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Developing Strategic Competencies for Success

Strategic management is important for global market competition for several reasons: it drives efficiency and innovation when competing internationally against both local and international businesses. Strategic management focuses on determining long-term performance and competitive advantage, which is vital for competing globally. Organizational learning is important to developing strategic flexibility for entering overseas markets because it allows firms to adapt to dynamic global environments and innovate new products. The planning mode of strategic decision-making is generally preferred for organizations competing internationally as it provides a rational, tested, and complete method for dealing with complex global conditions.

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Mary Grace Lauron
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49 views2 pages

Developing Strategic Competencies for Success

Strategic management is important for global market competition for several reasons: it drives efficiency and innovation when competing internationally against both local and international businesses. Strategic management focuses on determining long-term performance and competitive advantage, which is vital for competing globally. Organizational learning is important to developing strategic flexibility for entering overseas markets because it allows firms to adapt to dynamic global environments and innovate new products. The planning mode of strategic decision-making is generally preferred for organizations competing internationally as it provides a rational, tested, and complete method for dealing with complex global conditions.

Uploaded by

Mary Grace Lauron
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Assignment 1:

1-3. Why is strategic management considered important for global market competition?

For global market competition, strategic management is considered important because in


competing in a global market you have to employ a strong strategy to drive efficiency and innovation. It
is not just competing local businesses but as well as internationals. Strategic management is a set of
managerial actions and decisions focusing on determining the long-term performance of a company, it is
also focused on emphasizing the true competitive advantage of the company which is vital in competing
in a global market. That’s why strategic management is a vital component for competing to giant
companies. Many companies can have high performance but not all can survive in a global market, you
have to have a strong strategic management to remain in the market for a long-term period and able to
build new ideas, new strategies and unique products and marketing as your edge. This is all part of
having a strong strategic management.

1-4. What is the impact of sustainability on business practice?

Sustainability is the use of business practices to manage the triple bottom line. Triple bottom
line refers to a business’s sustainability – Traditional profit/loss, people account (social responsibility of
the company), and planet account (the environmental responsibility of the company). With the
sustainable approach of the company, there’s an increase in risk mitigation and innovation and an
overall feeling of CSR. With the changes in how industry works, the society as well as the physical
environment, companies has to thrive best and must focus on how they should implement their strong
strategies.

1-5. Define strategic flexibility and explain its implications. Why is organizational learning important to
the long-term development of strategic flexibility of organizations that intend to enter overseas
markets?

Strategic flexibility is the ability to shift from one dominant strategy to another. It enables the
firms to deliver innovative solutions to the dynamic and complex environment, not only proactively
influence and adapt to the environment. With this ability, firms will be able to realize and come up with
different strategic actions to be able to survive in a competitive arena. Firms will also be able to build a
sustainable competitive advantage and become proactive firms where they can protect themselves from
threats and can take opportunities better than the over firms. Organizational learning is important to
the long-term development of strategic flexibility of firms in entering global markets because in global
markets it has a dynamic and competitive environment which also needs organizational learning which
is a critical component of competitiveness. Also, organizational learning is essential to innovation and
development of a new product.

1-6. What is a triggering event? List a few triggering events that stimulate strategic changes.

Triggering event is an event that acts as a stimulus for a change in strategy. The following are
some of the triggering events that stimulate strategic changes.

1. External intervention. When a key customer complains about a serious product defect.
2. Performance gap. When performance and expectations does not meet.
3. Threat of a change in ownership. When there’s a takeover in the firm by another firm by buying
the company’s common stock.
4. Strategic infection point. When a major change takes place dues to the introduction of new
technologies etc.
5. There’s a new CEO.

1-7. What is the most preferred planning mode of strategic decision-making for organizations competing
internationally?

In most situations, planning mode of strategic decision-making for organizations is preferred


when competing internationally because it includes the basic elements of the strategic management
process. Planning mode is more rational, better tested and more complete method for decision-making.
It is more appropriate in dealing with complex and ever-changing environment. Planning mode is not
just concerned with the solutions nor the problem but it focusing on both. It is in search of new
opportunities as well as to reactive solutions of the existing problems.

Common questions

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A triggering event is an occurrence that stimulates a change in strategy for a business. Examples include external intervention, such as a complaint from a key customer about a product defect; performance gaps where actual results do not meet expectations; threats of a change in ownership, such as a firm takeover; strategic inflection points due to new technologies; and the appointment of a new CEO .

The planning mode is most preferred for strategic decision-making by organizations competing internationally because it includes the basic elements of the strategic management process. This approach is more rational, better tested, and more complete, making it well-suited for complex and ever-changing environments. It addresses both solutions and problems, while simultaneously searching for new opportunities and providing reactive solutions to existing issues .

Strategic management is vital for global market competition because it enables companies to establish strong strategies that drive efficiency and innovation, which are essential for competing against both local and international businesses. It focuses on long-term performance and emphasizes a company's true competitive advantage, which is critical for surviving and thriving in the global market. Without strong strategic management, companies may struggle to sustain high performance and build new ideas, strategies, and unique products that provide a competitive edge .

Sustainability impacts business practices by managing the triple bottom line, which includes traditional profit and loss, social responsibility (people account), and environmental responsibility (planet account). By adopting sustainable business practices, companies can increase risk mitigation and innovation while enhancing corporate social responsibility (CSR). As industries, societies, and environments evolve, it becomes crucial for companies to integrate strong strategies focusing on sustainability into their operations to thrive .

Strategic flexibility allows firms to shift from one strategy to another, enabling them to deliver innovative solutions and adapt to dynamic and complex environments. It helps companies build sustainable competitive advantages and protect against threats while seizing opportunities more effectively than competitors. Organizational learning is critical in developing strategic flexibility as it enhances a firm's ability to innovate and develop new products, which is essential in the dynamic and competitive global market. This learning fosters competitiveness and adaptability, necessary for success in overseas markets .

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