BUS608: Ethical and Strategic Management

Do you know how to identify an ethical situation? Read this text on ethics and social responsibility, which will provide you with information on how to identify ethical issues you could face in business.

There is a difference between ethics and morals, as this video will explain. Before watching the video, can you guess what the differences are and why understanding the difference is important as a manager?

Watch this video for examples of overarching strategies that actual companies use. You should be able to explain the components of an effective strategy statement.

This resource will address the main phases of the strategy. Consider the tasks associated with each phase, since we will be addressing these in detail later in the course.

This resource defines ethics in the context of business decisions. What does ethics mean to you? Are business ethics different than personal ethics, in your opinion? Consider this as you read.

After you read this resource on why ethics matters, you should have a good understanding of why ethics is important in business and define the reasons for good ethics in business.

An important part of ethics is ethical leadership. As you watch this video, look for strategies you can implement as a leader to build ethical teams.

This resource includes a chart summarizing how businesses may be affected by a strategy decision. As you examine this chart, think about how each level of strategy is interrelated with the others. Any structure must leverage each part's strengths.

Read this article, which explains Porter's five forces in business strategy development. This model has been the classical approach to industry analysis since the late 1970s.

This text focuses on managing information technology in an organization, which is one key piece to innovation. Many companies use technology to innovate. Can you think of companies that use technology as a form of innovation?

Being creative and open to new ideas can be one-way companies innovate. After you read this resource, you should be able to identify and explain the five steps of creativity and the role of innovation in solving problems.

After watching this video, you should be able to define innovation briefly and explain what innovation "isn't".

Read this article on the role of innovation in strategic management. As our access to technology grows around the world, there continues to be a growing need to address the role technological advancement plays in the future of organizations. Management plays a pivotal role in ensuring their organizations are prepared to meet the demands of a growing innovative technological society. As a leader, consider the opportunities to embrace technology to best serve your consumers.

Read this article. Do you agree that Apple is an example of an innovator's dilemma? Why or why not?

Read this article. How does the diffusion of innovations affect access to technology for different cultures? Strategic managers often use this theory to explain the role diffusion innovation plays in helping to spread ideas throughout various groups and communities.

Read this short article and study the diagram. This is a good reference item identifying and defining the four basic market structures. In developing a strategy, one needs first to determine the structure the firm is competing in.

This video defines and explains competition in each market structure from an economic viewpoint. In which structure might uniqueness be the most important? In which structure might uniqueness be the least important?

As you watch this video, pay attention to the terms you've heard in your economics courses. Pause the video and review any terms that are unfamiliar to you. Can you name at least one business or service in your community that is an example of (near) perfect competition?

Watch this video for a better understanding of monopolies. Consider the current evolution of these two structures (perfect competition vs. monopoly) in an expanding global-enterprise environment.

This text discusses how some companies will try to diversify their risk so if one area of business is not successful, they still have other areas they can focus on. As you read, consider that diversification is not just for finances, it can relate to product and process diversification, among many others.

There is a link between diversification and corporate performance. Read this article to find out how they relate to one another.

When operating in a global environment, an organization may use several strategies to diversify risk. You should know the advantages of diversification as part of a strategy. Can you name some of the advantages? Please read this resource to answer the question.

Some companies use value-based ethics and compliance to maintain a competitive edge. As you read this resource, consider the advantages and disadvantages of each approach.

Do you know that nearly every functional area of business can be affected by ethics? As you read this article, look for the variety of ethical issues we can face in each functional business area.

Read this resource about ethics at the organizational level. How important do you think leadership is to instilling ethical values? This text will address this and provide actionable best practices for applying ethical leadership in your organization.

This chapter explains the difference between moral leaders and moral persons. As you read, look for why leaders should be role models for ethics in organizations.

We've been discussing ethics, but why are ethics and the creation of ethical values so important? This video will answer that question!

Read this article to identify the concept of integrity and its implications in business. How do you think integrity can be communicated in a strategic plan? Is this an important value to you personally, and do you think it is important in organizations?

Many principles help individuals and companies make the right ethical choices. You should understand the different ethical approaches and how they can apply to business.

As you read this content, consider if you can only apply virtue ethics to personal situations or if they can be applied to organizations too.

This video about consequentialism and utilitarianism will continue our earlier discussions on ethical models. Consequentialism is an ethical theory that determines right from wrong by focusing on outcomes. Utilitarianism is a form of consequentialism that focuses on maximized happiness when judging whether an action is good or bad. How do you see consequentialism affecting business decisions versus personal decisions?

Watch this video on virtue ethics. You learned earlier about virtue ethics. In continuing this discussion, do you think the information provided here can apply to any industry and any functional business area? Why or why not?

This video discusses deontology, an ethical theory that uses a set of rules to determine whether actions are good or bad. When considering the conflicting duties described in this video, how might you approach your strategic plan to honor all seven areas?

This resource will combine all you have learned throughout this unit. As you read, pay special attention to social responsibility and how social responsibility efforts relate to ethical companies and a company's overall strategic direction.

It has been proven that ethical companies earn more profit in the long term. As you read this content, look for the reasons why this occurs.

In this panel interview, business leaders address how to do business the right way and create trust in business. Watch for emerging themes on how companies can perpetuate positive responses from all stakeholders by being ethical.

Understanding how companies can create competitive advantages is necessary when analyzing external factors during the strategy analysis phase. As you read through this resource, consider the role of customers in helping your company develop a competitive advantage.

After you read this resource, you should be able to explain the importance of analyzing a competitive environment before developing a company strategy.

Earlier in this course, we addressed the markets companies compete within. At that time, we discussed the importance of understanding the type of market competition to create a better strategy. This resource will focus on the different strategies that can be used depending on market competition.

This video explains the steps you'll take to analyze your competition. Can you identify why this analysis is so important before developing your own company's strategy?

When looking at competitive strategies, a theory called Blue Ocean strategy addresses how to create value beyond looking only at your competition. Can you identify how innovation relates to a blue ocean strategy?

It can be difficult to find the best way to compete in hypercompetitive markets. In the framework discussed in this article, we address the initiatives a company can participate in to give temporary advantages to a firm.

The North American Industry Classification System (NAICS) is a system that classifies businesses by type of economic activity. As you review this page, consider how your organization can use NAICS data to gain a competitive advantage.

There are other forces besides competition you should be concerned with before developing a strategy and implementing it. After you read, you will be able to name the other external considerations when creating your business strategy.

There are several trends influencing businesses today that could also affect your strategy. As you read this text, consider the trends that might influence your business' strategy.

Once you watch this video, you should be able to name the four main trends that could impact your strategic plan. Knowing these potential impacts will better prepare you to create your strategy.

The product life cycle and knowing where your products or services stand in each phase of the product lifecycle is useful information. Read this resource to understand how it can allow you to better align your strategic plan with your current offerings.

Once you develop your strategic plan, you will implement four planning elements to implement it. As you read this text, look for the four elements, and pay special attention to the time frame.

Although stakeholders can refer to anyone who cares about the success of a business, this resource will address internal stakeholders. Read this text on stakeholder management, which is an important concept, as you need to determine your internal stakeholders before taking the first step to strategy creation.

Before developing a strategy and creating an organizational design, do you know the internal elements you should be aware of? This text will address some of the employee-related factors to consider.

After you read, you will be able to name the internal conditions to consider and the value chain supporting activities necessary for strategy decisions.

After completing This text, you will know the types of tools available, such as VRIO, to determine your company's resources and capabilities.

Planning for resource usage is a key factor in understanding your company's capabilities and resources, and planning for how it will use them. As you read this text, look for reoccurring themes for companies who plan their resources effectively.

This page explains the terminology related to resource planning. Do resources always have to be tangible, or can they be intangible?

When developing a strategic plan, some companies may decide to focus on mergers and acquisitions. This chapter will explain the meaning of both terms and discuss factors to consider when choosing this type of strategy.

This video further addresses mergers and acquisition strategies. At the end of the video, you will be able to explain how mergers and acquisitions can be part of an overall strategic plan and the reasons for engaging in these types of business activities.

Some organizations may choose a global strategy. However, before doing so, it is important to know why a company chooses this option and the considerations they must make when going global. After you read, you should be able to pinpoint some of the reasons that make expanding globally an attractive option for some companies.

When a company decides to expand globally, it must choose an entry strategy. After watching this video, you will be able to explain the types of entry modes and their advantages and disadvantages.

As you read this case study, consider how international considerations are important for ethics and social responsibility. Review the critical thinking questions at the end and consider other companies that may have similar social responsibility strategies internationally.

As you read this case study, consider the response of Johnson & Johnson in this situation. Do you think it was appropriate? Could they have done more ethically to resolve the situation? Also, review the critical thinking questions at the end of the case and determine what your answers might be.

As you read this case study on Petrobras, consider the individual unethical actions and the organization's unethical actions. Consider how corruption and bribery can have negative effects on all stakeholders. Also, read the critical thinking questions and brainstorm answers.

Before creating the strategy, a company must have a clear picture of its vision and mission. As you read this resource, consider the purpose of mission and vision statements, and think about how that can tie into the overall business strategy.

This text will show you examples of company vision and mission statements. Can you identify the similarities and differences between each?

Read this resource to learn how mind-mapping a vision statement can be an effective tool for vision statement creation.

As you have learned, the main difference between a vision and a mission is that the vision focuses on broad aspects of why the company exists. In contrast, mission statements focus on how the company will accomplish the vision. As you read this section, look for overarching themes for making a good vision statement.

At this point in the unit, you should have a pretty good idea of how to write a vision statement and mission statement. As you read this article, be reminded why companies need strong and well-written mission and vision statements.

Porter's Generic strategies can help your company focus on the strategy you want to pursue. Don't forget that you'll also want to consider the internal and external environment, as we addressed in Unit 2, to ensure the success of your strategy. As you read this article, consider the type of generic strategy used by a company you like to do business with.

After watching this video, you will be able to give examples of Porter's Generic Strategies and discuss the advantages and disadvantages of pursuing each strategy.

After companies select the general strategy, they must choose a specific business-level strategy. This resource gives examples of retailers and their business-level strategies.

The BCG matrix is one tool that you can choose to determine strategy. You may remember this matrix from a marketing class. The matrix allows you to see what products or services are doing well and not doing well in your industry. As you read this resource on the BCG Matrix, consider what products or companies you consider to be "dogs". What makes them appear this way to you, and why? Do you think companies can easily identify their "dogs", or is it possible to be "too close" to a product to identify this?

The balanced scorecard and strategy map approach can be useful tools for determining business strategy. As you read, consider the strategy map used for Mayberry Utilities Company. Do you think this strategy map is missing any potential perspectives? As you read this resource, pay special attention to the corporate strategy map provided in This text. Do you see how you might be able to use a mind map to determine your strategy? This corporate strategy mind map also addresses the internal and external perspectives you learned about in Unit 2.

You can use the balanced scorecard to make big-picture strategic decisions. After you read this article, you should be able to create a balanced scorecard for your organization.

The SPACE matrix determines whether you should use an aggressive, conservative, defensive, or competitive approach for your business strategy. As you learned about in Unit 2, internal and external organizational analysis is necessary to use this tool. As you read through this section, think about the advantages and disadvantages of each. The SPACE matrix is yet another tool to help you determine your potential strategy. After you read this content, you will be able to identify the internal and external strategic positions to consider when using this tool.

This section will address diversification and differentiation of products and services as a potential strategy. As you read, consider the downsides of diversification of products. Do you purchase from companies that offer many product lines? No strategy development would be complete without looking at marketing strategy and how the marketing strategy can work within the overall business strategy. This text will help you compare marketing strategy with business strategy. After you read, you should be able to effectively describe the difference between diversification and differentiation in marketing and strategic planning terms.

Determining whether or not to diversify offerings can be a challenge. After you read, you will be able to identify the tests used to determine if you should use a proposed diversification strategy.

An organizational design is needed to support the chosen strategy. As you read, consider your potential strategy and which structures might work best.

It is well known that you can execute strategy more easily with the right organizational design. This text will focus on organizational designs and control systems to implement a strategic plan.

One of the most popular organizational structures is the matrix structure. As you watch the video, consider how the functional structure and divisional are combined to create this useful structure to help support organizational strategy.

Companies have several methods to help implement ethics within their organization. In this section, we will talk about a few of those methods. As you read, consider which methods you think to be the most and least effective. Why do you believe this? How can organizations influence ethical conduct? As you read, consider the different steps that you can use to help build ethical conduct into a business strategy.

Codes of ethics are used to ensure ethical conduct occurs within the overall company strategy. After you read, you should be able to draft a code of ethics.

This video further addresses codes of ethics. Do you think a code of ethics is enough for an employee to behave ethically, or do you think companies should do more to ensure employees act ethically?

As you read this case study about flooding in Houston, consider how all stakeholders should be involved in social responsibility decision-making to obtain buy-in. Review the critical thinking questions at the end of the case.

This page discusses the strategic management process. Consider the types of resources you've learned about to determine strategy as you read.

This text takes an entrepreneurial approach to strategy and planning. As you read this article about an organization with a mission to combat worldwide homelessness, consider how this same approach would apply to medium and large already-established businesses.

The alignment of finances is extremely important when implementing a strategic plan. After you read the article, you should be able to determine the differences between capital expenditures and start-up costs.

There are many reasons for financial budgeting, but these become especially important when shifting resources needed to implement a strategy. As you read, see if you can identify the different types of budgets.

As you already know from previous units, setting goals and objectives is important in the strategic planning process. In This text, look for examples of marketing objectives. How can you tie these into the overall company strategy?

Marketing strategies can align with the overall organizational strategy. Read this resource to understand how good corporate-level objectives inform the marketing strategy and objectives.

Since human resources are usually the most valuable asset of an organization, they have strategic plans that need to align with the overall vision and mission of the organization. Look for the various human resource functions needed to be effective at supporting the strategic goals of an organization as you read this resource.

Read this article, which provides examples of effective selection and placement strategies for human capital. Every company has its own personality and philosophy, and companies need to hire individuals whose needs and ethics match those of the organization.

Read this resource, which discusses the elements of a pay system from an individual and a company perspective. How and at what level a manager sets pay for an employee is critical in creating incentives and communicating expectations for that employee's performance.

Read this resource, which discusses how to harness technology to improve performance. By creating workplace systems that increase the likelihood of great performance, companies can optimize and streamline many of their services. This text also provides information on creating and supporting succession plans, which are career tracks and advancement protocols that incentivize an organization's human capital.

Read this resource, which discusses how the company Kronos Inc. has used technology to help screen potential candidates and reduce employee turnover. Managers are charged with making strategic decisions, often with minimal time to respond. This case study provides an example of a solution that one company created to improve management decision-making.

There are many discussions surrounding the importance of the Board of Directors taking a guiding role in developing strategy. As you read this text, consider the challenges boards face in carving out a significant role in the strategy process.

This resource explains the connection between operations and strategy. There is, or should be, a direct connection between this functional area and the organizational plan. The strategy provides the foundation for the operational decisions made on a daily basis. In other words, as an operations manager, you choose tactics based on the developed organization's corporate, business, and functional level strategy. Take time to complete the action checklist activity at the end of the chapter.

This resource explains the nature of planning and the importance of analysis to create differentiated products or services or higher levels of efficiency. Understanding the nature of strategic planning and the types of analysis used during the strategic planning process are important for operation managers.

Understanding supply chain management is essential for understanding an overall company strategy. As you read this resource, consider the competitive advantages gained using supply chain management.

Read this text about the Keystone XL pipeline. What operational considerations Keystone should the organization have taken into account regarding ethics and social responsibility in this situation? Read the critical thinking questions and consider how you might respond.

Is it ethical to dump toxic waste in countries that allow it? As you read, consider the differences between unethical and illegal. Is something legal always ethical? Then, review the critical thinking questions and consider how you might respond.

After you've read this text, you should be able to explain the perspectives on culture from a business management perspective.

Company culture is an important part of ensuring the implementation of the strategic plan. As you read this resource, consider the vital role of communication in organizational culture.

As you read this resource, consider the quote by Peter Drucker, "culture eats strategy for breakfast". What does this mean? How can you ensure there is a culture that fits with the strategy you've created?

Consider these examples of creating cultural change in organizations. What is the difference between for-profit and non-profit organizations? Are the factors of implementing culture to support strategy the same?

How does organizational culture affect business strategy? This case study will focus on this question. As you read, look for the specific elements of organizational culture and how they fit into the overall company strategy.

There are many examples of organizations with the philosophy of "thinking and acting entrepreneurially". By encouraging this type of environment, companies can be more innovative. After you read, you should be able to discuss the elements required for an entrepreneurial organization.

As you watch this video, consider the importance of individual learning and how that contributes to organizational learning. By the time you finish the video, you should understand the components required to create a learning organization.

As you watch this video, look for the steps to create and sustain a learning organization. After viewing this resource, you should be able to discuss how learning organizations can support the business strategy.

In this resource, look for the role of leadership in creating an ethical workplace. Consider how ethics support an overall business strategy as you read.

Employee communication is necessary, especially when it comes to strategy, so all employees know the organizational goals. As you read this resource, consider the various methods you can use to communicate strategy to employees.

Employee values motivate employees. Read through this resource, then consider your values and how your values affect what motivates you at work.

After you read, you should be able to identify the types of power management can use to influence others. Which is the best type of power to use when attempting to incentivize employees?

While employee motivation often comes from internal employee values and management style, you can use several other methods to reward employees when they have been successful at strategy implementation. Consider the types of rewards you have been offered at work before. Did you find them motivating or not?

As you read this resource, look for the human resource aspects of this case. What did IXL Learning do wrong? Did Adrian Duane do anything wrong? Then, review the critical thinking questions at the end of the case.

Read this article and consider the following questions: What is empowerment? Why is empowerment important to organizations and employees? How can an organization's culture encourage or discourage employee empowerment? Do you feel empowered in your work environment? Why or why not?

Read this article and consider the following questions: What are some of the benefits of empowering employees? How important is employee empowerment to improving an organization's productivity? Does the company you currently work for, or one you are familiar with, empower employees? If so, how does this philosophy benefit the organization?

This text addresses why you should put reward systems into place for employees. Once you read, you should be able to identify the difference between intrinsic and extrinsic rewards and the conditions that need to be present for pay to be a motivator to employees.

We've already discussed the different types of rewards employees can be given for successful strategy implementation. Now, we will address the types of pay systems that you can implement to reward performance. As you read this information, look for best practices in pay-for-performance design systems.

After you read, you should understand the difference between performance measures and performance referents. Are you able to have a performance measure without a performance referent? Why or why not?

When an organization uses a competitive strategy, it can use several forms of measurement. As you read this article, consider which method might be the most effective for your industry.

This article addresses many of the performance indicators companies use and how they might utilize them to see if their strategy is on track. As you read, consider the categories of performance measures such as financial/non-financial and strategic/operational.

This video addresses additional performance measures. As you watch, look for the importance of market-driven factors of performance, such as customer satisfaction and market penetration.