IEU ASSIGNMENT BRIEF

Assignment Front Sheet

Qualification Subject Title

IEU S2 Master of Management (MM) Strategic Management & Business Policy

Lecturer name Assessor name
Prof. Patrick Khor Prof. Patrick Khor
Admission Number: Intake (Month / Year) Learner Name
2220730174 09/22 Adik

Assignment Brief

Strategic Management & Business Policy is a vital course that focuses on how organizations define
and pursue their goals. The course combines various management theories, tools, and methodologies,
emphasizing how leaders formulate, implement, and evaluate cross-functional decisions that enable an
organization to achieve its long-term objectives.

In this assignment, please complete the following tasks:

Task 1: Marks (30%)

How has globalization affected the strategic management process in modern corporations? Critically
evaluate the positive and negative impacts, providing real-world examples to illustrate your arguments.
Discuss how companies can effectively navigate the challenges posed by globalization to sustain a
competitive edge.

Task 2: Marks (30%)

Discuss the role of Corporate Social Responsibility (CSR) in modern strategic management. How has
the importance of CSR changed in recent years, and what are its implications for business policy?
Analyze how CSR can be integrated into a firm's overall strategy, providing examples of successful
implementations. Also, critically evaluate potential conflicts between profitability and social
responsibility.

Task 3: Marks (40%)

Explore the concept of SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and its
application in strategic management. Analyze how a thorough SWOT analysis can guide strategy
formulation and provide a competitive advantage. Utilize real-world examples to demonstrate how
companies have employed SWOT analysis in their strategic planning. Critically assess its limitations
and discuss alternative tools that might be used in conjunction with or instead of SWOT for strategic
analysis.

Word limit from 3,500 to 5,000 words for the whole essay.

Language: English or Bahasa Indonesia

Total Marks (100%)

Essay Format

1) Essay Structure:
a) Introduction:
i) Question 1: [Insert the question]
ii) Word Limit: [Insert the specified word limit]
b) Body:
i) Develop your response to the question within the specified word limit.
ii) If necessary, break the body into paragraphs to present different points or arguments.
iii) Clearly indicate the transition from one question to another.
c) Conclusion:
i) Summarize your main points and arguments for the specific question.
ii) Provide a concise conclusion that reinforces your overall response.

2) Repeat the structure for each of the remaining questions (Question 2, Question 3, and Question 4),
ensuring that you specify the question and word limit for each.

3) References:
a) If the essays require references, students should include a separate section or page for references
following the appropriate citation style (APA).
b) Provide a list of all the sources used in the essays, including books, articles, websites, etc.

4) Formatting and Submission:

a) Ensure that the essays are typed using a standard font (e.g., Times New Roman, Arial) and font
size (usually 12 points).
b) Maintain a standard margin size (typically 1 inch or 2.54 cm) on all sides of the page.
c) Double-space the entire essay.
d) Number the pages consecutively.

5) Proofreading and Editing:

a) Encourage students to proofread their essays for grammar, spelling, punctuation errors, and clarity
of ideas.
b) Remind them to stay within the specified word limits for each question.
c) It's important to communicate these formatting guidelines clearly to your students, along with the
specified word limits for each essay.
Useful Tool:
https://www.citationmachine.net/bibliographies/cd31ca11-294b-4f60-a153-3974b0f0e1b4
 ESSAY

TASK 1

ADIK
STIE IEU SURABAYA
ESSAY

How has globalization affected the strategic management process in modern corporations?
Critically evaluate the positive and negative impacts, providing real-world examples to
illustrate your arguments. Discuss how companies can effectively navigate the challenges
posed by globalization to sustain a competitive edge.
Globalization, the process by which businesses, governments, and cultures interact on a global scale, has had
a profound impact on the strategic management process in modern corporations. In this essay, we will
critically evaluate both the positive and negative impacts of globalization on strategic management, provide
real-world examples to illustrate our arguments, and discuss how companies can effectively navigate the
challenges posed by globalization to sustain a competitive edge. Globalization allows companies to expand
their markets beyond national borders, offering products and services to a global audience. For instance,
Apple Inc. has leveraged globalization to market its products worldwide, capitalizing on global demand to
become one of the most valuable companies globally.

Positive impacts of globalization on the strategic management process in modern corporations include
increased market opportunities, access to global talent, economies of scale, and advancements in technology.
Firstly, globalization has significantly expanded market opportunities for companies, allowing them to reach
customers in different countries and regions. For example, multinational corporations like Coca-Cola and
McDonald's have successfully entered various international markets by adapting their products to local
tastes and preferences. Companies can reduce costs through outsourcing and offshoring. Nike, for example,
manufactures its products in countries where labor costs are lower, significantly reducing production costs
and increasing profitability.

Globalization has provided modern corporations with access to a diverse pool of global talent. Companies
can now recruit employees from different countries with specialized skills and expertise to drive innovation
and competitiveness. For instance, tech giants like Google and Microsoft have established research and
development centers in countries like India and China to harness the local talent pool.

Furthermore, globalization has enabled modern corporations to benefit from economies of scale by
producing goods and services in large quantities at lower costs. This has led to increased efficiency and
profitability for companies operating in a globalized environment. Companies like Apple and Samsung
leverage their global supply chains to produce high-quality products at competitive prices. Globalization
facilitates the rapid spread of ideas, technologies, and best practices. This has led to accelerated innovation
cycles, with companies like Tesla leading the way in electric vehicles and sustainable energy solutions by
leveraging global talent and resources.

The advancements in technology have been accelerated by globalization, enabling companies to streamline
their operations, improve communication, and enhance decision-making processes. For example, cloud
computing, artificial intelligence, and data analytics have revolutionized how companies manage their
resources and serve customers across the globe. By operating in multiple countries, companies can diversify
their market and operational risks. Toyota, for instance, has manufacturing plants in over 27 countries,
helping it to buffer against regional economic downturns.

On the other hand, globalization has also brought about negative impacts on the strategic management
process in modern corporations. These include increased competition, regulatory complexities, cultural
barriers, and geopolitical risks. Firstly, globalization has intensified competition among companies in the
global marketplace, leading to pricing pressures and the need for constant innovation. For example, the rise
of e-commerce platforms like Amazon has disrupted traditional retail businesses and forced them to adapt to
changing consumer preferences. Regulatory complexities arising from operating in multiple countries with
different legal systems and compliance requirements pose challenges for modern corporations. Companies
like Uber and Airbnb have faced regulatory hurdles in various countries due to differences in labor laws, tax
policies, and licensing regulations. Globalization intensifies competition, with companies not only facing
local competitors but also international ones. This has led to increased pressure on prices, margins, and
market share. Small businesses, in particular, might find it challenging to compete with multinational
corporations.

Additionally, cultural barriers can hinder effective strategic management in a globalized environment, as
companies must navigate diverse cultural norms, values, and communication styles. For instance, Starbucks
faced backlash in China for its insensitive marketing campaigns that did not resonate with local cultural
sensitivities. Expanding into new countries brings the challenge of cultural differences. Walmart's failure in
Germany is a prime example, where cultural insensitivity and management missteps led to its exit from the
German market.

Moreover, geopolitical risks such as trade disputes, political instability, and natural disasters can disrupt
supply chains and operations for modern corporations. For example, the US-China trade war and Brexit
have created uncertainties for companies with global operations, impacting their strategic decision-making
processes. In order to effectively navigate the challenges posed by globalization and sustain a competitive
edge, companies must adopt strategic management practices that align with the dynamic nature of the global
business environment. Firstly, companies should focus on building strong relationships with key
stakeholders, including customers, suppliers, employees, and governments, to create a sustainable
competitive advantage. For example, companies like Nike and Patagonia have implemented supply chain
transparency initiatives to address social and environmental concerns and build trust with consumers.

Companies should embrace digital transformation and invest in technologies that enhance operational
efficiency, customer engagement, and data-driven decision-making. For instance, companies like Netflix
and Facebook leverage big data analytics to personalize content and improve user experiences.

Furthermore, companies should prioritize innovation and agility to respond to changing market dynamics
and remain competitive in a globalized world. For example, companies like Tesla and SpaceX continuously
push the boundaries of technology and disrupt traditional industries through innovative products and
business models.

Lastly, companies should actively manage risks and uncertainties by conducting thorough risk assessments,
scenario planning, and contingency plans to mitigate potential threats to their operations. For example,
companies like Toyota and GE have robust risk management processes in place to address supply chain
disruptions, currency fluctuations, and geopolitical tensions. By developing a deep understanding of cultural
differences, companies can tailor their approaches to different markets, enhancing global acceptance and
success. Diversifying supply sources and investing in supply chain resilience can mitigate risks associated
with global dependencies. Continuously investing in innovation can help companies stay ahead in the
rapidly changing global market. Engaging in ethical practices and CSR initiatives can build a positive brand
image and customer loyalty globally.

In conclusion, globalization has had a profound impact on the strategic management process in modern
corporations, with both positive and negative implications. While globalization presents new market
opportunities, access to global talent, economies of scale, and technological advancements, it also introduces
challenges such as increased competition, regulatory complexities, cultural barriers, and geopolitical risks.
To sustain a competitive edge in a globalized world, companies must adopt proactive strategic management
practices that prioritize stakeholder relationships, digital transformation, innovation, and risk management.
By effectively navigating the challenges posed by globalization, companies can thrive in a rapidly changing
business landscape and drive sustainable growth in the long term.
 ESSAY

TASK 2

ADIK
STIE IEU SURABAYA
ESSAY

Discuss the role of Corporate Social Responsibility (CSR) in modern strategic management.
How has the importance of CSR changed in recent years, and what are its implications for
business policy? Analyze how CSR can be integrated into a firm's overall strategy, providing
examples of successful implementations. Also, critically evaluate potential conflicts between
profitability and social responsibility.
Corporate Social Responsibility (CSR) has become an increasingly crucial element in modern
strategic management, as businesses are recognizing the importance of not only achieving
financial success but also contributing to society and the environment. In recent years, the
significance of CSR has grown significantly, driven by changing consumer expectations,
increased scrutiny from stakeholders, and a growing awareness of the impact of business
activities on the wider community. This essay will discuss the role of CSR in modern strategic
management, how its importance has evolved over time, and its implications for business
policy. It will also analyze how CSR can be integrated into a firm's overall strategy, provide
examples of successful implementations, and critically evaluate potential conflicts between
profitability and social responsibility.

CSR has evolved from a peripheral activity to a central component of strategic management
in modern businesses. The shift towards a more ethically conscious marketplace, driven by
informed and values-based consumer decisions, has underscored the importance of CSR. This
evolution reflects a broader understanding of the role businesses play in contributing to
societal well-being beyond mere profit generation.

The concept of CSR has its roots in the early 20th century when businesses started to
recognize the importance of addressing social and environmental issues beyond their profit-
making activities. One of the key figures in the development of CSR is Howard R. Bowen, an
economist who published the groundbreaking book "Social Responsibilities of the
Businessman" in 1953. Bowen argued that businesses have a responsibility to society beyond
maximizing profits and that they should consider the impact of their actions on various
stakeholders, including employees, customers, suppliers, and the wider community. CSR
serves as a multifaceted tool within strategic management, enabling firms to align their
operations with societal values and expectations. It acts as a bridge between the corporation
and the community, facilitating engagements that are not solely focused on financial returns
but also on social and environmental contributions. Through CSR, companies can enhance
their brand image, build consumer loyalty, attract and retain talent, and mitigate risks by
adhering to ethical standards and practices.
Another influential figure in the field of CSR is Archie Carroll, who developed the CSR pyramid
model in the 1970s. According to Carroll, CSR consists of four interrelated responsibilities:
economic, legal, ethical, and philanthropic. He argued that businesses should strive to fulfill
all these responsibilities to be truly socially responsible.

In recent years, the importance of CSR has grown significantly. This change is driven by
increased awareness and concern over social and environmental issues, such as climate
change, inequality, and workers' rights. Consumers, employees, and investors are
increasingly evaluating companies based on their CSR performance, pushing businesses to
adopt more sustainable and ethical practices. The rise of social media has also played a
crucial role, offering a platform for stakeholders to voice their opinions and hold companies
accountable for their actions. In today's business landscape, CSR has become a key
component of strategic management for many organizations. As consumers become more
socially conscious and environmentally aware, businesses are under increasing pressure to
demonstrate their commitment to sustainability and ethical practices. Companies that ignore
CSR risk alienating consumers, losing market share, and damaging their reputation.

The importance of CSR has also been elevated by the rise of social media and the increasing
influence of online activism. In an era where information spreads rapidly and scandals can
quickly go viral, businesses are increasingly held accountable for their actions. This has forced
companies to be more transparent, responsible, and proactive in addressing social and
environmental issues.

The growing importance of CSR has significant implications for business policy. Companies
are now expected to consider the social, environmental, and ethical impacts of their
operations when formulating their strategies. This includes ensuring fair labor practices,
reducing their carbon footprint, promoting diversity and inclusion, and giving back to the
community through philanthropic initiatives. The growing emphasis on CSR necessitates that
businesses integrate social and environmental considerations into their core policies and
strategies. This integration involves assessing and restructuring business operations, supply
chains, and product offerings to meet CSR objectives. Companies must also invest in
community development, environmental sustainability, and ethical labor practices, thereby
ensuring that their operations contribute positively to society.

To successfully integrate CSR into their overall strategy, companies must align their social
and environmental objectives with their business goals. This requires a commitment from top
management, clear communication with stakeholders, and the implementation of measurable
targets and KPIs to track progress. Companies that effectively integrate CSR into their
strategy can improve their reputation, attract and retain talent, enhance customer loyalty,
and drive long-term sustainability.

Integrating CSR into a firm's overall strategy requires a holistic approach that aligns CSR
initiatives with the company's mission, values, and strategic goals. This can be achieved
through:

Sustainable Business Practices: Implementing eco-friendly manufacturing processes, reducing

waste, and promoting recycling.

 Ethical Supply Chain Management: Ensuring that suppliers adhere to ethical labor
practices and environmental standards.
 Community Engagement: Investing in community development projects and
philanthropy.
  Employee Wellbeing: Fostering a supportive and inclusive workplace culture.

Examples of successful implementations include Patagonia's commitment to environmental

sustainability, Ben & Jerry's focus on social justice and equity, and Google's initiatives on
renewable energy and technology for social good.

Several companies have successfully integrated CSR into their business strategy and reaped
the rewards. One example is Patagonia, an outdoor clothing company known for its
commitment to environmental sustainability. Patagonia has implemented various initiatives to
reduce its environmental impact, including using recycled materials, promoting fair labor
practices, and donating a percentage of its profits to environmental causes. These efforts
have not only enhanced Patagonia's brand reputation but also attracted a loyal customer base
that values sustainability.

Another example is Unilever, a multinational consumer goods company that has made
sustainability a core part of its business strategy. Unilever has set ambitious targets to reduce
its environmental footprint, promote ethical sourcing, and improve the well-being of its
employees and communities. By incorporating CSR into its overall strategy, Unilever has
enhanced its brand reputation, increased sales, and attracted top talent.

While the benefits of CSR are clear, there can be potential conflicts between profitability and
social responsibility. Some critics argue that investing in CSR initiatives can be costly and
may not always yield immediate financial returns. Companies that prioritize social
responsibility over profits risk losing competitiveness and shareholder value.

However, research has shown that companies
CSR into their strategy can actually enhance
Studies have found that socially responsible
higher employee morale, and greater customer
financial results.
that adopt a long-term view and incorporate
their financial performance in the long run.
companies tend to have better reputations,
loyalty, which can ultimately lead to improved

A critical evaluation reveals potential conflicts between profitability and social responsibility.
Critics argue that CSR initiatives can divert resources from core business activities, impacting
competitiveness and shareholder returns. However, this perspective overlooks the long-term
benefits of CSR, such as brand differentiation, customer loyalty, and risk mitigation, which
can contribute to sustainable profitability. Balancing profitability and social responsibility
requires a strategic approach that views CSR as an investment in the company's future rather
than a cost. It involves identifying areas where CSR initiatives can create value for both the
business and society.

In conclusion, Corporate Social Responsibility (CSR) plays a vital role in modern strategic
management, as businesses are increasingly recognizing the importance of addressing social
and environmental issues. The importance of CSR has evolved over time, driven by changing
consumer expectations, increased stakeholder scrutiny, and the rise of online activism.
Incorporating CSR into a firm's overall strategy can bring numerous benefits, including
enhanced reputation, improved financial performance, and long-term sustainability. While
there may be potential conflicts between profitability and social responsibility, companies that
prioritize CSR can create value for all stakeholders and contribute to a more sustainable
future.
 ESSAY

TASK 3

ADIK
STIE IEU SURABAYA
ESSAY

Explore the concept of SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and
its application in strategic management. Analyze how a thorough SWOT analysis can guide
strategy formulation and provide a competitive advantage. Utilize real-world examples to
demonstrate how companies have employed SWOT analysis in their strategic planning.
Critically assess its limitations and discuss alternative tools that might be used in conjunction
with or instead of SWOT for strategic analysis.
The concept of SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and
Threats, is a widely used strategic management tool that helps organizations assess their
internal and external environment in order to formulate effective strategies. SWOT analysis
provides a comprehensive overview of the organization's current position and helps in
identifying areas for improvement and growth. This essay will explore the significance of
SWOT analysis in strategic management, its application in guiding strategy formulation, and
how it can provide a competitive advantage to companies. Real-world examples will be used
to demonstrate how companies have utilized SWOT analysis in their strategic planning. The
limitations of SWOT analysis will also be critically assessed, along with discussions on
alternative tools that might be used in conjunction with or instead of SWOT for strategic
analysis.

SWOT analysis is pivotal in strategic management, offering a straightforward yet

comprehensive framework for evaluating the internal and external factors that influence an
organization's ability to achieve its objectives. This analysis divides factors into four
categories: Strengths (internal, positive factors), Weaknesses (internal, negative factors),
Opportunities (external, positive factors), and Threats (external, negative factors). By
examining these areas, organizations can craft strategies that leverage strengths, mitigate
weaknesses, capitalize on opportunities, and guard against threats, thereby securing a
competitive advantage.

SWOT analysis has its origins in the 1960s and has since become a staple tool in strategic
management. The concept was first introduced by Albert Humphrey, a management
consultant who led a research project at the Stanford Research Institute. Humphrey and his
team developed the SWOT framework to help organizations identify and prioritize key factors
for strategic planning. The framework was later refined and popularized by researchers and
scholars in the field of strategic management.

One of the key benefits of SWOT analysis is its ability to provide a holistic view of an
organization's internal and external environment. By identifying and analyzing strengths,
weaknesses, opportunities, and threats, companies can gain valuable insights into their
current position and the challenges and opportunities they face. This information can then be
used to develop strategies that leverage strengths, mitigate weaknesses, capitalize on
opportunities, and address threats.

SWOT analysis guides strategy formulation by providing a clear picture of where the
organization stands and what external conditions it may face. This understanding is crucial for
developing strategic plans that are realistic, achievable, and sustainable over the long term.
For instance, a company might use its strong brand reputation (a strength) to expand into
new markets (an opportunity), while also addressing its high dependency on a single supplier
(a weakness) to reduce vulnerability to supply chain disruptions (a threat).

For example, Apple Inc. is a company that has effectively used SWOT analysis to guide its
strategic planning. Through a comprehensive analysis of its strengths, such as strong brand
recognition and a loyal customer base, Apple has been able to capitalize on its market
position and innovate new products and services. By addressing weaknesses, such as high
product prices and dependency on a few key suppliers, Apple has been able to mitigate
potential risks and improve its competitiveness in the market. Apple's SWOT analysis reveals
strengths such as a strong brand, loyal customer base, and innovative capabilities. However,
it also faces weaknesses like high product prices and limited compatibility with non-Apple
products. Opportunities exist in expanding services like Apple Music or iCloud, whereas
threats include intense competition and changing technology trends. Leveraging its strengths
and opportunities while addressing weaknesses and threats has helped Apple remain a
technology leader.

Similarly, Southwest Airlines is another example of a company that has leveraged SWOT
analysis to its advantage. By identifying opportunities in the market, such as increasing
demand for low-cost air travel and expansion into new markets, Southwest Airlines has been
able to develop strategies that drive growth and profitability. Additionally, by addressing
threats such as rising fuel costs and competition from other airlines, Southwest Airlines has
been able to stay ahead in a highly competitive industry.

While SWOT analysis is a valuable tool in strategic management, it also has its limitations.
One of the main criticisms of SWOT analysis is that it can be subjective and prone to biases.
Different stakeholders within an organization may have varying opinions on what constitutes
a strength or a weakness, which can lead to inconsistencies in the analysis. Additionally,
SWOT analysis does not provide a clear framework for prioritizing factors or determining the
most effective strategies to pursue. it's highly subjective; different people might interpret the
same factors as either strengths or weaknesses, or as opportunities or threats.

In light of these limitations, there are alternative tools that can be used in conjunction with or
instead of SWOT analysis for strategic analysis. For example, PESTLE analysis (Political,
Economic, Social, Technological, Legal, and Environmental) provides a broader perspective on
the external environment and helps companies identify key trends and drivers that could
impact their business. Similarly, Porter's Five Forces analysis helps companies assess the
competitive dynamics of their industry and develop strategies to enhance their competitive
advantage.
In conclusion, SWOT analysis is a valuable tool in strategic management that can provide
organizations with valuable insights into their internal and external environment. By
conducting a thorough SWOT analysis, companies can identify their strengths, weaknesses,
opportunities, and threats and develop strategies that leverage their strengths, address
weaknesses, capitalize on opportunities, and mitigate threats. While SWOT analysis has its
limitations, it remains a widely used tool in strategic planning. By understanding its strengths
and weaknesses, and exploring alternative tools for strategic analysis, companies can
enhance their strategic planning processes and gain a competitive advantage in the market.

References

Carroll, A.B. (1999). Corporate Social Responsibility: Evolution of a Definitional Construct. Business &
Society.
Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. New York Times
Magazine.
Friedman, T. L. (2005). The World Is Flat: A Brief History of the Twenty-First Century. Farrar, Straus and
Giroux.
Ghemawat, P. (2017). Globalization in the Age of Trump. Harvard Business Review.
Johnson, G., Whittington, R., & Scholes, K. (2011). Exploring Strategy (9th ed.). Prentice Hall.
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Prentice Hall.
Kotabe, M., & Helsen, K. (2020). Global Marketing Management. Wiley.
Porter, M.E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free
Press.
Porter, M.E., & Kramer, M.R. (2006). Strategy & Society: The Link Between Competitive Advantage and
Corporate Social Responsibility. Harvard Business Review.