Chapter1

Review
1.
The three basic levels of management in most organizations are top-level management,
middle-level management, and lower-level management. The lines differentiating these levels
can vary depending on the organization, but generally, top-level management is responsible
for setting the overall direction and strategy of the organization, middle-level management is
responsible for implementing the strategy and managing the day-to-day operations, and
lower-level management is responsible for supervising employees and ensuring that tasks are
completed efficiently.
Managers work in a variety of areas, including finance, marketing, human resources,
operations, and more. The specific area in which a manager works will depend on their role
and the needs of the organization.
2.
The four basic functions that make up the management process are planning, organizing,
leading, and controlling. These functions are interrelated and interdependent, and they are all
necessary for effective management.

Planning involves setting goals and objectives, developing strategies to achieve them, and
creating plans to guide the organization towards success. Organizing involves arranging
resources, such as people, materials, and equipment, to achieve the goals and objectives set
during the planning process. Leading involves motivating and directing employees to work
towards the goals and objectives set during the planning process. Controlling involves
monitoring progress towards the goals and objectives, making adjustments as necessary, and
ensuring that the organization is on track to achieve success.

All four functions are necessary for effective management because they work together to
ensure that the organization is moving in the right direction, using its resources effectively,
and achieving its goals and objectives. Planning sets the direction, organizing provides the
resources, leading motivates and directs employees, and controlling ensures that progress is
being made and adjustments are made as necessary.
3.
Several important skills that help managers succeed include:

1. Communication: The ability to effectively communicate with employees, customers,

and stakeholders is crucial for managers. For example, a manager who can clearly
 communicate expectations to their team and provide feedback on their performance is
more likely to achieve success.

2. Leadership: Managers need to be able to inspire and motivate their team to achieve
their goals. For example, a manager who can lead by example and set a positive tone
for their team is more likely to achieve success.

3. Problem-solving: Managers need to be able to identify and solve problems that arise
in the workplace. For example, a manager who can quickly identify and address a
production issue is more likely to achieve success.

4. Time management: Managers need to be able to effectively manage their time and
prioritize tasks. For example, a manager who can balance their workload and delegate
tasks to their team is more likely to achieve success.

The importance of different skills may vary by level and area within an organization. For
example, a manager at the executive level may need to have strong strategic planning skills,
while a manager at the operational level may need to have strong problem-solving skills.
Additionally, the importance of skills may vary by area within an organization. For example,
a manager in marketing may need to have strong communication and creativity skills, while a
manager in finance may need to have strong analytical and financial skills.
4.
Scientific management and administrative management are two perspectives on management
that emerged in the early 20th century.

Scientific management, also known as Taylorism, was developed by Frederick Winslow

Taylor. The principles of scientific management include breaking down tasks into smaller,
simpler components, using time and motion studies to determine the most efficient way to
perform each task, and providing workers with training and incentives to increase
productivity. The assumption made by this perspective is that workers are motivated
primarily by financial incentives and that their work can be standardized and optimized for
efficiency.

Administrative management, developed by Henri Fayol, focuses on the overall management

of an organization. The principles of administrative management include planning,
organizing, commanding, coordinating, and controlling. The assumption made by this
perspective is that workers are rational and can be managed effectively through a hierarchical
structure.

To some extent, these assumptions are still valid today. Workers are still motivated by
financial incentives, and organizations still need to be managed effectively through planning,
organizing, and controlling. However, these perspectives have been criticized for their focus
on efficiency and control at the expense of worker autonomy and creativity. Today, many
organizations recognize the importance of empowering workers and fostering a positive work
culture to increase productivity and job satisfaction.
5.

The systems perspective is a way of looking at an organization as a complex system made up

of interdependent parts that work together to achieve a common goal. This perspective
emphasizes the importance of understanding the relationships between different parts of the
organization and how they interact with each other and with the external environment.

A business organization is considered an open system because it interacts with its external
environment in a variety of ways. It receives inputs from the environment, such as raw
materials, energy, and information, and transforms them into outputs, such as products or
services, that are then sent back out into the environment. The organization also interacts with
other organizations, customers, suppliers, and other stakeholders in the environment.

The open systems perspective recognizes that the success of an organization depends on its
ability to adapt to changes in the environment and to manage the complex relationships
between its different parts. This perspective also emphasizes the importance of feedback and
learning, as organizations must continually monitor and adjust their operations in response to
changes in the environment and to feedback from stakeholders.
Analysis
1.Recently participated in a group task in class to work on a project planning task. The group
comprised of five members and efficiently attained its purpose. Group members vividly
depicted managerial skills when working towards the goal. The managerial skills include:
· Planning – during our first meeting, the group met to share objectives, determine
resources needed and set out strategies to successfully work on the project. Before developing
necessary strategies, we outlined tasks, procedures and schedules required to perform the
assigned task.
· Communication – the group displayed great communication skills throughout the
project by duration. Our group leader created a group SMS feature to enable group
communication. In the group, he communicated to-do-list and group members updated their
progress in their delegated tasks and other matters in line with the group objective.
· Decision-making – the group members exercised collective decision-making in
selecting from alternative courses of action such as time duration for specific tasks, when to
meet, who becomes the group leader, task priority etc. While accomplishing the project. The
group leader exercised decision-making in picking the most befitting ideas for the project.
· Delegation – the group leader inclusively delegated all the responsibilities outlined in
the project plan to the various group members such as a network diagram, estimating time
and cost, research, coordination, scribing etc.
· Motivation – the group leader intrinsically motivated us to participate fully in group
activities by applying fairness and conducting team building games such as scavenger hunt in
between group meetings. There was also reward candy for the team that completed a task on
time.
· Problem-solving – the group members collectively tackled and solved the frequent
problems that arose in a typical group day. The group leader applied his problem-solving
skills in solving few conflicts that transpired between group members.
2.Question:
The text notes that management is both a science and art. Recall an interaction you have had
with a “superior” ( manager, teacher, group leader). In that interaction, how did the superior
use science? In that interaction, how did the superior use art?

Management:
Management refers to all the activities that are undertaken by business organizations in order
to manage the people of the organization effectively. With the help of management principles,
a manager is able to guide his fellow employees and motivate them to work hard.

Answer and Explanation:

A superior (manager) may refer to management as a science in the following manner:

He may say that there are certain rules that an employee needs to follow in the business
organization. He may refer to some principles that are universally accepted in all
organizations due to which management is treated as a science. These universally accepted
principles are unity of command, division of work, and others.
A superior (manager) may refer to management as art in the following manner:
He may tell employees to be creative in the performance, develop new and innovative
solutions to the given problems. A manager may tell his employees to make use of practical
knowledge, personal skills in order to be efficient.
3.. Let’s take the example of The Avengers movie and identify some management activities
and skills:

1. Leadership: The Avengers team is led by Nick Fury, who demonstrates strong
leadership skills throughout the movie. He is able to bring together a diverse group of
individuals with different skills and personalities and motivate them to work towards
a common goal.

2. Planning and Strategy: The Avengers team engages in extensive planning and strategy
sessions to determine how to defeat the villain, Loki. They analyze the strengths and
weaknesses of their team members and develop a plan that leverages each member’s
unique abilities.

3. Communication: Effective communication is critical for the success of the Avengers

team. They use various communication channels, including face-to-face meetings,
video conferencing, and radio communication, to stay connected and coordinate their
actions.

4. Problem-Solving: The Avengers team encounters several challenges throughout the

movie, and they use their problem-solving skills to overcome them. For example, they
develop a plan to close the portal that is allowing the alien invasion to occur.

5. Teamwork: The Avengers team is a prime example of effective teamwork. They work
together seamlessly, leveraging each other’s strengths and supporting each other when
needed.

6. Decision-Making: The Avengers team makes several critical decisions throughout the
movie, such as deciding to bring the Hulk onto the team and choosing to close the
portal. They use a combination of data analysis and intuition to make these decisions.
 7. Conflict Resolution: The Avengers team experiences some conflicts and
disagreements, but they are able to resolve them through open communication and
compromise.

Overall, The Avengers movie showcases several management activities and skills, including
leadership, planning and strategy, communication, problem-solving, teamwork, decision-
making, and conflict resolution.
4.
Young, innovative, or high-tech firms often adopt the strategy of ignoring history or
attempting to do something radically new. This strategy can both help and hinder their efforts
in various ways.
To summarize, adopting a strategy of ignoring history or attempting radical new approaches
can benefit young, innovative, or high-tech firms by promoting creative thinking and
enabling disruptive innovation.

One way this strategy can help these firms is by allowing them to break away from traditional
approaches and think outside the box. By ignoring history, they can avoid being limited by
outdated practices or preconceived notions.

This freedom can lead to innovative ideas and solutions that have the potential to disrupt
existing markets or create entirely new ones. For example, companies like Apple and Tesla
have revolutionized their respective industries by introducing groundbreaking products and
technologies that were not constrained by historical norms.

On the other hand, ignoring history and pursuing radical new ideas can also hinder these
firms’ efforts in some ways. By disregarding past experiences and lessons learned, they may
be prone to making avoidable mistakes or reinventing the wheel. This can result in wasted
resources, missed opportunities, and increased risks.

To summarize, adopting a strategy of ignoring history or attempting radical new approaches

can benefit young, innovative, or high-tech firms by promoting creative thinking and
enabling disruptive innovation.
However, it can also hinder their efforts by exposing them to avoidable risks and overlooking
valuable lessons from the past. It is important for these firms to strike a balance between
embracing new ideas and leveraging the wisdom of previous experiences.
5.Can a manager use tools and techniques from several different perspectives at the same
time?
Yes, a manager can definitely use tools and techniques from several different perspectives at
the same time. In fact, being able to draw from various perspectives and approaches can be a
valuable skill for a manager, especially in complex and dynamic environments.

For example, a manager might use tools and techniques from a strategic perspective to set
long-term goals and direction for the organization, while also employing tools from a human
resource perspective to effectively manage and develop the team. Additionally, they might
utilize tools from a financial perspective to ensure the organization’s financial health and
sustainability.

By integrating diverse tools and techniques from various perspectives, a manager can gain a
more comprehensive understanding of the organization and its challenges, and develop more
holistic and effective solutions. Flexibility and adaptability in applying different perspectives
can help a manager navigate different situations and achieve better outcomes.
Chapter2
Review
1.
Sure, I can do that. The general environment and the task environment are two important
components of the external environment that organizations operate in. Let’s discuss each
major dimension of these environments:

1. General Environment: The general environment consists of the broad external factors
that affect all organizations, regardless of their industry or size. The major dimensions
of the general environment are:

- Economic: This dimension includes factors such as inflation, interest rates,

and economic growth, which can impact an organization’s financial
performance.
 - Technological: This dimension includes factors such as new inventions,
innovations, and advancements in technology, which can create new
opportunities or threats for organizations.

- Sociocultural: This dimension includes factors such as demographics, cultural

norms, and social values, which can impact an organization’s products,
services, and marketing strategies.

- Political/Legal: This dimension includes factors such as government

regulations, laws, and political stability, which can impact an organization’s
operations and profitability.

- Environmental: This dimension includes factors such as climate change,

natural disasters, and sustainability, which can impact an organization’s
reputation and social responsibility.

2. Task Environment: The task environment consists of the specific external factors that
directly affect an organization’s operations and performance. The major dimensions of
the task environment are:

- Customers: This dimension includes factors such as customer needs,

preferences, and behaviors, which can impact an organization’s sales and
revenue.

- Competitors: This dimension includes factors such as the number and strength
of competitors, their strategies, and their market share, which can impact an
organization’s market position and profitability.

- Suppliers: This dimension includes factors such as the availability and cost of
raw materials, components, and other inputs, which can impact an
organization’s production costs and quality.
 - Regulators: This dimension includes factors such as government agencies,
industry associations, and other regulatory bodies, which can impact an
organization’s compliance requirements and operating costs.

- Partners: This dimension includes factors such as strategic alliances, joint

ventures, and other partnerships, which can impact an organization’s access to
resources, expertise, and markets.

In summary, the general environment and the task environment are two important
components of the external environment that organizations operate in. Understanding the
major dimensions of these environments can help organizations identify opportunities and
threats, and develop strategies to adapt to changing external conditions.
2.

Organizations are made up of individuals who have their own personal ethics and values.
However, organizations themselves do not have ethics in the same way that individuals do.
Instead, organizations can have a set of values, principles, and codes of conduct that guide
their actions and decision-making processes. These values and principles are often reflected
in the organization’s mission statement, vision statement, and corporate social responsibility
initiatives.

It is important for organizations to have a strong ethical culture and to promote ethical
behavior among their employees. This can help to build trust with stakeholders, enhance the
organization’s reputation, and reduce the risk of legal and financial penalties. However, it is
ultimately up to the individuals within the organization to uphold these values and principles
and to act in an ethical manner.
3.
The arguments for social responsibility on the part of businesses are:

1. Moral obligation: Businesses have a moral obligation to contribute to society and

address social and environmental issues.

2. Long-term benefits: Socially responsible businesses can benefit from increased

customer loyalty, improved reputation, and a more engaged workforce.
 3. Legal requirements: Some social and environmental issues are regulated by law, and
businesses have a legal obligation to comply with these regulations.

The arguments against social responsibility on the part of businesses are:

1. Profit maximization: The primary goal of a business is to maximize profits, and social
responsibility initiatives can be costly and detract from this goal.

2. Lack of expertise: Businesses may not have the expertise or resources to effectively
address social and environmental issues.

3. Shareholder interests: Businesses have a responsibility to their shareholders to

maximize profits, and social responsibility initiatives may not align with these
interests.

In my opinion, the arguments for social responsibility are more compelling. While businesses
do have a responsibility to their shareholders to maximize profits, they also have a
responsibility to contribute to society and address social and environmental issues. Socially
responsible businesses can benefit from increased customer loyalty, improved reputation, and
a more engaged workforce, which can ultimately lead to long-term profitability. Additionally,
businesses that ignore social and environmental issues may face legal and financial penalties,
as well as reputational damage.
4.
The basic levels of international business involvement are:

1. Exporting: This involves selling products or services to customers in another country.

It is the simplest and least risky form of international business involvement.

2. Licensing: This involves allowing another company in a foreign country to use a

firm’s intellectual property, such as patents, trademarks, or copyrights, in exchange
for a fee or royalty.
 3. Franchising: This involves allowing another company in a foreign country to use a
firm’s business model, brand, and operating system in exchange for a fee or royalty.

4. Joint ventures: This involves forming a partnership with a company in a foreign

country to jointly operate a business. Both parties contribute capital, expertise, and
resources to the venture.

5. Foreign direct investment: This involves establishing a wholly-owned subsidiary or

acquiring an existing company in a foreign country. This is the most complex and
risky form of international business involvement.

A firm might use more than one level of international business involvement at the same time
to diversify its risk and maximize its opportunities. For example, a firm might export its
products to a foreign country while also licensing its intellectual property to a local company.
Alternatively, a firm might establish a joint venture with a local company while also
acquiring a competitor in the same market through foreign direct investment. By using
multiple levels of international business involvement, a firm can leverage its strengths and
minimize its weaknesses in different markets and regions.
5.
There are several barriers to international trade, including:

1. Tariffs: These are taxes imposed on imported goods, making them more expensive
and less competitive in the domestic market.

2. Quotas: These are limits on the quantity of goods that can be imported into a country,
which can restrict competition and raise prices.

3. Embargoes: These are complete bans on trade with certain countries, usually for
political or security reasons.

4. Regulations: These are rules and standards that must be met in order to import or
export goods, which can create additional costs and administrative burdens.
 5. Cultural and language barriers: These can make it difficult to communicate and do
business with people from different cultures and countries.

6. Currency exchange rates: These can affect the cost of goods and services, making
them more or less expensive depending on the exchange rate.

Such barriers exist for a variety of reasons, including protecting domestic industries,
promoting national security, and addressing political or social concerns. Tariffs and quotas,
for example, are often used to protect domestic industries from foreign competition, while
embargoes are used to isolate countries that are seen as a threat to national security.
Regulations are often put in place to ensure that imported goods meet certain safety or
environmental standards, while cultural and language barriers can arise from differences in
customs and communication styles. Currency exchange rates are influenced by a variety of
factors, including economic conditions and government policies, and can affect the
competitiveness of goods and services in different markets. Overall, barriers to international
trade reflect the complex and often conflicting interests of different countries and
stakeholders, and can have significant impacts on global economic growth and development.
Analysis
1.
Yes, there are several dimensions of the task environment that are not discussed in this
chapter, including:

1. Technological environment: This includes the tools, techniques, and processes used to
create and distribute goods and services. The technological environment can have a
significant impact on the competitiveness of firms and industries, and can create new
opportunities and challenges for businesses.

2. Legal and regulatory environment: This includes the laws, regulations, and policies
that govern business activities, such as labor laws, environmental regulations, and tax
policies. The legal and regulatory environment can have a significant impact on the
operations and profitability of businesses, and can create barriers to entry for new
firms.
 3. Social and cultural environment: This includes the values, beliefs, and norms of the
society in which a business operates. The social and cultural environment can
influence consumer preferences, employee behavior, and business practices, and can
create opportunities and challenges for businesses.

4. Global environment: This includes the economic, political, and cultural factors that
affect business activities across national borders. The global environment can create
new markets and opportunities for businesses, but can also create significant
challenges related to cultural differences, political instability, and economic volatility.

These dimensions of the task environment are closely linked to those discussed in the chapter,
as they all influence the opportunities and challenges faced by businesses. For example,
technological innovations can create new markets and disrupt existing industries, while legal
and regulatory changes can create new compliance requirements and affect the profitability of
businesses. Similarly, social and cultural factors can influence consumer behavior and
employee attitudes, while the global environment can create new opportunities for
international trade and investment.
2.
The relationship between the law and ethical behavior is complex. While the law sets out a
minimum standard of behavior that is required of individuals and organizations, ethical
behavior goes beyond legal compliance and involves doing what is morally right and just.

In some cases, a behavior may be legal but unethical, such as exploiting a legal loophole to
avoid paying taxes. Conversely, a behavior may be ethical but illegal, such as breaking a law
to protect the safety of others in an emergency situation.

It is important to note that ethical behavior is not always easy to define, as different people
and cultures may have different values and beliefs about what is right and wrong. However,
ethical behavior is generally considered to involve treating others with respect, honesty, and
fairness, and acting in the best interests of society as a whole.

In summary, while the law sets out a minimum standard of behavior that is required of
individuals and organizations, ethical behavior involves doing what is morally right and just,
even if it goes beyond legal compliance. A behavior can be ethical but illegal, and vice versa,
depending on the specific circumstances and context.
4.
Industries that are heavily dependent on trade and have a global supply chain are likely to feel
the greatest impact of international business in the future. This includes industries such as
manufacturing, agriculture, and technology. However, other industries such as healthcare,
education, and government may also be affected as they increasingly rely on international
partnerships and collaborations.

It is unlikely that any industry will remain completely unaffected by globalization, as the
interconnectedness of the global economy means that even local businesses can be impacted
by international events. However, some industries may be less affected than others, such as
those that are highly regulated or have limited global competition.
5.
Organizational culture refers to the shared values, beliefs, attitudes, and behaviors that
characterize an organization. It can be difficult to define and measure, but it is important
because it shapes how employees interact with each other and with external stakeholders.

A positive organizational culture is one that fosters collaboration, innovation, and employee
engagement. It encourages open communication, recognizes and rewards employee
contributions, and promotes a sense of purpose and shared mission. A negative organizational
culture, on the other hand, can lead to low morale, high turnover, and poor performance. It
may be characterized by a lack of trust, poor communication, and a focus on individual goals
rather than the collective good.

Overall, a clear and positive organizational culture can be a key driver of success, while a
negative or unclear culture can hinder progress and lead to organizational dysfunction.
Chapter3
Review
1
Organizational goals are the desired outcomes that an organization aims to achieve. The
purpose of organizational goals is to provide direction and focus for the organization, to
motivate employees, and to measure progress and success.

There are two types of organizational goals: purpose goals and kinds of goals. Purpose goals
are the overall objectives that an organization wants to achieve, such as increasing
profitability, expanding market share, or improving customer satisfaction. These goals are
typically broad and long-term in nature, and they provide a sense of direction for the
organization.
Kinds of goals refer to the specific areas in which an organization wants to achieve its
purpose goals. For example, an organization may have marketing goals, financial goals,
operational goals, or human resources goals. These goals are more specific and measurable
than purpose goals, and they help to break down the overall objectives into manageable
pieces.

Overall, organizational goals are critical for the success of an organization. They provide a
roadmap for the organization to follow, and they help to ensure that everyone is working
towards the same objectives.
2

Porter’s generic strategies are a set of three strategies that businesses can use to gain a
competitive advantage in their industry. These strategies were developed by Michael Porter, a
renowned business strategist and professor at Harvard Business School. The three strategies
are:

1. Cost Leadership: This strategy involves becoming the lowest-cost producer in the
industry. Companies that use this strategy focus on reducing costs in all areas of their
business, including production, marketing, and distribution. By offering products or
services at a lower price than their competitors, they can attract price-sensitive
customers and gain a larger market share.

2. Differentiation: This strategy involves creating a unique product or service that is

perceived as valuable by customers. Companies that use this strategy focus on
developing a product or service that is different from their competitors in some way,
such as quality, design, or features. By offering a unique product or service, they can
charge a premium price and attract customers who are willing to pay for the added
value.

3. Focus: This strategy involves targeting a specific segment of the market and tailoring
products or services to meet their needs. Companies that use this strategy focus on a
narrow market segment, such as a specific geographic region or customer group. By
focusing on a specific market segment, they can develop a deep understanding of their
customers’ needs and preferences and offer products or services that meet those needs
better than their competitors.
3.
A single-product strategy is a business strategy in which a company focuses on producing
and selling a single product or service. This strategy is often used by small businesses or
startups that have limited resources and want to establish themselves in a specific market
niche. The advantage of a single-product strategy is that it allows a company to focus all
its resources on developing and marketing a single product, which can lead to greater
efficiency and cost savings.

A strategy based on related diversification involves expanding a company’s product line

or service offerings into related markets or industries. This strategy is often used by
companies that want to leverage their existing capabilities and resources to enter new
markets. The advantage of related diversification is that it allows a company to spread its
risk across multiple products or markets, which can help to stabilize its revenue streams.

A strategy based on unrelated diversification involves expanding a company’s product

line or service offerings into unrelated markets or industries. This strategy is often used
by companies that want to reduce their dependence on a single product or market and
diversify their revenue streams. The advantage of unrelated diversification is that it allows
a company to enter new markets with different growth rates and risk profiles, which can
help to balance its overall portfolio and reduce its exposure to market fluctuations.
However, unrelated diversification can also be risky and expensive, as it requires
significant investments in new capabilities and resources.
4.
Tactical planning and operational planning are two types of planning that organizations
use to achieve their goals and objectives.

Tactical planning is a short-term planning process that focuses on specific actions and
decisions that need to be taken to achieve a particular goal or objective. It is usually done
by middle-level managers and involves developing plans and strategies for a period of
one to three years. Tactical planning is more detailed and specific than strategic planning
and involves allocating resources, setting targets, and developing action plans.

Operational planning, on the other hand, is a more detailed and specific planning process
that focuses on the day-to-day activities of an organization. It involves developing plans
and strategies for a period of one year or less and is usually done by front-line managers.
Operational planning involves setting specific targets, developing action plans, and
allocating resources to achieve those targets.
The similarities between tactical planning and operational planning are that both involve
developing plans and strategies to achieve specific goals and objectives. Both types of
planning also involve allocating resources and developing action plans.

The differences between tactical planning and operational planning are that tactical
planning is more focused on achieving specific goals and objectives over a period of one
to three years, while operational planning is more focused on achieving specific targets
over a period of one year or less. Tactical planning is also done by middle-level managers,
while operational planning is done by front-line managers. Finally, tactical planning is
more general and less detailed than operational planning.
5.
Contingency planning is the process of developing a plan of action to address unexpected
events or circumstances that may disrupt normal business operations. It involves
identifying potential risks and developing strategies to mitigate or respond to those risks.
Contingency planning is a proactive approach to risk management that helps
organizations prepare for and respond to unexpected events.

Crisis management, on the other hand, is the process of managing a crisis situation that
has already occurred. It involves responding to the crisis, containing the damage, and
restoring normal operations as quickly as possible. Crisis management is a reactive
approach to risk management that focuses on minimizing the impact of a crisis.

While contingency planning and crisis management are both related to risk management,
they differ in their focus and timing. Contingency planning is focused on preparing for
potential risks and disruptions before they occur, while crisis management is focused on
responding to a crisis that has already occurred. Contingency planning is a proactive
approach to risk management, while crisis management is a reactive approach. However,
both contingency planning and crisis management are important components of a
comprehensive risk management strategy.
Analysis
1
Both short-term and long-term goals are important for the success of an organization.
Short-term goals help to ensure that the organization is meeting its immediate needs and
staying on track to achieve its long-term goals. Long-term goals help to provide direction
and focus for the organization, and ensure that it is moving towards a desired future state.
In the event of a conflict between short-term and long-term goals, it is important to
consider the overall impact on the organization. If a short-term goal is achieved at the
expense of a long-term goal, it may have negative consequences for the organization in
the future. On the other hand, if a long-term goal is pursued at the expense of short-term
goals, it may have negative consequences for the organization in the present.

In general, it is important to strike a balance between short-term and long-term goals.

Managers should focus on achieving short-term goals while keeping the long-term goals
in mind. They should also regularly review and adjust their goals to ensure that they are
aligned with the organization’s overall strategy.

In the event of a conflict, the priority should be given to the goal that is most critical to
the success of the organization. This may depend on the specific situation and the
organization’s priorities at the time. However, in general, long-term goals should be given
priority over short-term goals, as they are more likely to have a lasting impact on the
organization’s success.
2.
A firm should develop its corporate-level strategy first before developing its business-
level strategy. Corporate-level strategy involves making decisions about the overall
direction and scope of the organization, such as which businesses to enter or exit, how to
allocate resources across businesses, and how to create value through synergies between
businesses. Business-level strategy, on the other hand, involves making decisions about
how to compete in a specific market or industry.

The relationship between a firm’s business and corporate-level strategies is that the
corporate-level strategy provides the overall direction and framework for the business-
level strategies. The corporate-level strategy determines which businesses the firm will
operate in and how they will be managed, while the business-level strategy determines
how each individual business will compete in its respective market or industry.

For example, a company like Procter & Gamble has a corporate-level strategy of
operating in multiple consumer goods businesses, such as beauty, grooming, and
household care. Its business-level strategies for each of these businesses may differ based
on the specific market and competition, but they are all aligned with the overall
corporate-level strategy of creating value through synergies between businesses.

In summary, a firm’s corporate-level strategy should be developed first, as it provides the

overall direction and framework for the business-level strategies. The relationship
between the two is that the corporate-level strategy determines which businesses the firm
will operate in and how they will be managed, while the business-level strategy
determines how each individual business will compete in its respective market or
industry.
3.
Volkswagen’s strategy with the original Beetle was a combination of low cost and focus.
The original Beetle was made of inexpensive materials and was built using an efficient
mass-production technology, which allowed Volkswagen to offer the car at a lower price
point than many of its competitors. Additionally, the original Beetle had a unique design
that appealed to a specific segment of the market, which is an example of a focus strategy.
4.
The kind of plan that should be developed first depends on the specific situation and the
goals of the organization. In general, it is recommended to develop a strategic plan first,
followed by tactical and operational plans.

A strategic plan outlines the overall direction and goals of the organization, and provides
a framework for decision-making. It is important to develop a strategic plan first because
it sets the foundation for all other plans and activities. Without a clear understanding of
the organization’s goals and direction, it is difficult to develop effective tactical and
operational plans.

Tactical plans are developed to support the strategic plan and provide more detailed
guidance on how to achieve specific objectives. Operational plans are then developed to
provide specific details on how to implement the tactical plans.

While it is generally recommended to develop plans in this order, the order may not
always matter. In some cases, it may be necessary to develop operational plans first in
order to address immediate needs or respond to a crisis situation. However, it is important
to ensure that all plans are aligned with the organization’s overall goals and direction.

With the new Beetle, Volkswagen implemented a product differentiation strategy. The
new Beetle has a distinctive style that sets it apart from other cars on the market, and it
offers more optional features than the original Beetle. The new Beetle is also priced for
upscale buyers, which is another indication of a product differentiation strategy.

In summary, Volkswagen’s strategy with the original Beetle was a combination of low
cost and focus, while the strategy with the new Beetle was product differentiation.
5.Work: A sales team may have an operational plan that outlines their sales targets,
strategies for achieving those targets, and the resources needed to execute those strategies.

3. School: A teacher may have an operational plan that outlines the curriculum for the
school year, the learning objectives for each lesson, and the assessment methods used
to evaluate student progress.

4. Personal life: A person may have an operational plan for their fitness goals, which
includes a workout schedule, a meal plan, and a tracking system to monitor progress.

5. Business: A startup company may have an operational plan that outlines their business
model, marketing strategy, financial projections, and staffing plan.

6. Non-profit organization: A non-profit organization may have an operational plan that

outlines their mission, goals, programs, and fundraising strategies.