Question

Strategic Management:

1- what are cultural factors that affect Strategy implementation?

2- what are the various market entry strategies for a firm?

Answer 1

Answer 1) There are various cultural factors that affect strategy implementation .The organisational culture refers to the practices and norms within an organisation .It creates a base for strategy .A strategy can be successful if it aligns with the organisational culture .Following may be some cultural factors that may affect strategy implementation -

1) flexibility of the organisation - An organisation has to be flexible and amenable to the changes in competitive market .If an organisation is not flexible enough it will lag behind in strategy implementation for competing with its rivals .

2) stability within an organisation - A stability in the culture would support strategy implementation.It would foster partnership , team spirit , camaraderie among employees .

3) leadership - Leadership affects largely . Poor leadership is an obstacle in strategy implementation .A leadership style helps in determining how the chosen strategy will be implemented .The leaders from time to time have to encourage employees and motivate them and only a good leader can do this .

4) organisational structure - An organisational structure is important in affecting strategy implementation . The organisational structure helps in assigning roles and responsibilities , clarifies how the decision will be implemented and also ensures enough flexibility to face the contingencies .

5) Information system - The information system is of great worth in the implememtation of strategy .An organisation got to have information about its rivals and competitions going in the market .Through this an organisation makes a sound strategy .

6) Dynamicism - The competitive market is highly dynamic .Nothing is constant in this market .So there may be various contingencies which an organisation takes into account while implementing a strategy .

Answer 2) Market entry strategy means the strategy required when a firm decides to enter a new market .Following are the market entry strategies -

A) The company should have the knowledge of the potential customers and competitors . So that company should implement it's strategy in such a way so as to face the competition .

B) knowledge of localised market is of utmost importance for the firm . On the basis of localised markets it would be able to determine its price policy .

C) Exportation - There are two types of exportation . Direct exportation and indirect exportation . In direct exportaexportation it directly sells its products and in indirect , it employs various middlemen for such purposes .

D) licensing - The firm in one country agrees to provide a firm in other country to use the manufacturing , trademark , skills , of the Licensor .

E) joint venture - In a joint venture two or more firms have ownership and they share the losses in an agreed ratio . So a firm has to decide whether it wants a joint venture or not .

F) total ownership - A firm before entering a market has to decide whether it wants a 100% ownership or not . If it wants then it has to act in a certain way to meet its goals .