Cma Mock Exam Solution

To work and addition involvement in the field in which I want to construct better profession.

Today, Strategic Management is something really important for companies in order to remain competitive. It is also important to know the definition of this term in order to well understand it. According to the Contemporary Strategic Management 2nd edition book (Grant, Robert, Bella Butler, Stuart Orr and Peter Murray – 2013), “Strategic Management is the process of thinking strategically, setting objectives for the organisation, planning and implementing the necessary changes, and measuring the outcomes.” By knowing it we can see that strategy management is very important for a company. Indeed, strategy is essential for the surviving of the company but also essential to know how the company allocates its resources and how it will achieve its

G.G. Dess, G.T. Lumpkin, M.L. Taylor, A.A. Thompson, and A.J. Strickland III, Strategic Management (Boston, McGraw Hill, 2004) pp. 141-148.

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Strategic Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Strategic Management is the theory and practice of making decisions that shape the future of the firm. This course looks at the content and process of strategic decision making from the perspective of managers who are responsible for an entire business unit. These may be individuals who are acting in the capacity of a Chief Executive of a company, divisional General Managers, or departmental heads. It is also the perspective most

With every market-entry strategy there are always going pros and cons. First, with exporting, varies companies, from small to

This document and all of the materials contained within are strictly for study assignment purposes to fulfill MBA course BUSN 620 Strategic Management on August 01, 2011-September 25, 2011 requirements.

Ford’s industry and manufacturing plants give their company a mechanistic structure. As a result, decisions are handed down from the top of the ‘power hierarchy’ and work procedures are mostly standardized and simplified. Following from that categorization, Lawrence and Lorsch were quoted to believe that the better a company’s social structure fits its environment, the higher their rate of success. Implying Ford would succeed better if its mechanistic structure were to change and mould to the volatility of its environment.

Indirect exporting is when a company sells their product to a third party that will then sell that product to customers in foreign countries (2012). Strengths for this type of strategy are there is little financial commitment, the financial risk is reduced by using the third party, and there is a reduced risk that the future of the product or brand will look bad in the new market (2012). A limitation of this entrance strategy are the company has to rely on the third party to get customers and negotiate the sale prices for them (2012). Direct exporting is when the firm that is entering the market enters on its own and handles their own exports (2012). Strengths of this strategy are the company gets to handle their own exports, they have complete control, the company also has a greater amount of potential returns, and they can maintain a greater profit from their sales (2012). Limitations of this are there is a higher risk involved since the company is handling its own foreign markets, and there is a larger investment in not only money but time (2012). Licensing is when there is a relatively low link to risk that permits the company to enter into the market (2012). The strengths associated with licensing are no large capital investment, the company may be able to get around the restrictions and barriers a country can put up, and the company can charge a higher price for their product (2012). Limitations of licensing are

According to IRM-AIRMIC-ALARM (2002), risk management actually defines every organisational strategic management; it comprises the process which identifies and treats the internal and external risks and adds sustainable value to the organisation and its stakeholders by decreasing the probability of not achieving the organisation’s overall objectives. The specific institutes suggest that risk management lies in the strategic, tactical and operational levels, and its embodiment in all tasks and roles is required; it is a consistent manner for an organisations’ operation, which leads to effective decision making, efficient allocation and protection of the organisational assets, and enrichment of the organisational

Also, strategic decision making carried out through the process of strategic management. Like the other terms in business policy, strategic management has also been defined and interpreted differently by various author. There are also differences of opinion regarding the phases of the strategic management process and the elements they contain. These authors include 3 sub processes overall strategic management process. Through the strategy scenario analysis, strategy formulation, strategy implementation, and strategy analysis ( Azhar Kozami, 2005).

Hubbard, G, Rice, J and Beamish, P 2008, Strategic Management, Pearson Education Australia, 3rd, Frenchs Forest, Australia.

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

Cost leadership emphasizes producing standardized products at a very low per unit cost for consumers who are price sensitive. Differentiation is a strategy aimed at producing products and services considered unique industry wide and directed at customers who are relatively price insensitive. Focus means producing products and services that fulfill the needs of small groups of customers (niche market).