Strategic Management

1. Why has strategic management become so important to today’s corporations? What is

mind strategy formulation and what is the strategic implementation?
- Some of the main reasons for the important role of management strategies for
companies:
1. Giving long-term direction to go,
2. Helping companies or organizations adapt to changes that occur,
3. Make a company or organization more active,
4. Identify the comparative advantage of a company or organization in an
increasingly risky environment,
5. Overlapping activities will be reduced,
6. Reluctance to change from old employees can be reduced,
7. Employee involvement in strategy changes will motivate them more at the
implementation stage,
8. Strategy making activities will enhance the ability of the company or
organization to prevent future problems from arising.

Formulation of strategy involves analyzing the environment in which the organization

operates, then making a series of strategic decisions about how the organization will
compete. Formulation ends with a series of goals or objectives and measures for the
organization to pursue.

The second major process of strategic management is implementation, which involves

decisions regarding how the organization's resources (i.e., people, process and IT
systems) will be aligned and mobilized towards the objectives. Implementation results
in how the organization's resources are structured (such as by product or service or
geography), leadership arrangements, communication, incentives, and monitoring
mechanisms to track progress towards objectives, among others.Running the day-to-
day operations of the business is often referred to as "operations management" or
specific terms for key departments or functions, such as "logistics management" or
"marketing management," which take over once strategic management decisions are
implemented.
 Strategic Management

2. What is the Impact of Strategic Management on Performance?

- the impact of strategy management on company performance will increase because:
1) Will be given destined.
2) Helping organizations overcome the changes that occur.
3) Make the organization more effective
4) Identify the comparative advantage of an organization in an increasingly risky
environment.
5) Strategy-making activities will enhance the company's ability to overcome
problems in the future.
6) Related to organizational members in making strategies will motivate them more
when implementing them.
7) Overlapping activities will be reduced.

3. What is different between Friedman’s Traditional and Carroll View of business social
responsibility?
- According to Friedman, there is only one corporate social responsibility, namely to
use resources with activities that can obtain and increase company profits, as long as
they are in accordance with existing rules, are open, and compete freely without
cheating. The government can determine the main rules about how to operate that do
not damage the environment and regulate the community, about taxation, about the
use of labor, and others. The company only needs to follow it, while according to
Carrol social responsibility, from a strategic point of view that a business company
needs to consider its social responsibility for the community in which the business is
a part. When businesses begin to ignore their responsibilities, people tend to respond
through the government to limit business autonomy.

4. Explain about a value chain and corporate culture? And what are the strategic financial
and marketing Issues?
- A value chain is a linked set of value-creating activities beginning with basic raw
materials coming from suppliers, to a series of value-added activities involved in
producing and marketing a product or service, and ending with distributors getting
 Strategic Management

the final goods into the hands of the ultimate consumer. Corporate culture is the
collection of beliefs, expectations, and values learned and shared by a corporation’s
members and transmitted from one generation of employees to another. The term
corporate culture generally reflects the values of the founder(s) and the mission of the
firm . It gives a company a sense of identity . The culture includes the dominant
orientation of the company , such as R&D at HP , high productivity at Nucor,
customer service at Nordstrom , innovation at Google, or product quality at BMW.
Like structure, if an organization’s culture is compatible with a new strategy , it is an
internal strength. But if the corporate culture is not compatible with the proposed
strategy, it is a serious weakness.
Strategic Financial Issues,The financial manager must ascertain the best sources,
uses, and control of funds. Cash must be raised from internal or external sources and
allocated for different uses. The flow of funds in the operations of the organization
must be monitored. To the extent that a corporation is involved in international
activities, currency fluctuations must be dealt with to ensure that profits aren’t wiped
out by the rise or fall of the dollar versus the yen, euro, and other currencies. Benefits,
in the form of returns, repayments, or products and services, must be given to the
sources of outside financing. All these tasks must be handled in a way that
complements and supports overall corporate strategy.
Strategic Marketing Issues,The marketing manager is the company’s primary link to
the customer and the competition. The manager must therefore be especially
concerned with the firm’s market position and marketing mix.

5. What is mind SWOT analysis and how the implication of IFAS and EFAS to SFAS
concept in business?
- SWOT is an acronym used to describe the particular strengths, weaknesses,
opportunities, and threats that are strategic factors for a company.
The corporate strategy factors found in EFAS and IFAS are summarized and used in
SFAS