Reirene C. Bonto
BA 190 Final Exam
ANSWERS TO QUESTIONS:
1.) There are four strategic lenses which could aid managers in approaching strategic problems faced by the organization. These strategic lenses are strategy as a design, strategy as experience, strategy as ideas, and strategy as discourse.
In viewing strategy as a design, it sees strategy as a logical process which weighs the pros and cons of the decisions to be made. Strategic design takes into account the capabilities and restraints of the company and analyzes it to come up with the best decision. One organization whose strategy lens is design is Apple. Apple, as a highly-innovative company, needs to weight ...view middle of the document...
The cultural web is an understanding of these existing organizational culture and its effects in the organization’s performance.
These concepts could influence process of strategic management of an organization since these are the organization’s foundation. Every decision and activity of the organization is deeply rooted with its identity and philosophy. The organization’s strategy to achieve its goals will reflect the organization’s culture and identity. If the organization has developed strategies that are not in line with its culture and identity, the strategy is not implemented effectively and is not beneficial for the company. One example of this is GAP Inc. (Case 24). GAP’s mission is to provide consumers ease in finding everyday clothes. However, since GAP’s manager has shifted his focus on cost-cutting, GAP has experienced decline in revenues since customers were not able to experience the ease in choosing clothes that GAP is known for.
3.) Porter has developed three generic strategies for strategic management. These generic strategies are cost-leadership strategy, differentiation strategy, and focus or strategic scope.
Cost-leadership strategy refers to gaining market share by appealing to price-conscious consumers and offering the lowest price in the market. In order to do so, the firm has to have the lowest cost among its competitors. The second strategy is differentiation strategy. Differentiation strategy refers to gaining larger market share through producing products that are unique in the market. With the differentiation strategy, it is the quality and uniqueness of the product that is valued instead of the price. This strategy, however, will only work for price-indifferent consumers.
Lastly, there is the scope strategy. The scope strategy refers to creating a line of products that would only cater to a specific target market or to a narrow market niche. The competition would still be either cost-leadership or differentiation strategy. One example of this is the market for luxury cars. Luxury cars satisfy a narrow market of rich car enthusiasts. The brands compete via product innovation or brand recognition. Due to limited competition, luxury car firms were able to profit from the narrow market.
Cost-based leadership can be sustained through large economies of scale that will distribute fixed costs over a large number of units. Larger volumes would drive costs down for cost-based firms. Smaller firms, however, could also achieve cost-leadership through other factors such as low rent, lower wage rates, and more accessible raw materials.
4.) Human resources can enable the success of strategy since they are the biggest assets of an organization. Without productive and efficient human resources, an organization will not be able to function effectively. There are three ways of how human resources should be managed to enable strategic success for an organization.
The management could treat people as...