Free Essay

Strategic Management

In:

Submitted By fardanharis
Words 2438
Pages 10
Supplier Code of Conduct
Research In Motion (“RIM”) is committed to conducting its business in accordance with the applicable laws and regulations of the countries in which RIM operates and in accordance with internationally recognized industry standards of business ethics and social and environmental responsibility. This commitment to corporate responsibility extends to our supply chain. We expect our suppliers (“Suppliers”) to comply with the applicable laws and regulations of the countries in which they operate and to conduct their operations in an ethical, socially and environmentally responsible manner and in accordance with this RIM Supplier Code of Conduct (the “Code”) (or its equivalent) and the standards that it references. In selecting and retaining Suppliers, RIM will take into consideration whether a Supplier can in an open and objective manner demonstrate its active pursuit of compliance with the Code. Should a Supplier fail to demonstrate commitment to the Code or fail to implement appropriate corrective actions to improve performance, RIM may choose to suspend making purchases from the Supplier, or terminate its relationship with that Supplier on the basis of contractual breach. The Code is a statement of certain fundamental principles and standards that RIM intends its Suppliers to follow in their conduct of business with RIM. It is not intended to, nor does it, create or transfer any rights (including, without limitation, any intellectual property rights) in or to any employee, customer, supplier, competitor, shareholder or any other person or entity. This Code is largely based upon the industry-standard Electronics Industry Citizenship Coalition (“EICC”) Code of Conduct. The EICC Code of Conduct is available online at www.eicc.info. This Code is made up of five sections. Sections A, B, and C outline standards for Labor, Health and Safety, and the Environment, respectively. Section D outlines the elements of an acceptable system to manage conformity to this Code. Section E adds standards relating to business ethics. Internationally recognized standards, as set out in the References annex may be a useful source of additional information. A. LABOR Suppliers are committed to uphold the human rights of workers, and to treat them with dignity and respect as understood by the international community. The labor standards are: 1) Freely Chosen Employment Forced, bonded or indentured labor or involuntary prison labor shall not to be used. All work will be voluntary, and workers shall be free to leave upon reasonable notice. Workers shall not be required to hand over government-issued identification, passports or work permits to the Supplier or labor agent as a condition of employment.

Updated: January 10, 2011

Supplier Code of Conduct
2) Child Labor Avoidance Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person under the age of 15 (or 14 where the law of the country permits), or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. The use of legitimate workplace apprenticeship programs, which comply with all laws and regulations, is supported. Workers under the age of 18 shall not perform work that is likely to jeopardize the health or safety of young workers. 3) Working Hours Studies of business practices clearly link worker strain to reduced productivity, increased turnover and increased injury and illness. Workweeks are not to exceed the maximum set by applicable local law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations. Workers shall be allowed at least one day off per seven-day week. 4) Wages and Benefits Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. The basis on which workers are being paid is to be provided in a timely manner via pay stub or similar documentation. 5) Humane Treatment The Supplier’s disciplinary policies and procedures shall be clearly defined and communicated to workers. There is to be no harsh and inhumane treatment, including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse of workers: nor is there to be the threat of any such treatment. 6) Non-Discrimination Suppliers should be committed to a workforce free of harassment and unlawful discrimination. Suppliers shall not engage in discrimination based on race, color, age, gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation, union membership or marital status in hiring and employment practices such as promotions, rewards, and access to training. In addition, workers or potential workers should not be subjected to medical tests that could be used in a discriminatory way. 7) Freedom of Association Open communication and direct engagement between workers and management are the most effective ways to resolve workplace and compensation issues. Suppliers are to respect the rights of workers to associate freely, join or not join labor unions, seek representation, and join workers’ councils in accordance with local laws. Workers shall be able to communicate openly with management regarding working conditions without fear of reprisal, intimidation or harassment. B. HEALTH and SAFETY Suppliers recognize that in addition to minimizing the incidence of work-related injury and illness, a safe and healthy work environment enhances the quality of products and services, consistency of production and worker retention and morale. Suppliers also recognize that ongoing worker input and education is essential to identifying and solving health and safety issues in the workplace. Recognized management systems such as OHSAS 18001 and ILO Guidelines on Occupational Safety and Health were used as references in preparing the Code and
Updated: January 10, 2011

Supplier Code of Conduct may be a useful source of additional information. The health and safety standards are: 1) Occupational Safety Worker exposure to potential safety hazards (e.g., electrical and other energy sources, fire, vehicles, and fall hazards) are to be controlled through proper design, engineering and administrative controls, preventative maintenance and safe work procedures (including lockout/tagout), and ongoing safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, wellmaintained, personal protective equipment. Workers shall not be disciplined for raising safety concerns. Emergency Preparedness Emergency situations and events are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures, including: emergency reporting, employee notification and evacuation procedures, worker training and drills, appropriate fire detection and suppression equipment, adequate exit facilities and recovery plans. Occupational Injury and Illness Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness, including provisions to: a) encourage worker reporting; b) classify and record injury and illness cases; c) provide necessary medical treatment; d) investigate cases and implement corrective actions to eliminate their causes; and e) facilitate return of workers to work. Industrial Hygiene Worker exposure to chemical, biological and physical agents is to be identified, evaluated, and controlled. Engineering or administrative controls must be used to control overexposures. When hazards cannot be adequately controlled by such means, worker health is to be protected by appropriate personal protective equipment programs. Physically Demanding Work Worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing and highly repetitive or forceful assembly tasks is to be identified, evaluated and controlled. Machine Safeguarding Production and other machinery is to be evaluated for safety hazards. Physical guards, interlocks and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers. Sanitation, Food, and Housing Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories provided by the Supplier or labor agent are to be maintained clean and safe, and provided with appropriate emergency egress, hot water for bathing and showering, and adequate heat and ventilation and reasonable personal space along with reasonable entry and exit privileges.

2)

3)

4)

5)

6)

7)

Updated: January 10, 2011

Supplier Code of Conduct
C. ENVIRONMENTAL Suppliers recognize that environmental responsibility is integral to producing world class products. In manufacturing operations, adverse effects on the community, environment and natural resources are to be minimized while safeguarding the health and safety of the public. Recognized management systems such as ISO 14001, the Eco Management and Audit System (EMAS) were used as references in preparing the Code and may be a useful source of additional information. The environmental standards are: 1) Environmental Permits and Reporting All required environmental permits (e.g. discharge monitoring), approvals and registrations are to be obtained, maintained and kept current and their operational and reporting requirements are to be followed. Pollution Prevention and Resource Reduction Waste of all types, including water and energy, are to be reduced or eliminated at the source or by practices such as modifying production, maintenance and facility processes, materials substitution, conservation, recycling and re-using materials. Hazardous Substances Chemical and other materials posing a hazard if released to the environment are to be identified and managed to ensure their safe handling, movement, storage, use, recycling or reuse and disposal. Wastewater and Solid Waste Wastewater and solid waste generated from operations, industrial processes and sanitation facilities are to be characterized, monitored, controlled and treated as required prior to discharge or disposal. Air Emissions Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations are to be characterized, monitored, controlled and treated as required prior to discharge. Product Content Restrictions Suppliers are to adhere to all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances, including labeling for recycling and disposal.

2)

3)

4)

5)

6)

D. MANAGEMENT SYSTEM Suppliers shall adopt or establish a management system whose scope is related to the content of this Code. The management system shall be designed to ensure (a) compliance with applicable laws, regulations and customer requirements related to the Supplier’s operations and products; (b) conformance with this Code; and (c) identification and mitigation of operational risks related to this Code. It should also facilitate continual improvement. The management system should contain the following elements: 1) Company Commitment Corporate social and environmental responsibility policy statements affirming Supplier’s commitment to compliance and continual improvement,
Updated: January 10, 2011

Supplier Code of Conduct endorsed by executive management. 2) Management Accountability and Responsibility The Supplier clearly identifies company representative[s] responsible for ensuring implementation of the management systems and associated programs. Senior management reviews the status of the management system on a regular basis. Legal and Customer Requirements Identification, monitoring and understanding of applicable laws, regulations and customer requirements. Risk Assessment and Risk Management Process to identify the environmental, health and safety1 and labor practice and ethics risks associated with Supplier’s operations. Determination of the relative significance for each risk and implementation of appropriate procedural and physical controls to control the identified risks and ensure regulatory compliance.
1

3) 4)

Areas to be included in a risk assessment for environmental, health and safety are production areas, warehouse and storage facilities, plant/facilities support equipment, laboratories and test areas, sanitation facilities (bathrooms), kitchen/cafeteria and worker housing/dormitories. Improvement Objectives Written performance objectives, targets and implementation plans to improve the Supplier’s social and environmental performance, including a periodic assessment of Supplier’s performance in achieving those objectives. Training Programs for training managers and workers to implement Supplier’s policies, procedures and improvement objectives and to meet applicable legal and regulatory requirements. Communication Process for communicating clear and accurate information about Supplier’s policies, practices, expectations and performance to workers, suppliers and customers.

5)

6)

7)

8)

Worker Feedback and Participation Ongoing processes to assess employees’ understanding of and obtain feedback on practices and conditions covered by this Code and to foster continuous improvement. Audits and Assessments Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code and customer contractual requirements related to social and environmental responsibility. Corrective Action Process Process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations and reviews. Documentation and Records Creation and maintenance of documents and records to ensure regulatory compliance and conformity to company requirements along with appropriate confidentiality to protect privacy.

9)

10) 11)

Updated: January 10, 2011

Supplier Code of Conduct
E. ETHICS To meet social responsibilities and to achieve success in the marketplace, Suppliers and their agents are to uphold the highest standards of ethics including: 1) Business Integrity The highest standards of integrity are to be expected in all business interactions. Suppliers shall prohibit any and all forms of corruption, extortion and embezzlement. Monitoring and enforcement procedures shall be implemented to ensure conformance. No Improper Advantage Bribes or other means of obtaining undue or improper advantage are not to be offered or accepted. Disclosure of Information Information regarding business activities, structure, financial situation and performance is to be disclosed in accordance with applicable regulations and prevailing industry practices. Intellectual Property Intellectual property rights are to be respected; transfer of technology and know-how is to be done in a manner that protects intellectual property rights. Fair Business, Advertising and Competition Standards of fair business, advertising and competition are to be upheld. Appropriate means to safeguard customer information must be available. Protection of Identity Programs that ensure the confidentiality and protection of supplier and employee whistleblower2 are to be maintained. Whistleblower definition: Any person who makes a disclosure about improper conduct by an employee or officer of a company, or by a public official or official body.
2

2) 3)

4)

5)

6)

Updated: January 10, 2011

Supplier Code of Conduct
REFERENCES The following standards may be a useful source of additional information. ILO Code of Practice in Safety and Health www.ilo.org/public/english/protection/safework/cops/english/download/e000013.pdf National Fire Protection Agency www.nfpa.org/catalog/home/AboutNFPA/index.asp ILO International Labor Standards www.ilo.org/public/english/standards/norm/whatare/fundam/index.htm OECD Guidelines for Multinational Enterprises www.oecd.org United Nations Convention Against Corruption www.unodc.org/unodc/en/crime_convention_corruption.html United Nations Global Compact www.unglobalcompact.org Universal Declaration of Human Rights www.un.org/Overview/rights.html ISO 14001 www.iso.org SA 8000 www.cepaa.org/ SAI www.sa-intl.org Ethical Trading Initiative www.ethicaltrade.org/ OHSAS 18001 www.bsi-global.com/index.xalter Eco Management & Audit System www.quality.co.uk/emas.htm

Updated: January 10, 2011

Similar Documents

Premium Essay

Strategic-Management

...FACULTY OF BUSINESS MANAGEMENT MGT 790 STRATEGIC MANAGEMENT Course Outline 2011 Course Prescription Strategic Management is the process and practice of managerial decision making and implementation that seeks to create and maintain competitive advantage. In essence it determines the long term performance of a business and as such is the role of the senior executive members to refine but the responsibility of all to roll out. Included in the process is comprehensive environmental scanning, strategy formulation (strategic planning), strategy implementation, and monitoring. Students in this course will review how the strategic decision makers within an organisation first identify, define and analyse commercial problems and then develop practical and ethical solutions. It provides a practical guide for, and an initial experience in, strategy formulation and strategic management. Class time will be largely spent in lecture, discussion, case studies and experiential exercises. Students will learn from the theoretical literature, instructor, case studies, videos, research presentations, and from each other. The course materials explain and describe the different aspects, challenges, and stages of strategic management simply and clearly. Goals of the Course To examine and understand the nature and role of strategy, strategic management and strategic leadership within an organization. Learning Outcomes 1. To develop skills in strategic analysis, development...

Words: 1985 - Pages: 8

Premium Essay

Strategic Management

...Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.[1] It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes not only the management team but can...

Words: 7313 - Pages: 30

Premium Essay

Strategic Management

...1.0 WHAT ARE THE ELEMENTS OF STRATEGIC MANAGEMENT? Strategic management consists of the analyses, decisions and actions an organization undertakes in order to create and sustain competitive advantages. The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan. Situation Analysis The situation analysis provides the information necessary to create a company mission statement. Situation analysis involves "scanning and evaluating the organizational context, the external environment, and the organizational environment" (Coulter, 2005). This analysis can be performed using several techniques. Observation and communication are two very effective methods. To begin this process, organizations should observe the internal company environment. This includes employee interaction with other employees, employee interaction with management, manager interaction with other managers, and management interaction with shareholders. In addition, discussions, interviews, and surveys can be used to analyse the internal environment. Organizations also need to analyse the external environment. This would include customers, suppliers, creditors, and competitors. Several questions can be asked which may help analyse the external environment. It examines the company’s relationship with its customers and...

Words: 2003 - Pages: 9

Premium Essay

Strategic Management

...Strategic Management & Business Policy, 13e (Wheelen/Hunger) Chapter 1 Basic Concepts in Strategic Management 1) Strategic management is one decision that determines the short-term performance of a corporation. Answer: FALSE Diff: 1 Page Ref: 5 Topic: The Study of Strategic Management 2) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Diff: 2 Page Ref: 5 Topic: The Study of Strategic Management 3) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Diff: 1 Page Ref: 6 Topic: The Study of Strategic Management 4) One of the benefits of strategic management is a clearer sense of vision for the firm. Answer: TRUE Diff: 2 Page Ref: 6 Topic: The Study of Strategic Management 5) To be effective, strategic management must be a formal process. Answer: FALSE Diff: 3 Page Ref: 7 Topic: The Study of Strategic Management 6) Globalization is the internationalization of markets and corporations. Answer: TRUE Diff: 1 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management 7) As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage. Answer: FALSE Diff: 2 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management ...

Words: 5592 - Pages: 23

Premium Essay

Strategic Management

...Strategic Management Process MGT/498 ROLANDO ESPIRITU September 1, 2014 Strategic Management process is used to define a process by which the management team sets up a strategy to perform better among its competitors. The strategic management process is comprised of four phases. These phase assist a business with the development of a process that will enable them to aggressively compete with the competition within a given market. The four phase are 1) Basic Financial Planning, 2) Forecast Based Planning, 3) Externally Oriented Planning, and 4) Strategic Management (Wheelen & Hunger, 2010). Basic Financial Planning consists of managers putting of activities for weeks while the planning process is place to gather ideas to be used within a proposed budget. An evaluation is completed based on historic sales figures as well as the current environmental information. The budget is a short term budget used to get through one year of planning. Forecasting Based Planning, or long term planning, consists of budgets being created that expand for three to five years. This requires extensive planning based off current market information and stretched out over a given future time period. Many endless meetings take place in order to balance out the budget. Externally Oriented Planning is the stage where the top management takes over the planning. The budget is handed off and re-evaluated. The budget is scrutinized by top management officials that is often re-evaluated by an outside...

Words: 705 - Pages: 3

Premium Essay

Strategic Management

...Essentials of Strategic Management Authors: David Hunger & Thomas. L. Wheelen Book Review by Asik Kathwala © www.hrfolks.com All Rights Reserved 1 The Essentials of Strategic Management “The Essentials of Strategic Management” provides us with a short, concise explanation of the most important concepts and techniques in strategic management. It is a rigorous explanation of many topics and concerns in strategic management. These concepts are clearly explained by citing various examples. Precisely the book deals with the following. • A strategic decision-making model based on the underlying process of environmental scanning, strategy formation, strategy implementation and evaluation and control. • Michael Porter’s approach to industry analysis and competitive strategy • Functional analysis and functional strategies. R & D and R & D strategies which emphasize the importance of technology to strategy and product-market decisions. • Executive leadership and succession, reengineering, total quality management, MBO and action planning. • Social responsibility in terms of its importance to strategic decision making. © www.hrfolks.com All Rights Reserved 2 Basics concepts of strategic management The study of strategic management Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning)...

Words: 6642 - Pages: 27

Premium Essay

Strategic Management

...Elizabeth Huhn MGT/498-Strategic Management The Strategic Management Process Peter Braverso February 17, 2014 Strategic Management is necessary and integral part of every business, from small start-ups to large corporations. “Strategic management emphasizes long-term performance” (Wheelen & Hunger, 2010) There are different phases to the strategic management process. Phase one is the basic financial planning, which consists of planning out the following year's budget. Phase two is forecast-based planning which may include a five-year plan and environmental data. Phase three is focused on external concerns; “...seeks to increase responsiveness to changing markets and competition by thinking strategically.” (Wheelen & Hunger, 2010) Outside consultants may be used in this phase of the strategic process. All of these phases contribute to a smoother running organization and emphasize communication and clear roles within the organization. “...The real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process than in any resulting written strategic plan.” Starbucks Coffee Company is a prime example of effective strategic planning. Starbucks has a longer list of strengths than weaknesses, although a longer list of threats than opportunities, there is awareness of these threats. Among its strengths, sound financial records tops the list, followed by being the...

Words: 686 - Pages: 3

Premium Essay

Strategic Management

...Strategic Management-2 Case Study Synopsis Of Case:-1) Competitive Advantage in new patent regime 2) Strategic leadership and competitive advantage 1) Competitive Advantage in New Patent Regime: A Study of the Indian Pharmaceutical Industry In the global business environment, traditional factors e.g labour costs and superior access to financial recourses and raw materials can still create a competitive advantage in the current competitive landscape. In the current landscape, the recourses, capabilities and the core competencies in the firm’s internal organization likely have a stronger influence on its performance than do conditions in the external environment. The IPI is one of the largest and most advanced among the developing countries. It is the 4th largest by volume i.e. around 8 percent and 11th largest in terms of value i.e. around 1.5 percent. The Indian pharmaceutical industry is a heterogeneous mixture of firms split between the organized and unorganized sectors. The control and support of the Indian government plays a critical role in the competitiveness of the IPI. According to Sampath (2006), areas of government support critical to the IPI include speed of processing of patent applications, R&D conducive environment, and reduced price Control, access of land for expansion and the patent amendment act, 2005. The government can also help increase the potential of the nascent venture capital industry in India, with an emphasis...

Words: 1714 - Pages: 7

Premium Essay

Strategic Management

...external dimensions of the SPACE Matrix? a. b. c. d. e. Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength 6. In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. b. c. d. e. A strong industry An unstable environment A stable environment A weak industry A weak financial position 7. Selling all of a company’s assets in parts for their tangible worth is called a. Joint venture. b. Divestiture. c. Concentric diversification. d. Liquidation. e. Unrelated integration 8. Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. b. Stage 1 Stage 2 c. d. e. Stage 3 Stage 4 Stage 5 9. 10. Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. Backward integration b. c. b. c. Divestiture Forward integration Cost leadership Related diversification 11. What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. e. Competitive Profile Matrix Internal-External Matrix SPACE Matrix Grand Strategy Matrix QSPM. 12. Which of the following is not true about objectives? a. b. c. d. e. They should be communicated throughout the organization. They should have an appropriate time dimension. They should incorporate...

Words: 4249 - Pages: 17

Premium Essay

Strategic Management

...“Consultant Report On United Breweries Limited ” Student Name: Gangadharan Renganathan Student Id Course Subject : 1229047 : Master of Business Administration : Strategic Management Submitted To: William Naylor Table of Contents Introduction: ........................................................................................................................ 3 Objectives: ............................................................................................................................. 3 Recommendations: ............................................................................................................ 4 Prior Recommendation for future development: ................................................... 7 Conclusion: ............................................................................................................................ 7 Reference: ............................................................................................................................. 7 Appendix: .............................................................................................................................. 9 Introduction: United Breweries was founded on early 19th century. This group is operating more than 100 years. A Scotsman, Thomas Leishman in 1857, founded UB GROUP. He started this business as a big producer of beer from a south Indian based British Breweries. Thomas Leishman was founded the United Breweries Limited (UBL) on15th March...

Words: 2195 - Pages: 9

Premium Essay

Strategic Management

...SUMMARY 1. Firms use SMP to achieve strategic competitiveness(SC) & earn above average returns(AAR). -SC is achieved when firms develops & implements a value-creating strategy. -AAR provide the foundation needed in order to satisfy all of the firm’s stakeholders. 2. Since the nature of competition is different in the current competitive landscape, those making strategic decisions must adopt a different mind-set, which allows them to learn how to compete in highly turbulent & chaotic(disorganized) environments that produce a great deal of uncertainty. The globalization of industries in their markets and rapid & significant technological changes are the two primary factors that contribute to the turbulence (instability) of the competitive landscape. 3. Firms use 2 major models to help develop their vision & mission and then choose 1 or more strategies in pursuit of SC and AAR. (i) Industrial Organization (I/O) Model, assumptions: - firm’s external environment has large influence on the choice of strategies > do the firm’s internal resources, capabilities and core competencies. - thus, it used to understand the effects an industry’s characteristic can have on a firm when deciding what strategy or strategies with which to compete against rivals. - ARR are earned when the firms locates attractive industry or part of an industry and successfully implements the strategy dictated by the industry’s characteristics. (ii) Resource-Based model, assumptions: ...

Words: 655 - Pages: 3

Premium Essay

Strategic Management

...Strategic Management - Exam Three Study Guide Corporate Level Strategy Part I. Chapters 13 & 15 (pages 392-404, 450-459, 461-464) 1. Benefits and Costs of Concentration A. Benefits (Advantages): 1) Firms can master one industry environment (top managers acquire an in-depth knowledge of the industry) 2) All resources are put back into the business (creates sustainable competitive advantage) 3) There are typically lower overhead costs and fewer “layers” in the organization which leads to reduced “bureaucratic costs” B. Costs (Disadvantages): 1) There is a total dependency on the industry (the firm has all its eggs in one basket) 2) Firms tend to develop a “myopic” view and management doesn’t see change coming and therefore is unable to change when times get tough 3) Top managers are not challenged and may become bored and stagnant 4) The firm misses opportunities to leverage resources and capabilities in an area outside of the industry that may be more profitable 2. Vertical Integration A. What is vertical integration? Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers. Typically a firm does not vertically integrate unless by doing so it can either cut costs or create a differentiation advantage. B. What are the pros (benefits) and cons (drawbacks) of vertical integration? Benefits of Vertical Integration: 1) ...

Words: 2935 - Pages: 12

Free Essay

Strategic Management

...JESSLYNE (090503322) STRATEGIC MANAGEMENT ASSIGNMENT NOKIA CASE STUDY JESSLYNE (090503322) STRATEGIC MANAGEMENT ASSIGNMENT NOKIA CASE STUDY SUMMARY Nokia, once a world leader in wireless telecommunications, has lost nearly 39% of its market share to its competitors and in some instances to no name companies. In 80s and 90s Nokia expanded through the acquisition of many other companies with various technologies. Due to this rapid expansion, Nokia lost focus of its ingenuity in wireless communications. However Nokia reorganized by selling most of its businesses which were not performing well and directed its focus once again to its wireless technologies. Acquisition of Sega in 2003 and then merger with Siemens AB in 2006 put Nokia once again in a place where it could compete its rivals. RIM’s blackberry and Apple’s iPhone are the major rivals and have a large market share from business users and consumers. * According to Nokia’s business strategy; the winning strategy is based upon the following factors. Best mobile devices regardless the price and geographical location * Provide extensive internet solutions on mobile devices * Enter into the markets by providing business mobility solutions to the corporate users Analysis: I believe that Nokia’s strategy is a winning strategy for the following reasons: * Business solutions: Innovative Business mobility solutions will attract the corporate users, since Nokia devices are based upon a very stable...

Words: 408 - Pages: 2

Premium Essay

Strategic Management

...Neil Ritson Strategic Management Download free ebooks at bookboon.com 2 Strategic Management Strategic Management © 2011 Neil Ritson & Ventus Publishing ApS ISBN 978-87-7681-417-5 Download free ebooks at bookboon.com 3 Strategic Management Contents 1 Introduction 7 2 The Basis of Strategy: Structure 8 2.1 Introduction –definition ‘Structure’ is the allocation and control of work tasks 8 2.2 Functional Structure 8 2.3 Divisional structure 10 2.4 Product structure 11 2.5 Geographical structure 12 2.6 Matrix structure 12 2.7 Complex forms of organisation 14 3 The Levels and Formulation of Strategy 17 3.1 Introduction - definition 17 3.2 Process of strategy 17 3.3 Levels of strategy 19 3.4 Types of Strategy 19 3.5 Other Types of Strategic formulation 22 4 Schools of Strategy 24 4.1 Introduction - Definition - there are three ‘schools’ of strategy 24 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines, London Business School’s Masters in Management provides specific and tangible foundations for a successful career in business. This 12-month, full-time programme is a business qualification with impact. In 2010, our MiM employment rate was 95% within 3 months of graduation*; the majority of graduates...

Words: 11961 - Pages: 48

Free Essay

Strategic Management

...BUSI 1317: Srategic management | Lincoln Electric | The Welding Industry’s Titan | | | | 1st December, 2014 ABSTRACT The purpose of this paper is to analyze Lincoln Electric’s overall strategy and business model and evaluate how generalizable is the company’s business model in other industries, specifically focusing on feasible strategies for one of the fastest developing country, India. | Contents Lincoln Electric’s Background 2 Recent Reporting 2 Main Features of the Lincoln Electric Business Model 2 Company Philosophy 2 Overall Strategy 3 Compensation, Leadership and Communication 3 How generalizable is Lincoln Business Model to other industries? 4 How generalizable is the Lincoln’s approach to India? 5 Employment System 5 Incentive System 6 Conclusion 6 Appendices 7 Exhibit 1: Hofstede's Dimensions Comparison - India & USA 7 Exhibit 2: India and U.S GDP Comparison 7 Bibliography 8 Lincoln Electric’s Background Lincoln Electric Company is the largest manufacturer of welding equipment in the world and has been in existence for over 100 years since 1895. The founder, John C. Lincoln started the business selling his own designed electric motors with the $200 he made from redesigning Herbert Henry Dow’s engine (Paul F. Buller, 2006). The company grew steadily, and in 1906 sales rise to $50,000 a year. John expanded his work force and in 1907, his brother, James F. Lincoln joined the company as a senior manager and introduced...

Words: 2042 - Pages: 9