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NAME: SALMA MUHAMUD ALI

REG NO: 45111/17


COURSE CODE: DBM 231
COURSE: STRATEGIC MANAGEMENT
LECTURER: LOICE
Table of Contents
Outline the processes for strategic control...............................................................................................3
1. Determine What to Control..........................................................................................................3
2. Set Control Standards...................................................................................................................3
3. Measure Performance...................................................................................................................4
4. Compare Performance to Standards............................................................................................4
5. Determine the Reasons for the Deviations.......................................................................................4
6. Take Corrective Action.................................................................................................................5
What is corporate social responsibility?..................................................................................................6
Explain the benefits of corporate social responsibility...........................................................................6
1. It supports public value outcomes................................................................................................6
2. It enhances relationships...............................................................................................................6
3. It builds public trust......................................................................................................................6
4. Sustainability..................................................................................................................................7
5. Increased employee satisfaction....................................................................................................7
What is globalization.................................................................................................................................7
Explain the forces behind globalization...................................................................................................8
Advancement of Technologies...........................................................................................................8
Reduction in Cross-trade Barriers:......................................................................................................8
Increase in Consumer Demand:...........................................................................................................9
High Competition:...............................................................................................................................9
Improved transportation...................................................................................................................9
REFRENCES................................................................................................................................................10
Outline the processes for strategic control
1. Determine What to Control
The first step in the strategic control process is determining the major areas to control. Managers
usually base their major controls on the organizational mission, goals and objectives developed
during the planning process. Managers must make choices because it is expensive and virtually
impossible to control every aspect of the organizations

2. Set Control Standards


 The second step in the strategic control process is establishing standards. A control standard is a
target against which subsequent performance will be compared. Standards are the criteria that
enable managers to evaluate future, current, or past actions. They are measured in a variety of
ways, including physical, quantitative, and qualitative terms. Five aspects of the performance can
be managed and controlled: quantity, quality, time cost, and behavior.

Standards reflect specific activities or behaviors that are necessary to achieve organizational
goals. Goals are translated into performance standards by making them measurable. An
organizational goal to increase market share, for example, may be translated into a top-
management performance standard to increase market share by 10 percent within a twelve-month
period. Helpful measures of strategic performance include: sales (total, and by division, product
category, and region), sales growth, net profits, return on sales, assets, equity, and investment
cost of sales, cash flow, market share, product quality, valued added, and employees
productivity.

Quantification of the objective standard is sometimes difficult. For example, consider the goal of
product leadership. An organization compares its product with those of competitors and
determines the extent to which it pioneers in the introduction of basis product and product
improvements. Such standards may exist even though they are not formally and explicitly stated.

Setting the timing associated with the standards is also a problem for many organizations. It is
not unusual for short-term objectives to be met at the expense of long-term objectives.
Management must develop standards in all performance areas touched on by established
organizational goals. The various forms standards are depend on what is being measured and on
the managerial level responsible for taking corrective action.

3. Measure Performance
 Once standards are determined, the next step is measuring performance. The actual performance
must be compared to the standards. Many types of measurements taken for control purposes are
based on some form of historical standard. These standards can be based on data derived from
the PIMS (profit impact of market strategy) program, published information that is publicly
available, ratings of product / service quality, innovation rates, and relative market shares
standings.

Strategic control standards are based on the practice of competitive benchmarking – the process
of measuring a firm’s performance against that of the top performance in its industry. The
proliferation of computers tied into networks has made it possible for managers to obtain up-to-
minute status reports on a variety of quantitative performance measures. Managers should be
careful to observe and measure in accurately before taking corrective action.

4. Compare Performance to Standards


 The comparing step determines the degree of variation between actual performance and
standard. If the first two phases have been done well, the third phase of the controlling process –
comparing performance with standards – should be straightforward. However, sometimes it is
difficult to make the required comparisons (e.g., behavioral standards). Some deviations from the
standard may be justified because of changes in environmental conditions, or other reasons.

5. Determine the Reasons for the Deviations


 The fifth step of the strategic control process involves finding out: “why performance has
deviated from the standards?” Causes of deviation can range from selected achieve
organizational objectives. Particularly, the organization needs to ask if the deviations are due to
internal shortcomings or external changes beyond the control of the organization. A general
checklist such as following can be helpful:

 Are the standards appropriate for the stated objective and strategies?
 Are the objectives and corresponding still appropriate in light of the current
environmental situation?
 Are the strategies for achieving the objectives still appropriate in light of the current
environmental situation?
 Are the firm’s organizational structure, systems (e.g., information), and resource support
adequate for successfully implementing the strategies and therefore achieving the
objectives?
 Are the activities being executed appropriate for achieving standard?

6. Take Corrective Action


The final step in the strategic control process is determining the need for corrective action.
Managers can choose among three courses of action: (1) they can do nothing (2) they can
correct the actual performance (3) they can revise the standard.

When standards are not met, managers must carefully assess the reasons why and take
corrective action. Moreover, the need to check standards periodically to ensure that the
standards and the associated performance measures are still relevant for the future.

The final phase of controlling process occurs when managers must decide action to take to
correct performance when deviations occur. Corrective action depends on the discovery of
deviations and the ability to take necessary action. Often the real cause of deviation must be
found before corrective action can be taken. Causes of deviations can range from unrealistic
objectives to the wrong strategy being selected achieve organizational objectives. Each cause
requires a different corrective action. Not all deviations from external environmental threats
or opportunities have progressed to the point a particular outcome is likely, corrective action
may be necessary.

To conclude, strategic control is an integral part of strategy. Without properly placed controls
the strategy of the company is bound to fail. Strategic control is a tool by which companies
check their internal business process and environment and ascertain their progress towards
their goal.
What is corporate social responsibility?

Corporate social responsibility (CSR) is a self-regulating business model that helps a


company be socially accountable—to itself, its stakeholders, and the public. By practicing
corporate social responsibility, also called corporate citizenship, companies can be
conscious of the kind of impact they are having on all aspects of society, including
economic, social, and environmental.

Explain the benefits of corporate social responsibility


1. It supports public value outcomes.
Quite simply, a socially responsible company can make a real difference in their own respective
communities. This, in turn, can create a more robust reputation for the company, making them
more trustworthy for the people, which can then lead to more shareholder value and profit. Thus,
the cycle continues, cementing the idea that a socially responsible company has more chances of
staying relevant for a long time.

2. It enhances relationships.
This goes way beyond the relationship with the local community, as a socially responsible
company makes it an employer of choice, leading to more employees that would genuinely want
to support a company’s mission and vision. This, in turn, would lead to a much healthier
employer-employee relationship that goes beyond the simple you’re-here-because-I-pay-you
situation. It also helps that the current working force is mostly made up of millennial.

3. It builds public trust.


According to Better Business Journey, 88 percent of consumers said they were more likely to
buy from a company that supports and engages in activities to improve society. This couldn’t be
any truer, after all, a company that customers can trust is a company they will stay loyal to for a
long time.

4. Sustainability.
Perhaps one of the most important long-term factor to consider in a business, CSR helps make a
company more sustainable and long-lasting. Something every company wants.
There are many more benefits that CSR can provide, and this is merely a tip of the iceberg. Still,
in today’s day and age, being socially responsible is definitely the way to go. It’s here to stay,
and it’s time companies start recognizing the many benefits it can give.

5. Increased employee satisfaction


The way a company treats its community says a lot about how a company treats its employees.
People that feel respected and supported in their jobs are often more productive and satisfied at
work. Giving your employees opportunities to volunteer, especially during working hours,
creates a sense of community within your organization, as well as a connection to the
surrounding community. Employees will gain motivation and pride in their work through these
personal-development opportunities.

Employees that are actively involved in the community are also acting as brand ambassadors.
The more engaged and invested they are in your organization, and the greater community, the
more productive they will be. In fact, companies with highly engaged employees saw 21% better
business profitability. What could be better than happy employees promoting your brand while
helping their neighbors?
What is globalization

Globalization is the word used to describe the growing interdependence of the world’s
economies, cultures, and populations, brought about by cross-border trade in goods and services,
technology, and flows of investment, people, and information. Countries have built economic
partnerships to facilitate these movements over many centuries. But the term gained popularity
after the Cold War in the early 1990s, as these cooperative arrangements shaped modern
everyday life. This guide uses the term more narrowly to refer to international trade and some of
the investment flows among advanced economies, mostly focusing on the United States.

The wide-ranging effects of globalization are complex and politically charged. As with major
technological advances, globalization benefits society as a whole, while harming certain groups.
Understanding the relative costs and benefits can pave the way for alleviating problems while
sustaining the wider payoffs.

Explain the forces behind globalization

Advancement of Technologies:
Refers to one of the crucial factors of globalization. Since 1990s, enhancement in
telecommunications and Information Technology (IT) has marked remarkable improvements in
access of information and increase in economic activities. This advancement in technologies has
led to the growth of various sectors of economies throughout the world.

Apart from this, the advancement in technology and improved communication network has
facilitated the exchange of goods and services, resources, and ideas, irrespective of geographical
location. In this way, advanced technologies have led to economic globalization.
Reduction in Cross-trade Barriers:
Refer to one of the critical forces of globalization. Every- country restricts the movement of
goods and services across its border. It imposes tariffs and quotas on the goods and services
imported in its country. In addition, the random changes in the regulations create a chaos in
global business environment.

Such practices impose limits on international business activities. However, gradual relief in the
cross-border trade restrictions by most governments induces free trade, which, in turn, increases
the growth rate of an economy.

Increase in Consumer Demand:


Acts as a main driver to facilitate globalization. Over the years, with increase in the level of
income and standard of living, the demand of consumers for various products has also increased.
Apart from this, nowadays, consumers are well aware about products and services available in
other countries, which impel many organizations to work in association with foreign players for
catering to the needs of the domestic market.

High Competition:
Constitutes an important driver for bringing about globalization. An organization generally
strives hard to grain competitive edge in the market. The frequent increase in competition in the
domestic market compels organizations to go global. Thus, various organizations enter other
countries (for selling goods and services) to expand their market share.

They export goods in foreign markets where the price of goods and services are relatively high.
Many organizations have achieved larger global market shares through mergers and acquisitions,
strategic alliances, and joint ventures. So, these are the major factors that have contributed a lot
in globalization and the growth of global economy.

Improved transportation
We live in a ‘global village’. People can move around the world fairly quickly due to improved
transportation systems. Airlines, ships, large vehicles, and others have improved the delivery
time of products to and from abroad. A business man from London can go to Paris to do his
‘business’ and come back to London on the same day. Likewise, goods can be transported
beyond the national border on the same day. This happens in many parts of the world on a daily
basis.
REFRENCES
 Guttal, Shalmali (2007). "Globalisation". Development in Practice. 17 (4/5): 523–
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   Albrow, Martin; King, Elizabeth (1990). Globalization, Knowledge and Society.
London: Sage.  ISBN  0-8039-8323-9. OCLC 22593547.

 "Imagining the Internet". History of Information Technologies. Elon University School of


Communications. Retrieved 17 August  2009.

Stever, H. Guyford (1972). "Science, Systems, and Society". Journal of Cybernetics. 2 (3): 1–


3.  doi:10.1080/01969727208542909.