Why is strategic management important for a corporation’s competitive advantage?
How does strategic management typically evolve in a corporation? Give examples
Why does a corporation need a board of directors? What is the relationship between corporate governance and social responsibility? Give examples from the actual market.
Choose any corporation from the Saudi market and discuss the forces driving its industry competition (review chapter 4-slide 18).
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
The Importance of Strategic Management in Achieving Competitive Advantage
Introduction
In today’s fast-paced and ever-evolving business landscape, strategic management plays a crucial role in a corporation’s quest for competitive advantage. This process not only empowers organizations to make informed decisions but also enables them to adapt to changing market conditions effectively. This essay will explore the significance of strategic management in gaining a competitive edge, how it typically evolves within a corporation, the necessity of a board of directors, the relationship between corporate governance and social responsibility, and will conclude with an analysis of a corporation from the Saudi market.
The Role of Strategic Management in Competitive Advantage
Strategic management refers to the systematic analysis, planning, and execution of strategies aimed at achieving long-term organizational goals. It is essential for corporations to gain a competitive advantage by:
1. Alignment of Resources: Strategic management ensures that a company’s resources—financial, human, and technological—are allocated efficiently to meet its objectives. For instance, Apple Inc. invests significantly in research and development to innovate its products continually.
2. Market Understanding: Through strategic analysis, corporations can understand market dynamics, customer preferences, and competitor strategies. For example, Netflix’s shift from DVD rentals to streaming services was a strategic response to changing consumer behavior.
3. Adaptation to Change: The dynamic nature of markets requires corporations to adapt their strategies. Companies like Blockbuster failed to adapt to the digital revolution and lost their competitive edge, while companies that embraced change thrived.
Evolution of Strategic Management
Strategic management evolves through various stages:
1. Initial Stage: At this stage, corporations often follow a reactive approach, responding to market changes without a clear strategy. For instance, many small businesses operate this way initially.
2. Structured Planning: As companies grow, they begin to implement formal strategic planning processes. For instance, Procter & Gamble has a dedicated team that continuously assesses market trends and adjusts its strategies accordingly.
3. Dynamic Strategy Development: Mature corporations engage in ongoing strategy development that incorporates feedback and adapts to new challenges. Google’s iterative approach to product development exemplifies this stage, allowing it to modify its offerings based on user feedback.
The Necessity of a Board of Directors
A board of directors is essential for a corporation as it provides oversight and guidance to ensure that the company adheres to its strategic objectives and ethical standards. The board’s responsibilities include:
1. Strategic Direction: The board helps set the company’s vision and long-term goals. For example, the board at Amazon plays a critical role in shaping its e-commerce and cloud computing strategies.
2. Risk Management: Boards evaluate risks associated with corporate strategies and ensure adequate controls are in place.
3. Accountability: The board holds executives accountable for performance and ethical conduct, which is crucial for maintaining stakeholder trust.
Corporate Governance and Social Responsibility
Corporate governance refers to the systems and processes by which corporations are directed and controlled. The relationship between corporate governance and social responsibility is intertwined; effective governance encourages responsible behavior towards stakeholders, including customers, employees, and the community.
Examples:
– Unilever has integrated sustainability into its corporate strategy, demonstrating that good governance can lead to social responsibility initiatives such as reducing plastic waste.
– Volkswagen, on the other hand, faced severe backlash due to unethical practices related to emissions testing. This case highlights how poor governance can lead to social irresponsibility.
Industry Competition in Saudi Arabia: A Case Study
Taking Saudi Aramco as an example from the Saudi market, the forces driving its industry competition can be analyzed through Michael Porter’s Five Forces framework:
1. Threat of New Entrants: High barriers to entry in the oil industry (capital investment, regulatory requirements) protect established players like Saudi Aramco.
2. Bargaining Power of Suppliers: While Saudi Aramco is a major player, fluctuations in oil prices can impact its negotiations with suppliers.
3. Bargaining Power of Buyers: Global demand for oil affects pricing power; however, as a state-owned enterprise, Aramco maintains significant control over supply.
4. Threat of Substitutes: The rise of renewable energy sources poses a long-term threat; however, fossil fuels remain dominant in many markets.
5. Industry Rivalry: Competition with other oil giants like ExxonMobil and BP drives innovation and efficiency.
Conclusion
Strategic management is indispensable for achieving competitive advantage in an increasingly complex business environment. Its evolution within corporations showcases a transition from reactive approaches to adaptive, dynamic strategies. The role of a board of directors is critical in guiding corporate governance and ensuring accountability towards social responsibility. Through the example of Saudi Aramco, it is evident that understanding industry competition dynamics is vital for sustained success. As businesses navigate through challenges and opportunities, strategic management remains at the forefront of their journey towards excellence.
