A Strategic Management In A Global Context Business Essay

A Strategic Management In A Global Context Business Essay Formal Strategic Planning is the process that involves an organisation in the defining of its strategy or direction and making the decisions on how its resources should be allocated in order to achieve this strategy. Formal strategic planning is affected by the macro-environment and this is the highest level layer in the framework, this consists of a wide range of environmental factors that impact to some extent on almost all organisations. The PESTEL framework can be used to identify how future trends in the Political, Economic, Social, Technological, Environment and Legal environments might affect an organisation. Pestel analysis provides the broad date from which key drivers to change can be identified. By using these key drivers organisations can envision scenarios for the future. Scenarios can be used to help organisations decide if change needs to happen depending on the different ways in which the business environment may change. It is important for managers to analyse these factors in the present and how they are likely to change in the future. By analysing these, managers will be able to draw out implications for the organisation. Pestel factors are sometimes linked together i.e. technological factors can impact on economic factors. It is necessary to identify the key drivers of change these are environmental factors that are likely to have a high impact on the success or failure of the strategy. Key drivers vary by industry i.e. Primark may be concerned by social changes that can change customer tastes and behaviours. The critical issues are the implications that are drawn from the understanding in guiding strategic decisions and choices. The next stage is drawn from the environmental analysis specifically strategic opportunities and threats for the organisation. Having the ability to identify these opportunities and threats is extremely valuable when thinking about strategic choices for the future. Opportunities and threats form one half of the SWOT analysis that shapes a companys formulation. The use of SWOT analysis can help summarise the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development. Once the key issues have been identified an organisation can then assess if it is capable to deal with the changes taking place within the business environment. If the strategic capability is to be understood the business must remember that it is not absolute but relative to its competitors. SWOT analysis is only useful if it is comparative, that is it examines strengths, weaknesses, opportunities and threats. SWOT analysis should help focus discussion on the future choices and to what extent an organisation is capable of supporting these strategies. SWOT analysis should not be used a substitute for more in-depth analysis. In responding strategically to the environment the goal is to reduce identified threats and take advantages of the best opportunities. Peter Drucker, discussing the importance of business policy and strategic planning in his book the practice of management says we cannot be content with plans for a future that we can foresee. We must prepare for all possible and a good many impossible contingencies. We must have a workable solution for anything that may come up. http://www.alagse.com/strategy/s1.php By taking advantage of the strategic gap (which is an opportunity in the competitive environment that has not been fully exploited by competitors) organisations can manage threats and opportunities. http://turbo.kean.edu/~jmcgill/assess.pdf http://polisci2.ucsd.edu/snunnari/HBR_on_Strategy_23_41.pdf#page=25 Core competencies are a set of linked business processes that deliver superior value to the customer, when these are combined they create strategic value and can lead to competitive advantage. By using Porters five forces analysis which is a framework for organisations to analyse industry and business strategy, they can draw upon the five forces that determine the competitive intensity and therefore attractiveness of a market. Three of Porters five forces refer to competition from external sources and the other two are internal threats. This analysis is just one part of the complete Porter strategic model the others include the value chain (VC) and the generic strategies. http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1 According to Porter (2008) the job of a strategist is too understand and cope with competition; however managers define competition too narrowly as if it has occurred only among today direct competitors. Competition goes beyond profits to include competitive forces such as customers, suppliers, potential entrants and substitute products; the extended rivalry that results from all five forces defines an industrys structure and shapes the nature of competition within an industry. For example Apple are good at technology and innovation therefore they can take the opportunities that give them competitive advantage and makes them leaders compared to Samsung or Nokia. Porters says there are 5 forces that shape the competition: Threat of new entrants Bargaining power of customers powerful customers usually bargain for better services which involve cost and investment Bargaining power of suppliers may determine the cost of raw materials and other inputs effecting profitability Rivalry among competitors competition influences the pricing and other costs like advertising etc. Threats from substitutes where-ever substantial investments in RD is taking place, the threat of substitutes is large. It also affects profitability. Competitive advantage is the heart of strategy and for the strategy to succeed the organisation should have relevant competitive advantage. We can see an example of this with Toshiba who operate in electrical goods, through a flexible manufacturing system it manufactures different products / varieties of some products on the same assembly lines. At Ohme it assembles nine varieties of computers on the same line and on the adjacent line it assembles 20 varieties of lap top computers. It is able to switch from one product / variety to another instantly at low cost and makes profits on low volume runs too. This flexibility of Toshiba to respond quickly and easily to the fast changing market demand is definitely one of its competitive advantages. Whereas its competitors make profits only through long volume runs of a particular model. However, there are a lot of companies who are choosing not to invest due to the recession; however Lidl and Aldi are taking advantage of supplying cheaper products giving them competitive advantage over say Waitrose. http://www.mckinseyquarterly.com/Bringing_discipline_to_strategy_1054 Benefits of Strategic Planning Effective strategic planning can positively improve the performance of an organisation and give them the ability to serve more clients, access additional resources or enhance the quality of service/product. It can also offer solutions to major organisational issues or challenges and gives stakeholders of the organisation an opportunity to develop harmonic solutions to long-term issues/challenges that have been affecting the organisation. Furthermore it allows for forward thinking, allowing an organisation the opportunity to pause and revisit the mission and create long-term vision. It allows clear future direction allowing stakeholders to look to the future, plan and respond to changes. Evaluation One of the major drawbacks of formal strategic planning is the uncertain dynamic environment, things change constantly and everything becomes shorter. The recession at the present time is making everything unpredictable and this is not good for strategic planning. According to Mintzberg 1994 strategic planning should be used to devise and implement the competitiveness of each business unit. Scientific management was pioneered by Fredrick Taylor and involved separating thinking from doing and thus creating a new function staffed by specialists. Planning systems were expected to produce the best strategies as well as step by step instructions on how to achieve this, but this never worked well. According to Mintzberg strategic planning is not strategic thinking, the most successful strategies are visions, not plans. When an organisation can differentiate between planning and strategic thinking they can then get back to what the strategy making process should be. Once a manger has the ability to learn from all sources around him, including personal experiences and market research and can integrate this into a vision of the direction that the business can then pursue. Mintzberg suggests that strategic planning is a misconception and rests upon three unsound arguments: that prediction is possible, thats strategists can be detached from the subjects of their strategies, and that the strategy-making process can be formalised. Strategic thinkers can apply lessons learned from Mintzberg (1994) three inherent fallacies of traditional planning: The Fallacy of Prediction is the assumption that we can actually control events through a formalised process that involves people engaged in creative or even routine work and can manage to stay on the predicted course. You need more than hard facts you need the personal touch. People are not objective, they are complex. The Fallacy of Detachment is the assumption we can separate the planning from the doing, if the system does the thinking, then strategies must be detached from the tactics. Formulation from implementation, thinkers from doers. One objective is to make sure senior managers receive relevant information without having to immense themselves in the details. One fact is innovation has never been institutionalised and systems have never been able to reproduce the synthesis created by the entrepreneur or the ordinary strategist and probably never will. The Fallacy of Formulisation suggests that systems could certainly process more information, at least hard information. However they could never internalise it, comprehend it, and put it all together. Such control is more a dream that a reality. Reality tells us that anomalies, the fickle behaviour of humans and the limitations of analysis play a huge factor in the organisational outcomes and to disregard them is risky and could lead to incomplete planning. What are the limitations of strategic planning when things are changing rapidly? http://www.globalfuture.com/planning1.htm The limitations of formal strategic planning can be seen if the future is uncertain and the expectations divert from the plan. There could also be internal resistance to formal strategic planning due to factors including: Information flows, decision making and power relationships could be unsettled Current operating problems may drive out long-term planning efforts There are risks and fears of failure New demands will be placed on managers and staff Conflicts with the organisation are exposed Planning is expensive in time and money Planning is difficult and hard work The completed plan limits choices and activities for the organisation in the future Nicholas ORegan, Abby Ghobadian, (2002) Formal strategic planning: The key to effective business process management?, Business Process Management Journal, Vol. 8 Iss: 5, pp.416 429 http://www.innovation.cc/scholarly-style/fairholm3.pdf

A Proposal to Abolish Grading

In every education system, grading and testing are done simultaneously so as teachers and lectures can know the capabilities of their students and whether they have assimilated what have been taught and used effectively.Most of universities and higher learning institutions as prerequisite of students admission is being tested before granted admission, the system help the universities assessing applicants’ capabilities in correspondence to their applications.The grading system which is conducted after certain amount of academic units covered of students respective courses or subjects, apart from assessing students’ capabilities, also assist them in studying especially for lazy students. When students know that there will be grading for the tests they are going to do, definitely they are going to study hard for it.I tend to differ with Paul Goodman in his proposal to abolish grading as the notion has been much effective for quite some time and has helped most of students scoring good grades even though they were lazy. But to Paul Goodman, who proposed the abolishment of grading take this as bullying students as he argues that â€Å"Many students are lazy, so teachers try to goad or threaten them by grading. In the long run this must do more harm than good.†(Paul Goodman, Mis-Education, 1971).Nevertheless, grading system assist in discovering people weaknesses being students or applicants to the higher learning. Through grading students can be able to spot their weaknesses in accordance with the type of grades they get either low or high. If low then students have an opportunity of knowing how to correct it so as to improve their grades, hence becoming knowledgeable.Despite the good intention the system has, there are setbacks that have been spotted by Paul Goodman as he argues that â€Å"But if the aim is to discover weakness, what is the point of down-grading and punishing it, and thereby inviting the student to conceal his weakness, by fak ing and bullying, if not cheating?†(Paul Goodman, Mis-Education, 1971).In conclusion, even though students might cheat during their assignments, yet they will be working hard in the tests and examinations which will help them study. Grading and testing system still assist students to learn more through the performance of their grades.Reference:Goodman Paul, ‘A proposal to abolish grading’, Mis-Education, (1971), Chapter 10, John Wiley New York   

Rhetorical Analysis Of The Gettysburg Address By Abraham...

Katrina Ta Giang 22 December 2017 AP Language and Composition(7) Mrs. Faumuina Speech Analysis Essay: The Gettysburg Address by Abraham Lincoln â€Å"The Battle of Gettysburg, fought from July 1 to July 3, 1863, is considered the most important engagement of the American Civil War†(History). It was a battle in Gettysburg Pennsylvania, consisting of the Union Army and the Confederate Army. The main purpose behind this battle was due to â€Å"Robert E. Lees plan to invade the North and force an immediate end to the war failed†(ThoughtCo.). At the ending of the battle, victory was on the Union Army’s side, as they won. This battle had then led, at that time, President Abraham Lincoln to give a speech called the Gettysburg Address. The Gettysburg†¦show more content†¦His main purpose was to encourage perseverance, and it could have not been accomplished if he did not appear as trustworthy, honorable, respectful, and appreciative of his men’s bravery, as he did. His choice of word helped him touch his audiences because it created a type of emotional connection between them. The second rhetorical device that was used in this speech was allusion. The statement that Lincoln used was, â€Å"all men are created equal.† It was is an allusion to the Declaration of Independence, which was a piece that was very important to his audience. This statement means that each and every person that was born has the right to pursue anything and everything that they desire to in this world. With everyone being created equally, nobody should have the fear of being usurped by others. He used this quote because he wanted his audiences to feel like they had motivation and dedication to stand up for themselves during that hard time. Another rhetorical device that was used was anaphora. Abraham Lincoln used the word â€Å"we† a lot throughout his speech. He specifically used â€Å"we† a lot because it was meant to emphasize peace and agreement. As I was reading the speech, I had noticed that Lincoln didn’t really use â€Å"I† or â€Å"you† in his speech, which made me infer that he wanted to feel close with the crowd. By choosing that choice of word, it lead the people of the crowd to believe that they should feel the same wayShow MoreRelatedRhetorical Analysis Of Abraham Lincoln s Gettysburg Address1564 Words   |  7 PagesA rhetorical analysis explores nonfictional works and determine if the techniques used make the piece effective (Texas AM University). The Gettysburg Address is one of the most notorious speeches. A rhetorical analysis of this legendary speech would reveal the key components that made it so prominent. The evaluation of the genre, and rhetorical devices, et hos, pathos, and logos, in the speech show how the piece was effective. Abraham Lincoln is one of the most renowned presidents in history. DuringRead MoreRhetorical Analysis Of Abraham Lincoln s Gettysburg Address 1669 Words   |  7 PagesZoraa Lutas QUESTION 1 Abraham Lincoln speech given at Gettysburg, Pennsylvania on November 19, 1863 was described by Senator Charles Sumner, in 1865, stating â€Å"the battle itself was less important than the speech.† Explain. U.S. President Abraham Lincoln was not given the spotlight at the Soldiers’ National Cemetery on November 19, 1863, and was instead invited to give a few remarks. In fact Edward Everett’s speech would have been the official ‘Gettysburg Address’ was it not for its two hoursRead MoreRhetorical Analysis Of Abraham Lincoln s Gettysburg Address981 Words   |  4 Pagesstatement in which Abraham Lincoln started â€Å"The Gettysburg Address†.152 years ago, Lincoln delivered this well-known speech in front of an audience who was searching for help during a time of war. Some may believe it was not an inspiration why others will say it was. To some Americans, it might have even brought faith. Just like any other work, this essay was composed of a rhetorical situation and rhetorical devices; which can be broken down into specific factors. The rhetorical situation and devicesRead MoreRhetorical Analysis Of Abraham Lincoln s Speech939 Words   |  4 Pagesâ⠂¬Å"Four score and seven years ago†¦Ã¢â‚¬  the first six words of the famous speech given by Abraham Lincoln on November 19, 1863. Considering the brevity and simplicity of the speech, this powerful masterpiece has impacted citizens of the United States for generations. By further analysis, I have found a few tricks that give this piece its’ powerful punch. I propose the wise use of timing, emotion and rhetorical devices used in his speech all contributed to creating this legendary dialogue. First, theRead MoreEssay about The Rhetoric of Lincoln’s Gettysburg Address1369 Words   |  6 Pagesincorporates each of them is the address President Abraham Lincoln gave at Gettysburg on November 19, 1863, commonly known as the Gettysburg Address. In Lincoln’s Gettysburg Address, Charmichael suggests, â€Å"Greatness in a speech, like greatness in men, or in events, is usually recognized only when seen through the haze of distance which the passing years bring† (67-68). It is often only in retrospect that great speeches are recognized as just that. Though the Gettysburg Address is already commonly—andRead MoreI Have a Dream Analysis985 Words   |  4 PagesRhetorical Analysis – I Have a Dream. A speech, that will be remembered by many and be passed down from generation to generation, had shaped the future of America by the time Martin Luther King had stepped off the stage on August 28th, as he called for an end to racism in the United States during the March on Washington in 1963. This was one of, if not, the most powerful speech America has seen to this day. A beautiful way to begin! Good job! Martin Luther King stood on that stage with confidenceRead MoreThe Effects Of Imperialism In George Orwells Shooting An Elephant1633 Words   |  7 Pagesclaim and experiences are very relatable today because as long as there are fathers and mothers and families, there are going to be those that re-live the past and create memories that last their families a lifetime, or perhaps even longer.    Process Analysis: Joan Didion, On Keeping a Notebook   Ã‚  Ã‚   In the selection On Keeping a Notebook, Joan Didion uses her experiences in day to day life as a writer in order to demonstrate the importance/methods of keeping a daily notebook. 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His speech delivers a powerful message during the Civil Rights Movements by using rhetorical devices of metaphor and allusion. King’s speech was given on August 28th, 1963. His purpose was to endorse freedom for slaves. He begins his speech with the emancipation of the slaves, issued by Abraham Lincoln. Lincoln

Diversifiable or an Undiversifiable Risk - Free Essay Example

Sample details Pages: 4 Words: 1219 Downloads: 10 Date added: 2017/09/14 Category Advertising Essay Did you like this example? School Name: TUI University Name: Kevin D. Cruise The Course Dept#: Principles of Finance – FIN 301 Module 3 Case Assignment Professor’s Name: Dr. John Halstead Assignment: 1. Don’t waste time! Our writers will create an original "Diversifiable or an Undiversifiable Risk" essay for you Create order For each of the scenarios below, explain whether or not it represents  a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning a. A large fire severely damages three major U. S. cities. b. A substantial unexpected rise in the price of oil. c. A major lawsuit is filed against one large publicly traded corporation. . Use the CAPM to answer the following questions: a. Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset i is 10%, the Risk-Free Rate is 3%, and the Beta (b) for Asset i is 1. 5. b. Find the Risk-Free Rate given that the Expected Rate of Return on Asset j is 14%, the Expected Return on the Market Portfolio is 12%, and the Beta (b) for Asset j is 1. 5. c. What do you think the Beta (? ) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain. . In one page explain what you think is the main message of the C apital Asset Pricing Model to corporations and what is the main message of the CAPM to investors? Assignment Expectations: The Case report should be a two-page report. Please show your work for quantitative questions. 1. For each of the scenarios below, explain whether or not it represents  a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning a. A large fire severely damages three major U. S. cities. In this scenario it can be defined as an undiversifiable risk. The companies in these three major U. S. cities are basically victims of circumstance. Let’s take a look at Katrina when it hit Louisiana and Mississippi. While it didn’t affect the whole stock market, it did have a huge impact the economic situation for Louisiana. A large fire would have the same effect as Katrina did. The loss of schools, jobs, homes and businesses was devastating to say the least. Louisiana while they have recovered some over the last 5 years, there is still more recovery that needs to be done. When you have a situation like this you have to remember that it just isn’t affecting a small number of people but thousands possibly millions. Hundreds of people lost their lively hood and had to relocate to new areas and start all over again. For the economic situation of these three major cities, infrastructures have been ruined and have to be rebuilt which takes money and time. The federal government usually has to come to the aid of those cities or states that are effected by this disaster. b. A substantial unexpected rise in the price of oil. Well, we all know firsthand what will happen when we have an unexpected rise in the price of oil. This caused a major economic crisis that we still haven’t recovered from. We lost major automotive companies that have been around for decades because we did not forsee this or weren’t prepared for such an incident. The sudden rise in the price of oil has caused the whole world to relook the automotive industry and we are scrambling to develop alternative motives of fuel sources for our cars. Actually, this is an issue that was brought up 30 years ago but never fully addressed because of greed. We knew that we would run into a situation that could cause us to run low on crude oil which would drive the price up. While some companies were developing alternative sources of energy or fuel to propel our car, it was never really taken serious because we just chose to overlook the issue and continued to build bigger cars. Now, we are faced with a situation which has global repercussions. This is an undiversifiable risk for certain. c. A major lawsuit is filed against one large publicly traded corporation. For this scenario, this would probably be a diversified risk because it is only affecting one sector. It would be bad for that company that has the lawsuit filed against them while their rival may strive or prosper from their downfall. One such company was Enron. Their stockholders took a beating and lost millions of dollars in the process. It had a huge impact on the stock market because of the type of business it was. However, if your portfolio was diversified then you only lost out on that one stock. 2. Use the CAPM to answer the following questions: a. Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset i is 10%, the Risk-Free Rate is 3%, and the Beta (b) for Asset i is 1. . 3 + 1. 5(10 -3) = 3+ 1. 5(7) = 3+ 10. 5 = 13. 5% b. Find the Risk-Free Rate given that the Expected Rate of Return on Asset j is 14%, the Expected Return on the Market Portfolio is 12%, and the Beta (b) for Asset j is 1. 5. (1. 5 * 14)/ 12= 8% c. What do you think the Beta (? ) of your portfolio would be if you owned half of all the stocks traded on the maj or exchanges? Explain. If I owned half of all the stocks traded, my beta would probably be less than because with a Beta value higher than 1 would cause my stocks to be riskier and would have a greater chance to outperform the market. The more money that I pay for a stock the more the more money I have a chance to earn but it isn’t guaranteed. 3. In one page explain what you think is the main message of the Capital Asset Pricing Model to corporations and what is the main message of the CAPM to investors? For corporations basically the CAPM is saying to them that they have to show investors what makes their company reputable and worth a high stock value. The Beta for corporations basically classifies it as a volatile or non volatile stock. The number of investors or other companies that invest in your corporation says that they believe in your company and what they stand for. The sales is what brings all of that together. The general idea behind CAPM is that investors need to be compensated in two ways: time value of money  and risk. The time value of money is represented by the risk-free (rf) rate  in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on  additional risk. This is calculated by taking a risk measure (beta)  that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf). Investopedia. com. When investing in a company stock you want to look at their earning over the last year or two. Also, look at the number of employees, their sales, outstanding stocks and potential for earning. The more stocks that I purchase means that I think that I have a good chance of earning a lot of money if their stocks goes up in a few months or years depending on how long I am looking to invest in this corporation.