STRATEGIC BUSINESS ANALYSIS

Prof. Albina Balon

Genevieve Vargas BSA21A1

Midterm
(The CEO and Strategy)

STRATEGIC QUESTIONS AND EXERCISES

1. Explain why it is important for a business to have a vision.

As mentioned in the previous lesson, the CEO's primary role is to have a clear vision for the
future of the business. It could be a simple vision, such as market share growth or a grand
ambition of what the business can achieve in 20 years. To have a clear vision in business is
important to have a continued success and growth of a firm because these bold and innovative
directions are what can create a lot of value for shareholders. Innovative CEOS often lead to
high performing share prices for their firms. For example, are that visioning ability of a CEO is a
valuable skill and the hallmark of some of the world's best CEOs. It was his clear vision of the
future of computer technologies, for instance, that helped Bill Gates guide Microsoft into
becoming the software powerhouse that it became by the late 1990s. Then also Steve Jobs, the
late CEO who grew Apple into the global electronics powerhouse that it is today, was also
known for his clear vision of the products and services that Apple could create and control. He
was primarily responsible for the iPod music player, the game changing iPhone smartphone,
and the iPad tablet. The next CEO of Apple was a brilliant operations and logistics expert, Tim
Cook, who was responsible for providing Apple with a highly efficient production base the
"Apple's Tim Cook Is Expert in Operations, 2011", Because of this, he was seen as the best
choice for CEO.

2. Does vision always equate to transformation?

Yes, of course without the vision we can't know what the company or business desires to
achieve in the long run and generally in time frame of five to ten years. It always equates to
transformation if there's this vision or setting a defined direction for the company's growth
then I assure there will be a transformation.
3. Explain why the CEO is the only person in the organization who can
coordinate the long-term strategy for the firm.

Because the CEO's ability is to create a clear vision to be able to think for long-term
planning. The CEO must factor in a number of elements, such as the company's current
capabilities, the trends in the environment, competitive actions and reactions, and the
resources that the firm must acquire. Only CEO must then formulate ideas about how the
company can be in the best position to generate value some five, ten, or even 20 years in the
future.

4. Explain why adaptability and improvisation are skills that a CEO should
possess.

As the CEO identifies the roadmap that will lead the present state to the future state, and
this enables the CEO to determine what resources and capabilities need to be acquired next.
But this process of resource acquisition is the part that offers the most uncertainty. The skills
that a CEO possess is that we can never know if the CEO really gather the kinds of resources and
capabilities that are needed to move forward for a successful business goal. Things will not
always go as planned the company may end up in a profitability slump that prevents it from
reinvesting in the next set of resources that it will need or perhaps a hoped for strategic
partnership that can give the company access to needed resources does not push through. That
is when these challenges arise to the company the CEO must be adaptable enough to improvise
and steer things back toward the vision. Often, this will require some form of recalibration or
either the vision will have to be adjusted to fit the emerging realities, the long-term plans will
have to be modified to adapt to the developments, or the capacities that are required will have
to be reassessed and reconsidered. The strategies may change, but the vision may remain
mostly the same.