Discussion Questions
This statement by Drucker means the reason a business exists is to serve its customers as well as the general public. Any business is in place for a given purpose and if the business does not have any customers, then there is no reason why the business should be in place. With this statement, Drucker means that the customers of a business as well as the general public determine the purpose of any business. I agree with this statement because a business has to fulfill its purpose by ensuring that it meets its customers need while at the same time not going contrary to public expectations.
Although the microenvironment forces affect the business in several ways the strongest forces among them is the economic factor. The economic force consists of factors such as the rate of economic growth, interest rates, inflation as well as exchange rates. According to Hill and Jones (73) the economic force is important to contemporary businesses because a business needs to expand and reach a wider customer base and this can only be ensured by the growth of the economy.
The main differences between the macro environment and the competitive environment are that the former refers to the overall aspects of the location a business operates in. These aspects include the economy, politics as well as the environment. The competitive environment of the other hand refers to the industry in which a business operates. Moreover, while the microenvironment affects all businesses, the competitive environment affects only certain businesses in a given industry.
Companies make several adjustments when facing environmental uncertainty. These changes include altering work processes as well as procedures to reduce the rates of uncertainty. Moreover, organizational take up a more decentralized decision-making structures. Such decision-making structures allow the employees to have more direct contact their supervisors and participate in making important decisions that relate the business.
Independent strategies refer to proactive approaches whereby an organization acts on its own by using competitive aggressive strategies. The strategies used for such purposes include public relations ad legal action. Public relations are the most effective strategy as it not only reaches to customers but also the public at large. Moreover companies also use the cooperative strategies whereby they collaborate with other companies to not only reduce risk but also increase their competitive power.
Dillard’s Inc has a corporate culture emphasizes on working together with the public in the retail environment. Such a culture encourages the employees to go further when helping customers and offer them great customer service. In general, the culture of Dillard’s Inc values customer service as the key to corporate success.
Costco, on the other hand, has a corporate culture that values both employee and customers. The corporate culture has been one of the reasons Costco has experienced success in recent years. The culture is supported by four axioms that include obeying the law, taking care of customers and employees as well as practicing the intelligent loss of sales.
I think that cultural differences played a significant role in the university I selected. I hoped to study in a university that had culturally diverse students. Through this selection, I have able to experience different perspectives on various issues and this has enhanced my college live. These culturally diverse perspectives have enabled me to appreciate other people culture and embrace my own culture.
Discussion Questions B
A great manager will endeavor to ensure that all solutions and decisions taken at meetings are implemented. Moreover, a great manager establishes what is universal and comes up with ways to capitalize it. A great manager also plays the role of rallying people for a better future not only for the organization but also for the business. Furthermore, a great manager cuts through the diversity among the employees and taps into the aspects that all employees share. A great manager is also not a procrastinator but a man of action and the employees are comfortable when contributing their ideas (Buckingham).
Although I have not worked under an effective manager, I sure know the causes and consequences of ineffectiveness. The primary causes of infectiveness is the lack of communication and poor time management. For example, the manager makes decisions but does not bother to communicate the decisions to the employees. Moreover, the manager arrives at work late instead of setting an example for the employees. The consequences of ineffectiveness include increased stress levels, high labor turnover and decrease in motivation. A manager will face a lot of stress if they are not effective because they cannot meet deadlines. Employees, on the other hand, will move to other companies to seek motivation and avoid working with the ineffective managers.
The internet and globalization affect my life in several ways. For example, when I am looking for something to buy I prefer to order it online because I have access to customer reviews of people who have used the product. Moreover, I use the internet to get access to learning material; it is through the internet that I access a variety of sources to enhance my knowledge. Furthermore, I use the internet to keep in touch with my friends as well as family through the social networks and messaging apps. Globalization, on the other hand, has ensured that I can meet people from various places around the world and be friends with them by using the internet.
Citi Group is a perfect example of a company that collaborates across boundaries; the CEO of the company is available to meet clients anywhere in the world. Moreover, at Bain & Company, the approach to collaboration across boundaries ensures is that the company ensures all its employees from several branches across the world work in teams and share ideas.
I think that Southwest Airlines is one great organization and one of the aspects that contribute to the organization to be great is its management. The management contributes to Southwest airlines being a great organization because they chose the appropriate model to sustain the company’s business model. Moreover, the management at Southwest Airlines has set a clear as well as simple company purpose that is supported by core values that are shared by the management as well as the employees.
One of the most ineffective companies is Charter Communications; its ineffectiveness is derived from improper billing practices and poor customer service (Lubin). Nevertheless, there are several things that the management can do to improve the situation at the company. For example, the company should improve the level of customer service to improve overall customer satisfaction. Moreover, the management should adopt contemporary technology to ensure that the company avoids errors when billing.
Some of the examples of firms that are weak and outstanding and weak in the six pillars of competitive advantage include Walmart, Citigroup, McDonalds, Facebook and MySpace. I chose these companies because they are multinational companies and the competitive advantages they have are weakened by unethical practices.
Buckingham, Marcus. "What Great Managers Do". Harvard Business Review 2005. 3 Feb. 2016 <https://hbr.org/2005/03/what-great-managers-do>.
Hill, Charles W. L, and Gareth R Jones. Essentials of Strategic Management. Australia: South-Western/Cengage Learning, 2012. Print.
Lubin, Gus. "The 18 Worst Companies In America". Business Insider 2010. 3 Feb. 2016 <http://www.businessinsider.com/the-18-worst-companies-in-america-2010-11?op=1>.
