- Published: October 31, 2021
- Updated: October 31, 2021
- University / College: Ryerson University
- Level: Undergraduate
- Language: English
- Downloads: 7
Management Questions Management Questions In a top-down approach to strategic planning, it is assumed that the Board of Directors will get buy-in from subordinate managers but will not take directions from those managers. What does that mean? Give an example.
In a top-down approach, strategic planning initiatives are directed and planned for at the most senior levels of a company. This means that the Board of the Directors is open to receiving suggestions from subordinate but not actual directions. The junior level or subordinate managers are the ones with a duty to implement what has been suggested by the senior ranking objectives.
2. Notice our lecture begins the SWOT analysis in Chapter 3 with the external environment – an environmental scan of the opportunities and threats. The internal analysis begins in the next lecture – Chapter 4. Why is that? Why do you begin your SWOT analysis externally, not internally?
The external analysis is more important than the internal analysis for a number of reasons. The external environment analysis takes into account non-controllable factors that affect the company but which the company cannot control. If the company does not take them into consideration, they could affect the very operations of the company. An internal analysis, on the other hand, only seeks to address issues within the company- meaning that these are concerns that the company is in a position to control.
3. As a corporate “strategic planning” resource, is it better to have assets or competencies. Give an example … a different one than your classmates’ examples. And, do not say “both” or “it depends.” Pick one and explain it.
Strategic assets are basically a corporation’s own resources. Core competencies, on the other hand, refer to a company’s best capabilities. In essence, strategic assets are worthless until they are converted into products that can be used by the company’s customers. Competencies are quite important as they can be used by businesses to leverage their strategic resources and generate a unique advantage over business rivals (Rumelt, 2011). Competencies are the more valuable choice.
4. Give an example of a product-market and why it fits the criteria for a product-market. Each student must give a “different” example –OR– disagree with another student’s example explaining why the disagreement. One input per student, please.
A “product market” refers to the distinct society demographic to which a business targets its newly created products. For instance, a new range of age defying cosmetics debuts in the market, the product market would be the older female, focusing on mainly women who had just completed menopause or were going through it.
5. Which of the several offensive strategies discussed in Chapter 5 would you think could make a business most successful? Why? Include what you mean by “successful” in your response.
Niche marketing could make a business very successful. This marketing style targets customers who have identical buying habits and needs; instead of seeking to attract entire societies. The reason why niche marketing has been so successful in the past is that it allows companies to operate in defined market segments (Litman & Frigo, 2008). It would be difficult to discover products that would cater to the varied tastes of a large group of people. However, catering for a small group allows a company to be able to learn as much as possible and effect improvements in its products without having to deal with excessive competition. In niche marketing, a company can take advantage of its status as a ‘big fish in a tiny pond’.
6. Which grand strategy is most appropriate for international trade (e.g., the U.S. selling products to consumers in another country)? Explain!
The strategy of concentrated growth is the most appropriate for international expansion. It deals with quality, value and price issues that may concern customers. It is also a relatively low risk strategy that emphasizes on expansion through established distribution channels. The fast food chain, McDonald’s, has successfully used this strategy in expanding to different markets.
7. What is the “purpose” of using Portfolio Analysis as a tool in strategic planning? Give an example of how you would use it.
Portfolio analysis refers to using a systematic method to evaluate the business’s goods and services. I would use it to help in bridging the gap between strategy implementation and formulation. This basically means that it helps a business person to understand how to allocate money to the most important operations and not those that would still be operational in the absence of added capital.
8. Does HPU downtown or MCP have a core competency or a distinctive competency? How would you know?
HPU has a distinctive competency. It is larger than other universities and offers more than 300 courses to students from all over the world. Its sheer size sets it apart from other institutions. Its huge size is also likely to attract people from different ethnic backgrounds. This means that it also provides students with a chance to be exposed to different appealing cultures. These are distinct competencies.
9. If you had to pick only one, which “strategy to avoid” would you choose? Why did you choose that one?
I would probably avoid the strategy of concentric diversification. This strategy has to do with the acquisition of unrelated or related businesses, or the development of new product lines. The business’s portfolio is then developed through acquisition and not internal business creation. Acquiring related businesses is usually a risky endeavor because it is not possible to determine everything about a business one did not participate in creating. There could be hidden debts and other similar problems that might then compromise the entire business in the near future.
Litman, J., & Frigo, M. (2008). Driven: Business strategy, human actions, and the creation of wealth. New York: Strategy & Execution, LLC.
Rumelt, R. (2011). Good strategy bad strategy: The difference and why it matters. London: Crown Business.