...the changing the mindset of organizations to improve the balance of their social, environmental, and economic performance across the value chain. While traditional financial reporting accounts for a company’s assets, it does not adequately describe the economic phenomena of how a company creates value for societies and the environment. The contextualization of material commercial, social, and environmental factors to an organization’s strategy, governance, performance, and potential, and future earnings best demonstrates its value creation process and commitment to sustainability. The consideration of how a broad set of interdependent and relevant financial and nonfinancial factors affect an organization’s accountability, stewardship, and performance is the basis for integrated thinking and is the key element in integrated reporting. Integrated reporting (IR) principles are global in nature applicable to all organizations across multitude of industries and sectors and are becoming a fundamental practice towards a more cohesive and efficient approach in demonstrating to internal and external stakeholders how the business creates value in the short, medium, and long-term (Tilley, 2014). An integrated report should identify and communicate how relevant and interdependent, financial and non-financial factors affect an organization’s value creation process across organizational and geographical boundaries. This connectivity fosters a more efficient allocation of capital within the...
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...www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download. The ethics of business strategy Fred Hansen and Michele Smith Fred Hansen is a Senior Consultant at Applied Strategic Technologies, Inc., which is based in Minneapolis, MN. He can be...
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... | |c. |the use and coordination of human capital to ensure the profitability and survival of the organization. | |d. |the design of the organization and its systems in order to achieve the goals of the organization. | ANS: B PTS: 1 DIF: Easy REF: p. 4 OBJ: 1 NAT: AACSB Reflective Thinking LOC: HRM TOP: Definitional 2. HR metrics must be linked to |a. |statistical analyses. | |b. |industry outcomes. | |c. |business performance. | |d. |employee satisfaction. | ANS: C PTS: 1 DIF: Easy REF: p. 4 OBJ: 1 NAT: AACSB Reflective Thinking LOC: Creation of Value TOP: Conceptual 3. All of the following are types of organizational assets EXCEPT |a. |social. | |b. |human. | |c. |financial....
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...tool to generate innovation, value and new customer? Summarize the benefits and the limitation of this strategy. What can corporate do to minimize the impact of this unavoidable imitation/competition? 1. Blue Ocean Strategy (BOS): Benefits, limitations and risks Blue Ocean Strategy signifies all the industries which are not in existence today. In this kind of strategy, the market spaces are unfamiliar, unpolluted by competition. In this strategy, the demand is created rather than fought over. There is sufficient chance for growth which is swift and profitable. Competition is inappropriate because the rules of the game are waiting to be set. 1.1. Benefits of Blue Ocean Strategy The Blue Ocean Strategy is appropriate tool to generate innovation, value and new customers. Considering the condition of CLV it is suitable for this organization to go for it to generate value and innovation. This strategy encourages organizations to attain new ways of thinking which are different than the competitors. With the help of this strategy, organizations can create a new area of demand namely a Blue Ocean and get rid of an intensely competitive market namely a Red Ocean. When any organization successfully creates new markets without competitors they can have a clear Blue Ocean. According to this strategy the organizations must not only focus on the existing competition rather they should make the competition irrelevant. This can be done by creating value to the customers in a new...
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...Introduction to Corporate Entrepreneurship Executive Summary Entrepreneurship is the process or application that drives creation and development of creative and innovative ideas (Frederick and Kuratko 2010). It involves market changes through systematic process to assist in the identification and address of new business opportunities (Alizadeh 2012). Corporate entrepreneurship is about the total process whereby organisations act in an innovative, risk-taking and proactive (Bouchard 2010) ways to help organisations, similar to entrepreneurship of creative and innovative thinking, however, the keyword for corporate entrepreneurship is ‘Organisation’. The aim of this manual was to describe and give an overview of corporate entrepreneurship to senior management and provide the necessary information and updates for an organisation to implement entrepreneurial thinking with its’ internal resources within its organisation. The manual will provides insightful information through the principle types and various dimensions of corporate entrepreneurship. The manual also included the journey through the various generations of innovation process models from simple to full integration models. To promote corporate entrepreneurship within organisation, a framework serving as best practices was discussed in the manual to support smooth adoption and implementation of corporate entrepreneurship. The manual will put emphasis on the different focal areas of corporate entrepreneurship...
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...any business is to ________. A) create customer needs B) differentiate in terms of cost of production C) deliver customer value at a profit D) reduce competition E) communicate similar value as provided by competitors Answer: C Page Ref: 33 Objective: 1 Difficulty: Easy 2) What is the traditional view of marketing? A) Firms should just focus on production because if the products are good then they will automatically sell. B) Firms should just focus on production and selling because marketing occurs as a part of the selling process. C) Firms should have a proper marketing team that can increase consumers' awareness of their products and rouse their interest in them. D) Firms should price their products as low as possible so that marketing them becomes easy. E) Firms should remember that promotion is the most important of the four Ps. Answer: B Page Ref: 33 Objective: 1 Difficulty: Easy 3) Value delivery process can be divided into three phases, out of which "choosing the value" implies _______, which is the essence of strategic marketing. A) segmentation, developing, and delivering B) targeting, positioning, and communicating C) targeting, positioning, and delivering D) segmentation, targeting, and positioning E) researching, developing, and delivering Answer: D Page Ref: 34 Objective: 1 AACSB: Reflective thinking Difficulty: Easy 4) Apex Corporation is one of the best in its industry in terms of costs and performance. Many companies...
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...The role of scenarios in strategic foresight” Article Summary In the context of the global financial crisis and the turbulence that this has brought to the world economy and therefore to organisations, the article “The role of scenarios in strategic foresight” by Gill Ringland published in the journal Technological Forecasting & Social change volume 77 (9) aims to persuade the reader on the need for strategic foresight over the next decade and what role scenarios can play within strategy foresight activities in organisations (Ringland, 2010). The author predicts that organisations in the west will experience a period of great change and that they are mostly ill-prepared to deal with the rate or the enormity of this change. Ringland believes that conventional business planning will need to change and suggests the need to develop a systematic review of organisational practices that will lead to strategic foresight. This will ensure that organisations are in a position to cope and survive changes in their external environment. Ringland begins by pointing out that the current position of the world economy shows that business and government have a significant debt burden that will take years to pay back especially in the west. In an environment of unemployment, reduced consumer spending and debt repayment, wealthy nations will recover slower than developing nations. There is also a shift in international competitiveness due to changes in labour skills and costs as well as technological...
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...strategy. Yes, I do believe that organizations with proper strategy implemented and managed stand a better chance and have better competitive advantage over their counterparts. Strategic management is used by organizations to analyze and learn from their internal and external environment. It is about going forward (where to from here) It is about establishing a strategic direction. It is about establishing a strategic direction Strategic management is also about implementing strategies that would satisfy customers. The nature of strategy, which needs to be managed, is formulated around the 5 Ps (Louw and Venter 2010:15) Plan, pattern, position, perspective and ploy. As a plan, strategy has been viewed as something that an organization has, and strategy as a perspective viewed as something that people do. Strategy is influenced by extra organizational practices and inter-organizational practices. Therefore there is a reciprocal relationship between intra and extra organizational strategic activities. - Strategy as a plan: Provides overall direction and course of action. As a plan, strategy formulation is a formal process. This approach ahs been criticized for being a rational, top-down approach, hoever research shows that formal planning contributes towards better strategic decision making. - Strategy as a position: concerns the determination of products. As a position, strategy looks downwards and outwards, towards the external competitive market. -...
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...A Conversation with W. Chan Kim and Renee Mauborgne authors of BLUE OCEAN STRATEGY 1) What is a blue ocean strategy? Kim & Mauborgne: Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. 2) What are red and blue oceans, and why do you use the colors red and blue? Kim & Mauborgne: We use the terms red and blue oceans to describe the market universe. Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Hence, the term “red” oceans. Blue oceans, in contrast, denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. Like the “blue” ocean, it is vast, deep, powerful, in terms of profitable growth, and infinite...
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...A Conversation with W. Chan Kim and Renee Mauborgne authors of BLUE OCEAN STRATEGY 1) What is a blue ocean strategy? Kim & Mauborgne: Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. 2) What are red and blue oceans, and why do you use the colors red and blue? Kim & Mauborgne: We use the terms red and blue oceans to describe the market universe. Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Hence, the term “red” oceans. Blue oceans, in contrast, denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. Like the “blue” ocean, it is vast, deep, powerful, in terms of profitable growth, and infinite. 3) How does blue...
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...Strategic Entrepreneurship Introduction: In this article, the main topic that is covered relates to precisely how strategic and entrepreneurial management are both combined and unified as a single management function. That is, Strategic Entrepreneurship which is a term vaguely coined by many describes the constant need of mangers focusing on objectives such as finding new business opportunities and taking advantage of creating short-term competition. An expectation of meeting such objectives creates a problem that is caused by having a select few elements of strategic management and entrepreneurship that overlap each other. Due to the general obscure understanding of how both strategic management and entrepreneurship are related, many studies have been conducted in order to better define Strategic Entrepreneurship. The article notes that in recent time, only one study goes to show a conceptual model of SE (Ireland 2003), but lacking in formulating a feedback loop between strategic management and entrepreneurship. Even though SE can be defined as simultaneous pursuit of opportunities and strategic advantages, the model presented by most early studies failed to pinpoint the correlation between the two. Due to the fact that SE is a new field of study, the article reviews all information on entrepreneurship, strategic management, and strategic information in order to determine the origin of SE, find the locus of integration, highlight the common components or elements, and...
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...Member of President Barack Obama’s Board of Advisors Ranked No. 2 in The Thinkers50 listing of the World’s Top Management Gurus 3 II. THE BLUE OCEAN STRATEGY DEFINITION Red Ocean “represent all the industries in existence today ‒ the known market space (…) [where] companies try to outperform their rivals in order to grab a greater share of existing demand.” • Roots in military thinking on strategy • “Structuralist view” or “environmental determinism” • Situation in many industries lead to shrunk profit margins 4 II. THE BLUE OCEAN STRATEGY DEFINITION Blue Ocean “denote all the industries not in existence today (…) [where] , demand is created rather than fought over.” • “reconstructionist view” • Creation ‐ “give rise to completely new industries” ‐ “created from within a red ocean when a company alters the boundaries of an existing industry” 5 II. THE BLUE OCEAN STRATEGY CHARACTERISTICS Strategic thinking • • • Technology innovation not a defining feature Incumbents create blue oceans within their core business Blue ocean creation is the result of strategy Characteristics • • Differentiation and low cost...
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...|d. |All of the above. | ANS: D AACSB Analytic, Strategy PTS: 1 2. Globalization is |a. |The trend of businesses expanding beyond their domestic boundaries. | |b. |Increasing average temperature over the globe. | |c. |The increased use of global satellite communication systems. | |d. |A strategy of developing unique products for each nation in the world. | ANS: A AACSB Reflective thinking, Environmental influence PTS: 1 3. Which of the following would not be considered a basic source of globalization? |a. |Similar customer needs | |b. |Falling of trade barriers | |c. |Advances in communication technology | |d. |Differentiation among countries...
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...be viewed as leading indicators of emerging threats and strategic opportunities. Leaders who take the time to understand how these trends might affect their organizations can put themselves in a position to win. Those who make their decisions in isolation, without the benefit of engaged conversations with other leaders, may expose their organizations to out-sized risks. Human Capital Trends for 2013 builds on those of previous years, revealing business expectations for talent and performance that have risen to dizzying levels. Not only are organizations having to do more with less, they’re doing so in the face of dramatic shifts in technology, globalization, demographics, and regulation. Looking ahead, the pressure for performance will likely increase as business decisions become more complex and challenging. Even small decisions have the potential to cascade with unintended consequences throughout an organization. That’s why business executives should actively engage with one another around the trends captured in this report. Many leading organizations are already having these crucial conversations. They recognize that now is the time to get ahead of the trends by making more informed decisions. The seven Human Capital Trends for 2013 provide a solid checklist for getting started. Welcome to annual report examining significant trends in human capital.Human Capital Trends 2012 Leap ahead 3 Contents Thinking like an economist 4 The open talent economy 8 Innovating...
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...Strategic Thinking Many city departments in other states have faced similar issues as the Houston Public Library. The Houston Public Library can benchmark those companies that have demonstrated strategic thinking to resolve parallel issues. Strategic thinking is the approach in which group in an organization think about, access, view, and creates the future for themselves and their associates. It is more than responding to day-to-day as well as long-term problems, opportunities, and new realities; it is creating tomorrow. Strategic thinking is not reactive, but proactive. It focuses on how to create a better future by being proactive and adding value to society-through the accomplishment of high payoff results. Strategic thinking always involves change, and often, profound personal change. It is a change in ones mindset. Strategic thinking is imagining the results one wants to achieve in the future and creating an ideal future by defining and achieving results that adds values to the company. The Houston Public Library can also review how the Houston Zoo went from a city department to a private foundation. Strategy, in business, is the combination of foresight, planning, and decision-making that prepares an enterprise to achieve long-term goals and manage the consequences of contemporary decisions. When creating a strategy the firm needs to decide on both short-term and long-term objectives. The qualities of effective short-term objectives are measurable, priorities, and must...
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