Strategic Management and Business Policy
Strategic Management and Business Policy
Course Textbook:
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2015). Concepts in strategic management
and business policy: Globalization, innovation, and sustainability (14th ed.). Upper Saddle River, NJ:
Pearson.
Strategic Management and Business Policy
Unit I Assessment
Question 1
Does a corporation have to act selflessly to be considered socially responsible?
Your response should be at least 75 words in length.
Strategic Management and Business Policy
Question 2
Contrast agency theory and stewardship theory.
Your response should be at least 75 words in length.
Strategic Management and Business Policy
Question 3
What are the responsibilities of the board of directors? Please provide an example of a board of directors
that did not meet its responsibilities.
Your response should be at least 200 words in length.
Strategic Management and Business Policy
Question 4
Explain the Sarbanes-Oxley Act and its impact on corporate governance. How has it changed the way we
do business in the United States? Please include an example to support your viewpoint.
Your response should be at least 200 words in length.
Strategic Management and Business Policy
Unit V Assessment
Question 1
What is a functional strategy?
Your response should be at least 75 words in length.
Question 2
Define corporate parenting.
Your response should be at least 75 words in length.
Question 3
List and describe four popular options for international entry.
Your response should be at least 200 words in length.
Question 4
What is outsourcing? What are the seven major outsourcing errors that should be avoided?
Your response should be at least 200 words in length.
Strategic Management and Business Policy
Unit IV Assessment
Question 1
Discuss the most commonly practiced form of forecasting.
Your response should be at least 75 words in length.
Question 2
Describe the purpose of an EFAS Table.
Your response should be at least 75 words in length.
Question 3
In what ways may a corporation's structure and culture be internal strengths or weaknesses? Look at your
organization, and analyze its structural and cultural strengths and weaknesses. How can the weaknesses
be improved?
Your response should be at least 200 words in length.
Question 4
Distinguish between a fragmented and consolidated industry, and describe examples of each.
Your response should be at least 200 words in length.
Strategic Management and Business Policy
Unit IV Mini Project
Unit IV Mini Project
EFAS table Using the information gathered from your SWOT analysis conducted in Unit II, create an EFAS
table for the company you researched. Use Microsoft Word to create your table.
It should have five columns.
The first column heading should be entitled External Factors, the second column should be titled
Weight, the third column should be titled Rating, the fourth column should be titled Weighted Score,
and the fifth column should be titled Comments. (Refer to page 121 in your textbook for an example.)
1. In the External Factors column, list at least six opportunities you saw in the company you researched.
Underneath the opportunities, list at least six threats you saw in the company you researched.
2. In the Weight column, assign an importance factor to each of these issues from 0.0-1.0 (1.0 is most
important; 0.0 is least important). These ratings are based on the probable impact on a particular
company’s current strategic position. The higher the weight, the more important the factor to the
current and future success of the company. You may not be privy to the exact information for this
company, so in some cases you will need to use your best judgment. (You will justify your weighting in
column five.)
3. In the Rating column, assign a rating factor from 5.0-1.0 (5.0 is outstanding; 1.0 is poor). These ratings
are based on the company’s response to that particular factor. It is a judgment call on how the company
is currently dealing with each specific factor. Once again, you may need to make an estimate in this area
if you are not privy to all of the information. (You will justify your weighting in column five.)
4. In the Weighted Score column, multiply the weight from column two by the rating in column three to
get the factor’s weighted score.
5. In the Comments column, explain why a particular factor was selected and how its weight and rating
were estimated. 6. At the bottom of column four, add the weighted scores for the external factors. Is
the company doing better or worse than others in the same industry? Complete this answer underneath
your table.
Answer
Strategic Management and Business Policy
Question 1
A corporate that executes its activities under a capitalism cannot be judged by its attitudes. Most companies exercise selfish motivations in business that results in a better society in terms of material goods. In a free enterprise system, it is acceptable for a business to act selfish for its own good. However, its actions should have positive effects on the functional society. The society does not demand any firm to be selfless when fulfilling its economic and legal responsibilities. Likewise, we should not demand the different corporates we have in our society to act altruistic when fulfilling their discretionary and ethnical responsibilities.
Strategic Management and Business Policy
Question 2
Agency and stewardship theory are used in firms and are about the relationship between principle and agent. The agency theory argue that managers if left unattended are likely to make decisions that are influenced by personal views. In contrary, stewardship theory stipulates that if managers are given authority and responsibilities they will act on behalf of the principle. The agency theory believe that individual behaviors are based on self-interest that will conflict with principal’s interest. The stewardship theory is based on serving others and aligns with the principal’s interest.
Strategic Management and Business Policy
Question 3
The board of directors are appointed to perform duties on behalf of the various shareholders. They ensures the prosperity of an organization by directing the company affairs together. They meet the specific interests of the shareholders by executing appropriate action. They deal with challenges and issues relating to corporate governance, social responsibility, and ethics. They tend to meet periodically to their responsibilities to facilitate the overall situation of the company. The directors are responsible of making decisions at the top level of the business. They delegate executive authority to appropriate individuals with a direct and adequate reporting. Specifically, the board of directors establish mission, vision and the values of the company. They create an organizational structure, delegate management, and ensures accountability to the shareholders. The AIG board of directors failed to meet their duty in power struggle. The chair resigned his position due to a dispute with the chief executive. The two leaders has been in a struggle of defining who has the authority over decision making and setting the future direction. This dispute made the AIG to sell assets to raise funds for repaying billions of dollars of government bailout. However, the shareholders of the company did not react positively toward the transaction.
Strategic Management and Business Policy
Question 4
The Sarbanes-Oxley Act is one of the legislation following the financial market failure. This act has influenced the public business by transforming of the financial system. The act addressed the investor confidence and fraud through addressing the public corporates reporting standards. However, this enactment led to collapsing of many big companies during 2002 and 2004. Sarbanes-Oxley Act changes were extreme and deep. The changes led to foundation of Public Company Accounting Oversight Board, personal liability auditors, executives, and board members. This changes required extensive internal control procedures that were not present before the Sarbanes-Oxley Act. It added cost to the public corporates due to the personal liability audits that are required by the Act. The company has incurred liability with increased due diligence and time needed to complete the audits. The high cost of auditing is complemented by expansive internal control software that has to track and review the company’s internal performance. The penalties of not cloying with the Sarbanes-Oxley Act are steep. The investors’ confidence can be measured. However, the framers of the Act intended to favor them. The Act created a barrier for the foreign investors due to the increased cost of operation within the United States. The small and medium size business decides not to go for public sectors while others have changed to private companies.
Unit V Assessment
Strategic Management and Business Policy
Question 1
Functional strategy is referred as the organizational strategic plan for human resources, research, development, marketing, and various functional areas. The operational management in the functional strategy is based on specific department in a firm. A successful functional strategy means that a company have acquired a powerful strategy of selling its goods and services to customers. It allows an organization to deal with means of its long-term plan and short-term goals and objectives. The functional strategy helps the small businesses to evaluate the effects of plans and goals specific to their market.
Strategic Management and Business Policy
Question 2
Corporate parenting is referred as a collective responsibility of the elected members, council, employees, and partner agencies to offer the best possible care and safeguarding for the children who are looked after by the council. The approach has been introduced to improve the lives and the future of the most vulnerable people. The corporate parenting carries out the many roles such as loving, caring, offering advices, and offering the best possible responsibility. This concept is intended to encourage people and organizations to do much in offering children and young people feel in control of their lives and overcome challenges that they face.
Strategic Management and Business Policy
Question 3
International entry have four main popular entries that includes exporting, licensing, joint venture, and direct investment.
Exporting is a feasible option that a company can use to gain entry in the international market. This method has existed for a long time in the market. Most companies refers to it as a traditional method. Organizations use this method by employing their home-based production to international market where the goods are sold. This option does not require a company to have any direct manufacturing in the foreign markets. Instead, it requires an effective and well-analyzed marketing strategy to acquire success in the international market. The various advantage of this option is minimized risks that occurs with foreign operations. The company understand the business forces in a foreign market before making a major investment.
Another option includes the licensing method that is less risky. The foreign government or association will grant the company the permission to produce its products in their market. the organization will use their brand name in the market as they agree to offer some payment to the government of the association offering the license. Joint venture is another option that an organization uses to access the international market. It involves the sharing of risk by collaborating with another organization in the host country. The two organizations will shares knowledge and expertise to help them develop a partnership that will give profit. The attained profit is shared between the two firms.
Direct-investment involves the decision of the company to establish a manufacturing plant in the foreign market. The government of the host will give the organization a rate of taxation. The taxation and establishment of a plant is important for the host company because it provides employment and income revenue.
Strategic Management and Business Policy
Question 4
Outsourcing is a process in which goods and services or resources are purchased from other companies or associations instead of being made internally. The decision on outsourcing depends on the fraction of total value added and the potential competitive advantage. The seven outsourcing mistakes that should be avoided includes
- Outsourcing resources or activities that directly influence the customer. For example, resolving a customer complaint. Functions such as customer services and sales should be operated inside the company because of their direct touch on the customers.
- Overestimating the cost savings is an error that most companies do in their outsourcing. More importantly, the company should not think that outsourcing would save the entire cost. In most cases, companies incurs time cost when ensuring compliance with standards, performance, and feedback procedures.
- Lack of providing guidance makes outsourcing unsuccessful. It best operates under specific guidelines, rules, and procedures. A company should take it time to create the guideline to ensure high level of understanding and performance. Outsourcing partners requires procedures in order to outsource everything that is written.
- Jumping into outsourcing too quickly is an error that should be avoided. Turing into outsourcing options slowly is essential to acquire the confidence of the partner. A company should use enough time to consider and determine the best partners and the function to outsource.
- Failing to put measurement in place should be avoided in outsourcing. Having measurement helps the company to keep in mind the activities that are out of sight. There is need to determine the best performance standards that will help to periodically monitor and evaluate the results.
- The company should avoid giving the outsourcing partners too much authority. The partners should be treated as any other vendor or suppliers. They can go off the business and the company should be ready for such emergencies. Therefore, it is not wise to go all in with outsourcing partners.
- Ignoring a disagreement strategy is a mistake to avoid in outsourcing business. Every contract should include measures of disagreement that should not be ignored.
Unit IV Assessment
Strategic Management and Business Policy
Question 1
Forecasting refers to future projections indicating what changes might occur, given assumptions that are typically presented in ranges. Trend extrapolation is the most common practiced form of forecasting. Records shows that most corporations have used trend extrapolation. The main argument behind this method of forecasting is that the world changes at a relatively slow pace thus the short-term influences should be minimal. However, the short-term extrapolation has higher chances of success compared to the uncertainty of long term that increases the chances of forecasting errors.
Strategic Management and Business Policy
Question 2
An External Factor Analysis Summary table (EFAs) is a tool in business that utilizes a means to organize eternal perspectives into groups of opportunities and threats. The EFAs table is usually accompanies the SWOT analysis. It is useful in analyzing the company’s management that is directly connected with the eternal factors. When the EFAs are used together with the SWOT analysis, they become useful in forming business strategies for the success of the company. The table is able to identify the external factors that are strategically important to a company.
Strategic Management and Business Policy
Question 3
The corporate structure and culture are designed to help achieve performance in the market. The company’s structure and culture are critical in today’s competitive and uncertain business climate. Corporate structure is simply the sum total of the methods in which it delegates its labor into distinct tasks and gain control over them. Corporation culture is the personality of the corporation. They involves values, norms, assumptions, symbols and behaviors of the corporate members. Both the structure and the culture can be internal strength of a company. The strengths can be visible when the management align its human resource with capabilities and resources of a firm effectively. The structure design can maximize the innovation abilities in an organization. Weaknesses can occur when the design of the structure and the culture is not adopted by the members. Also, the structure and culture that do not create a conducive environment may become weaknesses. In my organization, the structure has created a performance enhancement in its role distribution. The culture creates a weakness because it is not specific on how employees should behave. However, the core values creates a conducive environment for every employee. To avoid the weaknesses, the management should frame a structure and a culture that feasible in the market and within the organization. Also, they should specific, clear, and fair to be used for external and internal performance enhancement.
Strategic Management and Business Policy
Question 4
Fragment industry is defined as absence of large market share where each firm serves only in a small piece of the whole market in competition with others. When new competitors join, the market prices tend to drop due to increased supply. For example, cleaning services work in a fragmented industry. The companies differentiates their products to acquire a large market share due to the high competition. The differentiation may allow them to acquire entry in other markets. In fragment industry there is no single company that has a major control of the market share. All firms are at an equal position in the market. Consumers benefit in this industry as they thrive on the competition between the organizations.
Whereas, a consolidated industry is occupied by few large firms that struggles to diversify its products from the competitors. For example, the automobile petroleum industry have few companies but the companies are very large. Prices becomes a dominant concern for the customers and suppliers. Most customers shop via the internet where they seek information concerning the products. The prices of the product tends to be high due to the limited supply. The market becomes hard to control and the competition is not easily manageable.
Strategic Management and Business Policy
EFAS Table
| External Factors | Weight | Rating | Weighted Score | Comments | |
| Opportunities | · Economic integration
· Economic development · Differentiation of products. · Substation companies. · Foreign markets. · Demographic diversity
|
.20
.10
.05
.05
.10
.05 |
5.0
4.5
1.0
1.7
1.0
5.0
|
.80
.54
.05
.10
.18
.50
|
New market
Will lead to an increased income
Might take some time
Requires new strategic plans
Need for international market strategies
Increased product differentiation
|
| Threats | · Increased legal requirements
· High competition · Increased international companies · Foreign products · Weak corporate culture · Inflation |
.15
.10
.05
.05
.10
.15 |
4.0
4.0
4.3
3.0
4.2
1.6 |
.43
.40
.45
.06
.16
.10 |
Well positioned
Increasing rapidly
From Japan and China
Relatively strong
Requires reprograming
Not too often |
| Total | 1.1 | 3.82 |
Looking for a similar assignment? Our writers will offer you original work free from plagiarism. We follow the assignment instructions to the letter and always deliver on time. Be assured of a quality paper that will raise your grade. Order now and Get a 15% Discount! Use Coupon Code "Newclient"
