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MG 495 Business Policy Week 1 Discussion Questions

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MG 495 Business Policy Week 1 Discussion Questions

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  • October 2014
  • 600 Words
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  • Course: Business Policy
  • School: Park University, MO
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QUESTION 1 Please discuss, in detail, what is meant by a hierarchy of strategy According to our textbook, A hierarchy of strategy is a grouping of strategy types by level in the organization. Hierarchy of strategy is a nesting of one strategy within another so that they compliment and support one another (Wheelen Hunger, 2012, p. 20). A companys functional strategies are nested within its business strategies, which is in turn nested in the overall corporate strategy. Since Im in the Air Force, I like to compare this to the different functional levels of command tactical, operational, and strategic. Each is nested within each other and compliments/supports one another just like a hierarchy of strategy. Most members operate at the tactical level (functional) then move up to the operational level (business) as they get promoted through the ranks. Leaders operate at the strategic level (corporate) ensuring that the overall mission/direction of the organization is being accomplished according to plan. Although a hierarchy of strategy is optimal for most companies, many companies feel that a functional organizational structure is not an efficient way to organize activities, so they have reengineered according to processes or strategic business units (SBUs). A SBU is a semi-autonomous unit that is usually responsible for its own budgeting, new product decisions, hiring decisions, and price setting. An SBU is treated as an internal profit centre by corporate headquarters (Strategy, 2014). QUESTION 2 Please discuss, in detail, what you think constitutes a good corporate strategy and why Our textbook states that, Corporate Strategy describes a companys overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines. Corporate strategies typically fit within the three main categories of stability, growth, and retrenchment (Wheelen Hunger, 2012, p. 19). refers to the plan of action, a sense of...
QUESTION 1 Please discuss, in detail, what is meant by a hierarchy of strategy According to our
textbook, A hierarchy of strategy is a grouping of strategy types by level in the organization.
Hierarchy of strategy is a nesting of one strategy within another so that they compliment and support
one another (Wheelen Hunger, 2012, p. 20). A companys functional strategies are nested within its
business strategies, which is in turn nested in the overall corporate strategy. Since Im in the Air
Force, I like to compare this to the different functional levels of command tactical, operational, and
strategic. Each is nested within each other and compliments/supports one another just like a
hierarchy of strategy. Most members operate at the tactical level (functional) then move up to the
operational level (business) as they get promoted through the ranks. Leaders operate at the
strategic level (corporate) ensuring that the overall mission/direction of the organization is being
accomplished according to plan. Although a hierarchy of strategy is optimal for most companies,
many companies feel that a functional organizational structure is not an efficient way to organize
activities, so they have reengineered according to processes or strategic business units (SBUs). A
SBU is a semi-autonomous unit that is usually responsible for its own budgeting, new product
decisions, hiring decisions, and price setting. An SBU is treated as an internal profit centre by
corporate headquarters (Strategy, 2014). QUESTION 2 Please discuss, in detail, what you think
constitutes a good corporate strategy and why Our textbook states that, Corporate Strategy
describes a companys overall direction in terms of its general attitude toward growth and the
management of its various businesses and product lines. Corporate strategies typically fit within the
three main categories of stability, growth, and retrenchment (Wheelen Hunger, 2012, p. 19). refers
to the plan of action, a sense of direction, and a corporate strategy refers to the overall scope and
sense of direction to the organization on the whole. It represents the way in which the various
business operations work together in the quest to achieve the organizational objectives. A
corporate strategy should be formulated after taking into consideration the overall market and
environmental analysis. Proper recognition of the mission, vision and objectives of the organization
should be kept in mind before the formulation of the corporate strategy. A good corporate strategy
is the one that is able the answer the question such as where the organization is in todays time
frame, where it sees itself in the future and how it will be able to get there. The strategies should be
properly organized with the organizational culture, the set objectives and the scarce resources. A
good corporate strategy will help in the attainment of the overall objective of the organization and
competitive advantage against its rivals. The corporate strategy totally is dependent upon the
strength, and weaknesses of the organization. Therefore, it becomes essential to make a good
corporate strategy. References Wheelen, T.L., Hunger, J.D. (2012). Strategic Management and
Business Policy Toward Global Sustainability 13TH Ed. Upper Saddle River, NJ Pearson Prentice
Hall. Strategy Hierarchy. (2014). In DIMCA.eu. Retrieved October 21, 2014,
http//www.dimca.eu/dimca-consulting/strategic-management/strategy-hierarchy http//www.thecqi.org
/knowledge-hub/Knowledge-portal/Corporate-strategy/Elements-of-corporate-strategy/ Y, i-qN3
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