Strategic Management and Core Competence

2168 Words Apr 20th, 2013 9 Pages
MB0052-Strategic Management and Business Policy 1. Explain the corporate strategy in different types of organization.

A Well-formulated strategy is vital for growth and development of any organization—whether it is a small business, a big private enterprise, a public sector company, a multinational corporation or a non-profit organization.

Small business, for example, generally operates in a single market or a limited number of markets with a single product or a limited range of products. The nature and scope of operations are likely to be less of strategic issue than in larger organizations. Not much of strategic planning may also be required or involved; and, the company may be content with making and selling existing
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This is the reason why even large multinational companies hire consultants for achieving their goals or objectives. There are many international consultants who are in demand in different counties. There are also national consultants. Leading international consultants, in addition to McKinsey & Company, are Boston Consulting Group (BCG), Arthur D Little and Accenture (formerly Anderson Consulting). Prominent Indian consulting companies are A F Ferguson, Tata Consultancy Services (TCS) and ABC Consultants. Consultants, sometimes have a difficult or delicate role to play. In many companies, a situation develops when the chief executive or the top management needs to bank upon the support of an external agency like a consultant to push through a strategic change in the organizational structure or management system of the company. It may be for growth and development or downsizing. In both cases, many companies face internal resistance to change. The resistance is more if it is downsizing even when it is required for turning around a company. This happens particularly in public sector companies where implementing change is always difficult. Consultants are engaged to support or substantiate the company’s point of view (in the form of their recommendations).

3. What is strategic audit? Explain its relevance to corporate strategy and corporate governance.
According to Donaldson (1995). Strategic audit is a
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