ü Question 3: In what ways can a corporation’s structure and culture be internal strengths or weaknesses? Justify your answer by examples from real market.
ü Question 4: When does a corporation need a board of directors? Justify your answer by an example from Saudi market.
Answer preview
Globalization has had both positive and negative impact on strategic management. It has led to more significant markets and opportunities to explore. Businesses now develop their strategies with the awareness that they can access markets away from their geographical region easily. Companies are also more reliant on each other, with many suppliers been introduced, reducing costs. On the other hand, globalization has made strategic management more complicated, especially for local businesses that have to strategize how they can compete with multinational companies.
Social responsibility has also affected strategic management in many businesses. Previously, companies viewed their obligations as to their shareholders only; to make as much money as possible to profit these groups. The introduction and legalization of social responsibility have caused companies to alter their business strategies to incorporate acts of giving back to their communities (Wang & Sarkis, 2017). When strategizing, they must consider the impact of the actions of different community groups and help them become better. While it is not specified which groups they must help, most companies strategize to help social groups that their business impacts or vice versa.
