Running Head: DISCUSSION QUESTIONS WK 2

Discussion Questions Wk2 DeAndrena Williams Strategic Planning and Implementation 581 Dr. Ray Benedetto March 20, 2012

DISCUSSION QUESTIONS WK2 Discussion Questions Wk2 When evaluating an organization, what political and ethical factors must be taken into account? Why?

When evaluating an organization, there are a number of factors and ideal that must be taken into consideration first. During Chapter 4 of Strategic management, Pearce & Robinson (2011) explained: social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of people in an organizations external environment (p. 82) , which are developed and maintained by a number other factors (socio-economic status, religious beliefs, education, etc.). In addition, Chapter 4 illustrates that political factors are primarily used and developed as a way of outlining specific regulations that a business must regulate and maintain (Pearce & Robinson, 2011, p. 84). Ultimately, it is a common set of political and social norms that will affect the operative productivity of any given organization. Such factors have the ability to allow businesses to stay in tuned with changes in revolutionary technologies, potential competitors, and changes in their respective markets. Consider a specific sector of the transportation industryairlines, railroads, trucking, shipping, or multimodal. How have external operating environment factors affect the sectors performance? The industry of aviation (airline carriers) is one of many businesses that is particularly vulnerable to many external operating environmental factors that can have an effect on the sectors performance. When thinking of airline carriers, it is important to remember that the supply and demand of price resistance almost always fluctuates depending on how the industry is doing in a current economic state. For example, currently the United States has exceeded its demand with

DISCUSSION QUESTIONS WK2

regard to the aviation industry. As the demand of travel continues to grow, there has been a steady increase in airline tickets, an increase in the cost of additional baggage (by the pound), etc. The increase of pricings and additional luggage fees has had a negative effect on how customers have decided to travel. Many customers have made the decision to make alternative travel arrangements (if applicable). Such alternative arrangements are cheaper and economically feasible; however they may have a negative impact on particular carriers in terms of revenue and customer satisfaction. Locate an organization in the news. How is this organization trying to create value and competitive advantage in its sector? Apple is one of the worlds most popular and sought after brands. For all intents and purposes, Apples also appears to be one of few recession-proof businesses that have survived and thrived in the current weakened economy, while other popular brands have suffered significantly. Apple creates and sustains value and competitive advantage in its sector simply because unlike other businesses, Apple controls and authorizes what retailers carry all of its products, accessories, as well as who can provide support and repair services. By doing so, Apple has created a controlled retail and customer experience, which plays a huge part in their overall successful marketing strategy.

DISCUSSION QUESTIONS WK2 References Pearce, J. A., II, Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin.