Question

Why should a Board not consist of all men, or all women, or all whites, or all minorities?

For a firm you know well, give an example of an ST strategy, showing how an internal strength can be used to avoid or reduce the impact of an external threat. And then give an example of an SO strategy showing how an internal strength can be matched with an external opportunity to formulate a strategy. Can use the same firm or two different firms to answer this question.

Answer 1

A board should not consist of all men, all women, all whites or all minorities because of the concept of diversity and inclusion. Every organisation has to follow the conceptual model of diversity where it states that the company should include people from every aspect of the society. By including individuals from every segment, coordination, unity, innovation and new ideas could generate which could be effectively channelise to increase the productivity. Diversity also helps in strategic management and attains competitive advantage in the market too.

The TWOS Model states various strategies that could be followed by the companies to achieve competitive advantage and analysed their opportunities, threats, weaknesses, and strengths in this dynamic market and could effectively and efficiently utilise them to achieve sustainability.

The example of the company I would like to consider is Amazon.

ST Analysis : The Strength-Threat analysis works on the basis on employing and utilising the inner strength of your organisation to avoid and overcome the external threats that prevails in the society. While Amazon was operating it's business in the mid of 2016, there was is a threat of funding decreasing dramatically in the service area. Amazon's strengths of high retained earnings and good credibility allows the firm to withstand this economic situation and came out strongly while tackling all the problems to get away from the storm. Using effective and efficient techniques and strategies to utilise your strengths to convert threats into opportunities is the main element for this strategic management.

SO Analysis : The Strength-Opportunity analysis works on the basis of employing and utilising the inner strengths to grab the external opportunities that are prevailing in the market. One should effectively tap and identify the opportunities that exists in the market and should make a strategic decision to effectively and efficiently grow. Use the internal strength to capitalise the market opportunities. For example, Amazon found out that an opportunity existed in the market to provide an AI based software which can effective listen the commands of the user and reacts in accordance to it. By utilising the effective staffing and high technicians of the company, Amazon grabbed the opportunity and developed the AI based Alexa to grab the market and become the number one leader and making the company the most richest company in the world.