...Michelle Johnson MT460: Management Policy and Strategy Unit 2 Project: Why is strategy important to business? Kaplan University August 16, 2011 Strategy is important in business because it gets all the things that you want to do, so you'll be able to go through them quickly and productively. This will also help your competition doubt their own strategy. One example that I have heard of is think of a football game without strategy. Who will know what they need to do if you don't have some type of organization of the system you are trying to run. It is also important to a business to have some type of base plan for any business that effects its revenue, expenses and profits. It provides a long term direction to the organization and it helps the organization achieve a competitive advantage. It will also tell about the business in the market, values and the way that they may handle resources in order to meet the objectives of the company as a whole. One of the main things that it helps to do is helps to analyze the internal and external environment. Something to remember is that without strategy the company would be pretty much shooting in the dark. Would something work ? This would be a continuing question without some type of direction. It allows the business leaders to weigh the pros and cons of different decisions in order to get to the proper way to go. Taking into mind the most cost effective process that will be needed. Strategic management is defined as the set...
Words: 453 - Pages: 2
...expand to South Africa they can possibility learn how to harvest the herb and export it to the existing plants that they have. This will also eliminate the use of the venders in Socotra and reduce the transportation cost as well as any tariffs that South Africa might have with Socotra. Also one more thing they can do is try and grow the other five ingredients that is used to make Zip-6. It is also possibly that they can find different ingredients that are grown native to South Africa that can improve the quality of their product. Every country has their good qualities and bad qualities. It is up to the business to decide the best strategy for them to take when entering a new country. It is always a good idea to have a plan A and a plan B just in case if plan A does not work. For example according to Ravi South Africa has a relatively heavy tax on business profits and an additional tax on dividends and...
Words: 770 - Pages: 4
...Why is strategy important to business? To elaborate on the information I used in my journal entry, I believe one of the main benefits of strategic management is one company would have an advantage; they would be able to increase their market shares and grain profits over other companies. As well as have a greater ability to avoid problem in the long run with assuring that those people with issues regarding adapting to changes have a smoother transition. And lastly all of the members of the team will have clear understanding on what the mission is as well as what part they have to play thus eliminating any crossover in activities. (Pearce, Robinson 2011) However, before upper management move forward with strategic management they should weight all of the pros and cons. This method of looking at the hold picture from start to finish, the good as well as the bad, will ensure a smoother flow within the project. A disadvantage of this would be that a lot of the companies allocated resources like people, money and time just to name a few, would have to be utilized leaving other parts of the business with little activity. Another would be that the primary strategists involved in this project have to stay engaged every step of the way, if not the project runs the risk of being delayed because they may start to neglect their part of the project thus holding up everyone else. (Pearce, Robinson 2011) Some of the main components of the strategic management process would be the...
Words: 561 - Pages: 3
...Strategy is important to a business because strategy describes where you want the company to go. Strategic planning helps with getting the company to where you want it to go. Strategic planning is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives (Pearce & Robinson, 2013). Without knowing the strategy of the business the details on how to get where you are headed cannot be made. Strategic management is a three-tier process involving corporate-, business-, and functional-level planners, and support personnel. At each progressively lower level, strategic activities were shown to be more specific, narrow, short-term, and action oriented, with lower risks but fewer opportunities for dramatic impact (Pearce & Robinson, 2013). Strategic decisions are based on what managers forecast rather than what they know. These decisions are developed on projections and it will enable the business to select the most promising strategic options (Pearce & Robinson, 2013). An organization’s mission identifies the scope of its operation (Pearce & Robinson, 2013). The mission statement of a company must express how the company will contribute to society as well as its product and market. It should also list the company’s purpose, philosophy, and goal (Pearce & Robinson, 2013). The strategic planning should be on the same path as the company’s mission. The strategic process is future...
Words: 299 - Pages: 2
...Strategy and Planning Paper Melissa Altom MGT521 03/07/2016 CEDRINA CHARBONNET Strategy and Planning Paper Introduction In this Strategy and Planning Paper we will explain the three types of goals that are very important to the strategy of any organization. Also will explain why the many different types of planning and organizing are very important to any business and or organization. Also we will thoroughly examine all of the elements and or factors that are involved in creating an effective strategy for an organization. Hopefully all questions will be answered. Explain why the three types of goals are important to the strategy of an organization. Strategic goals are set by and for top management and on objective for the organization as a whole. (Pg., 143) Strategic goals and planning would be important to any business or organization because it gives the organization or business a direction and what goals are reachable in the set amount of time and which ones are not reachable in that time period and why they are not. But as any business or organization they to give thought about the outlines and are they realistic? There are many steps that need to be set out and followed like they are supposed to be followed. If not followed correctly something major could go wrong. Also when you are working on a strategic goal for your business or organization make sure are financially ready for this and...
Words: 978 - Pages: 4
...Chapter 01 What Is Strategy and Why Is It Important? Multiple Choice Questions 1. | Managers in all types of businesses must address the central strategic question A. | Where are we now? | B. | Where do we want to go from here? | C. | How are we going to get there? | D. | When will we know we are there? | E. | All of these | | 2. | A company's strategy consists of A. | actions to develop a more appealing business model than rivals. | B. | plans involving alignment of organizational activities and strategic objectives. | C. | offensive and defensive moves to generate revenues and increase profit margins. | D. | competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. | E. | its strategic vision, its strategic objectives, and its strategic intent. | | 3. | The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its A. | strategy. | B. | mission statement. | C. | strategic intent. | D. | business model. | E. | strategic vision. | | 4. | A company's strategy is most accurately defined as A. | management's approaches to building revenues, controlling costs, and...
Words: 7127 - Pages: 29
...Thompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 16th Edition I. Concepts and Techniques for Crafting and Executing Strategy 1. What Is Strategy and Why Is It Important? chapter one © The McGraw−Hill Companies, 2008 1 What Is Strategy and Why Is It Important? Strategy means making clear-cut choices about how to compete. —Jack Welch Former CEO, General Electric A strategy is a commitment to undertake one set of actions rather than another. —Sharon Oster Professor, Yale University The process of developing superior strategies is part planning, part trial and error, until you hit upon something that works. —Costas Markides Professor, London Business School Without a strategy the organization is like a ship without a rudder. —Joel Ross and Michael Kami Authors and Consultants Thompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 16th Edition M I. Concepts and Techniques for Crafting and Executing Strategy 1. What Is Strategy and Why Is It Important? © The McGraw−Hill Companies, 2008 anagers face three central questions in evaluating their company’s business prospects: What’s the company’s present situation? Where does the company need to go from here? How should it get there? Arriving at a probing answer to the question “What’s the company’s present situation?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strengths...
Words: 9278 - Pages: 38
...Business Strategy Review Questions Chapter 1 The Nature of Strategic Management 1. Distinguish between long-range planning and strategic planning. Long-range planning is used to optimize for tomorrow the trends of today, whereas strategic planning is used to exploit and create new and different opportunities for tomorrow. 2. Compare a company’s strategic plan with a football team’s game plan. A strategic plan is, in essence, a company’s game plan. Just as a football team needs a good game plan to have a chance for success, a company must have a good strategic plan to compete successfully. 3. Describe the three activities that comprise strategy evaluation. The three fundamental strategy-evaluation activities are (1) reviewing external and internal factors that are the bases for current strategies, (2) measuring performance, and (3) taking corrective actions 4. How important do you feel “being adept at adapting” is for business firms? Explain. The strategic-management process is based on the belief that organizations should continually monitor internal and external events and trends so that timely changes can be made as needed. 5. Compare the opossum and turtle to the woolly mammoth and saber tooth tiger in terms of being adept at adapting. Students’ answers will vary, but students are likely to make the argument that those species that are adept at adapting are able to survive, while those that are unable to adapt are more likely to perish...
Words: 2978 - Pages: 12
...RMIT School of Business Information Technology ISYS1015 ASSIGNMENT SUBMISSION SHEET Family Name: Shen Student Number : 3354450 Personal Name(s) : Helin Contact Telephone Number 0420860306 Assignment Title Student Journal Course Coordinator Barry McIntyre Date Due Date Submitted 1 SEP 2014 This statement should be completed and signed by the student(s) participating in preparation of the assignment. A. Declaration and Statement of Authorship: 1. I/we hold a copy of this assignment, which can be produced if the original is lost/ damaged. 2. This assignment is my/our original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made. 3. No part of this assignment has been written for me/us by any other person except where such collaboration has been authorised by the lecturer/teacher concerned and is clearly acknowledged in the assignment. 4. I/we have not previously submitted or currently submitting this work for any other course/unit. 5. This work may be reproduced, communicated, compared and archived for the purpose of detecting plagiarism. 6. I/we give permission for a copy of my/our marked work to be retained by the School for review and comparison, including review by external examiners. I/we understand that 7. Plagiarism is the presentation of the work, idea or creation of another person as though it is your own. It is a form of cheating and is a very serious academic offence that may lead...
Words: 2502 - Pages: 11
...Organizations 5. How do Efficiency and Effectiveness impact the productivity of an organization? 6. What are the organizational trends and transitions that are relevant to your study of management? 7. CREST! 8. Who are Stakeholders and why are they important to managers? 9. What is Competitive Advantage, how can it be achieved and why is it important? 10. What is Environmental Uncertainty and why do managers want to avoid this? 11. Organizational Effectiveness – what is this and what are the ways it can be viewed and analyzed? 12. What are the Four Functions of Management? (Hint: POLC) 13. What are the 10 Managerial Roles? 14. What are the 3 Essential Managerial Skills and why are they important? e. How does a manager develop Managerial Competencies? 15. What is Quantitative Analysis and why do managers need to be able to do this? 16. How can an Organization be considered a System? 17. Why do managers need to be well versed in Contingency Thinking? 18. What is Quality Management and how has this affected management practices in general? 19. Knowledge Management and Organizational Learning – why are these needed in today’s technology driven world? 20. Why would a...
Words: 987 - Pages: 4
...WHAT IS STRATEGY AND WHY IS IT IMPORTANT? 1. Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. 2. Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. 4. Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. 5. Learn the three tests of a winning strategy. Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1–2 WHAT DO WE MEAN BY STRATEGY ? ♦ What is our present situation? ● ● WHAT IS STRATEGY ABOUT? ♦ Strategy is all about How: ● ● ● ● Business environment and industry conditions Firm’s financial and competitive capabilities Creating a vision for the firm’s future direction How to outcompete rivals. How to respond to economic and market conditions and growth opportunities. How to manage functional pieces of the business. How to improve the firm’s financial and market performance. ♦ Where do we want to go from here? ● ♦ How are we going to get there? ● Crafting an action plan that will get us there 1–3 1–4 WHY DO STRATEGY ? ♦ A firm does strategy: ● ●...
Words: 1224 - Pages: 5
...Unit Two Assignment – Why is Strategy Important to Business? Your Name Kaplan University School of Business and Management MT460-02 Management Policy and Strategy Dr. Daniel K. Dayton Date Unit Two Assignment – Why is Strategy Important to Business? This assignment will address why strategy is important to business. One will address the primary components of strategic management in the process of discussing the significance of strategy for business. Strategy is defined as the best practice of figuring out the best way to get from here to there (Arauz, 2012). According to Pearce and Robinson (2010), strategic management is defined as the set of decisions and activities that lead to the formulation and implementation of plans that have the purpose to achieve a company’s goals. Strategic management has nine important components to help an organization do a better hob. The first component is to devise the business mission, including statements about the reasoning for the mission, the philosophy, and also the goals. The second component is to perform an analysis that exposes a corporation’s internal conditions and capabilities. This component is known as the SWOT analysis, where the strengths, weaknesses, opportunities, and threats, are evaluated. The next task in a strategic management process would be assessing the company’s external environment, considering both the competition and the general contextual factors. Consequently, this task may be part of...
Words: 755 - Pages: 4
...STUDY 1. Analyze Coca-Cola and its business strategy using the value chain and competitive forces models. 2. What is the relationship of collaboration and knowledge management to Coca-Cola’s business strategy? 3. How is Coca-Cola using knowledge management systems to execute its business model and business strategy? 4. Why is Coca-Cola’s relationship with its bottlers so important? What is Coke doing to improve its ability to collaborate with its bottlers? 5. What are Coca-Cola’s prospects for success in the future? Will information systems make a difference? Why or why not? Question-1: Analyze Coca-Cola and its business strategy using the value chain and competitive forces models. Answer: Firm Level A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activity's value. Activities The value chain categorizes the generic value-adding activities of an organization. The & quot; primary activities & quot; include: inbound logistics, operations (production), outbound logistics, marketing and sales (demand), and services (maintenance). Coca –Cola is doing their business throughout the whole world in an...
Words: 826 - Pages: 4
...Unit One: Why Is Strategy Important To Business? Kaplan University, MT460-01 1403C Term Author: Michelle Edwards Professor: Dr. Andryce M. Zurick, PhD, EBC Date: April 29, 2015 Why Is Strategy Important To Business? Introduction Having a strategy will determine where you are now, where you want to go, and how you get there. Strategic management is the foundation of any business. It is a company’s game plan which begins with their vision, mission, and their goals. Strategic management involves planning directing, organized, and the controlling of a company’s strategy-related decision and goals. The Main Components of the Strategic Management Process Having an achievable goal in mind and being successful in communicating that goal from the top executive down. Strategic Management emphasizes the monitoring and evaluating opportunities and threats of the company’s strengths and weaknesses. The main components of the strategic management are environmental scanning, strategy formulation, strategy implementation, and strategy evaluation and control. These strategies are in detail and explain the company’s mission, internal and external analysis, and implementing processes that will assist in achieving organizational objectives. Environmental scanning involves completing the SWOT (strengths, weaknesses, opportunities, threats) analysis that gathers the external (competition) and internal (employees/staff changes) factors that influence the future. Strategy formulation is...
Words: 843 - Pages: 4
...MGT/521 Management 01-19-2016 WK3 A critical factor for any business is planning. Without proper planning a business which hopes to succeed may be headed for disaster. At the very least the business will have difficulties growing or meeting its full potential. Part of the planning process is setting goals and how the company will go about achieving set goals. It is necessary for corporate leadership set these goals and clearly focus objectives for the organization. Goal setting can be a challenging task. Corporate or company leadership needs to define what is the vision of the company. What are they trying to accomplish? From there they must begin to set the goals for the company. From our readings we know there are three types’ goals. Each of these goals has an important role in the success of any given company. “Strategic goals: are set by and for top management and focus on objectives for the organization as a whole.” (Kinicki & Williams, 2016 P.144) Setting strategic goals is a key element in a business. It is here that top organizational leadership puts down what the companies objectives will be. These objectives may be short term or long term. They may be in response to a change in market conditions, or world events. Whatever the case may be top management sets these goals to steer the organization in what they deem is the right decision. So why is setting strategic goals important? This redacted excerpt from Review of Marketing Research, Volume 7...
Words: 672 - Pages: 3
