1) Discuss in scholarly detail the purpose of a business strategy and expand on these concepts, discussing a differentiation business strategy. Based on this strategies, how could an organization be a late mover and yet succeed with a strategy of differentiation? Why? Give examples.
2) Discuss in scholarly detail the newest trends in mission components and also differentiate between company philosophy and public image and why organizations should consider either or both in its overall mission. Give examples
3) Discuss in scholarly detail some fundamental ethical approaches that managers should consider and why. Give examples.
4) Discuss in scholarly detail the defining principles and the implementing principles of the corporate social justice approach. In addition, what are some pros and cons associated with these social justice principles and why? Give examples.
5) Discuss in scholarly detail the necessary steps a firm must take when it attempts to incorporate interests of various stakeholders. Give examples.
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1. The purpose of business strategy is to ensure that the business achieves its goals. It is the method by which goals are achieved. The business strategy helps decide how to use the resources of the firm. The strategies also lay down what a firm will produce and the manner in which it will produce. For example, a company making cars may decide to invest in a large plant to realize economies of scale and reduce costs so that either it can lower its prices to gain a large market share or it can earn higher profits and grow financially.
A differentiation strategy is one where the firm differentiates its products in some way to compete successfully. The differentiation is achieved by using expert technical expertise, talented personnel, or new manufacturing technology (Danny Miller, 1992). The strategy is effective when the elasticity of demand in the target segment is low. The customers are willing to pay a higher price for a differentiated product.
A firm can be a late mover and still use a differentiation strategy because it does not have to inform the target segment of the features of its product. The target market is already aware of the product. The later mover can add a few features and use the differentiation strategy to charge higher prices. In comparison with the first mover, the late mover does not have to incur high research and development costs. It learns from the experience of the first mover. The late mover simply focuses on producing a superior product and can successfully use the differentiation strategy. For example, the iPhone was not the first touch phone on the market but Apple produced a superior product and used a differentiation strategy.
2. The newest trend in mission components is to be sensitive to customer wants. The customer wants and needs are given the top priority. The mission statements consider customer safety. Another trend is that the focus on quality. For example, quality of the product is considered to be top priority in the latest missions. High quality products are a norm. Japanese concepts of quality improvement find echoes in mission components. Top quality and continuous improvement in quality are important mission components (Farhad Analoui, Azhdar Karami, 2002). Another important trend is to make the vision statement an important component of the mission. The vision shows the aspirations of the top management. It shows what the company is striving to become. The vision is combined as a part of the mission statement. A company philosophy is the ...
The answer to this problem explains important issues in strategic management . References related to the answer are also included.