1. Describe the three steps of planning. Explain how they are related.

 Starting with determining the organizations mission and goals.

The initial step in planning is establishing clear and specific goals. These goals define
what you aim to accomplish and provide direction for your efforts. They should be
SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. By setting precise
objectives, you create a framework for the planning process and a clear target to work
toward. To perform the planning task,managers establish and descover where a
organization is and where it will be.
 Formulating strategy.
Stategy formulation requires that managers perform a SWOT amalysis amd then choose

Appropriate strategies at the corporate business and functional levels.At the business
level ,managers are responsible for developing a successful low-cost and differentiation
strategy,either for the whole market or a particular segment of it. At the functional level ,
departmental managers develop strategies to help the organization either add value to its
produts bt differententiating them or lowe the costs of value creation.At the corporate
level ,organizations use the stratigies such as concentration on a single industry,vertical
intgegration related and unrelated diversification and international expamsion to strengthen
their competitive advantage by increasing the value of the goods and services provided to
customers.
 Implementing strategy

Strategy implementation requires that managers allocate responsibilities to appropriate individuals or

groups,draft detailed action plans that specify how a strategy is to be implemented, establish a
timetable for implementation that includes pricise,measurable goals linked to the attainment of the
action plan ,allocate appropriate resources to the responsible individuals or groups and hold individuals
or groups accountable for the attainment of goals.

2. What is the relationship among corporate-, business-, and functional-level strategies, and
how do they create value for an organization?

Corporate-level, business-level, and functional-level strategies are interconnected and

work together to create value for an organization by aligning various levels of the
organization's goals, resources, and activities

. Corporate-Level Strategy:

 This level involves decisions made by top management concerning the overall direction
of the entire organization. It includes choices regarding diversification, mergers and
acquisitions, allocation of resources among various businesses, and entering new
markets
 Business-Level Strategy:

 Business-level strategy focuses on how a particular business segment or unit competes

within its industry or market. It involves decisions about positioning, differentiation,
pricing, and competitive advantage.

Functional-Level Strategy:

 Functional-level strategies are implemented by various departments or functions within

the organization (e.g., marketing, operations, finance). They focus on how each function
can support the business-level strategies and contribute to achieving the organization's
overall objectives.

3.What is the difference between vertical integration and related diversification?

Vertical integration
Expanding a compays operations either backward inputs for its products or forward into an industry that
uses, distributes,or sell its products
Related diversification
Entering a new business or industry to create a competitive advantage in one or more of an
organizations existing divisions or business