A company must make a competitive return for its shareholders and treat its employees fairly. A company also has wider responsibilities. It should minimize any harm to the environment and work in ways that do not damage the communities in which it operates. This is known as corporate social responsibility. Bowen argued that corporate social responsibility rests on two premises: social contract, which is an implied set of rights and obligations that are inherent to social policy and assumed by business, and moral agent, which suggests that businesses have an obligation to act honorably and to reflect and enforce values that are consistent with those of society. Companies that operate in a socially responsible way strengthen their reputations. In business, reputation is everything. It determines the extent to which customers want to buy from you, partners are willing to work with you and your standing in the community. Corporate Social Continue reading
Strategic Management Concepts
TOWS Matrix – Threats Opportunities Weaknesses Strengths Matrix
SWOT Analysis is a commonly used strategic management framework which scans internal strengths and internal weaknesses of a product or service industry and highlights the opportunities and threats of the external environment. This will help to focus on the strengths, minimize weaknesses and take the greatest possible advantage of opportunities available by overcoming threats. SWOT Analysis becomes a useless exercise if it is not extended to TOWS Analysis where the strengths are used to capitalize on opportunities and to counter threats and, the weaknesses are minimized using opportunities and both weaknesses and threats are avoided. Read More: SWOT Analysis — A Strategic Planning Tool Weihrich developed TOWS Matrix in 1982, as the next step of SWOT Analysis in developing alternative strategies. TOWS Matrix is a conceptual framework for identifying and analyzing the threats (T) and opportunities (O) in the external environment and assessing the organization’s weaknesses (W) and strengths (S). Continue reading
Becoming a Successful Learning Organisation: Case Study of Apple
When faced with the challenges and difficulties in business environment nowadays, business need to improve knowledge continuously to survive and remain competitive with other business. Meanwhile, “learning organization” and “best practices” are two important concepts that can help businesses succeed. From an unknown organization has now become a famous brand with business strategy, the way in breaking success, Apple is one of the business organization encourages continuous personal learning to be able to overcome difficulties in the market today. We should study how organizations learn and practice such as Apple to see the strategic vision and ways of doing business that many companies in the world by surprise. How does Apple become a Learning Organization? Learning organization is one that sought to create their own future, said that learning is a continuous process and innovation for its members, and one in which the development, adaptation, and transform itself to meet Continue reading
Organizational Goals – Meaning and Definition
Organizational goals can be defined as broad statements of what the organization wants to achieve in the long run, or on a permanent basis. Goals are broad objectives. Goals are fairly timeless statements. Goals and objectives are properly defined. If they are vague or ill-defined, it may not be possible to measure the performance of the organization. The clarity of goals and objectives is quite often more evident to the initial employers and promoters of institutions. With expansion of activities and joining of new member, goals and objectives as perceived by participants tend to get diffused. Different key managers may have different perceptions about goals and objectives. It is because of this that organizations insist on proper induction of new entrants to the philosophy of the organization. External pressures, sometimes political in nature, may force an enterprise to alter its goals and objectives, particularly in the case of public institutions, Continue reading
Evaluation of Porter’s Diamond Model
In the globalization era, we observed an increment of multinational corporations as well as small businesses that aim to internationalize. Those, in order to be successful in their internationalization process, try to find abroad a location that fits them the most institutionally, culturally and opportunities wise. To make this happen, MNCs uses home and host location strategies which reflect to international business theories through different models. Those models assess external environment analysis of a specific country and explain the concepts used behind the chosen location. Out of the many useful models explaining location strategies used by international companies, this article will focalize on the Diamond Model and discuss whether is a useful concept for international firms to pursue the best entry mode and furthermore argue the advantages and disadvantages through the examination of a real case example such as the multinational IKEA. The Diamond Model was introduced in the book Continue reading
Business Turnaround Strategies
When a firm has experienced a serious decline in its market position, it is a candidate to mount an all-out effort to turn the firm around and improve its market position. Use of a turnaround strategy appears to be most appropriate when the firm’s decline is caused by internal actions such as improper strategy selection or poor implementation and execution of a workable. If the analysis indicates the firm’s present strategy is appropriate, then the problem is poor implementation. If the analysis indicates the firm’s present strategy is inappropriate, then the problem is improper strategy selection. Turnaround strategies attempt to revitalize businesses in a slump. They involve a combination of cost-cutting measures and revenue-enhancing strategies. Before a firm elects a turnaround strategy, two questions should be asked: Does the firm have the capabilities to earn an acceptable level of profits in the future? Will the firm’s value after a successful Continue reading