1) Describe the term strategy and explain why it is important in business.
2) What are the five stages of the process of crafting and executing a strategy? Briefly describe each one.
3) What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving.
4) Identify the strategic options for entering and competing in international markets. Briefly describe each strategic option.
5) Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, what are the main strategic alternatives that it can employ to improve the performance of its overall business lineup?
Answer 1: Strategy and Its Importance
Strategy refers to the long term direction and scope of an organization, which help the organization to allocate resources in order to achieve organizational aims and objectives in challenging environment. An effective strategy helps the organization to meet the needs of markets and also fulfill expectations of stakeholders in effective manner. Strategy plays an important role in any organization in order to achieve competitive advantages from the market. Every organization needs to create strategy in every stage of organization to fulfill the demand of customers in the market and successful operation in the competitive environment (Wittmann & Reuter, 2008).
Strategy in organization is very important because it helps the organization to create plan to achieve a specific vision and also helpful to differentiate organization from its competitors in a positive way. An effective strategy is also helpful to attract the customers in the market towards the products and services. With the help of effective promotional and advertisement strategy, company is able to influence the perception of customers and motive them to purchase the products and services. An effective strategy is also important for the organization to build and maintain market image in the market. In today's competitive era, with the help of strategy, organization introduces products and services and creates demand among the targeted customers in the market (Goldman & Nieuwenhuizen, 2008). A strategy gives the direction to the organization to create sustainable market environment in domestic as well as in international market. An effective strategy in organization demonstrates the superior customer values that help the organization to achieve competitive advantages in the market.
Answer 2: Process of Strategy
In order to craft and execute strategy, the five stage process is as follow:
Developing a Strategic Vision:
In this first phase of strategy crafting, manager develops the strategic vision of the company. The vision is a long term direction for the company to achieve organizational goals and aims. Strategic vision helps the manager to develop strategy according to the long term goals of the company (Thompson, 2006).
In the next phase of strategy crafting, manager sets the objectives of the strategy. It can be helpful for the manager to define that how much and what kind of performance is expected, what the tools are and how much time it will take to complete (Matthews, 2005).
Develop Initial Strategy:
In this phase of strategy crafting, manager ...
The solution discuses importance, stages, generic competitive strategies and options.