Question

1. What is the difference between the implementation of innovation and entrepreneurship within the organization from a strategic management and business strategy perspective?

2. What are some of the benefits and risks of vertical integration as part of a company’s business strategy?

3 What are some of the strengths and weaknesses of mergers and acquisitions that would determine which is best for the organization?   

4. From a business strategy perspective, what factors must be considered as part of a successful global strategy?

5. Why is it important for the organizational structure to be in alignment with the organization business strategy?     

Answer 1

1)Implementation of innovation as per the strategy is very important for it to be successful. In order to survive an organization needs to come up with new ideas along with new leaders. Entrepreneurs aim to create innovative, or technology-focused companies with high growth. Innovation along with entrepreneurship helps an organization to implement its strategy of growth, diversification, better resource utilization along with profit maximization. Both strategic management and business strategy are the same with a slight difference in scale of approach. The strategy is related to the internal functioning of an organization like planning, monitoring , analyzing, etc. On the other hand business strategy is the external outlook of the company regarding the market ,it's objectives.evaluation of strategies.The success of one ensures the success of the other.

2)Vertical integration is one where company managers it's supply chain such as management and control of suppliers, distributors, retailers to control it's value or supply chain. Benefits of vertical integration: a)Reduction in transportation timing and delivery turnaround time.b)helps to increase competitiveness as a direct supply of goods to customers becomes possible.c)lowering of cost the organization involves buying bulk resources and producing on large scale, hence the economy of scale is reached.

Risk in case of vertical integration: Company gets enlarged and difficult to manage, outsourcing is often considered as more superior ad cost saving which is a kind of risk if there is vertical integration. There could be an increase in debt.

3)Advantages of mergers and acquisition: a)Economies of scale can be achieved as a large organization will increase the potential of production.b)Reduction in the competition which will help a firm to capture bigger markets and tap more customers.c)If a firm is struggling merger could help it to gain better management which in turn will help it to rise above the mark as it will get all required support from the acquiring organization.d)Helps to enter new products and new markets.e)diversification is possible which in turn helps to lessen risk.f)With the help of acquisition, the entry barrier can be easily overtaken)Long term profit with the combined company.

The weakness of merger and acquisition: A)Large firm means chances of mismanagement.B)Control, communication, and coordination can hinder productivity)Cultural differences in the two firms cause a rift between the employees and the management.d)too much focus on merger and acquisition can cause lower internal development.e)Change resistance is a big problem as employees are very rigid to change.f)Sometimes merger can cause loo in value as problem arises due to combining force which may be technical, administrative, location, etc.

4)The focus point of consideration for successful global strategy are a)market consideration,b)standardized product,c)Organizational structure,d)Language, and cultural differences.e)global competitors.f)capital investment.

A successful global strategy is one where you are able to counter your weaknesses which can occur due to internationalization hence the above points must be kept in mind while making any global strategy as these are the aspects that require much attention before venturing into a foreign market.

5)Alingment of organizational structure with organization business strategy is vital as both are crucial and play a vital role in organizational development. When structure aligns with strategy it leads to the achievement of an organization's mission, vision, strategy, and laid objectives whether short term or long term. It leads to increased output and productivity of the company as clear communication and control are possible through the alingment.organization’s strategy is the plan of action to reach at a specific set goal and an organization’s structure is the way the pieces of the organization fit together internally to deliver the plan.