DIFFERENT TYPES OF ORGANISATION USE DIFFERENT TYPES OF STRATEGIES

Question: Identify types of organizations that may need to evaluate strategy more frequently than others. Justify your choices.

Organizations that work in more turbulent industries are in more need of evaluating strategies as compared to other organizations. The turbulence of industry is determined by the rate of change in customers’ demands and preferences. So, those organizations which operate in industries where preferences of customers are changed frequently are in need of evaluating strategies more frequently in order to meet demands of customers.

Question: Identify some key financial ratios that would be important in evaluating a Banks’ strategy.

The two most important financial items in banks are demand deposits, time deposits, commercial loans and consumer loans. In order to evaluate the strategy of bank, ratio of these key items to total assets and total profits of banks can be used. This helps in identifying the key approach used by the bank for achieving specific goals.

Question:  If you own a small business, would you develop a code of business conduct? If yes, what variables would you include?  If no, how would you ensure that ethical business standards were being followed by your employees?

In order to run a business successfully, there is a strong need of developing a code of business conduct. If I own a small business then definitely I will develop a code of conduct which will include a set of behavioral rules that must be followed by employees. This will help in ensuring that values of the company are properly reflected in all dealings of business. Following are important variables that will be included in code of business conduct;

• Values
• Principles
• Support from Management
• Individual responsibility
• Compliance

Question:  How could a strategist attitude toward social responsibility affect a firms’ strategy? On and 1-to-10 scale ranging from Nader's view to Friedman's view, what is your attitude towards social responsibility?

There is a significant effect of strategist attitude towards social responsibility on a strategy of a firm. A firm is usually aimed at addressing the issues of different stakeholders that include social, environmental and economic concerns while fulfilling social responsibility. The belief and attitude of strategist will affect the way of addressing social policy in the mission statement of the firm. It is believed by some strategists that there are some significant responsibilities of organizations towards society, whereas some believe that there is no obligation of firm towards society. So, these different beliefs of strategists affect the strategy of the firm; like in case if social responsibility is considered important by strategist then the firm will be aimed at spending some ratio of its profit for benefit of society.

I agree with Nader’s view of corporate social responsibility and I will select 2 from the scale of 1-10 ranging from Nader’s view to Friedman’s view. I think in order to build better reputation and image of the organization in the market, it is important to focus on social responsibility. This can lead to the long-term success of the company.