...Defination * Strategic Competitiveness * When a firm successfully formulates and implements a value-creating strategy. * Strategy * An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. * Competitive Advantage * When a firm implements a strategy that its competitors are unable to duplicate or find too costly to try to imitate. * Average Returns * Returns equal to those an investor expects to earn from other investments with a similar amount of risk. * Above-average Returns * Returns in excess of what an investor expects to earn from other investments with a similar amount of risk. Four Assumptions of the I/O Model 1.External environment imposes pressures and constraints that determine strategies leading to above-average returns. 2. Most firms competing in an industry control similar strategically relevant resources and pursue similar strategies. 3. Resources used to implement strategies are highly mobile across firms. 4. Organizational decision makers are assumed to be rational and committed to acting in the firm’s best interests (profit-maximizing). © 2007 Thomson/South-Western. All rights reserved. © 2007 Thomson/South-Western. All rights reserved. 1–17 1–17 FIGURE 1.2 The I/O Model of Above-Average Returns FIGURE 1.2 The I/O Model of Above-Average Returns Assumption of...
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...Introduction: Corporate Strategy is the direction an organization takes with the objective of achieving business success in the long term. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment, i.e. a flexible strategy. The development of a corporate strategy involves establishing the purpose and scope of the organization's activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration; most times analyzed through a SWOT analysis. There are a number of ways in which the human resource functions can help a company to create more value. This function ensures that the company has the right mix of skilled people to perform its value creation activities effectively. Telecommunication Company in Bangladesh: Bangladesh has a huge potential in Wimax and submarine cable which is a new technology in the country and has attracted the foreign telecom operators. Many foreign telecom operators are coming to Bangladesh to explore the potentiality of the technology. Some interested international telecom operators who want to start a business in Bangladesh are UK-based Orange Telecom, South Korean SK Telecom and UAE’s Etisalat. The government is encouraging private sector to invest more in the industry as they think that the industry is playing a vital role in developing the socioeconomic structure of the country...
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...Chapter One Scope of Strategic Management 1 Major Issues to Consider Global considerations impact virtually all strategic decisions. E-commerce has become a vital strategic management tool. The natural environment has become an important strategic issue. 2 Strategic Management Defined Art and science of formulating, implementing, and evaluating crossfunctional decisions that enable an organization to achieve its objectives. 3 Terminology “Strategic Management” Synonymous with “Strategic Planning” • Strategic management Used more often in academia • Strategic planning Used more often in the business world 4 Terminology Strategic management Refers to: Strategy formulation Strategy implementation Strategy evaluation Strategic planning Refers to: Strategy formulation 5 Brief History 1950s Term strategic planning originates 1960s – 1970s Strategic planning very popular Widely viewed as panacea for problems 6 Brief History 1980s Strategic planning cast aside Planning models did not yield higher returns 1990s–2000 Revival of strategic planning Widely practiced in business world 7 Strategic-Management Process Three Stages Strategy Formulation Strategy Implementation Strategy Evaluation 8 Strategy Formulation Vision & Mission Opportunities & Threats Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection 9 Strategy Implementation Annual Objectives Policies ...
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...-:Strategic Management:- “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” Financial Benefits: 1. Improvement in sales. 2. Improvement in profitability. 3. Improvement in productivity. Non-Financial Benefits: 1. Improved understanding of competitors strategies. 2. Enhanced awareness of threats. 3. Reduced resistance to change. 4. Enhanced problem-prevention capabilities. The Main Advantages of Strategic Management 1. Discharges Board Responsibility The first reason that most organizations state for having a strategic management process is that it discharges the responsibility of the Board of Directors. 2. Forces An Objective Assessment Strategic management provides a discipline that enables the board and senior management to actually take a step back from the day-to-day business to think about the future of the organization. Without this discipline, the organization can become...
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...Required format for major case reports: 1. Executive summary 2. Introduction AM 3. Current Company Situation AL a. Past performance assessment 4. External, industry and competitor analysis C 5. Internal analysis G 6. Issue/Problem definition: AM b. Objectives 7. Development of different strategies c. For each alternative, outline and briefly describe SAVED i. Staging: what will be the firm’s speed and sequence of moves? AC ii. Arenas: where will the firm be active? AC iii. Vehicles: how will the firm get there? AC iv. Economic logic: how will the firm obtain returns? AM v. Differentiators: how will the firm win in the marketplace? G 8. Selection of alternative d. How is your chosen option superior to the rejected alternatives? How will the weaknesses of the chosen option not be strategically detrimental or how can they be overcome? 9. Implementation: Outline: e. how the corporate value chain will need to change and f. what it will cost to implement these changes 10. Evaluation and control 11. Appendices: g. Ratio analysis and conclusions h. Your detailed Porter’s analysis, SWOT, TOWS, PEST i. Turnitin report (page 1 of the Originality Report) j. Others as appropriate Key Report Criteria * Page numbers-in correct sequential order * Word processed-no work that is hand written...
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...Strategic Management Process Paper University of Phoenix MGT/498 Throughout this paper the topic of discussion will be to identify the many different roles involving strategic management and all of the primary components involved in strategic planning. Strategic Management emphasizes on the organizations “long-term performance. Many companies can manage short-term bursts of high performance, but only a few can sustain it over a longer period of time To be successful in the long-run, companies must not only be able to execute current activities to satisfy an existing market, but they must also adapt those activities to satisfy new and changing markets” (Wheelen & Hunger, 2008), pg6). The accomplishments set forth are essentially a way to make certain the organization has continued achievements and meets the demands of the organizations stakeholders. In addition, the long-term performance would show returns on investments to the shareholders. Therefore, the main idea behind strategic planning is to make sure all goals and achievements are continuous and keeping up with the ever change world of the business environment. Just as any business plan it is just what it is which is a plan mapping out the effectiveness of the organization including effective business practices. It is made up of the three primary components, which are strategic operations, strategic functions, and translating the strategy into action. Strategic Operation Environment Part of the strategic management...
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...Strategic Management Process Paper Miguel Valdez MGT/498 August 17, 2015 Paul Kramer Strategic Management Process Paper Describe the primary components of a strategic management process, and indicate why a strategic management process is needed for a company. Strategic Management is a set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. Its purpose is to identify strategic factors those external and internal elements that will determine the future of the corporation. The simplest way to conduct environmental scanning is through SWOT analysis. Which, SWOT is an acronym used to describe the Strengths, Weaknesses, Opportunities, and Threats, that are strategic factors for a specific company. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management. These variables form the context within which the corporation exists. However, the internal environment of a corporation consists...
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...Strategic Management Process Mgt/498 November 10, 2015 UOP Strategic Management Process In this summary I will describe the primary components of the strategic management process, and indicate why a strategic management process is needed for a company. The primary components consist of environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Lastly, I will talk about my previous job as a Marine and describe the strategic management process that was used. First environmental scanning from my thoughts is the similar to using a swot analysis. As an organization, you want to know where your strength lie so you can maximize it. Same goes for your weakness once it is identified the organization could figure out how to deal with the problem. Environmental scanning also allows the organization to detect early signs of opportunities that could have a great impact on future endeavors. Threats very similar to opportunities are also seen by scanning. Secondly is Strategy formulation, in a nutshell, this is deciding what is the best course of action your organization to take to accomplish its goals and or objectives. So after the environmental scanning this second phase is to put a plan in place to handle what has been uncovered by the scanning. Then the implementation of the strategy that is acting on the strategy that was formulated. According to MSG (2015),”Strategy implementation includes designing the organization's structure, distributing...
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...Riordan Manufacturing Strategic Plan Riordan Manufacturing Strategic Plan This paper was structured by Team A and based on the strategic plan of Riordan Manufacturing. Team A completed an environmental scan, strategy formulation, strategy implementation and also completed evaluation and controls. There is a significant amount of information that is discovered through this process which will benefit Riordan Manufacturing and their business operations. In result, Riordan Manufacturing is able to benefit from this process because they use it as an edge in the industry and gain a lead on the competition. Environmental Scan The internal environmental scan for Riordan Manufacturing is included in the SWOT analysis; a group which determines the weaknesses and strengths. A strength for Riordan would be their solidified brand name which helps them keep a strong reputation among their clientele. Furthermore, Riordan benefits from having access to high-end natural resources. In regards to downfalls, Riordan suffers from their high cost of structure and the lack of access to ideal key distributions. In addition, the external environmental scan of the SWOT analysis is comprised of opportunities and threats. Riordan has some potential in removing internal trade barriers and the introduction of the latest technology. Riordan’s threat is the increment of those trade barriers and the introduction of substituted products. Competitive Advantages The manufacturing...
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...Summary: This chapter brings strategic management to life with many contemporary examples. Sixteen types of strategies are defined and exemplified, including Michael Porter’s generic strategies: cost leadership, differentiation, and focus. Guidelines are presented for determining when it is most appropriate to pursue different types of strategies. An overview of strategic management in nonprofit organizations, governmental agencies, and small firms is provided. Long-term Objectives: Long-term objectives represent the results expected from pursuing certain strategies whereas strategies represent the actions to be taken to accomplish long-term objectives. The time frame for objectives and strategies should be consistent, usually from two to five years. Objectives serve as standards by which individuals, groups, departments, divisions, and entire organizations can be evaluated. Long-term objectives are needed at the corporate, divisional, and functional levels of an organization. They are an important measure of managerial performance. Success only rarely occurs by accident; rather, it is the result of hard work directed toward achieving certain objectives. The Nature of Long-Term Objectives: Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. Each objective should also be associated with a timeline. Objectives are commonly stated in terms such as growth in assets, growth...
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...Strategic Management Process Paper MGT/498 Environmental scanning, strategy formulation, strategy implementation, and evaluation and control are the primary components of the strategic management process. Environmental scanning is described to be “the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2010). Environmental scanning is usually used to classify strategic maneuvers that will direct the future of the business. Strategy formulation is the act of developing long-term plans for the future of a corporation by using the corporation’s strengthens, and weaknesses, for the successful handling of ecological opportunities and threats. Strategy implementation is the putting in action of the strategies formulated by a corporation. Lastly, evaluation and control includes the monitoring of corporate activities and performance in order to compare the actual results, to the ones that are set as goals. Strategic management helps a company sustain long-term performance. For companies that do not practice strategic management, it is very hard to attain and to sustain long-term performance. Most companies when they have finally attained a high performance level will soon experience a decrease in their performance. Strategic management will help a company understand, and realize that the environment around them is constantly changing, and evolving. It also helps a company...
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...Chapter I : Introduction A. Company Background Proudly serving more than 100 million clients in 40 countries, Citibank is one of the world’s largest retail banks. We have branches strategically centred in the world's top cities, including four in London. In the UK we provide some 200,000 customers with current accounts, foreign currency accounts, savings, wealth management and investment services. Citi International Personal Bank also gives customers access to offshore investments. High-net worth individuals and families are also able to access the Citi Private Bank for a complete range of wealth management services. Citibank is part of Citigroup Inc., with 200 million customer accounts, doing business in more than 160 countries and jurisdictions. Around the world, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. B. Research Design and Methodology Chapter II : External Analysis A. Economic Forces The Economic measures affects the banking sector to boost the economy by giving certain concessions or facilities. If in the savings are encouraged, thenmore deposits will be attracted towards the banks and inturn they can lendmore money to the agricultural sector and industrialsector, therefore, booming the economy. B. Social Forces The primary...
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...The purpose of this review is to discuss the “Concept Review Video: Stock Valuation” from the WileyPLUS learning tool for Week 4 of this learning team assignment. Stock valuations allow the projection or prediction of market values for stocks or investments. The determination of these valuations is through the utilization of various methods. Net Present Value One approach that investors use to place value on the stock is to look at the Net Present Value from an organization's streams of expected cash flows. It is from this method that the potential investor can determine how the future cash flows will impact the future value of the stock and how it will be paid to the owners. The dividend discount model is used commonly to estimate the actual value of stock, as well. This transaction is done by discounting back the stream of dividends that may anticipate over a period. This model requires some perception of risk from the business model and financials, but offers the investor the ability to place value on what a stocks future value may be. Future Value The future value is referred to as the terminal value. The terminal value allows the investor to compare to similar companies and look at factors that would indicate the stock being over valued or under value. Future values do change for there are multiple variables that may impact the performance of the investment. Terminal value can be applied most realistically to annuities, which is an investment that...
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...2. ROGERS’ RESOURCES AND CAPABILITIES: The firm had strong resources and capabilities. These are given below- ❖ Physical Resources: Rogers’ was a healthy company with significant assets. Rogers’ chocolate used to produce 24000 square foot manufacturing facility on the outskirt of Victoria .There were about 110 non-unionized retail and production employees. It had large retail outlets about 50% of the company’s sales come from Rogers’ 11 retail stores. Consequently, it had widespread distribution system which is based on geographic, demographic, cultural, socio-economic and all other demographic factors. ❖ Financial Resources: The company was in a good financial position with great cash flow and good margins. It had well designed financial strategies and it followed the Canada Revenue Agency’s guidelines. ❖ Strong Brand Name: Rogers’ had positive brand image. The brand was established around Rogers’ long history, with traditional packaging, including pink or brown gingham-wrapped Victoria creams, Chocolate Almond Brittle and Empress Squares. ❖ An Attractive Customer Base: Rogers’ chocolates were of the highest quality; and the company had many loyal customers around the world. The people who knew the brand were willing to pay for the product. ❖ Technology: Rogers’ most production system consisted of batch processing, utilizing technology. It had the ability to improve its production processes by advancing the technology related aspects. Such as...
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...Organizational Behavior Terminology and Concepts MGT-307 September 12, 2011 Farid Dalili Organizational Behavior Terminology and Concepts I will be discussing in this paper how the organizational culture, organizational behavior, diversity and communication is analyzed at Kaiser Permanente. I will define and explain how Kaiser Permanente uses the terminology and concepts in our hospital. Organizational Culture Organizational culture is the shared beliefs and values that make a difference in the behavior of organizational members. Culture plays an important role in stability and safety in an organization. Organization culture defines an organization's leadership and in order to understand its leadership, it is a must to first understand its culture. “Although it is relatively easy to conclude that what works well in one culture may not work as well in another, it is far harder to specify exactly how cultural differences affect things like motivation, job satisfaction, and ethical behavior.” (Schermerhorn, Hunt, & Osborn, 2008). The organizational culture at Kaiser Permanente has started a program called “Live Well Be Well” for their employees. This program has really made a big difference at our facility. The employees have better understanding of their health, motivated to come to work everyday and work ethics have improved as well. . Employees rely on culture for the ability to respond to any circumstances, culture becomes hard core in many organizations...
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