allocate the necessary resources
to implement it effectively.

6. What are the measures or criteria for effective strategic planning?

Effective strategic planning involves a set of measures or criteria that ensure the plan is
comprehensive, actionable, and aligned with the organization's goals. These criteria include:

1. Alignment with Vision and Goals: The plan should align with the long-term vision and goals
of the organization. It ensures that the strategic actions contribute towards achieving the
overarching objectives.

2. Comprehensive Situational Analysis: Involves analyzing internal strengths and weaknesses,

and external opportunities and threats (SWOT analysis). This helps in understanding the current
position of the organization in its environment.

3. Stakeholder Involvement: Involves engaging various stakeholders (employees, customers,

and partners) in the planning process. Their input can provide valuable insights and foster a sense
of ownership in the plan.

4. Realistic and Measurable Objectives: The plan should have clear, realistic, and measurable
objectives. This allows for tracking progress and making necessary adjustments.

5. Flexibility and Adaptability: The ability to adapt to changing conditions and modify the plan
as needed is crucial. This includes responding to unforeseen challenges and opportunities.

6. Resource Allocation: Effective strategic planning involves efficient allocation of resources

(time, money, personnel) to different initiatives based on their priority and potential impact.
7. Risk Assessment and Management: Identifying potential risks and developing strategies to
mitigate them is an important part of strategic planning.

8. Implementation Plan: A detailed implementation plan including timelines, responsibilities,

and action steps is essential for translating the strategy into action.

9. Communication Strategy: Effective communication of the strategic plan is vital to ensure

everyone in the organization understands their role in achieving the goals.

10. Continuous Monitoring and Evaluation: Regularly monitoring progress towards objectives
and evaluating the effectiveness of the strategy helps in making timely adjustments.

The measures or criteria for effective strategic planning include alignment with vision and goals,
comprehensive situational analysis, stakeholder involvement, realistic and measurable
objectives, flexibility and adaptability, resource allocation, risk assessment and management,
implementation plan, communication strategy, and continuous monitoring and evaluation

7. Discuss the five competitive forces of porter’s model.

Porter's Five Forces Model is a framework for analyzing a business's competitive environment.
The five forces include:

1. Threat of New Entrants: The ease or difficulty with which new competitors can enter the
market.

2. Bargaining Power of Suppliers: The power suppliers have to drive up prices or reduce the
quality of purchased goods and services.

3. Bargaining Power of Buyers: The power customers have to drive prices down or demand
higher quality.

4. Threat of Substitute Products or Services: The likelihood that customers will switch to
alternative products or services.

5. Rivalry Among Existing Competitors: The intensity of competition within the industry.

1. Alignment with Company Vision and Goals 2. Flexibility and adaptability. 3. Stakeholder
Engagement. 4. Measurable Objectives. 5. Resource Allocation. 6. Risk Assessment.
1. Threat of New Entrants. 2. Bargaining Power of Suppliers. 3. Bargaining Power of Buyers. 4.
Threat of Substitute Products or Services. 5. Rivalry among Existing Competitors.

8. Answer the following questions.

A. What is business mission? And what is business vision?

B. Write at least the mission and vision of two multi-national companies.
C. Briley explain the Benefits of having clear mission and vision.
D. What are some of the Characteristics of mission statement
E. What are some of the criteria to evaluate the quality of mission statement?

A 1. Business Mission: A business mission statement is a concise declaration that outlines the
purpose and reason for a company's existence. It defines the fundamental objectives and goals of
the organization, highlighting its core activities, target market, and the value it aims to provide to
its customers. The mission statement serves as a guiding principle for the company's strategic
decisions, actions, and overall direction. It helps to align the efforts of employees and
stakeholders towards a common purpose and provides a framework for decision-making.

2. Business Vision: A business vision statement is a forward-looking statement that describes the
desired future state or long-term aspirations of a company. It articulates the company's ultimate
goals, aspirations, and the impact it aims to make in the industry or society. A vision statement is
often inspirational and sets a clear direction for the organization, motivating employees and
stakeholders to work towards a shared vision. It helps to create a sense of purpose and provides a
framework for strategic planning and decision-making.

In summary, while a business mission statement defines the present purpose and objectives of a
company, a business vision statement outlines the desired future state and long-term aspirations.
Both statements are important for guiding the strategic direction and decision-making of a
business, but they serve different purposes.

B. Multinational company: is corporate that has business operations in at least one country
other than home country. By some definitions, it also generates at least 25% of its revenue
outside of its home country. Example; Apple, Amazon, Microsoft, coca-cola, Google etc. let’s
take the coca-cola company
Vision: to craft the brand and choice of drinks that people love and enjoy, to refreshing them in
body and spirit. And done in ways that create a more sustainable business and better shared
future that makes a difference in people’s lives, communities, and our planet.

Mission: to make refresh the world by creating the moment of happiness and optimism and
make a value & create a difference by standard, action, and decision.

C. Statements provide a focal point that helps to align every one with the organization, thus
using ensuring that everyone is working towards a single purpose. This helps to increase
efficiency and productivity in the organization. The advantage of clear mission and vision are:

Help with public relations

 Facilitate collaboration with teams, customers, suppliers and partners

 Inspire people to focused and productive
 Provide a stable frame work that can outlast internal changes
 Provide context and reduce friction during organizational restructures
 Help attract appropriate talent
 Help determine and inform performance standards
 Guide the thinking and action of employees

D. A mission statement defines what an organization is why it exists, and its reason for being.
And the main characters tics are

 They are short

 They are unique to your business
 They create expectations
 They are realistic
 They are memorable
 They are active
 They are positive
 They are adaptable
 They are targeted
E. The mission statement must reflect the values, benefits, and philosophy of operations of the
organization and reflect the organizational culture. The mission statement should reflect
attainable goals.

 It is written in the present not future tense.

 It summarized with a powerful phrase.
 It describes an outcome, the best outcome we can achieve..
 It uses unequivocal language.
 It evokes emotion.
 It helps build a picture, the same picture in peoples mind.