Business Studies
Discussion must be in current APA format and must include a reference list. Reference sample make sure to include DOI-Drollinger, T., Comer, L. B., & Warrington, P. T. (2006). Development and validation of the active empathetic listening scale. Psychology & Marketing, 23(2), 161-180. https://doi.org/10.1002/mar.20105 There needs to be 2 scholarly references (2017-2022) and 1 biblical references from the King James bible in the paper Minimum of 275 words in the body Minimum of 2 sources from the literature in addition to course texts Current APA format must be used. Content must include: • Summary of the author’s Thread – no less than 150 words • What you agreed with, did not agree with and why – no less than 125 words • Support your factual assertions with citations.
Discussion to Reply to:
Internal Environment, Power / Weakness, and Decision Models
Process: Evaluating the Internal Environment
What is the process? Gamble et al. (2021) disclosed to assess the external and internal environment of an organization, you must have a clear strategy, understanding of the value chain, compare performance indicators to competitors, and continually evaluate internal and external circumstances to make significant decisions about follow-up strategy. They identified financial performance (i.e., increasing fiscal strength and gaining profit) and market strength (i.e., relative to other companies) as two indicators of how a corporate strategy is working. Gamble et al. included that analyzing a company’s internal resources and capabilities is core to devising a strategy to excel over competitors. Resources are typically tangible items that a company has which preferably the competition does not have. Capabilities include the ability to convert resources into valuable commodities and to evolve with the market (Gamble et al., 2021).
Evaluation of the internal environment requires honest self-scrutiny of strategic direction, core competencies, financial position, relative costs, brand, infrastructure and supply chain strength, and leadership (Gamble, 2021). The value chain (i.e., core and support activities) creates customer value through the core activities of supply management, operations, distribution, sales and marketing and service (e.g., support to buyers), and the support activities of product development, technology, systems, human resources management, and general administrative expenses. Benchmarking is measuring an aspect of competitors’ value chains and comparing their performance to similar functions within your own organization (Gamble, 2021). Benchmarking also allows for competitive analyses industry wide which can be used to develop best practices. To improve internal functions a company implements best practices, reduce cost producing activities, utilize alternative locations or workforces to reduce costs and improve productivities, avoid high costs activities, and collaborate with suppliers to reduce costs. However, companies must be aware of the circumstances and environment under which the modeled best practices are successful; not all common practices are worthy to imitate through benchmarking (Posen et al., 2019). All factors of productivity must be assessed to determine power or weakness.
Strategic Thinking: Discussion of a Key Source of Power / Weakness
A full evaluation of all circumstances must be analyzed because a company may have strengths in one area in which competitors are weak or an area of weakness in which competitors are strong. Gamble et al., (2021) write “[manager decision making] involves using the results of both industry and competitive analysis to identify a ‘worry list’ of issues to be resolved for the company to be financially and competitively successful” (p. 83). This list of strategic matters warrants immediate and focused attention to resolve. The analyses in the internal environment, including assessing supply chain and appropriate best practices provides the opportunity to “identify your strengths and weaknesses, assess the opportunities and risks (your opponent’s strengths and weaknesses), and build on your strengths” (Rumelt, 2011, p. 29).
In strategic thinking, market information is often analyzed, but a wholistic approach to evaluate an organization’s internal competencies should be considered before developing and implementing strategy (Weissenberger-Eibl et al., 2019). Regular assessment of strategic choices provides companies with updated information on the environment and marketplace, but Weissenberger-Eibl et al. suggested there is much information which is going unnoticed because companies do not have the capacity for thorough comprehension and analysis. A systematic approach is needed and Weissenberger-Eibl et al. proposed wholistic viewing of the organization strategy development requires combining leadership and culture with technology, human resources, processes, methods, and organization to create a successful strategy implementation plan. Implementation of a well thought out strategy to rectify a weakness in a customer value proposition, is important for creating customer value (Gamble et al., 2021).
Decision Model
The models I first introduced as resonant with me were “Thinking Outside the Box” and “Choice Overload” as explained by Krogerus and Tschappeler (2017). For strategy planning thinking outside the box is beneficial to evaluate what other companies are doing differently than my organization to determine if their best practice is applicable to my organization’s circumstances. Choice overload requires advance screening to eliminate inappropriate solutions from the collection of options that might be presented to a board when selecting a strategy. Proposing only those tactics that have worked in similar environments to a deciding body, will help focus their attention to evaluate the possibilities rather than concentrating on ideas that are from another set of circumstances that are incompatible with our organization.
Other decision models to consider might include The Consequences Model, which promotes bold decision making when in doubt or faced with limited information, or The Hard Choice Model (Krogerus and Tschappeler, 2017). The latter decision type evaluates four views of the option to either implement or not implement a strategic decision. Krogerus and Tschappeler (2017) described them as easy to compare with not consequence if one chosen over other (i.e., no-brainer), difficult to compare with slight differences (i.e., apples/oranges decision, easy to compare with big consequence of decision impact (i.e., big choice), and difficult to compare and a significant consequence (i.e., hard choice).
Conclusion
Evaluating the internal environment of an organization prior to making strategy choices creates opportunities for an organization and its leadership to better understand their internal competencies and benchmark those measurements against industry standards or similar businesses in a like-environment. By assessing where the organization has strategic advantages or short comings in resources and capabilities, the firm will decide which improvements can be made successfully, and which areas might be abandoned. A full evaluation of the internal capacity is necessary to provide sufficient information to leadership to make strategic decisions. And leadership might consider implementing either of the Consequences or Hard Choices models to reach a decision. Once the decision is made a comprehensive effort incorporating leadership, culture, technology, human resources, processes, methods, and organization to implement the chosen strategic plan.
In business we are faced with continual decisions. Some are easier than others. Keller and Alsdorf (2012) explored the concept of guidance in making decisions and how to know in difficult times what is the right thing to do. They shared they answer can be found in the gospel. “But if any of you lacks wisdom, he should ask God who gives to all generously and ungrudgingly, and he will be given it” (New American Bible Revised Edition, 2010, James 1:5).
ANSWER
Discussion Reply 1 770
Environmental scanning makes a business more competitive through helping identify their development factors and their influence on organizational success (Yu et al., 2019). Internal environment analysis entails a comprehensive review of the major aspects of a company’s operation, mission and internal guidance. An external environment highlights the strengths, weaknesses, opportunities and threats with regard to resources, core competencies and competitive advantage. Utilization about patterns, occasions, relationships and trends is effective for operational performance.
I agree with the post that dealing with organizations requires knowledge on the use of resources and capabilities in order to gain information on how to capitalize on the use of resources to gain competitive advantage. I also concur with the point that organizations need to evaluate whether their capabilities and resources are competitive. For instance, core competencies enable an organization to differentiate its products from competitors and reduce costs compared to their rivals. This helps in building customer value.
Strategic thinking entails thorough analysis of the internal environment. Through internal environment organizations are able to understand the internal strategies that have a major impact on the organizations by how they are structured and implemented. One of the primary sources of power within an organization is corporate culture that includes the norms, beliefs and practices that determine the strategic direction of an organization.
Strategic decision making entails the best model of achieving objectives and goals. Strategic decision making is utilized in competitive companies to give a company competitive advantage (Manolopoulos, Salavou, Papadopoulos and Xenakis, 2022). I agree with the post that a successful organization requires a decision model that helps them in formulating strategies. Decision models enable an organization to decide which strategy to use. I agree with the post that SWOT analysis is strategic framework that helps in decision making. However, there are other decision models such as rational decision making model, creative and intuitive decision making model. These models give organizations direction that adds value and give them the best value to have competitive advantage.
References
Asobee, M. S. (2021). Exploring the importance of strategic thinking to strategic planning in the strategic management process. Journal of Business and Management Sciences, 9(2), 68-70. http://dx.doi.org/10.12691/jbms-9-2-2
Manolopoulos, D., Salavou, H., Papadopoulos, A., & Xenakis, M. (2022). Strategic Decision-Making and Performance in Social Enterprises: Process Dimensions and the Influence of Entrepreneurs’ Proactive Personality. Entrepreneurship Research Journal. https://doi.org/10.1515/erj-2021-0147
Yu, W., Chavez, R., Jacobs, M., Wong, C. Y., & Yuan, C. (2019). Environmental scanning, supply chain integration, responsiveness, and operational performance: an integrative framework from an organizational information processing theory perspective. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-07-2018-0395
