Question

1) Explain the balanced scorecard approach discussing its advantages and limitations.

2) Discuss how you would implement an effective downsizing program.

3) Discuss the role of synergy during strategy implementation.

4) Explain and discuss what activities are appropriate to be outsourced in order to gain a competitive advantage.

5) Explain the differences between vertical and horizontal growth as well as concentric and conglomerate diversification.

Answer 1

1.)Balance Scorecard approach;- A balanced scorecard is a performance metric used in strategic management to identify and improve various internal functions of a business and their resulting external outcomes. It is used to measure and provide feedback to organizations.

balanced scorecard approach advantages and limitations:-

Disadvantage:-

a) It can be an overwhelming framework.

b) It can’t be copied precisely from examples.

c) It requires strong leadership support to be successful.

d) It can be difficult to keep everyone on the same page.

Advantage:-

a) It gives structure to your strategy.

b) It makes it easy to communicate your strategy.

c) It aligns your departments and divisions.

d) It helps your employees see how their individual goals link to the organizational strategy.

2.)implement an effective downsizing program:-

a) Develop a careful, systematic transition plan.

b) Ensure that top managers understand the "visionary" role they must play

c) Communicate as much as you can, as soon as you can

d) Involve your personnel or human resources department

e) Plan a communication strategy

3.) The role of synergy during strategy implementation.

The synergy effect create a new direction for change in current strategy management of companies. They are characterized by mutual interaction which run in various form of cooperation, partnership, competitive struggle. The external environment constantly affecting internal environment of company and creates special conditions, in which companies need to build, organize and combine exceptional skills of managers and employees. These capabilities represent new value that is unique for implementation and better understanding of strategic management in today´s globalized market conditions. The purpose of article is to point out creating synergy effect through suitable chosen strategy management of company. For company´s success in current globalized environment with increasing need to maintain long-term competitiveness – it is necessary to define and appropriate way how can be company manage in order to achieve synergy effect.

4.) Outsourcing has become a useful tactic to lower costs and gain a competitive advantage. Now that international markets have become easier to access and more reliable, global outsourcing has become more of a concern. By using a well-managed outsourcing agreement, companies can gain in markets that would otherwise be uneconomical. Global outsourcing can contribute to short- and long-term benefits. However, the long term should be the driving force. Considerable time and energy must be put forth by all involved in order to create a successful alliance. The only way to have an outsourcing strategy flourish is by having an agreement that is solid and flexible. The best-laid plans will eventually fail if care is not taken to ensure a fair and equitable relationship.

5.) Differences between vertical and horizontal growth:-

Basis Horizontal Vertical

Meaning When two firms combine, whose products and production level is same, then this is known as Horizontal Integration. Vertical Integration is when a firm takes over another firm or firms, that are at different stage on the same production path. Objective Increasing the size of the business Strengthening the supply chain onsequence Elimination of competition and maximum market share. Reduction of cost and wastage. Capital Requirement	Higher	Lower
Self-sufficiency	No	Yes
Strategy used to exercise control over	Market	Industry

b.)Diffrents between concentric and conglomerate:-

Concentric diversification is a type of business strategy where a company acquires or creates new products or services to reach more consumers. These new products and services usually are closely related to the company's existing products and services.

Conglomerate diversification is growth strategy that involves adding new products or services that are significantly different from the organization's present products or services. Conglomerat diversification occurs when the firm diversifies into an area(s) totally unrelated to the organization current business