Need help on Business Policy homework 2 response
Why has strategic management become so important to today’s corporations?
Strategic management has become so important to today’s corporations because it helps the organization to identify various factors that affect the organization both positively and negatively so that it can be evaluated and improved on a continuous basis. Along with this it helps in identifying the opportunities in the market so that the organization can grab these before the competitors. It can also the managers to make strategic decisions based on the internal and external factors that influence the organization. Strategic management also helps in creating a performance culture by establishing targets that can be measured, controlled and monitored. It also Dynamic process that adapt as per the changing business environment and thus ensures that organization is adaptable to change.
1. What information is needed for the proper formulation of strategy? Why?
To analyze, and make decisions that provide a company with the criteria for attaining a competitive advantage a company needs a few things such as a strategy, a mission, objectives, and a policy. Information needed in the proper formulation of strategy starts with the organization’s objectives and mission. The organization’s mission is its purpose and their objectives are their expected results. The mission and objectives combined with the analysis of internal and external factors aid in the creation of the strategy by defining the competitive advantages. Policies are also needed to measure performance. Companies use policies to make sure the employees are operating according to the corporation’s mission, objectives and strategies. To be proper the corporation has to know directional strategies, their market entry, know their competition, be adaptive, and have implementation strategies.
YesterdayJan 14 at 4:37pm
1. Why has strategic management become so important to today’s corporations?
Strategic management has become important to today’s corporations because of rapidly changing business dynamics. Strategic management helps a manager identify strategies that should be pursued and implemented in order to achieve organizational goals and in order to create competitive advantage.
It is important to guide the organization to ascertain or predetermines direction. It is helpful in defining the organizational goals that are according to the organizational mission. It makes the organization proactive rather than reactive and thus helping the firm to meet with the uncertain conditions and competition It lays the foundation for a variety of important decisions. It helps the organization to be ready for future challenges. In order to deal with the competition, it helps the organization to develop important capabilities. In order to firm the strategy, the following information will be required. Mission, vision, and objective of the organization. Strength and weaknesses of the organization. The type of internal capabilities possessed by the firm. The prevailing competition in the industry and analysis of the environmental factors. Different resources and capabilities of the organization. The future goals and objectives of the organization.
2. What information is needed for the proper formulation of strategy? Why?
In order to properly formulate strategy, it is essential to have information on the important variables in both the external and internal environments of the corporation. This includes general forces in the societal environment as well as the more easy-to-identify groups such as customers and competitors in the task environment. A corporation needs to have this information in order to identify a need it can fulfill via its corporate mission. It is also important to have information on the corporation’s structure, culture, and resources. A corporation needs to have this information in order to assess its capabilities to satisfy a customer’s need by making and/or distributing a product or service. Information on both the internal and external environments can also help a corporation to predict likely opportunities and threats. Long-term strategies can be designed with these in mind.