Understanding the Strategic Management

Process Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. CEOs, such as late Apple-founder Steve Jobs, must be able to carefully manage the possible actions that their firms might take to deal with changes that occur in their environment.

Environmental and internal scanning is the next stage in the process. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. For example, Apple’s decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur.

At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. For example, intellectual property is a vital resource for Apple. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari.

Process Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. CEOs, such as late Apple-founder Steve Jobs, must be able to carefully manage the possible actions that their firms might take to deal with changes that occur in their environment.

Environmental and internal scanning is the next stage in the process. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. For example, Apple’s decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur.

At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. For example, intellectual property is a vital resource for Apple. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari.

How to Conduct a Case Analysis

Hello friends..i want share with u all about how to conduct the case study ....

The case study is a fundamental learning tool in strategic

Management. We carefully wrote and chose the cases

in this book to expose you to a wide variety of key concepts,

industries, protagonists, and strategic problems. In simple terms, cases tell the story of a company facing a strategic dilemma. 

The firms may be real or fictional in nature, and the problem may be current or

one that the firm faced in the past. Although the details of the cases vary, in general they start with a description of the challenge(s) to be addressed, followed by the history of the firm up until the decision point, and then additional information to help you with your analysis.

The strategic dilemma is often faced by a specific manager, who wonders what they should do. To address the strategic dilemma, you will use the AFI framework to Conduct a case analysis using the tools and concepts Provided in this textbook. After careful analysis, you will be able to formulate a strategic response and make Recommendations about how to implement it.

In doing case analysis, we follow the steps of the strategic-management

process.We have any and all of the following models and frameworks at your disposal which we learned in class with madam:

1. Perform an external environmental analysis of the:

■ Macrolevel environment (PESTEL analysis)

■ Industry environment (e.g., Porter’s five forces)

■ Competitive environment .

2. Perform an internal analysis of the firm using the resource-based view (RBV):

■ What are the firm’s resources, capabilities, and competencies?

■ Does the firm possess valuable, rare, costly to imitate resources, and is it organized to capture value from those resources (VRIO analysis)?

■ What is the firm’s value chain?

3. Analyze the firm’s current business-level and corporate-level strategies:

■ Business-level strategy (product market positioning)

■ Corporate-level strategy (diversification)

■ International strategy (geographic scope and mode of entry)

■ How are these strategies being implemented?

4. Analyze the firm’s performance:

■ Use both financial and market-based measures.

■ How does the firm compare to its competitors as well as the industry average?

■ What trends are evident over the past three to five years?

■ Consider the perspectives of multiple stakeholders (internal and external).

■ Does the firm possess a competitive advantage? If so, can it be sustained?

Strategic Planning Process

Strategic Planning Process

The external environment VS internal environment analysis

The external environment is even more diverse and complex than the internal environment. Firms operate in an external environment that is rapidly changing, complex, and global. There are many effective models to discuss, measure, and analyze the external environment such as Porter's Five Force, SWOT Analysis, PEST framework. Pest refers to the politics or legal, economic, socio-cultural and technological factors in which the firm operates. 

The internal environment are many and varied depending on the organization. However, management has some strategic control over how these various internal conditions interact. It consists of calculations of operational costs for production and services, fixed cost and management, training costs, research and position of company compared its competitors. Generally, the analysis is made in some major functional areas such as management, marketing, finance and operation.

CELEBRATING CREATIVITY IN YOUR BUSINESS ….

On Wednesday. We are given the task activities in tutorial class which is testing our creativity and cooperation between us using a newspaper. The instruction is:

1. Using newspaper provided for each group, build an object which symbolizes your organization.

2. Present and explain them in relation to your ( -vision, mission, objective, value, philosophy and business strategy )

We are created the business of decoration industry. My company name is PARADISE DECO sdn. Bhd. The trademark our company is “DESIGN YOUR MIND” means beauty is in eyes of the beholder, open your mind and design it. Today, We all very enjoy it….

Strategic management from the Islamic perspective

Strategic management from the Islamic perspective

Quiz online forum 4.

The question that madam ummi give for us are how strategy is unlike to ethics? how important is ethics to business success? what’s the relation of ethics, moral and akhlaq?kindly share any ethical issue you have encountered before.

            Ethics as an activity or actions that involves behaviors, customs and way of life as well as aspects of honourable who follow all rules and tendencies of a person or society in carrying out an activity.

            However, an ethics is very important to achieve a successful in business. Because its can set of moral rules that govern how the business operate, how business decisions are made and how people are treated. When we apply an ethics in organization, it’s come more benefits for organization itself.

1)Increased customer loyalty-the customers believe means that the company which have a good reputation and their more likely to purchase or use their product and services.

2)good public image-a company that demonstrates high ethical standards in business practices they can achieve a good image from public . They can will result in increased loyalties across the board, this will likely translate higher level a productivity, larger profit margins, and increased opportunities for investment and growths. 
            For the last question, I can conclude that the relation of ethic, moral and akhlaq are very similarity. An ethics is a pattern of behavior that is produced by the human mind and determine an understanding human actions were said to be good or bad based on the opinion of their mind. 
          Besides that, the definition of morality is the values and norms that set the tone of a person or group irregularity behavior. Meanwhile, the akhlaq by morality in general is a system or human behavior derived on the basis of revelation or legislation. Akhlaq include thoughts feeling and intentions in the human heart in man’s relationship with God, man to man and humans and others. While, akhlaq also determined by Allah through the Quran and moral determined by humans.

What is the PORTER’S FIVE FACTOR MODEL?????????

Porter’s five factor model was introduced in 1980 developed by Michael E. Porter of Harvard Business School in 1979. The Porter's Five Forces model is a strategy tool that is used to analyze attractiveness of an industry structure. Porter's Five Forces model views the business from outside. It focuses on assessing competitive position within industry. This model can to continue maintaining their competitive advantage. Competitors in the same industry could show different differentiation attributes as long as they are of value to customers. Porter's five forces include rivalry, treat of new entrants, substitutes, bargaining power of supplier and bargaining of buyers. I have provided some example of food and beverages industry.

Environmental scanning of food and beverages industry in Malaysia

Rivalry - In this, we have to analyze the level of competition between existing players in the industry.

-           The competitor in the market brings down the profit of the food and beverages. So, we must plan the strategic to challenge our competitor.

-           Customers have choices of products, as there are many manufacturers available who produce the exact same products. The differences between manufacturers included price, quantity, quality, and other benefits.

-           Coffee bean, starbuck

New entrants - measure how easy or difficult it is for new entrants to enter into the industry.

-           New entrant of food and beverages provider must have high capital to compete with existing manufactures in same industry that have more advantages in production, raw materials, marketing, and selling means.

-           Must have strong marketing plans to attract buyers.

-           Existing company have cost and performance advantage in this industry. This is because existing company have already purchased large capital expenditures.

Substitutes - Every top decision maker has to ask: How easy can our product or service be substituted?

-           Can change with another if this product doesn’t have.

-           The food and beverage managers must be aware of such kind of substitute products available and adjust the way business is run.

-           Customers are not likely to go for substitutes because brand name loyalty is a very strong competitive pressure in this industry.

-           Milk, Tea, Nescafe

Bargaining of buyers - Now the question is how strong the position of buyers is. For example, can customers work together to order large volumes to squeeze your profit margins? 

-           Customer pressures the manufacturers to reduce the price and improve the quality of the products.

-           Because the food and beverages is very competitive, switching suppliers is relatively easy and the price difference is rather small. Difference can occur based on geographic location and how far the products need to travel.

-           The buyer is not aware of the need for additional information because all the information that is needed is provided. There are no steps to using the product and all nutrition facts and ingredients are listed on the label.

Bargaining Power of Suppliers - This relates to what your suppliers can do in relationship with you.

-           The materials are usually differentiated as every supplier is trying to create the best product and they have different formula, color, and flavor for their beverage.

-           Product innovation is necessary to fill the buyers need for a variety of tastes.

-           The companies will choose the suppliers that do the best job and have the best price. If another supplier does the same job but is cheaper, the firm can switch without much issue.   

-           For the suppliers existing easy to enter or succeed in the industry as supplying is not a difficult task. All about price and how efficient of a delivery job they do. Companies are willing to switch suppliers whenever is necessary.

Vision Mission

Every person have a mission and vision in their life. I want to be good a Muslimah, as a good wife for my dear husband and be good daughter for my family and family in law.

As a Muslim, I want to be a good caliph of Allah on earth which are always grateful for the blessing of Allah s.w.t

I want to be an entrepreneur successful (business women) and can give a welfare for others people. Besides that, I want share for u all about my principle in my life.

PRINCIPLE Of MYLIFE

1.          For to get successful in the life, I believe that need to take time for achiever. Every effort is absolutely necessary phase of adversity, challenge and so forth. If we go through the hard way, then we will find a way to appreciate and love.

2.         Don’t give up. It very important which every person how want to be success they must have. Every business whether small or large will have a problem, and challenges of its own. Thus, entrepreneurs cannot easily give up and loss to the problem.

3.         Confident with yourself. The entrepreneurs must be confident with their self and what is being pursued. Many people cannot succeed not because their ideas are not good, but because they are not confident in yourself.

ALLAH said if you want to know Him, He must know yourself first. Confident with yourself is one sign of that person know himself. God willing when confident God will simplify our business.

4.         First for all, the most important in principle my life is, whatever I want to take or doing in business, I must think it can be benefit and important to the community especially for the muslim economic and can give to me reward in akhirat..InsyaAllah.