Strategic Management Assignment: Frameworks, Relationships & BSC

This assignment delves into key strategic management concepts. It begins by defining and contrasting cost leadership and differentiation strategies, exploring their characteristics, and associated risks, with examples from Walmart and McDonald's. The paper then examines the importance of a CEO's role in strategic implementation, proposing a framework emphasizing goal setting, analysis, strategy formulation, and evaluation. Further, the assignment analyzes the factors influencing strategic relationships between organizations, including the enhancement of competitive advantage and leveraging expertise, outlining different types such as joint ventures, outsourcing, and public-private partnerships. Finally, it discusses the balance scorecard's role in strategic management, detailing its use in communicating objectives, aligning employee work, prioritizing projects, and measuring progress, and its role in internal analysis to identify areas for improvement.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

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Question: 1
Characteristics of Cost Leadership Strategy
The cost leadership strategy includes the following characteristics:
 The cost leadership strategy generally reduces the costs. Therefore, the firm needs to
invest more capital in technology that can minimize the cost.
 It is essential to follow the efficient logistic process for the cost leadership strategy.
 The sustainable cost cutting, and low cost base facilities, materials
Characteristics of Differentiation Strategy
The differentiation strategy includes the following characteristics:
 Extensive research, innovative ideas, and efficient development process are required.
 It is essential to gain the capability of providing high quality products and services.
 Understanding the benefits ensured by the differentiation offerings, the firm needs to
develop the effective sales and marketing process.
Risks in Cost Leadership Strategy
The major risks in pursuing the cost leadership strategy is that the sources utilized for
reducing the costs are not unique. Therefore, the competitors can easily imitate the process.
Risks in Differentiation Strategy
The differentiation strategy involves the new product development process. Therefore,
there is the high chance of risks that the competitors may start pursuing the differentiation
strategy in the different market segments.

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Example of Organisation using Cost Leadership Strategy
Walmart has been using the cost leadership strategy to secure the competitive edge.
Example of Organisation using Differentiation Strategy
McDonald has been using the differentiation strategy to earn profits.
Question: 2
Strategies act as an important part in terms of achieving efficiency in business operations.
Here, the role of the CEO is important for achieving positive outcomes. Developing a framework
in this direction possesses flexibility to achieve positive outcomes in standardizing the quality of
the business operations. Within this framework, there are certain key areas, which need to be
emphasized while implementing the strategies. These areas are wellbeing of the stakeholders and
shareholders; enhancement of the corporate social responsibility; financial flexibility along with
the achievement of the identified and specified aims and objectives.
The key elements of the framework are:
 Goal setting- This enhances the clarity and vision of the personnel towards the activities,
which they perform. This consciousness generates confidence within the personnel
regarding the performance of challenging and enduring tasks smoothly.
 Analysis- This is important in terms of the proposed plans. This analysis makes the
personnel aware of the effectiveness of the exposed performance in terms of the
identified and the specified goals.

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 Strategy formulation- Formulation of the strategy reflects the approach of the personnel
towards the business activities. After the formulation, it needs to be circulated among the
other staffs and the managerial authorities for their approval. This approval helps in
progressing with the proposed plans.
 Evaluation and control- This is one of the major elements in the strategic management
framework. Evaluation brings to the forefront the drawbacks and error of judgement in
the proposed plans and strategies. Modification of these drawbacks and errors improves
the standard and quality of the business.
Question: 3
There are various factors that influence strategic relationship between the organizations
one of the key factors is to enhance the competitive advantage in the market. This is due to the
reason that stratrgic relationship between the organizations help in increasing the market share
and brand value in the market. Anotger influencing factor for strategic relationship is harnessing
the expertise of another organization. In a few cases, two organizaions come in to strategic
relationship to leverage on the expertise possessed by each other. For instance, if an organization
is good at manufacturing a particular product and another organization is good at marketing and
selling, then strategic relationship between these two will help in effective production and
marketing of the product.
There are various types of strategic relationship such as, joint venture, outsourcing,
public private partnership and consortium. Joint venture refers to the partnership between two
organizations in order to gain the competitive advantage of each other. The two organizations
formed a single entity which operates in the market. Outsourcing refers to the transferring of job
of one organization to another vendor which works for the former in an agreed price. Public

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private partnership refers to the partnership between the government and the private organization
for accomplishment of a particular project. In majority of the cases, the role of the government is
funding the project and technologies are being provided by the private organization. Consortium
refers to the formation of cartel among various organizations which forms a group for a
particular project.
Question: 4
The balance score card in the strategic management is required for following aspects
 It is used in communicating the organisational objectives to accomplish.
 It is utilized to align the day-to-day work of the associated employees
 It is much helpful in prioritizing the products, services, and projects.
 It measures and monitors progress towards the specific strategic targets.
Process
The balance score card helps in connecting the dots between the elements of big picture
strategy. The elements include the vision, mission, purpose, and core values of the organisation.
It sometimes includes the more operational elements to measure the progress report of the
performance.
Role of Balance Score Card in Internal Analysis
The balance score card is often used for measuring the success and identifying the areas of
improvements. If the business fails, the balance score card helps in improving the weak areas to

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gain success afterwards. It judges each of the activities associated with the strategic functions. It
will show the exact areas that require more improvements for ensuring the positive outcome. For
example, a company has structured the strategic functionalities for achieving the business goals.
The balance score card is monitoring each of the activities and placing the scores as per the
performance skill. It might be shown that the communication process within the company is
poor. Therefore, the communication process has the lower marks and it requires improvements.
As a result, the expected outcomes will be facilitated.

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Appendix