Strategic Business Analysis

Prof. Albina Balon

Midterm Examination
Nov-16-2021
Genevieve O. Vargas BSA21A1

Test I
1. Internal Analysis

2. Strength

3. Weaknesses

4. Opportunities

5. Threat

6. Swot Analysis

7. Mission Statement

8. Outcome

9. Values Statement

10. Vision Statement

Test II
1. T

2. T

3. T

4. T

5. T

6. T

7. F

8. F

9. T

10. F

III-Essay:
1. What are the disadvantages of a one-person operation?

The disadvantage of a one-person operation is that there is no delineation between the person and
the business. Because a singular person is the only decision-maker in the business, if anything happens
to this person, then the business grinds to a halt. Unfortunately, this happens quite a lot, such as when
the owner passes away and nobody else in the immediate family knows what to do with the business.
When this happens, the business ends up being liquidated because there has been no effort to train a
successor or have others know how to manage the business everything was in the owner's head alone.
Other disadvantages are High Tax Rate as a corporate form, you cannot avail of the tax slab advantage.
In proprietary, you are required to pay according to your salary at 10%, 20% or 30% tax rate. But in the
case of one person company, you are directly charged 30% income tax. The high tax rate is a big
disadvantage of a one-person company.

Consistency Cost the compliance cost of partnership firm or proprietary is very low compared to One
Person Company. One Person Management because the shareholder is one, and that person makes all
the decisions. Not suitable for high turnover there is the procurement of automatic conversion of One
Person Company into a Private Limited Company. One person company is included in Name, and it is
required to specify a one-person company in your company name in the bracket. There is a slightly
lower impression that the organization is kept running by one and only person.

In conclusion, the disadvantages of one-person operation are members, suitability for small business,
Business Activities, Tax Liability, Perpetual Succession, Higher incorporation costs and Higher compliance
costs.

2. As the CEO on top of the organization, he takes a number of roles that are essential for

structuring the overall strategy of the firm, what are the three (3) most crucial roles expected?

Comprehensively explain.

The three most Crucial roles of a CEO which are:

 The vision formulation

 Long-term planning
 Capacity Building

 Vision Formulation

Vision Formulation 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. The 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.

 Long-term Planning
 While the Long-term Planning is the secret to a CEO's ability to create a clear vision is for the CEO to be
able to think long-term. 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. The 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.

 Capacity Building

Lastly, Capacity Building the CEO is the primary shepherd of the company's resources, responsible for
ensuring that all available resources are being utilized efficiently to achieve the company's goals. But
along with this, the CEO should also be aware of what the company does not have what resources the
company needs to better achieve its goals.

3. Over the years, a number of stakeholders group have been identified beyond the original of Edward
Freeman, can you think of another viable stakeholder group? Explain why

Yes, another viable stakeholder groups are benevolence towards groups beyond the stakeholders can
also be seen as individual initiatives or advocacies which is why these are more pronounced in privately
owned or family-owned firms one of the principles of the business is to have a pet advocacy and will
therefore push the firm towards supporting this. In a publicly held firm however, such personal
advocacies are more difficult to push at least in principle due to the pressure to maximize returns to
shareholders. It happens because most publicly held firms in the Philippines are still effectively being run
like family businesses, mainly because ownership is likely to still be majority held by the families
involved. Because of these personal advocacies of the principles can still get through. and that leads to
firms engaging in corporate social responsibility (CSR) programs that precisely echo the interests of its
owners whether it is environmental protection, human rights, poverty alleviation or others.

4. 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 long-term plan may be clearly laid out in a circulated document, or it may all be in
the CEO's head, plotted out in secret to minimize the risk of encountering adverse reactions from
various stakeholders. Either way, the CEO has a clear long-term trajectory for the firm. In that respect,
the CEO has a distinctive role in the planning process. While middle management typically needs only to
plan for the year ahead or for the short-term, the CEO is the one person in the organization who is
thinking about the distant future or can do a long-term plan.

This means that the CEO can create a clear vision and can also be able to think of a long-term. The
CEO needs to dream big in the visioning role, the CEO should also have a level-headed grasp of reality in
order to understand how difficult the ambition truly might be. The CEO needs to know the difference
between what is achievable and what is merely a pipe dream, and just how much time, resources, and
effort may be needed to get there and to have a successful long-term plan.