The strategic management model

Q1. The strategic management model begins with the definition of the company’s mission that sets it apart from the other companies. Then the environmental analyst to determine opportunities and threat in the internal and external environments. The third component is to carry out a strategic analysis of the environment, which will help in reaching the attractive interactive opportunities for investments that also provides greater ROI. After this, a strategic choice is made on the right opportunity (Porter, 1980).
The team will then define its long-term objectives focusing on ROI, employees, competitive position, as well as the technology to deploy. Finally, the company will then define its generic and grand strategies. When the company is already up and running, it has to define its actions plans, and functional tactics. The final strategic activity is to developed its policies and restructure accordingly in order to refocus the company in line with continuous improvement (Porter, 1980).
Porter, Michael E. (1980). Competitive Strategy. Free Press

Q2. a)
The recalcitrant director was at level 1, stage 2 of Kohlberg’s stages of moral development because he was obstinately uncooperative with the authority and the board. James M Elliot knew about the bleak future of the company if the company failed to meet its consumers demand for computer components
Q2 b).

The suggestions based on corporate governance best practice is to make a vote of no confidence against him. He is supposed to promote transparency and Accountability, and also communication with shareholders, buit he failed to do that. This is wrong therefore, the board of directors should make a vote of no confidence against him unless he corporates and account for everything within the company (Tricker, 2009).
Tricker, Adrian, (2009). Essentials for Board Directors: An A–Z Guide, Bloomberg Press, New York,
The societal environment is the imediate environment in which a company operate. it is com posed of the demographics of the area including the social classes, the income level of the community and their culture
The elements in table 4-1, refers to the elements in the external environment. This table includes the economic, technological, socio-cultural and political legal elements. These elements affect the company’s operations including profitability, and growth

The Capsim comopany will be faced with three major issues. these include technological issueas as technology changes faster and the company has to invest alot to keep pace. the other issueas include sociocultural issues that the company has to observe. The third issue is the economic envuironment changes, trends, and inflation rate.
Technology- high probability, high impact
Economic- low prbability, high impact
Sociocultural-high probabilir
Q5. Industry analysis

Competitive Velocity – W-4.5; Sears rating = 4, Best buy rating= 3.5, sears weighted avarage= 4, best buy weighted avarage=3

Q6. value chain analysis
Subactivities for each primary activity
· Direct activities- The key direct activities is the sales of home appliances directly to households
· Indirect activities- the key indirect activities that Sears must conduct include distribution to the authorized distributors supermarkets and resellers
· Quality assurance- these activities include after sales services, and testing the products before they are taken to the market
subactivities for each support activity.
For each of the Human Resource Management- human resources development, employee performance appraisal and rewarding as well as motivation
Technology Development – include quality improvement, research and development. This creates value
Procurement support activities- include supply chain management, sales distribution and record keeping – this creates direct value
Identify links, and recomendations
They main links that the company can leverage tom gain a competitive advantage is to develop its human resources so as to improve their competence. The second link is to leverage research and development in order to produce high quality / customized products that meet the customers’ expectations


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