Strategic Management Tutorial 1
1. STRATEGY – A set of actions that managers take to increase their company’s performance relative to rivals - An action that a company takes to attain one or more of its goals A business model looks at how to create value for a consumer, and does not look into the future planning and forecasting of a business to achieve profits and a competitive advantage, unlike a strategy. A strategy defines the path that the business will take in the future in order to achieve its goals of profit maximization and competitive advantage.
2. Strengths of Strategic Formal Planning:
When ‘scenario planning’ is done correctly, it can ensure profitability of a company whichever scenario comes to pass ‘Scenario planning’ creates FLEXIBILITY - can push managers to think outside the box and to anticipate what they might have to do in different situations and to learn that the world is complex and unpredictable. Weaknesses of Strategic Formal Planning:
When managers plan in the context of the current competitive environment, rather than in the future The future is inherently unpredictable, especially when unforeseen contingencies occur When companies construct and treat their strategic planning process in a ‘top management responsibility’, which can result in hostility from employees. Employees may also know better, and top-level managers may not listen to their ideas e.g emerging Japanese threat in the globalisation of the appliance market If managers do not use the managers do not use the information at their disposal effectively – may make poor decisions Cognitive biases – systematic errors in human decision making that arise from the way people process information
3. President Obama
Vision, Eloquence & Consistency – He has a clear vision of where he wants America to be, of creating an economy built to last, by investing in education and training, ending taxpayer subsidiaries to oil & invest in natural energy sources, invest in infrastructure, create jobs & reduce the deficit. In April 2009, a Gallup poll showed trust in Obama's economic policy with 71% saying they had "a fair amount" or "a great deal" of confidence in Obama's handling of the economy, higher than for Ben Bernanke, Tim Geithner, or leaders of Congress, showing people still believed in him and his visions. In 2010 the Gallup poll found Obama's approval rating was at 85% among Democrats, compared with 46% among independents and 11% among Republicans, suggesting his consistency. HOWEVER it is suggested although he has a strong vision in regards to domestic policy, his visions and decisions on foreign policy are thought to be weak, due to his indecisiveness.
Commitment – Obama demonstrated he was committed to his vision, after running twice for the Presidency. October 2009, Obama was awarded the Nobel Peace Prize for "his extraordinary efforts to strengthen international diplomacy and cooperation between peoples." Obama had promised to end the war with Iraq, and in 2011 his army captured and killed Osama Bin Laden, showing his commitment to the cause. On February 17, 2009, Obama signed into law a $787 billion plan that included spending for health care, infrastructure, education, various tax breaks and incentives, and direct assistance to individuals. The tax provisions of the law reduced taxes for 98 percent of taxpayers, bringing tax rates to their lowest levels in 60 years. HOWEVER, could be accused of being timid as a result of the Foreign Policy Administration. He is struggling to implement health care and also thought to be lazy, suggesting his lack of commitment as he is always playing golf.
Being Well Informed - The Obama administration has said that all executive orders, non-emergency legislation, and proclamations will be posted to the official White House website, whitehouse.gov, allowing the public to review and comment for five days before the President signs the legislation
Willingness to Delegate &...
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