Business Policy and Strategy

Business Policy and Strategy
What will be the key developments in the global environment of business
during the next five years?
The key developments in the global environment of business during the
next five years include:
shift of concentration of power from the north (developed countries) to
south (developing nations)
adoption of new techniques of consumer engagement (for example mobile
payments, social media and extensive use of digital technology)
embracing new business paradigms, continued innovation and changing
business models
Revising the social contracts ( for example, citizens are demanding more
services from their governments)
Global competition for talent ( the developing countries have many
skilled workers than developed nations)
On the basis of these, what will be the greatest challenges that firms
from the advanced industrialized countries will face?
Based on these challenges, firms located in advanced industrialized
countries will experience challenges such as adequate lack of local
skilled employees, loss of former stronghold market to cheaper goods
produced in developing countries and the necessity for hiring employees
from developing nations.
What strategies will firms need to adopt in order to prosper in the
environment you foresee?
These firms can avoid these problems through:
Establishing local education institutions to train potential workers who
will work in the companies
Give attractive remuneration packages that will prevent skilled
employees from seeking better opportunities in other countries or
organizations
Outsourcing some services from the cheaper developing markets
Shifting their operations in the developing nations where they can
access affordable labor
Revising the migration and work policies to eliminate challenges that
can hinder skilled employees who can fill the employment gap in the
United States
What are the implications for these developments for firms’
organizational structures, management systems, and leadership styles?
These firms will compel firms to adopt new management systems,
organizational structures and leadership styles that will match the new
regulation policies
2.
Competitive intelligence is an important approach to identifying current
and future competitors and generally identifies how a firm should
respond. To what extent is a firm’s value approach helpful in
assessing performance from an external point of view?
A firm’s value approach in assessing performance from an external
perspective is fundamental, as organizations have to keep tracking the
changes occurring on the external environment, and then choosing
suitable changes that the company should concentrate on regulating in
order to ensure its survival.
Is it possible for managers to manipulate their firm’s value for
stakeholders’ interests or for self-serving reasons?
Managers can manipulate their firms’ value for stakeholders’
interest through identifying products that are in high demand in the
market, introducing measures that increase an organization’s safety
from terrorists and blackmailers as well as, hiring skilled employees
with capability of implementing strategic decisions for allowing a
business to perform better in an environment. On the other hand,
managers can manipulate their firms’ value for self-serving reasons
through preparing a managerial seminar aimed at advancing leadership
skills of company executives in a given company.
Are there currently any trends in the business world to increase control
and accountability for top managers and accounting firms?
Some of the current trends in the business world to increase control and
accountability for top managers and accounting firms include emphasizing
on disclosure and transparency, ethical and integrity behavior, hiring a
highly experienced board of directors and ensuring to respect the
rights as well as, giving equitable treatment on all the stakeholders.
3.
A firm normally can identify its basic competencies and the desirable
improvements that it can make to help meet the requirements of potential
customers within its intended market. After conducting an internal
analysis, what are some of the indications that tell top management that
the firm is able to generate a profit?
Some indications that tell top management that the firm is able to
generate a profit include return on investment (ROI), the level of
competition, a company’s capacity to expand into another market and
the market share and average sales of accompany in a given period.
What happens when the firm does not have the required competencies and
resources?
A firm with no crucial competencies and resources loses its market share
to organizations with larger resources, operates at a loss and finally
it closes down
Based on this perspective, would it help the firm to hire the top talent
in the field?
The top talent in the field cannot help a firm that lack competencies
and resources to gain strategic advantage in a market because the
employees would require capital to market, train and evaluate a
business’ operation strategy in order to identify weaknesses. A
company with no resources cannot provide the required capital for
developing strategic knowledge for improving the position of a business
in a market
4.
Today`s business environment requires companies to undergo changes
almost constantly and rapidly evolving technology forces businesses to
respond in order to survive. When Technological changes occur, why do
firms react differently?
Firms react differently to technological changes since they require
adapting to using the new technologies. The complexity of technology and
ability to execute the technology in various firms may differ depending
on the skills and attitude of employees. Moreover, implementation of
new technologies is rather costly hence, firms with no ready capital
may take longer to execute the innovation than an organization that has
ready capital
What determines a firm’s ability to prosper?
Availability of the right team and talent, availability of capital and
resources, providing clients with high quality services, developing
efficient strategies and creating a strong brand
What are the strategic implications of that shift?
The strategic implication of this shift is helping businesses to achieve
a stronger market position
When and how should the firm shift to the new technology?
Firms should shift to using new technology if it will accelerate their
growth and improve the quality of services an organization provides to
clients. Firms should shift to new technologies gradually so that
employees and clients can adapt to the changing operation strategies of
an organization
5. The process that a business takes in developing a strategy is one of
the single most important tasks that a business will do. What do we use
strategy analysis for and how can we identify wither the strategy is a
part of the Corporate level strategy or Business level strategy?
Strategy analysis of a business helps top management to determine the
position of a business in a market as well as, identify techniques for
improving the competitive position of an institution.
How can we identify wither the strategy is a part of the Corporate level
strategy or Business level strategy?
Corporate level strategy concerns evaluating factors that help an
organization to compete and survive efficiently in a given market. On
the other hand, business level strategy refers to a collection of
objectives that firms undertake in order to improve the value of
services an organization gives to clients. In addition, it focuses on
gaining competitive advantages in a market.
How can we identify if the strategy is a part of the firm or of the
whole firm competing in a specific market.
We can identify if a strategy is a part of the firm or of the whole firm
competing in a specific market if it affects the external (opportunities
and threats) and internal (strengths and weaknesses) factors of a
business.
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