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QUESTION NO 1:

What skills should a person have for managing a business unit following a
differentiation strategy? Why? What should a company do if no one is available
internally and the company has a policy of promotion from with in?

ANSWER:

American writer on business management practices tom peters said that

"Don't forget that it (your product or service) is not differentiated until the
customer understands the difference."

Managing a business unit with differentiation strategy require entrepreneurial
leadership. In differentiation strategy a man to shape the game instead of playing by the
rules. Its is important the person who is managing the business unit with differentiation
strategy must be have high internal locus of control and have high experience in
research and development. Person must be having sharp and innovative mind. Person
must train their employees, so they can understand the needs of the customers.

I think in the situation when no one is available internally than the company should
reconsider the policy and exemption made and go for external hiring or before
promoting his own there is need to train that person.

QUESTION NO 2:

When should someone from outside the company be hired to manage the
company or one of its business units?

ANSWER:

It becomes necessary to hire some one from outside when companies find themselves
with employees who have the burn out factor or some times they are know as “dead
wood”. It is a good idea to get rid of such employees. By external hiring there is chance
to provide a business with an opportunity of new experience and ideas. Some time a
company can go for outside hiring in order to hire a person who is working for some
other company and the person is very talented and you want him to be part of your
company.

CHAPTER 9 STRATEGY IMPLEMENTATION: STAFFING AND DIRECTING

QUESTION NO 3:

What are some ways to implement a retrenchment strategy without creating a lot
of resentment and conflict with labor unions?

ANSWER:

It is wrong concept that by retrenchment mean down sizing in number of employees. If
you just focus on employees in retrenchment than it will create a lot of resentment and
conflict between management and labor unions. In order to avoid this resentment and
conflicts following steps should be helpful.

 Eliminate unnecessary work instead of making across-the-board cuts
 Contract out work that others can do cheaper
 Plan for long-run efficiencies
 Communicate the reasons for actions
 Invest in the remaining employees
 Develop value-added jobs to balance out job elimination

Question No 4:

How can corporate cultural be changed?

ANSWER:

Top management must be committed to a culture change and communicate that
commitment to everyone in the organization. The new culture must be part of a
"strategic vision" which can capture the emotions of the employees. A series of
programs need to be established to move the corporation from one culture to another
and a strong reasons given to justify such culture change. Progress toward the goal
must be measured at intervals and results communicated widely. A system of
incentives also must be developed to reward those who support and encourage the
culture change.


QUESTION NO 5:

Why is an understanding of national cultures important in strategic management?

ANSWER:

It is very important in all aspects of strategic management to understand the different
national cultures. After the globalization and international trade, knowledge of national
cultures is important to environmental scanning. For success of business in any part of
world not only depend on scanning the key forces in one’s industry but also different
societal forces in that part of world where the company will start business.
Understanding the national cultures also important for formulation of strategy. It is also
important to understand national cultures when you are working with different peoples
from different cultures.


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Policy 1

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