Strategic Management

Strategic Management

In order for a company to succeed domestically and internationally it must keep track of all the changing trends and surroundings by changing old practices in conducting business. This is done by developing a strategy to overcome many of the challenges and changes that occur internally and externally in an organization. By adapting a strategic plan to any challenges that may arise, the company is able to keep track of all the changing trends and in the end, implement all the necessary adjustments. These challenges consist in changing the internal and external environment, technology upgrades, political-legal issues, environmental practices, and any sociocultural trends existing around the world. In crafting a strategic plan to map out the steps needed, the company will be able to overcome many challenges and changes that will arise periodically. The company will be able to gain a competitive advantage by ensuring all prerequisites are met in analyzing the outcome of its objectives (Wheelen & Hunger, 2010).

Role of Ethics and Social Responsibility

Social responsibility is an ethical role where organizations and people are obligated to humanity in being responsible "to society that extend beyond making a profit" (Wheelen & Hunger, 2010, p. 72). According to Archie Carroll, he lists four responsibilities a company must follow in order to have a positive effect on the financial performance of a company and so the organization can to continue to exist. The four responsibilities mentioned are the:

* Economic responsibility to produce valuable goods and service to make a profit in order to repay its creditors and shareholders.

* Legal responsibility to obey and follow the laws, thus continuing its existence.

* Ethical responsibility to support beliefs on how society should behave towards nature with its people, the environment, and organizations. Everyone and everything in a society will be affected by its ethical behavior.

* Discretionary responsibility is when an organization is volunteering to join nonprofit charities or organizing programs to assist in improving society and its environment. This positive actions is at many times not recognized by many as only "a few people expect an organization to fulfill" (Wheelen & Hunger, 2010, p.73).

Ethical Boundaries

An organization is fulfilling its obligation to society by giving back to society in being involve or active on environmental issues as well as, supporting and volunteering to charitable causes. Although costly, by a company being environmentally sensitive, a competitive advantages is created. For example, a company may overstep an ethical boundary by not being environmentally sensitive to the earth and its habitat. Ethical issues against a company will progress towards lawsuits that could end up costly for the company and the shareholders' agenda. By citizens gaining knowledge of the issue, they will ethically behave in boycotting the organization for such daunting behavior. This is due to society and its government's values