Basic Concepts Of Strategic Management Chapter 1 Learning Ob

Basic Concepts Of Strategicmanagementchapter 1learning Objectivesund

After reading the chapter on strategic management, you are asked to analyze the strategic decision-making process and an ethical situation involving a company from the past year. Your response should include a discussion on which of the eight steps in the strategic decision-making process you believe is most critical for a firm's competitive success, with a minimum of 250 words. Subsequently, you should describe an ethical issue faced by a company in the past year, evaluate the company's response, and state whether you agree with their handling, also in 250 words. All work must be original, formatted following APA style, and include appropriate references and in-text citations.

Paper For Above instruction

The strategic management process is integral to a firm's ability to sustain competitive advantage in dynamic market environments. Among its eight steps, I believe that the evaluation and control phase is the most vital for achieving long-term success. This step involves continuous monitoring of actual performance against strategic objectives and making necessary adjustments to strategies or operations. In a highly competitive landscape, ability to detect deviations early enables firms to adapt swiftly, thus maintaining relevance and competitiveness. For example, during the rapid technological changes in the smartphone industry, companies like Apple and Samsung rely heavily on rigorous performance evaluation to inform timely strategic adjustments, such as product development or marketing approaches. This constant oversight fosters agility, helping companies respond to external threats and capitalize on emerging opportunities (Hitt, Ireland, & Hoskisson, 2020). Without systematic evaluation, even well-formulated strategies may falter due to unforeseen internal or external challenges. Therefore, I consider evaluation and control the cornerstone of effective strategic management because it ensures that strategies are not static but evolve with changing circumstances to sustain competitive advantage.

An ethical situation from the past year involved the ride-sharing company Uber. Reports surfaced alleging Uber's use of a secret software tool called "Greyball" to evade regulatory authorities, especially in cities where its services faced restrictions or bans. The ethical issue centered on deception and potentially illegal activities aimed at avoiding regulatory oversight (Isaac, 2017). Uber's handling of this controversy received mixed reviews; the company initially minimized the scope of the issue but later publicly apologized and committed to transparency and improving compliance measures. I believe Uber's response was somewhat inadequate initially because ethical leadership requires proactive transparency rather than reactive damage control. Ethical decision-making necessitates that organizations prioritize integrity over short-term gains, such as market expansion or competitive advantage (Ferrell, Fraedrich & Ferrell, 2021). By initially concealing software tools used for evasion, Uber risked damaging its reputation, alienating stakeholders, and facing higher regulatory sanctions. A more ethically sound approach would have involved transparent acknowledgment of the practices and a commitment to ethical standards from the outset. Although their subsequent remorse and policy changes were steps in the right direction, the initial response highlighted gaps in ethical oversight. Therefore, I believe that ethical handling needs to be proactive rather than reactive to preserve organizational integrity and stakeholder trust.

References

• Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2021). Business Ethics: Ethical Decision Making & Cases (12th ed.). Cengage Learning.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases (13th ed.). Cengage Learning.
• Isaac, M. (2017). Uber Used Software to Deceive Police, Report Says. The New York Times. https://www.nytimes.com/2017/05/30/technology/uber-greyball-evade-police.html