Business Strategy and Planning Report: Challenges and Strategies

This report delves into various aspects of business strategy and planning, addressing critical issues faced by organizations. It examines the problem of "paralysis by analysis" and proposes tools like BCG analysis and competitor analysis to improve decision-making. The report further explores the significance of organizational design in fostering innovation and effective communication, as well as the importance of corporate governance, emphasizing the role of independent directors and gender diversity. It also investigates the impact of internal stakeholders on corporate social responsibility (CSR) implementation and analyzes the influence of the macro-environment, including technology, political, and social factors, on the IT industry. The report discusses the relevance of market types (liberal vs. regulated) for IT businesses, the role of government in creating industry clusters, and strategies for mitigating business risks, such as innovation and diversification, particularly in the context of economic crises.

Running head: BUSINESS STRATEGY AND PLANNING
Business strategy and planning
Name of the student
Name of the university
Author note

1BUSINESS STRATEGY AND PLANNING
Question 1 (3.2)
Paralysis by analysis is one of the key issues for the large organizations having huge
source of data in order to evaluate. Thus, it adversely affect the decision making process of the
organizations. Moreover, more diversified information will further leas to increase in the
complexities for the organization. According to Bensoussan and Fleisher, there are various tools
and techniques to evaluate the organizational strategy without being paralyzed by analysis. These
include BCG analysis (Bensoussan and Fleisher 2012). This tool helps in determining the
effectiveness of the portfolio of the products and services being offered by the organization.
Another tool stated by them is the competitor analysis. This tool helps in determining the insights
about the competitors in the market. Effective competitors’ analysis helps in gaining competitive
advantage over others in the market. According to Giorgi, emotional intelligence of the
organizations can also be considered for the analysis (Giorgi 2013). It helps in identifying the
differences between the particular organizations with their competitors. Thus, the market
analysis becomes more effective when the emotional intelligence of the competitors can be
evaluated. In addition, the competencies of the employees can also be determined with the help
of this tool. It helps in enhancing the organizational intelligence.
Bensoussan, B.E. and Fleisher, C.S., 2012. Analysis without paralysis: 12 tools to make better
strategic decisions. FT Press.
Giorgi, G., 2013. Organizational emotional intelligence: development of a model. International
Journal of Organizational Analysis, 21(1), pp.4-18.

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Question 2 (4.3)
According to Lakhani, Lifshitz-Assaf and Tushman, organization design is well
connected with the generation of innovative ideas in the organization. According to them, the
more flexible will be the organizational design, the more will be the level of involvement and
motivation of the employees. Thus, it will help in generating more innovative idea from them.
Effective organization design also helps in having the accurate decision making process due to
the reason that it helps in reducing the gap between the internal stakeholders in the organizations.
Effective communication process also gets enhanced due to efficient organizational process.
According to Foss, Lyngsie and Zahra, effective organizational design helps in exploiting the
external knowledge and opportunities. It enables the organization to have the access of
diversified information which enhances their competitiveness in the global market. In the present
era of globalization, business organizations are looking out for global markets and reaching out
to new regions in order to expand their existing customer base. Thus, external knowledge is
important to have the idea about the diversified taste and preference pattern of the customers in
the international market. Effective organizational design will enable the organizations in having
the effective communication process among all the stakeholders associated with them. Thus, the
knowledge sharing process will further get enhanced.
Lakhani, K.R., Lifshitz-Assaf, H. and Tushman, M., 2013. Open innovation and organizational
boundaries: task decomposition, knowledge distribution and the locus of innovation. Handbook
of economic organization: Integrating economic and organizational theory, pp.355-382.

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Foss, N.J., Lyngsie, J. and Zahra, S.A., 2013. The role of external knowledge sources and
organizational design in the process of opportunity exploitation. Strategic Management Journal,
34(12), pp.1453-1471.
Question 3 (5.2)
According to Van den Berghe, corporate governance of the organizations depends on the
effectiveness of the board of directors (Van den Berghe 2012). The more flexible and
independent the directors will be, the more will be their effectiveness. According to him, the
director should be free of any internal external influence and they should not have any conflict of
interest. Any types of conflict of interest involves with the directors will further degrade the
effectiveness and neutrality of the decision making process of the organization. Thus,
independent members in the board are required due to the reason that they will implement
unbiased ideas and decisions. According to Burke and Mattis, gender diversity is important for
the effective board of directors. It helps in enhancing the representation of both the genders n the
organization. With having more and equal representation from both the genders, the ideas being
generated will be more vast and diversified. In addition, the goodwill and reputation of the
organization in the industry will be enhanced due to implementation of gender diversity in the
organization. According to them, more gender diversity in the board of director also helps in
generating more new and external ideas which will eventually helps the organization in having
more options in case of any issues.
Van den Berghe, L., 2012. International standardisation of good corporate governance: Best
practices for the board of directors. Springer Science & Business Media.

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Burke, R.J. and Mattis, M.C. eds., 2013. Women on corporate boards of directors: International
challenges and opportunities (Vol. 14). Springer Science & Business Media.
Question 4 (6.4)
According to Godos-Diez, Fernandez-Gago, Cabeza-Garcia and Martinez-Campillo, the
implementation of corporate social responsibility in the organizations are being determined or
influenced by the ideas and approach being possessed by the internal stakeholders (Godos-Diez
et al. 2014). This includes the CEO who is responsible for effective implementation of the
corporate social responsibility. The principles followed by the CEO determine the level and
effectiveness of implementation of the social responsibilities of the organization. If the CEO is
more followers of ethical leadership styles, then it can be assumed that the organization will
implement extensive corporate social responsibilities. On the other hand, if the CEO is economy
oriented, then the organization may prefer more of their profitability than any other aspects.
According to Edmas, implementing effective social activities will enhance the goodwill of the
organization in the market (Edmas 2012). In addition, as a future CEO, I will have the guidance
of the strategies for implementing social responsibilities. It will motivate me to further enhance
the existing policies regarding the social responsibilities. On the other hand, if the existing
policies are not that effective, then I as a future CEO will not have the motivation to implement
something more effective.
Godos-Díez, J.L., Fernández-Gago, R., Cabeza-García, L. and Martínez-Campillo, A., 2014.
Determinants of CSR practices: analysis of the influence of ownership and the management
profile mediating effect. Spanish Journal of Finance and Accounting/Revista Española de
Financiación Y Contabilidad, 43(1), pp.47-68.

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Edmans, A., 2012. The link between job satisfaction and firm value, with implications for
corporate social responsibility. The Academy of Management Perspectives, 26(4), pp.1-19.
Question 5 (1.3)
As our organization is operating in the field of information technology, thus, macro
environment including technology, political and social environment is having the most influence
in the business activities of the organization. Introduction of newer technologies in the market
and periodic up gradation of the existing technologies is much important to survive in this
intensely competitive market. Social factors include the taste and preference pattern of the
customers is also a key determinant for organizational performance. According to Dalken, in the
present business scenario of information technology, competitive forces are equally relevant
(Dalken 2014). Customers are having more bargaining power due to the fact that more and more
rivals companies are entering in the market. However, the threat of new entrant is low due to the
presence of huge investment cost in the initial stage. The lifecycle of this industry is further
enhancing with the development of newer technologies in the market. More and more new
technologies in the market are taking the place of the older ones. According to Oke, Walumbwa
and Myers, innovation is the most important factor to survive in the present business scenario of
information technologies. The more innovative will be the product of the organization, the more
it will gain competitive advantage in the market. It will help to stay ahead in the competition.
Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical examination
concerning the relevance for today’s business (Bachelor's thesis, University of Twente).

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Oke, A., Walumbwa, F.O. and Myers, A., 2012. Innovation strategy, human resource policy, and
firms' revenue growth: The roles of environmental uncertainty and innovation performance.
Decision Sciences, 43(2), pp.273-302.
Question 6 (3.4)
According to Thelen, varieties of capitalism matters in choosing the recommended
market for the business organizations in the sector of information technology (Thelen 2012).
According to him, market is being controlled by the governments in some countries, whereas it is
be liberated and made opened for the capitalists. For the industries in the information technology
sector, liberal market is more favorable for the business operations due to the reason that it will
not be regulated by the government. Moreover, the organization can expand their market and
implement strategies on their own. According to Gilpin, regulated market poses various barriers
for the organizations due to the reason that all the decision making process of the organization
will be influenced by the government regulations (Gilpin 2016). Liberal market will further help
in competing in the market with having effective implementation of pricing strategies. Gilpin
also noted that liberal market provide more opportunities for the business organizations in terms
of having the freedom of operating in the market than that in the regulated market. In the present
situation, more and more countries are opting for the liberation of their market. Thus, operating
in the liberal market will further enhance the opportunity of making foray in other markets also.
Thelen, K., 2012. Varieties of capitalism: Trajectories of liberalization and the new politics of
social solidarity. Annual Review of Political Science, 15, pp.137-159.
Gilpin, R., 2016. The political economy of international relations. Princeton University Press.

7BUSINESS STRATEGY AND PLANNING
Question 7 (4.3)
According to Bakan and Dogan, it is the responsibility of the government to drive the
creation of clusters by providing the political, legal and infrastructure wise support. It will help
in enhancing the competitiveness of the domestic industries. It will help the domestic industries
in gaining the foothold in the international market. Skilled employees required for the
information technology business are being made available in the Australian market. The more
contribution from the government in improving the technological infrastructure of the country
will help to improve the effectiveness of the organizations in the information technologies.
According to McDonald and Thorpe, it is being said that effective organizational strategy is
important for enhancing the competitiveness of the organization. The technological readiness of
the organizations is also important due to the reason that it will help to cope up with the rapid
change in the technology in the market and industry. It is the responsibility of both the
government and the business organizations to improve the effectiveness of the geographical
clusters. Government can also helps in enhancing the flow of the resources required for the
organizations to survive in the market. It will further help the domestic organizations to foray in
to the global market.
Bakan, I. and Doğan, İ.F., 2012. Competitiveness of the industries based on the porter's diamond
model: An empirical study. International Journal of Research and Reviews in Applied Sciences,
11(3), pp.441-455.
McDonald, F. and Thorpe, R. eds., 2016. Organizational strategy and technological adaptation to
global change. Springer.

8BUSINESS STRATEGY AND PLANNING
Question 8 (6.2)
Business risks will always be their associated with the organizations. In this era of
globalization, global economic crisis is also one of the most critical crises for the contemporary
business organizations. Thus, it is important for the organizations to have the contingency plans
to overcome the challenges. According to Castells, Caraca and Cardoso, innovations is one of the
most prominent solution to overcome the economic crisis (Castells et al. 2012). In the sector of
information technology, organizations should consider developing more sustainable technologies
which will not get affected due to any crisis. According to Lien and Li, another strategy that can
be implemented to counter the economic crisis is the diversification strategy (Lien and Li 2013).
With the help of diversification strategy, the risk involved with a single line of business will get
divided among various business lines. Thus, the loss made by a sector due to economic crisis can
get adjusted with the profit from another sector. This will help to reduce the effects of the
economic crisis in the organization. Diversification also enables the organization in catering
different customer segments in various regions around the world. Thus, the market size will also
get enhanced.
Castells, M., Caraça, J. and Cardoso, G. eds., 2012. Aftermath: The cultures of the economic
crisis. Oxford University Press.
Lien, Y.C. and Li, S., 2013. Does diversification add firm value in emerging economies? Effect
of corporate governance. Journal of Business Research, 66(12), pp.2425-2430.
Question 9 (3.4)
According to Thelen, varieties of capitalism matters in choosing the recommended market for the
business organizations in the sector of information technology (Thelen 2012). According to him,
market is being controlled by the governments in some countries, whereas it is be liberated and

9BUSINESS STRATEGY AND PLANNING
made opened for the capitalists. For the industries in the information technology sector, liberal
market is more favorable for the business operations due to the reason that it will not be
regulated by the government. Moreover, the organization can expand their market and implement
strategies on their own. According to Gilpin, regulated market poses various barriers for the
organizations due to the reason that all the decision making process of the organization will be
influenced by the government regulations (Gilpin 2016). Liberal market will further help in
competing in the market with having effective implementation of pricing strategies. Gilpin also
noted that liberal market provide more opportunities for the business organizations in terms of
having the freedom of operating in the market than that in the regulated market. In the present
situation, more and more countries are opting for the liberation of their market. Thus, operating
in the liberal market will further enhance the opportunity of making foray in other markets also.
Thelen, K., 2012. Varieties of capitalism: Trajectories of liberalization and the new politics of
social solidarity. Annual Review of Political Science, 15, pp.137-159.
Gilpin, R., 2016. The political economy of international relations. Princeton University Press.
Question 10 (2.2)
According to the blog and the video it can be said cultural stereotyping is much relevant
in the present business scenario. In our organization, it mainly creates barriers in maintaining the
diversity in the organization. It is being seen by me that due to the implementation of diversity in
the workforce, employees from various social backgrounds are being appointed in the
organization. However, the attitude of the home country nationals towards the migrated
employees is not favorable. According to the home country employees, migrated employees are
inferior to them and thus they should not have the equal opportunity in the organization. Thus,

10BUSINESS STRATEGY AND PLANNING
the productivity in the organization is negatively affected. According to Barak, one of the key
issues related to the barriers of diversified workforce is the stereotyping (Barak 2016). According
to Goldman and Cropanzano, equality and fairness is not the same thing. According to them,
initiation of fairness in the organizations may lead to inequality and vice versa (Goldman and
Cropanzano 2015). Thus, it should not be considered that equality of the employees will lead to
fairness in the organization.
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Goldman, B. and Cropanzano, R., 2015. “Justice” and “fairness” are not the same thing. Journal
of Organizational Behavior, 36(2), pp.313-318.