1. What is the difference between strategic, long-term, and short-term objectives? What is the relationship between objectives and goals? What are some examples of this relationship? Be sure to integrate the key concepts from this week.
2. Identify 3 reasons why companies outsource. Be sure to integrate material from the reading or an outside source. Identify a company that has outsourced and discuss why the outsource strategy was or was not successful.
3. Define one of the three generic strategies and provide an example of a firm using the strategy.
4. Identify a firm that you believe is using one of the 15 grand strategies. Tell what the strategy is and why you think the firm is using that strategy.
5. Has your organization's strategic plan been communicated to you? If so, how and by whom? If not, how would such communication improve your organizational effectiveness? Is it important for employees to know the strategic plan of a company? Why or why not?
6. How do leaders shape an organization's culture? Why is culture important?
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Please find guidelines and ideas for Strategic Management in the attached file.
Running Head: STRATEGIC MANAGEMENT
Difference between Long Term and Short Term Objectives
The strategic long term objectives focus on organizational vision, whereas short term objectives are designed to achieve mission statement. Long term objectives are stated in general term and uncertain in nature, whereas short term objectives are specific purpose and real in nature (Haberberg & Rieple, 2008). Long term objectives cover several short term objectives. In contrast, by achieving short term objectives, an organization can sustain its long term objectives effectively. On the basis of above discussion, it is stated that long term and short term objectives are different from each other.
Relationship among Goals and Objectives
Objectives refer long run achievement of an organization from key result areas. Whereas, goals are specific in nature those are attained in a specific period of time. By accomplishing specified goals, the broader objectives of an organization can be achieved effectively (Sadler & Craig, 2003). Objectives are vague in nature, but goals can be frequently modified or changed for the purpose of accomplishing the objectives. With the help of specified goals, organization sustains its broader objectives effectively.
For example, in the area of manufacturing, the objective of an organization is 'to produce quality products at low cost' (Sadler & Craig, 2003). Whereas, a specific goal is 'in this quarter, in manufacturing of 50,000 products, only 0.015 % product defect should be there and cost should be reduced at 2.7 %.
As sales objectives, organization focuses to increase the annual sales of the organization. In contrast, the specific goal is to increase the sales from current level of $ 45 million to $ 73 million.
Reasons of Outsourcing
Effective Management Control: With the help of outsourcing, organization can focus on its key business areas effectively that leads to better management control.
Cost reduction: Outsourcing also assists to reduce and control operational cost. It assists to reduce the cost of staffing and training that leads to cost reduction (Davis & Spekman, 2004). At the same time, outsourcing also assists to reduce time to market.
To gain Competitive Advantage: With the help of experts and specialized skills, organizational objectives and goals can be sustained effectively. Outsourcing leads to provide benefits of re-engineering, ICT, effective risk management etc that assists to gain competitive advantage (Davis & Spekman, 2004).
Outsourcing by Toyota
Toyota is the world's leading automobile manufacturer that is known for total quality management in its system. Toyota outsources the parts of automobile from different suppliers which are known as first-tier suppliers. By sharing responsibilities with first-tier suppliers, Toyota focuses on its current business activities effectively to produce quality automobile products (Salvendy, 2001). The first-tier suppliers are not only responsible for ...
The differences between strategic, long-term and short-term objectives are determined.