Strategic Management Questions, Essay Example

Why are there “three” categories of strategies (i.e. generic, grand, and competitive)? Provide two different reasons justifying the significance for listing three strategies.

The basic reason to provide these three strategies is basically to build such management strategies in order to achieve the ultimate goal of the organizations. These three strategies play a vital role in achieving the goal. Any organization can easily build own management strategies. All three has different techniques but their ultimate goal is same (Hitt, et, al., 2012). These strategies are building comprehensively for creating long term plans, competitive advantage, production, marketing and development of the organization by using appropriate actions for achieving the goal. The success of any organization based on correct and accurate policies and strategies. Policies should be designed in such a way that every employee can feel proud of being a part of such organization. Strong and accurate strategies helps the organization in climibing the ladder of success.

Give a totally original example of how Management by Objectives (MBO) might work. How does your example fit the criteria for MBO?

Answer: MBO is used to achieve the organizations objectives that are set in order to achieve best results in available resources for their business. This process also uses to monitor performance of the employees (Freeman, 2010).

Makro cash and carry is the biggest trading company working in Poland. They implemented MBO in the year 2005-2006. Manager says that their idea is to provide best services to customers that’s why they started using MBO, this increased he performance of their employees because different appraisals for motivations were done in order to follow company’s strategy and achieve their ultimate challenge (Hitt, et,al., 2012).

Shell is one of most renowned name in petrouleum industry and it holds a large scale of employees all over the world. In Dubai, Shell is also using MBO in order to increase their employee’s performances, they also provide appraisals for them, they engage their employees by conducting different activities like elections among them which is an opportunity for employees at local circumstances (Hitt, et,al., 2012).  Appraisals instigate employees to work hard with honesty.

Let’s say you, as the boss, set a workplace standard. After comparing employee performance against that standard, you determine that there is some employee performance variation to the standard you set. What is your next step? Give an original example.

Answer: Performance is the major factor which plays a vital role in the success or failure of the organization. In Tesco, the performance of the employees is very important for the organization because they do not compromise over their customer’s satisfaction. So for this purpose Tesco gives great importance to their employees because they think if the employees are good enough this will also add value for their customers to shop at Tesco (Hitt, et,al., 2012).  Performance and punctuality are two major factors on which employees performance gets calculated, so all should consider this as a strong fact.

They have their own way of measuring the performance of the employees. They has started a different way of monitor the employees performance they have divided their employees in groups and further sub groups, this helps the organization to measure each employees performance and this also differentiate between the employees that are working properly and who are not doing their job appropriately. They also do 360 degree feedback service. This tool is use to measure the current performance of the employees under the changing circumstances (Freeman, 2010).

What are the pros and cons to using best practices as a method for setting standards? Give an original example for each pro and each con.

Answer: Organizations practice different methods in order to set the standards of the company, but there are some pros and cons of setting such standards. At Pepsi Co. they are practicing such methods but they are facing problems with internal environment like employees communication issues, but are satisfied with employee’s performances (Wheelen & Hunger, 2011).

References

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.

Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India.