Management Strategic 1st Assignment

Arranged by : Group 3 / 2019 International

Members :
1. Marsha Cantika 19080694012
2. Fa’iqoh Nurlista D.A 19080694024
3. Vincentius Arvin S. B 19080694058
4. Rian Zakaria 19080694082
5. Adinda Rizqu Purwanti 19080694083
6. Rezzananta Wisnu Putra 19080694087
7. Ahmad Akbar Yahya 19080694103
8. Nikita Aprilia S 19080694114

ACCOUNTING MAJOR
FACULTY OF ECONOMIC
UNIVERSITAS NEGERI SURABAYA
2021
Chapter :1

Task Name : Summarizing/analyzing the article

Group and Classes : Group 3/Accounting 2019-I

Preliminary

Strategic Management courses so that we can study various strategic topics in the
management of companies and other organizations and the development and application of
strategic management in the company with a philosophy and vision of the mission, and conduct
strategic environmental assessments so as to take advantage of existing opportunities and
formulation of strategic steps taken by the company in order to achieve a goal, strategic audit and
cases in the company and how to prevent it.

A multidivisional company can consist of a number of product divisions that sell different products
primarily to their own market rather than each other. Many companies spend on expensive projects
intended to increase or stabilize their future profits. There may be difficulties in understanding all
the activities of different divisions at the corporate level of the company due to different technologies
and markets, lack of general measurement criteria, and because the interests of the various divisions
conflict with the interests of the corporation as a whole.

This article discusses important issues related to the strategic planning process at multidivisional
companies, such as short- and long-term growth planning for various divisions, new project selection
decisions, the types of benchmarks used by management in the selection of these projects, the
company's assessment of what constitutes acceptable profits for different divisions, ways to set profit
goals, and appropriate performance assessments of the division by various companies.

Content
(MDF) has replaced the functional or unitary form (UF) as a general administrative structure among
large U.S. corporations (Harris, 1983; Rumelt,1974). Most argue that MDF allows companies to
increase their size and the geographical and industrial scope of their activities (Chandler, 1962;
Williamson, 1975). In UF, tasks are organized into units according to their contribution to specific
functions, such as engineering and sales. However, in MDF, tasks are organized into units based on
the product or geographic market for which their output is sold. Division managers are responsible
for all tactical decisions in their units, while top management is responsible for strategic decisions.
Palmer et al. (1987), formulated and tested models of factors that influenced companies to use
MDF. Their model expands and integrates economic, political and ecological explanations and
inserted arguments that concern the spatial structure of companies. Their results showed that while
industry diversity and geographic dispersion directly stimulated the use of MDF, the size of
companies did so only indirectly, by increasing diversity and dispersion.
Russo (1991) found that companies with high levels of discretionary cash were significantly more
likely to adopt MDF than those that lacked those resources. Strategy formulation and assessment of
divisional performance in the company: empirical analysis R. Sirpal Reports on the findings of the
Singapore company survey with special reference to strategy formulation methods and performance
assessment of Marketing Intelligence &Planning, Vol. 13 No. 7, 1995, pp. 31-36 © MCB University
Press Limited, analysis 0263-4503 is used to model the diffusion of MDF through a group of electric
utilities.
Berg (1965) addresses theoretical issues related to strategic planning for large and diversified
industrial enterprises and asset allocation for the future in each of those company's divisions. Carlson
(1990) discusses the key role played by strategic planning in achieving a balance between short- and
long-term issues and the importance of strategic plans to balance acceptable financial performance
with preparation for inevitable changes in markets, technology, competition and political factors. He
mentioned that short-term problems tend to command more management attention than long-term
problems.
Zabriskie and Huellmantel (1989) point out that many organizations are turning their planning
structures into strategic business unit (SBU) concepts to gather their strategic information. To
develop the right information successfully, strategic planning must have input from company
managers and SME planners.
Suwanabol and Jones (1990) asserted that the introduction of corporate planning in state-owned
enterprises (state-owned enterprises) in Thailand has been partially successful. The structural and
political control of SOEs creates difficulties in the top-level decision-making process, as well as in
day-to-day operations.
Porter (1987) claims that corporate strategies for diversified multi-business enterprises are closely
linked to competitive advantage at the business unit level and suggests the use of value chain
analysis. However, Goold and Campbell (1991) emphasize the importance of the relationship
between corporate strategy and parenting advantages for acquisitions, mergers, breakups,
diversification, etc. Because issues related to the actual strategic planning process and assessment
of divisional performance in MDF organizations have not been empirically studied in the literature.

Methodology dan Empirical Result

 The industries surveyed were shipbuilding, electricity and electro-plating, real estate investment
and development, technical services, and manufacturing and marketing of textiles, garments, steel
products, food, and construction. Based on a survey of 30 multidivisional companies across various
industries in Singapore, the researchers obtained the following results:

Most conglomerate companies in various industries have between four and six divisions except
for companies in the shipyard industry, where most companies have between seven and ten or more
divisions (Table I). Among the companies surveyed, decisions about long-term growth were made
at the head office level (Table II). Meanwhile, decisions relating to short-term growth are made at
the divisional level, except for the shipbuilding industry. This article provides evidence of the
centralization of the strategic planning process for long-term growth decisions at the head office
level and decentralization for short-term growth decisions and their implementation at the mdf
corporate division level. External information used for long-term decision-making (in order of
importance) is: the size and growth of old and new markets; the strengths and weaknesses of
corporate activities; price trends and profits from old and new markets; and the impact of possible
technological developments on the company (Table III). The majority of companies in making
decisions regarding new projects will be carried out at the head office level and relatively little will
be made at the divisional level (Table IV). Basically, corporate management in various companies
was found to reveal its benchmarks to a lower level of management for the selection of new projects
(Talel IV). The main benchmarks used for the selection of new projects by managers in most of the
companies surveyed are the repayment period; the internal rate of return; and the compatibility of
the project with other projects at the division level along with the current satisfactory advantage at
the division level in selecting new projects by managers (Table V). Most of the companies studied
were found to follow policies to have an acceptable level of profit for each of their divisions (Table
VI). Most of the companies surveyed were found to follow the policy to have an acceptable level of
profit for each of their divi sions (Table VII).

Table VIII shows that the methods followed across various companies to set profit goals for their
divisions in each year, in order of priority, are: head office decisions; build an atmosphere "the higher
the better" for increased profits; and check a competitor's advantage and then use those advantages
as a benchmark goal for their division. Table IX illustrates that past discussions, assessments and
records are the primary methods used by companies to determine future profitability. The majority
of companies surveyed showed that the evaluation of division performance was measured by
considering the satisfaction of the company's objectives without comparison betweenthe divisions,
except in the power and electro-plating companies, and in the real estate investment and development
sector (Table X).
Conclusions and Closings
Decision making related to long-term growth is made at the head office level, while decision making
related to short-term growth is made at the divisional level. This article describes some of the
company's characteristics, the strategic planning process associated with the selection of new
projects, and issues related to the performance assessment of MDF's corporate division in Singapore.

From this article we can find the Strategy Formulation and Performance Assessment division in the
Formulation of Corporate Strategy and Assessment of Division Performance in the Company. We
are becoming more aware of the company's variouscharacteristics, the strategic planning process
associated with the selection of new projects, and issues related to the performance assessment of
MDF's corporate division in Singapore.
Chapter :1

Task Name : Description and Analysis of 2 Factors that Cause

Companies Failed

Group and Classes : Group 3/Accounting 2019-I

Preliminary

Management strategy course on strategy concept and formulation, formation, implementation

and evaluation strategy. The purpose of management strategy is to exploit and create new and
different opportunities for tomorrow, in this case it is different from long-term planning which seeks
to optimize the various current trends for the future. Why does a company need to have a good
strategic plan? That's because there's currently very little room for error. A strategic plan that results
from a difficult choice of many good alternatives. Strategy determines its long-term competitive
advantage.
Too big to fall down, it's a phrase to describe some of the giant companies that eventually shut
down. In the business world, there is no doubt that the risk of decision making is always business
people or investors. Therefore, strategic management is needed that must be executed perfectly to
minimize risk. However, fate could say otherwise. There are many companies that have implemented
strategic management but eventually collapsed.

Contents

1. Blockbuster
Blockbuster was a gigantic rental company and was led by retail genius John Antioco, who
in his time had doubled Blockbuster sales. In its heyday Blockbuster dominated the market with
a valuation of 8.4 billion dollars in 1994, had thousands of locations across America and was very
profitable. Late fees are what make Blockbuster profitable. Blockbuster collects payments for
subscriptions that are late in returning rented videos.
In 1997 Netflix was founded using an innovation where shoppers could subscribe to a
monthly subscription and watch unlimited videos without any late fees. Many Blockbuster buyers
turned to netflix thereby increasing netflix's valuation by 50 million dollars in 2000, at this point
reed hasting as netflix ceo tried to sell netflix to Blockbuster but was rejected by Blockbuster
because it was not worth the late fee income which at that time reached 200 million dollars.
In 2004 the rapid development of technology prompted Blockbuster to innovate and the CEO
believed that the future of Blockbuster was in digital video streaming so that Blockbuster was
forced to disrupt itself and transform with the times. Blockbuster decided to eliminate late fees
and invest in creating a digital platform. For 6 years before he went bankrupt in 2010. John
 Antioco removed his representatives and shareholders because he intended to eliminate
Blockbuster's main revenue of 200 million dollars from late fees and also invest 200 million
dollars to build a digital platform. Finally Blockbuster stopped operating in 2010 because it failed
to transform because blockbuster did not dare to take a visionary step.

2. Dell
In 1984, Michael Dell founded a personal computer (PC) company called PC's Limited with
a capital of US$ 1,000. The business is diligently dilakoninya in campus dormitories, University
of Texas. Dell, creating PCs with low selling prices and willing to accept orders from anyone. At
that time, the PC was something very new and important in the transition to a more modern world.
In 1987, the company changed its name to Dell Computer Corporation. Because the name sounds
more professional than the previous name, PC's Ltd. Since that year, Dell has continued to expand
to several countries. Not only in England, Dell also stuck its first business tentacles in Ireland.
Four years after that, Dell opened several production operations in 11 different countries. In June
1988, Dell launched its initial public offering.
As technology develops, Dell has struggled to maintain its foundation in order to remain
competitive on the global business stage. Dell's business prowess in the technology sector finally
faltered when smartphones and tablets invaded markets around the world. Dell's heyday for
decades finally stumbled upon a major obstacle. In 2004, Michael Dell quit as CEO and only
served as chairman of the company. Instead of improving, customers felt the service was reduced
and sales slowed compared to other computer manufacturers. In 2006, Dell was conquered by HP
who was in first place. But now Dell has grown again and is in the first position for information
technology service providers in the health sector.

3. Kodak
Kodak is a company engaged in the camera industry. The company was founded by George
Eastman in 1888. The 1980s was where the company reached its heyday. Until the 1990s and
approaching 2000 this company still seemed to dominate the camera market. In fact, to this day,
the remnants of his glory can still be seen. Many shops that provide photo studio services, photo
printing and other things related to photos even still display the Kodak symbol because it is
already very well known. However, the failure to innovate forced Kodak to eventually go out of
business. The era of digital cameras coupled with the emergence of cellphones that have cameras,
has made the Kodak camera industry fall apart.

4. Motorola
Motorala is struggling to repair the losses that must be borne by making the wrong decision.
Before the famous smart phone as it is today, Motorola is a company that has been in the cellular
phone business for a long time. Motorola is too slow in releasing the latest versions of the
smartphones it produces. At that time, the iPhone and BlackBerry managed to outperform the
sales competition for smart phones. In its competition, Motorola is too focused on the physical
 form of the released smart phone compared to the wishes of consumers. As a result, Motorola had
to bear the loss in the form of a very large revenue decline in the three years to 2009.
Being the first company to climb in the business of selling smart phones, Motorola has failed
to compete in this field. The biggest mistake was making the wrong decision to expand and create
a new program. In 2006, the Razr smartphone brand released by Motorola managed to steal the
market's attention. Unfortunately, the company failed to launch a new generation of smartphones
using the already popular Razr brand. Motorola actually sells simple and old-fashioned cellular
phones with discounted promos. After learning from its mistakes, Motorola finally released a new
generation of Razr phones in 2010. Unfortunately, these products had to compete with the iPhone
and Blackberry, which began to dominate the smartphone market. The lack of initiative ultimately
cost Motorola a fortune and cost the company a very high price.

5. Sears
Sears, Roebuck and Co. commonly known as Sears, in its heyday Sears was Walmart and
Amazon in that era. In 1892 Sears founded a new mail order company, selling watches and jewelry
with Roebuck as a partner operating as the watch company A.C. Roebuck. In 1893, the company
name was changed to Sears, Roebuck, and Co. and began to diversify the product line offered in
the catalog. The Sears catalog was a way for most Americans to start buying mass-produced
goods, which was a big change for people living in rural areas to make ends meet. By 1894, there
were many new items such as sewing machines, bicycles, sporting goods and automobiles in the
Sears catalog which had grown to 322 pages. In 1895, Julius Rosenwald who was a clothing
manufacturer from Chicago joined to become one of the owners of Sears. Rosenwald assists Sears
in a more economical and efficient ordering system. Buyers know Sears as a reputable company.
The goods sold are of high quality and customer satisfaction is always a priority. At that time the
catalog continued to grow until it reached 532 pages and the items sold were getting more
complete.
Sears has everything a consumer could possibly need. In 1893, sales hit the $400,000 mark,
and two years later it hit $750,000. In 1908, Sears started a dismantling house business which was
offered through the Sears Modern Homes catalog. Until the sale of the house through the catalog
was declared complete in 1940, Sears managed to sell as many as 100 thousand housing units. In
1999, Sears was replaced by Home Depot on the Dow Jones stock exchange. In 2005, Sears and
Kmart finally merged to form Sears Holdings. At that time, Eddie Lampert, Chairman and largest
shareholder of Sears gave up his CEO position as part of the terms of the share sale. At that time,
they had 3,500 US stores. But now there are only less than 900 outlets left. In July 2018, Sears
closed its last store in Chicago, the city where the company was founded. In August the company
announced the closure of another 46 stores. The company had 89 thousand employees as of
February 2018. That's down from 317,000 US workers in early 2006, immediately after the
merger. Bankruptcy Factors:
Sears is not focused on core business, Sears left its core business and turned to financial
services and real estate. Where the new venture has very little synergy with Sears' core business.
In addition, this misguided strategy presents opportunities for corporate competitors such as
 Macy's Inc., Wal-Mart Stores, and Home Depot Inc. - to enter the Sears market. Sears failed to
innovate or failed to keep up with the digital age, Sears failed to update its retail model where
since 2012 Sears lost about 10 billion US dollars. Sears has begun to lose customers over the last
few decades, this is due to the emergence of a number of competitors in the form of online stores
and there are also many stores that are not well maintained, causing consumers to report decreased
satisfaction levels. As a result of the many losses that occurred, Sears finally released a number
of brands that it had managed, including Lands End, Craftsman, Kenmore equipment brand.

6. Sony
Sony was founded by Masaru Ibuka in 1946 started an electronics store in a department store
building in Tokyo. That same year Ibuka joined forces with Aiko Morita to establish a company
called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Corp.). When it was
founded, Sony only had eight employees. The first product launched was a power megaphone,
one year after the company was founded. In 1950, succeeded in making the first recording device
in Japan, which was named the Type-G. In the mid-1950s, Tokyo Tsushin Kogyo began its global
expansion. However, there are already other Japanese companies that use the initials TTK. Finally
had to find a new name and decided to use the name "Sony". Deliberately looking for a name that
doesn't exist in any language in order to make the name a trademark. Introducing a new company
name in the business world is not easy. So, it's no wonder that many Sony employees question
the decision to use the new name. However, in the end, the company name was changed to Sony
Corp. in 1958. In 1960 Sony opened a branch in the United States.
In 1968, it expanded into the UK and entered the French market in 1973 and Germany in
1986. In 1988, Sony purchased CBS (Columbia) Records Group from CBS. It was later named
"Sony Music Entertainment". In 2000, Sony had US$63 billion in sales and 189,700 employees.
Sony acquired the company Aiwa in 2002, Sony also owns television channels in India and
channels aimed at the Indian community in Europe. On July 20, 2004, the European Union
approved a 50-50 merger between Sony Music Entertainment and BMG. The new company will
be called Sony BMG and will, together with RIAA partner Universal, control 60% of the world
music market. On September 13, 2004, a Sony-led consortium concluded an agreement to
purchase the popular film studio Metro-Goldwyn-Mayer for $5 billion, including $2 million in
debt. The products produced by Sony are TVs, computers, music players, and game consoles.
Bankruptcy Factors:
Lack of innovation, there are various products from Sony, one of which is a game console or
playstation (PS3). Sony focused on digital technology when building the PS3 and has the ability
to export high definition video. However this technology can only be seen on high definition TVs
so many people will not even be able to see the full potential it has to offer. Another downfall for
the PS3 is the price, which Sony has recently lowered by $100. But the downside of the PS3 goes
even deeper when considering the wide selection of video games. Lack of attention to
competitors, in recent years, Sony is reported to have experienced a drastic decline in sales which
caused Sony to lay off some of its employees as well as several of its branch companies. This is
because Sony is too careless in paying attention to potential competitors or enemies such as
 Samsung and LG and they think that the company's methods and technology they use are the most
appropriate so that they pay less attention to changes in consumer interest who prefer the Android
version with the aim of having full features and at a price. affordable.

7. Yahoo
Yahoo was founded by Jerry Yang and David Filo in January 1994 and formed on March 2,
1995. In 1996, Yahoo began to go public and was released to the general public. Yahoo had
submitted its initial public offering (IPO) on the NASDAQ Exchange. The stock, which initially
sold its value/valuation at around USD 24.5 per share, skyrocketed by 154% until it finally
stabilized at 33 US Dollars. This includes Yahoo's valuable momentum, because Yahoo's first
day involved in the stock market, they managed to steal the attention of many investors who at
that time had high enthusiasm for all things "internet". The years 2000 to 2001 were Yahoo's peak
moments because its shares were listed high, on January 3rd to be exact. At that time, Yahoo's
stock valuation was worth up to USD 475 per share. Unfortunately, this moment only lasted for
a few months due to acts of terrorism in America that captured the world's attention until the .com
domain bubble "rupture" event so that Yahoo's stock price was only USD 8.11 per share.
In 2008, Yahoo rejected an acquisition application from the software giant Microsoft which
at that time was offered USD 44.6 billion. In addition to Microsoft, Yahoo also had time to
consider the option of merging with other companies, including with Google. But in the end,
Yahoo kept running its own company. In 2017, Verizon officially bought Yahoo after a very long
bidding session with various companies and consortia. Finally, Yahoo was successfully purchased
for USD 4.83 billion (approximately Rp. 71 trillion). At that time Verizon had a strong and valued
position in reversing the fortunes of Yahoo's already slumping internet business. Marissa finally
stated that she wanted to remain as CEO of Yahoo under Verizon. Bankruptcy Factors:
There is security that repeatedly concedes. Weak security system, making competition among
its competitors more difficult. In 2016, yahoo admitted and made an apology due to lack of server
security resulting in a massive hack. This led to 500 million stolen user data into a very large
hacking dark record. It didn't stop there, then in 2013 Yahoo was also hacked so that more than 1
billion user data was scattered. As a result, customer confidence decreases. Lack of innovation
and errors in financial management. Poor financial management under Terry Semel in 2007 led
to Jerry Yang taking over as chairman of the company and Semel stepping down two years later.
In 2016, yahoo's finances worsened again resulting in large number of layoffs of employees. In
February, after reporting a loss of USD 4.4 Billion in the last quarter, Yahoo announced a
reduction in the number of employees by 15% or approximately 1600 employees. In addition,
yahoo is less or too late to innovate when compared to its competitors. The delay in innovation
makes yahoo worse. For example, in terms of search sites, Yahoo does not have its own search
site, Yahoo prefers to work with other party's browsers. Meanwhile, yahoo competitors own and
launch their own search sites.
Conclusion and Closing
As we know that Management strategy is of course about the concept and strategy
formulation, formation, implementation and evaluation of strategy. The purpose of management
strategy is to take advantage of and create new and different opportunities for the future, in this
respect it is different from long-term planning which seeks to optimize various current trends for
the future.
So we need to implement strategic management for the business we are running. The
implementation of strategic management has many benefits such as getting maximum profit for
the company. Never limit the profits generated from your business. Based on the case of several
companies such as Blockbuster, Dell, Kodak, Motorola, Sears, Sony and Yahoo we can conclude
that when we build a business we must be able to continue to provide various innovations. Of
course we also have to be able to see market conditions, pay attention to desires and of course
keep up with the ever-changing times.
 Chapter :1
Task Name : Description and Analysis of 2 Causative Factors
The Company Can Survive
Group and Classes : Group 3/Accounting 2019-I

Preliminary
The world is entering an era full of change, and unexpected things are prone to happen
under any circumstances. Today, the company no longer questions its ability to reduce
production costs or compete in the local market. With the leap of borders between countries
and the development of information technology, creating business adaptation in a very broad
business scope.
As the level of company coverage increases, the next independent variable also
develops. Various potential risks that can occur at any time, even some risks that cannot be
predicted in advance. So, how to solve it? Should the company cancel its expansion plans to
avoid this risk? The risk of continuing to innovate and survive will be counterproductive in
the future innovation.
The healthiest way to control risk is to eliminate the dependence of the company's life
cycle on the least dependent and least volatile variables. To determine these factors, a
visionary leader needs to analyze and discuss. Can see the future supported by smart
management in the organization. This number is relatively rare, so it is necessary to carry out
internal company development and self-development plans to find future leaders who can
bring sustainable success. there are several examples of companies that have great
opportunities to adapt in business

Content

A. Amazon
- Master a Special Field First
In early 1994, Jeff Bezos wanted to sell everything online. However, he chose one
special category that Amazon has specialized in until now, namely books. Previously,
Jeff also conducted an in-depth analysis of the needs of the American market at that time.
From there, Jeff was able to master online book sales.
Jeff's message is also important that you also need to master certain fields. You need
to have a "hero" who can be the main attraction of your business. For example, you are
interested in doing business in the field of services, especially automotive, then you need
to focus on one of the small areas of things first. You can explore car washservices, car
rental, or motorcycle modification.
- Prioritize Customer Experience
Jeff has the principle of putting customers first rather than getting rid of his
competitors. He built the comfort aspect strategy. With this, customers do not need to
 spend time in the store to buy books. In fact, he also did not make customers wait long
by making same-day delivery services in many countries.

- Future Orientation
When making decisions, Jeff does so based on analysis and patience. For him, in
order to be successful in a certain field, it must be intended to stay in that field for a long
time. Jeff Bezos' decision-making has helped Amazon become one of the most powerful
companies in the world. According to Jeff, prudence can bring greater success than you
expect.
- Don't Just Look at the Magnitude of the Profits
Before starting a business, many people tend to see the amount of profit that will be
achieved. However, for Jeff, any profit can be a business opportunity. According to him,
a low price is preferred by customers and will make customers become loyal customers.
- Good Team Management
Jeff Bezos built a team that can know what's good and not for the company, as well
as being good at taking risks. In addition, Jeff also prioritizes the interests of employees.
According to him, employees and customers are equally important and equally treated.
At Amazon, Jeff Bezos and his teamavoided the "bottle neck"condition. This
condition can be an obstacle to an area or field that makes the process run a long time.
For example, in your cake business there are five people who are in charge of decorating
cakes but the tools available are only one.
This is a bottle neck condition that will hinder work and become ineffective. It's good,
you adjust between the number of employees and the number of equipment. This
condition you need to avoid so that productivity and effectiveness of work is maintained.
B. Hewlett-Packard Inc
Instead of fully going with the flow, Hewlett-Packard Inc. (HP) has its own
strategy to stay afloat in the midst of the rigors of competition. One of the strategies used
is the construction of micro, small, and medium enterprises (MSMEs) whose activities
can no longer be separated from information technology devices. President Director of
HP Inc. Indonesia. Fiona Lee, her party in recent years has initiated a number of programs
to increase the capacity of MSMEs in the country, including the HP Mentorship Project.
This program aims to provide opportunities for creators in the creative industries to
explore their fields.
They have the opportunity to learn directly from experts in the creative industries
ranging from mondays, film directors, music producers to famous Indonesian
photographers. So far, HP Mentorship Project has produced more than 4,000 creative
portfolios of its participants.
Not only business people and workers, Fiona said it also initiated a number of
programs to improve the ability of school-age children to utilize information technology.
Finally, Fiona said Indonesia is a country that is the main market of HP in the Asian
region. The recorded population of more than 270 million with the rapid growth of the
 middle class does not necessarily make Indonesia very potential for information
technology products.

C. Dupont
DuPont's Basic Values are science-based enterprises. Dupont is working together
to find solutions based on innovative and sustainable market needs, to address the world's
greatest challenges, towards living better, safer, and healthier for everyone.
DuPont's basic values are the cornerstones that show who we are and what we
stand for. Our safety and health share both personally and professionally to ensure the
safety and health of our employees, our customers, and the people in the communities in
which we operate. We work to get science-based solutions for customers, always protect
the environment and natural resources and strengthen our business by making
environmentally related things an integrated part of all our business activities in today
and the next generation in the future.
We treat our employees and all our customers with professionalism, dignity and
respect, fostering an environment where people can contribute, innovate and stay ahead.
The Highest Ethical Conduct conducts our business affairs with the highest ethical
standards and by complying with all applicable laws. Dupont works earnestly to become
a respected company around the world. How to Use this Code of Ethics 1. Learn to
familiarize yourself with the purpose and content of the Code of Conduct. Understand
the relationship between the topics in this Guide and your own business activities. 2.
Understand your responsibilities listed in the Employee Responsibility section of the
Page Understand how to use decision-making tools in the Better Decision Making section
of the Know resources page to solve ethical and compliance questions and issues in
Getting Helped and Asking Problems.

Conclusion and Closing

The existence of changes forced entrepreneurs to adjust their business strategies.
Because after these changes, customers will have different preferences than before. Starting
from cleanliness preferences to the priority of goods and services to be consumed.
Currently, the best step that needs to be taken is to motivate business owners to
rearrange the company's functions to increase efficiency. Below are some tips that business
owners can use to adapt to current market conditions

– KEYWORDS –
1. Future Orientation
2. Management and Corporate Culture
Chapter :1

Task Name : Resume Chapter 1

Group and Classes : Group 3/Accounting 2019-I

Preliminary
This chapter gives the instructions on how to develop a clear strategic plan—a bridge
to somewhere rather than nowhere. this chapter provides an overview of strategic
management. it introduces a practical, integrative model of the strategic-management
process; it defines basic activities and terms in strategic management.
This chapter also introduces the notion of boxed inserts. a boxed insert at the
beginning of each chapter reveals how some firms are doing really well competing in a
growing economy. The firms showcased are utilizing excellent strategic management to
prosper as their rivals weaken. each boxed insert examines the strategies of firms doing great
amid rising consumer demand and intense price competition.

Content

Strategic Management
Strategic management can be defined as the art and science of formulating,
implementing, and evaluating cross-functional decisions that enable an organization to
achieve its objectives. As this definition implies, strategic management focuses on integrating
management, marketing, finance and accounting, production and operations, research and
development, and information systems to achieve organizational success. the term strategic
management in this text is used synonymously with the term strategic planning.

Stages of Strategic Management

The strategic-management process consists of three stages: strategy formulation,
strategy implementation, and strategy evaluation. Strategy formulation includes developing
a vision and mission, identifying an organization’s external opportunities and threats,
determining internal strengths and weaknesses, establishing long-term objectives, generating
alternative strategies, and choosing particular strategies to pursue. Strategy implementation
requires a firm to establish annual objectives, devise policies, motivate employees, and
allocate resources so that formulated strategies can be executed. Strategy evaluation is the
final stage in strategic management. Managers desperately need to know when particular
strategies are not working well; strategy evaluation is the primary means for obtaining this
information.

Key terms in Strategic Management

Before we further discuss strategic management, we should define nine key terms:
competitive advantage, strategists, vision and mission statements, external opportunities and
threats, internal strengths and weaknesses, long-term objectives, strategies, annual objectives,
and policies.

Strategic-Management Model
 The strategic-management process can best be studied and applied using a model.
every model represents some kind of process. the framework illustrated in Figure 1-1 with
white shading is a widely accepted, comprehensive model of the strategic-management
process. This model does not guarantee success, but it does represent a clear and practical
approach for formulating, implementing, and evaluating strategies.

Benefits of Strategic Management

Strategic management allows an organization to be more proactive than reactive in
shaping its own future; it allows an organization to initiate and influence (rather than just
respond to) activities—and thus to exert control over its own destiny. Historically, the
principal benefit of strategic management has been to help organizations formulate better
strategies through the use of a more systematic, logical, and rational approach to strategic
choice. this certainly continues to be a major benefit of strategic management, but research
studies now indicate that the process, rather than the decision or document, is the more
important contribution of strategic management. Through involvement in the process, in
other words, through dialogue and participation, managers and employees become committed
to supporting the organization. Figure 1-2 illustrates this intrinsic benefit of a firm engaging
in strategic planning.

Conclusion and Closing

All firms have a strategy, even if it is informal, unstructured, and sporadic. all
organizations are heading somewhere, but unfortunately some organizations do not know
where they are going. The strategic-management process is becoming more widely used by
small firms, large companies, nonprofit institutions, governmental organizations, and
multinational conglomerates alike. The process of empowering managers and employees has
almost limitless benefits. Organizations should take a proactive rather than a reactive
approach in their industry, and they should strive to influence, anticipate, and initiate rather
than just respond to events. The strategic-management process embodies this approach to
decision making. it represents a logical, systematic, and objective approach for determining
an enterprise’s future direction. Successful strategists take the time to think about their
businesses, where they are with their businesses, and what they want to be as organizations—
and then they implement programs and policies to get from where they are to where they
want to be in a reasonable period of time.
Chapter :2
Task Name : Resume Chapter 2
Group and Classes : Group 3/Accounting 2019-I

Preliminary
Strategic management is a series of fundamental decisions and actions made by the
highest management that are applied by all members of an organization for the realization of
organizational goals. Strategy as a term systematically developed as a subject occurred in the
1960s. But basically business strategy first appeared in 1908 with the Harvard Business School.
This was triggered by the economic development of the United States so that there were many
discoveries.
Changes in the global economy have brought issues related to both large and small
businesses. Where this change has a real impact, namely the shift of business that is limited to
isolated domestic (national) businesses, due to various consequences such as differences in
culture, distance and time towards an integrated global business system or cooperation that has
mutual dependence on each other. Therefore, we will study business systems outside the United
States and their advantages and threats.

Content
The Nature Of Doing Business Globally
Organizations that conduct business operations across national borders are called
international corporations or multinational corporations. The strategic management process is
conceptually the same for multinational companies as for purely domestic companies;
However, the process is more complex for international companies because of the more
variables and relationships, the social, cultural, demographic, environmental, political,
governmental, legal, technological, and competitive opportunities and threats facing
multinational corporations are virtually limitless, and the number and complexity of factors -
this factor increases dramatically with the number of products produced and the amount
Multinational Organizations
Organizations that conduct business operations across national borders are called
international corporations or multinational corporations. The strategic management process is
conceptually the same for multinational companies as for purely domestic companies;
However, the process is more complex for international companies facing multinational
corporations are virtually limitless, and the number and complexity of factors -this factor
increases dramatically with the number of products produced and the amount
Advantages And Disadvantages Of International Operations
Companies have many reasons to formulate and implement strategies that initiate,
continue, or expand engagement in business operations across national borders. The advantages
to continue, or expand international operations they are : Firms can gain new customers for
their products, foreign operations can absorb excess capacity, reduce unit costs, and spread
economic risks over a wider number of markets, Foreign operations can allow firms to establish
low-cost production facilities in locations close to raw materials or cheap labor, competitors in
foreign markets may not exist, or competition may be less intense than in domestic markets,
Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment,
Joint ventures can enable firms to learn the technology, culture, and business practices of other
people and to make contacts with potential customers, suppliers, creditors, and distributors in
foreign countries, economies of scale can be achieved from operation in global rather than
solely domestic markets. Enhanced prestige can translate into improved negotiating power
among creditors, suppliers, distributors, and other important groups.
There are also many disadvantages in expanding business across national borders, such
as the following foreign operations can be seized by nationalistic factions, ompanies face
different and often little understood social, cultural, demographic, competitive forces, etc.,
when doing business internationally, competitors' weaknesses in foreign countries are often
overestimated, and strengths are often underestimated, language, culture, and value systems
differ across countries, which can create barriers to communication and problems managing
people, facing two or more monetary systems can complicate international business operations.
Global Challenge
More and more countries around the world welcome foreign investment and capital. Many
countries are quite protectionist, and this position can influence a company's strategic plans.
Protectionism refers to countries imposing tariffs, taxes, and regulations on companies abroad
to benefit their own companies and people.
Corporate Tax Rates Globally
High tax rates have resulted in more and more U.S. companies. who reinvest abroad to reduce
their tax burden, and usually do this by acquiring foreign companies. Whenever a U.S.
company acquire a foreign company and apply a lower corporate tax rate or establish a parent
company in a foreign country and apply a lower corporate tax rate, the transaction is called an
inversion
America Versus Foreign Business Culture
To be successful in world markets, U.S. managers should gain a better knowledge of the
historical, cultural and religious forces that motivate and encourage people in other countries.
For multinational companies, knowledge of cross-border business cultural variations is
important to be able to gain and maintain a competitive advantage. Weaknesses of some U.S.
companies In competing with Pacific Rim companies is a lack of understanding of Asian
culture, including how Asians think and behave. Managers from the United States place greater
emphasis on short-term results than foreign managers.
Rose Knotts summarizes some of the important cultural differences between US and foreign
managers.
1. Americans place a very high priority on punctuality, viewing time as an asset.
2. Personal touch and Remote norms differ around the world.
3. Family roles and relationships vary in different countries
 4. Business and daily life in some societies are governed by religious factors
5. Time spent with family and quality of relationships are more important in some cultures
than personal achievements and accomplishments held by managers A.S. traditional.
Communication Differences Across Countries
Communication is perhaps the most important word in Japanese managers of strategic
management. Most managers are reserved, calm, far introspective, and other-oriented, whereas
most U.S. managers. talkative, insensitive, impulsive, direct, and individual-oriented. Such
communication disparities have disrupted many potentially productive Japanese-American
business ventures. Seeing the Japanese style of communication as the prototype for all Asian
cultures is a stereotype to be avoided.

Conclusion and Closing

United States companies both large and small began looking for new opportunities outside their
home countries. Success in business is increasingly dependent on offering competitive products
and services on a global, not just local level. if the price and quality of the company's products
and services uncompetitive with those available elsewhere in the world, the company may soon
face extinction. From the discussion above, it has provided some basic global information that
is important to consider in developing strategic plans for each organization. There are
advantages and disadvantages to engaging in international business. So it is important in
strategic planning to to be effective, and the global nature of operations can be a key component
of an overall effectiveness plan.
Proof Of Working On Tasks In Groups From Group 3