Creative Writing On Global Economics

Type of paper: Creative Writing

Topic: Company, Business, Firm, Strategy, Competition, Education, Advantage, Students

Pages: 6

Words: 1650

Published: 2020/12/29

Chapter 1

Discussion question 1.1
Although business model and business strategy might look similar, they are different. From the definition perspective, business strategies are the efforts engaged by the business aimed at gaining the competitive advantage. The business strategy, therefore, enables the company to focus on the competitors, customers, and the market environment to enhance competition. On the other hand, business model described various business components such as the benefit derived from the customers, the market segment, and the process of bringing the services and products into the market. According to Teece (2010, p.173) business model is “a conceptual, rather than a financial, model of a business.” The fundamental difference is that the business model is independent of the current market and the competitor contrary to business strategy. However, the both terms are similar because they are essential elements in the planning phase of business’s lifecycle. Both business strategy and business model look toward the future of the company (Teece 2010).

Discussion Question 1.2

Crowdsourcing is a common term in the contemporary market that enabled the firm to get funding or work done by a large group of people who have a variety of ideas and skills on the online environment (Idea, 2013). Therefore, Dell is keen on offering this service because it provides a variety of new options that while enhancing cost effectiveness. In addition, this strategy will allow Dell to leverage the resources and creativity of the audience in growing and promoting content of their product for free.
Other firms that are utilizing the crowdsourcing technique include Lego Company, Phillips, Company, Samsung Company, and the U.S Army. These firms are applying the crowdsourcing techniques to maximize revenue as well as improving the competitive advantage. Together with the Japanese partner, the Lego Company has ventured into the crowdsourcing to maintain substantial internal open innovation strategy. Phillips has also established a Simplyinnovate website that aims to source new ideas through outsourcing. Samsung has partnered with Marbles to enhance flexibility of innovation solution for their products. The U.S. Army has also established a website that aims to capture the open-called project ideas related to its purpose.
In the future, other companies are anticipated to engage in this model as the technology continued to advance. The technique will be effective in fields such as real-time crowdsourcing, offline crowdsourcing, and skilled crowdsourcing. In the scientific research, the outsourcing is anticipated to help the researcher to gather answers to their question through the online platform. In addition, the music industry is anticipated to embrace this technique. Musicians will be able to post their materials, and this will allow labels to gain new skilled and talented performers.

Discussion Question 1.3

On one hand, the Firm effects involve the outcomes of manager’s actions that influences the performance of the business. On the other hand, the industry effects are the outcomes associated tit the choice made by the industry to compete. Firm effect is more essential to the performance of the firm compared to the industry effects because they have direct effects. For instance, through firm effects, the manager can formulate a strategy that address the externalities, and convert them into the area of opportunity. Therefore, because the firm effects allow the manager to assess the external environment and industry threat and develop a strategy to counter them it would be unusual for industry effects to dominate firm effects.

Chapter 2

Discussion Question 2.1
An effective mission statement should in a position to describe the overall purpose of the business, as well as defining the fundamental measures undertaken to achieve success. The target audience of the mission statement is the internal audience that involve organization’s leadership, employees, and the stockholders. An effective mission should incorporate the purpose and the values of the organization, its main stakeholders, and its commitment to these stakeholders. Example of the values in the mission statement include eco-consciousness, customer services, and efficiency, which are outlined in the company values list. In addition, the effective mission statement should define the strategic position of the business in the market. Significantly, effective mission statement should reflect the business image of the organization by establishing the main features of the company. The mission statement should also provide the description of the vital technology that the company intends to employ or the one existing in the company (Analoui & Karami, 2003).

Chapter 3

Discussion Question 3.1
It is significant to study and understand the organization’s external environment because it is a crucial element that affects the success of the organization. Understanding the external environment helps “the management in planning the organization’s future course of action” (Analoui & Karami, 2003, p.68). The managers are, therefore, able to mitigate risks and threats and leverage opportunities that are involved in the major macro-level external factors. Since, there is no organization is independent of the external environment it is essential to understand it and determine the inhibiting and facilitating influences that may affect the business performance. Understanding such forces can help the managers in the organization to formulate effective strategies that can mitigate the inhibiting external factors and take advantage of the facilitating factors. For instance, managers should be aware of the new competitors in the market so that they can determine the effective measures to maintain the competitive advantage. Therefore, studying and understanding the external environment is not only important but also necessary for the organization (Analoui & Karami, 2003).

Discussion Question 3.2

According to Michael Porter, there are five main forces that affect the business and the industry at large. The strategic businesses seek to acquire a competitive edge over the rivalries by understanding these forces in the market that the firm operates (Analoui & Karami, 2003). These forces include threat of substitutes, supplier power, and the threat of new entrants, buyer power, and degree of rivalry. Strong forces are associated with lower potential profitability of the company in some instance. For example, when the buyer and suppliers have stronger bargaining power, the firms in the industry cannot adjust prices to favor their profits. Contrary. When these forces are weak, the industry has high chances of exploiting the suppliers and buyer through pricing. In addition, when the forces such as threat of substitutes and threat of entry are weak, the industry is anticipated to make lower profits. This is because the availability of substitutes and new entrants into the market enhances competition (Analoui & Karami, 2003). Some of the firms may compete with pricing strategy which may consequently low the industry profitability.

Chapter 4

Discussion Question 4.1
The internal resources, activities and capabilities of the firm are essential elements and foundation of the competitive advantage of the firm. Therefore, in order to attain a sustainable competitive advantage, the managers of the business should be in a position to effectively understand these elements. Resources are tangible and intangible items, such as facilities, equipment, and formal reporting structures among others (Analoui & Karami, 2003). Therefore, understanding these items help the manager to build the organization capabilities. Capabilities are the organization’s core competencies that form the basic framework for competitive advantage. The competencies include trusts, skills, knowledge, brand name, innovation, reputation and capabilities among others. Therefore, understanding the firm’s competencies would significantly help the organization determine their strength and weakness and subsequently formulate effective measures.

Discussion Question 4.2

The dynamic capabilities “includes the capacity with which to identify the need or opportunity for change, formulate a response to such a need or opportunity, and implement a course of action. (Helfat et al. 2007, p.2) To be specific, the dynamic capabilities are defined as intangible resources that facilitates the firm’s ability to remain competitive and updated in the changing marketplace. Some of the IBM capabilities include skills, knowledge, and innovation through its employees. As a result, these capabilities had enabled the company to move from providing the computer hardware to the technological services. The employees have proficient knowledge of the computer software and hardware, which is combined with the innovation to produce competitive advantage of the IBM. NCR, which was formerly known as National Cash Register, is another example of the firms that have made a successful transition into another market venture through dynamic capabilities.

Discussion Question 4.3

In order to identify the firm’s core competencies, the resource-based approach is evaluated. For this reason, the resources must satisfy the attributes of VRIO framework in order to achieve the competitive advantage. The VRIO framework ensures that the firm’s resources are Valuable, Rare, Costly to imitate, and organized to reflect the value of the resources. These measures are interrelated because they are accumulative in nature. This implies that, for a resource to be rare, it must be valuable, costly to imitate, and organized to reflect the value of the resources. Therefore, for a firm to acquire competitive advantage, the resource should satisfy all the measure in this framework. Failure to meet one of the measures implies that the firm’s core competencies are yet to be effective enough to enhance the competitive advantage of the firm. Thus, managers are responsible for ensuring that firm’s resources meet the VRIO measures in order to achieve sustainable competitive advantage.

Chapter 5

Small Group Exercise 5.1
In order to determine the performance of the firm, the balanced scorecard is utilized. This is a strategic implementation device that evaluates the external and internal performance metric with an aim of balancing the strategic and financial goals (Analoui & Karami, 2003). The balanced score card is created to answer questions such as; How do customers view us? How do we create value? What core competencies do we need? How do shareholders view us? Therefore, in order to determine the perceived value of the firm, such questions must be answered.
The first question can be answered after determining the firm’s customers. In the case of Liberty University, the main customers are student seeking the educational services. According to the university website, it is evident that the student are confident with the university commitment on “Training Champions for Christ.” In addition, students appreciated university values such as high-quality and affordable service (Liberty University, 2015).
The core competency of the Liberty University is skilled and knowledgeable employees that offer Christ-centered high education. The shareholders such as board members, directors and owners have confidence in the university too. However, comparing to the customers, the shareholders view the university with greater focus on various areas, which anticipated achieving the success of the university.

Small Group Exercise 5.2

Practically all of the profitability ratios above indicate that Best Buy was in a better position than Circuit City in 2007

References

Analoui, F., & Karami, A. (2003). Strategic management in small and medium enterprises. Australia: Thomson Learning.
Helfat, C. E., Finkelstein, S., Peteraf, M., Singh, H., Teece, D., Winter, S. G., & Mitchell, W. (2007). Dynamic capabilities: Understanding strategic change in organizations. Malden, MA: John Wiley & Sons.
Idea. (2013, January 19). IDEA » What is Crowdsourcing? And how does it apply to outreach? Retrieved from http://www.idea.org/blog/2013/02/19/what-is-crowdsourcing-and-how-does-it-apply-to-outreach/
Liberty University. (2015). About Liberty | Official Page |. Retrieved from http://www.liberty.edu/aboutliberty/
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194.

Cite this page
Choose cite format:
  • APA
  • MLA
  • Harvard
  • Vancouver
  • Chicago
  • ASA
  • IEEE
  • AMA
WePapers. (2020, December, 29) Creative Writing On Global Economics. Retrieved May 18, 2022, from https://www.wepapers.com/samples/creative-writing-on-global-economics/
"Creative Writing On Global Economics." WePapers, 29 Dec. 2020, https://www.wepapers.com/samples/creative-writing-on-global-economics/. Accessed 18 May 2022.
WePapers. 2020. Creative Writing On Global Economics., viewed May 18 2022, <https://www.wepapers.com/samples/creative-writing-on-global-economics/>
WePapers. Creative Writing On Global Economics. [Internet]. December 2020. [Accessed May 18, 2022]. Available from: https://www.wepapers.com/samples/creative-writing-on-global-economics/
"Creative Writing On Global Economics." WePapers, Dec 29, 2020. Accessed May 18, 2022. https://www.wepapers.com/samples/creative-writing-on-global-economics/
WePapers. 2020. "Creative Writing On Global Economics." Free Essay Examples - WePapers.com. Retrieved May 18, 2022. (https://www.wepapers.com/samples/creative-writing-on-global-economics/).
"Creative Writing On Global Economics," Free Essay Examples - WePapers.com, 29-Dec-2020. [Online]. Available: https://www.wepapers.com/samples/creative-writing-on-global-economics/. [Accessed: 18-May-2022].
Creative Writing On Global Economics. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/creative-writing-on-global-economics/. Published Dec 29, 2020. Accessed May 18, 2022.
Copy

Share with friends using:

Please remember that this paper is open-access and other students can use it too.

If you need an original paper created exclusively for you, hire one of our brilliant writers!

GET UNIQUE PAPER
Related Premium Essays
Contact us
Chat now