The document discusses three main perspectives on strategic management: the traditional perspective views the firm as an economic entity that formulates strategy through internal and external environmental analysis; the resource-based view considers the firm a bundle of resources and assesses its internal resources, skills, and abilities as sources of competitive advantage; and the stakeholder perspective envisions the firm as a network of relationships and analyzes stakeholders' power, influence, and demands. It also outlines the traditional strategic management process of environmental scanning, strategy formulation, implementation, and evaluation.

1. THREE PERSPECTIVE ON STRATEGIC MANAGEMENT
ORIGIN VIEW OF FIRM APPROACH TO
STRATEGY
FORMULATION
SOURCE OF
COMPETITIVE
ADVANTAGE
TRADITIONAL
PERSPECTIVE
Economics,others
business
disciplines,and
consulting firms
An economic entity Situation analysis
of internal and
external
environments
leading to
formulation of
mission and
strategies
Best adapting the
organization to each
environment by
taking advantage of
strenghts and
opportunities and
overcoming
weaknesses and
threats
RESOURCE-
BASED VIEW
Economics,
distinctive
competencies,and
general
management
capability
A collection of
resources,skills,and
abilities
Analysis of
organizational
resources, skills,and
abilities
Acquisition of
superior
resources,skills and
abilities
Possesion of
resources,skills,and
abilities,that are
valuable,rare,and
difficult to imitate
by competitors
STAKEHOLDER
VIEW
Business ethics and
social responsibilty
A network ot
relationships among
the firm and its
stakeholders
Analysis of the
economic
power,political
influence,rights,
and demands of
various stakeholders
Superior linkage with
stakeholders leading
to trust,godwill,
reduced uncertainty,
improved business
dealings,and
ultimately higher
firm performance
TRADITIONAL process for develop strategy consist of analyzing the internal and external envron-
ment of the company to arrive at the organizational strenghts,weaknesses,opportuni-
ties ,and threats (SWOT)which the result from this 'situation analysis' is this process
is sometimes called,are the basis for developing missions,goals,and strategies.
In general a company should select the strategies that:
1)take advntage of organizational strenghts and environmental opportunities.

2. 2)neutralizer or overcome organizational weaknesses and environmental threats.
However,the traditional approach to strategy development also brought with it some
ideas that strategic management schoolars have had to reevaluate.
External
Analysis
(External
Environment)
Strategic Control
Direction
setting
Vision
Mission
values
Generate
Evaluate
and
Select
Strategies
Allocate
and
Manage
Resources
Build
Relationship
Design
Structures
Develop
Control
System
Measure
and Evaluate
Performance
Internal
Analysis
(Internal
Environment)
Strategy
Formulation Strategy
Implementation
and Evaluation
The traditional supported the view of Deliberate strategy versus Emergent strategy.
Deliberate Strategy implies that the manager plan to pursue an intended strategic course.In some cases
strategy simply emerge from astream of dicision.Managers learns as they go.
Emergent Strategy is one that was not planned or intended.According to this perspective,managers
learn what will work through a process of trial and error.

3. RESOURCE-BASED VIEW=is a way of viewing the firm and in turn of approaching strategy.
Funadamentally,this theory formulates the firm to be a bundle of resources.It is the resources and the
way that they are combined.which make firms different from one another.It is considered as taking an
inside out approach,while analysing the firm.This means that the starting point of the analysis in the in
the internal environment of the organization.
The resource -based view of the firm has it's roots in the work of the earliest strategic management
theorists.General management capability is one ot first competencies identified.This led to the proposi-
tion that firms with high quality general managers will outperform their rivals.Clearly.effective
leadership is important to organizational performance,but it is difficult to specify what makes an
effective leader.Edith Penrose she viewed firms as an administrative framework that coordinated the
activities of numerous groups and individuals,and also as a bundle of productve resources.She studied
the effect of various skills and abilities possessed by organization,concluding that a wide range of skills
and resources could influence competitive performance.In which this this bundle of resources has fall
into general five categories:
STAKEHOLDERS VIEW:

4. Stakeholders a group or individual who can significantly affect or significantly affected by an organi-
tion's activities.Stakeholders approach to strategic management=envision the firm at the center of a net-
work of contituencies called stockholders:firm can gain competitive advantage through superior stake-
holder management.It was developed as a direct response to the concerns of the managers who were
being buffetted by increasing levels of complexity and change in the external environment.Stockholder
were the only important constituency of the modern for-profit corporation.A firm has internal stake-
holders,such as employees,who are considered a part of the internal organization.In addition,the firm
has frequent interactions with stakeholders in what is called the operating (or task)environment.
STRATEGIC MANAGEMENT PROCESS = meaning steps and component.or defining the organi-
zation's strategy.It also define as the process by which managers make a choice of a strategies for the
organization that will enable it to achieve better performance.Strategic management is a continous pro
cess that appraises the business and industries in which the organization is involved appraises its com-
petitors and fixes goals to meet all the present and future competitors and then reassesses each strategy.
Four steps of straegic management process

5. Environmental scanning=refers to a process of collecting,scrutunizing and providing information for
strategic purposes.It helps in analyzing the internal and external factors in-
fluencing in organization.
Strategy formulation= process of deciding best course of action for accomplishing organizational
objectives and hence achieving organizational purposes.
Strategy implementation=implies making the strategy works as intends or putting the organizations
chosen strategy into action.includes designing organization structure distri-
buting resources,developing dicision making process, and mnaging human
resources.
Strategy evaluation= is the final steps of strategy management process.The key strategy evaluation
activities are:appraising internal and external factors that are the root of
presenst strategies,measuring performannce,and taking remedial/corrective
actions.Evaluation makes sure that the organization strategy as well as it's
implementation meets the organization objectives.
.

6. FINANCIAL=it is referred to as the money available to any business or te organization for spending or
to transact in the form of cash,liquid and securities and credit lines.It is the basic supply
and used for the circulation of te business.Financial resources, is the main sources in
operating or managing a business.It is stated above that it may be liquid meaning to say
it has the ability to convert asset to cash quickly.And the most liquid of all is cash itself.
But take note that the more it is liquid the greater the risk.Cash coud be in the hand or
in bank.
Example:
You will buy a specific equipment to enhance the speed of the operation like machine
and other facilities,the owner of the company will use his/her check in paying the one
he/ she purchased.
Money is also used to pay liabilities in bank if the company borrowed from the bank
or any loan type of business.Among the five resources,financial resources is the most
important because it is the one used in acquiring all of the other resources.Before entering

7. a business,the owner must ensure and provide the capital or investments and expenses.It
must also suffecient in order to be able to operate effeciently and suuffeciently to promote
success and to achieve its mission.These are also used in payment to the laborers and em-
loyees,to the supplies needed,to the raw materials needed in the production,to the mache-
neries and equipments that helps shorten the production time and to the distribution of the
processed goods that will be available to the market.Not only that,money is also used in
advertisement the product to attract the consumers.And with that,it could easily be sold
and greater profits will be generated.If the company gets a great profit and gives emplo-
yees great benefits it will give a good reputation to the public,to the management team and
to the overall business and will as well have a strong relationship with its current partners
HERZBERG'S TWO FACTOR THEORY:
A)Hygiene Factors- hygiene factors are those job factors which are essential your existence of moti
vation at workplace.These do not lead to positive satifaction for long term.But if there's is factors
factors are absent/if these factors are non-existant at workplace,then they led to dissatisfaction.In
other words,hygiene factors are those factors which when adequate/reasonable in a job,pacify the

8. employees and do not make them dissatisfied.These factors are extrinsic to work.Hygiene Factors
are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction.
These factors describe the job enviroment/scenario. The hygiene factors symbolized the pyhsiolo
gical needs which the individuals wanted and expected to be fullfilled.
Hygiene factors includes:
Pay – The pay or salary structure should be appropriate and reasonable.It must be equal and com
petitive to those in the same industry in the same domain.
Company Policies and Administrative Policies – The company policies should not be too rigid.
They should be fair and clear.it should include flexible working hours,dress code,breaks,vacation,
etc.
Fringe Benefits – The employees should be offered health care plans (mediclaim)benefits for the
family members,employee help programmes,etc.
Pyhsical Working Condition – The working condition should be safe ,clean and hygienic.The
equipments should be updated and well maintained.
Status – The employees status within the organization should be familiar and retained.
Interpersonal Relations – The relationship of the employees within his peers, superior and subor

9. dinates should be appropriated and acceptable.These should be no conflict or humiliation element
present.
Job Security – The organization must provide job security tp the employees...
B) Motivational Factors – According Herzberg the hygiene factor cannot be regarded as motivators.
The motivational factors yield positive satisfaction.These factors are inherent to work.These factors
motivates employees for a superior performance.These factors called satisfier.These factors invol
ved in performing the job.Employees find thid factors intrisincally rewarding.The motivators sym
bolized the psychological needs that were perceived as an additional benefit.
Motivators Factors Include:
Recognition – The employees should be praised and recognized for their accomplishments by the
managers.
Sense of Achievement – The employees must sense of achievement.This depends on the job.There
must be a fruit of some sort in the job.
Growth and Promotional Opportunities – There must be growth and advancement opportunities

10. in an organization to motivate the employees to perform well..
Responsibilty - The employees must hold themselves responsible for the work.The managers
should give them ownership of the work.They should minimize control but retain accountability.
Meaningfulness of the work – The work itself should meaningful,interesting and challenging
for the employee to perform and to get motivated...
The two factor theory is not free from limitation:
• The two factor theory overlooked situational variables
• Herzberg assumed a correlation between satisfaction and productivity.But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
• The theory reliability is uncertain,analysis has to be made by the raters.The raters may
may spoil the findings by analyzing same response in different manners.
• No comprehensive measures of satisfaction was used.An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
• The two factor theory is not free from bias as it is based on the natural reaction of emplo

11. yees when they are enquired the sources os satisfaction and dissatisfaction at work.They
will blame dissatisfaction on the external factors such as salary structure,company policies,
and peer relationshi.Also,the employees will give credit to themselves for the satisfaction
factors at work.
• The theory ignores blue-collar workers.Despite this limitation,Herzberg two factors
theory is acceptable broadly.
CONCLUSION:
Therefore,The two factor theory implies that the manager must stress upon guaranteeing the ade
quacy of the hygiene factors to avoid employee dissatisfaction.Also.the managers must make sure
that the work is stimulating and rewarding so that the employee are motivated to work and per
form harder and better.This theory emphasize upon-job enrichment sa as to motivate the employees.
The job must utilize the employees skills and competencies to the maximum.Focusing on the
motivational factors can improve work equality.

12. Assignment A.
FIVE COMMON INTERVIEWING MISTAKES
• FAILING TI RESEARC A COMPANY:
You will put yourself at a disadvantage before you even walked into an interviewers office
if you fail to prepare for the discussion in advance.Primarily,this means learning as much as
possible about propective employee.
Hiring manager will assume that you have at minimum,invistigated their organization's web
site,so expand the score of your research efforts.Use your professional network and industry
publication to determine the company's priorities.Competitors and market position this will
help you translate your expertise into concrete examples of how you can make difference

13. at the firm.
• SAYING TOO LITTLE/TOO MUCH:
As you respond to interview questions,you do not want to gloss over vital information but
you also do not want to go into too much detail.Both extremes can create a negative impre
ssion with hiring managers.If your response is to brief,interviewers may wonder if you are
hiding something.If they are too lenthly,people may tune you out.
Here Again,the key to achieving the right balance is advance preparation and practice.Be
fore interviewer,think about your answer to question on interviewer is likely to ask about
your background.Be prepared to support broader statement with specific examples that
showcase your accountingand leadership skills.
Consider practicing your responses with friends,family and trusted colleagues.They can pro
vide candid feedback that can help you refine your answers and ensure they are the appro
priate length.
• IGNORING CUES FROM THE INTERVIEWER:
One of the most valuable,and under rated,interviewing skills is the ability to listen, pay

14. attention to, understand and absorb what the other person is saying.If you concentrate too
instantly on forming your responses,you can miss critical information offered by the hiring
managers.
Throughout the discussion,interviewer may provide useful clues as to what they are looking
for candidates,allowing you to tailor yur answer to their requirements.
For example,a chief financial officer might mention that the company is undergoing rapid
growth-which can indicate a need for employees who adopt easily to afast-paced environ
ment and assume challenging demand.
• NOT BEING YOURSELF:
Even though you want to customize your answer based on what you learn from the inter
viewer to emphasize skills must applicable to the position,be careful not to overstate your
case.Not only do you want avoid strethching the truth,but the hiring manager may not reveal
every aspect that is important for the winning candidates to posses.In other words don't get
so focused on saying the “right thing” that you do not give an accurate portrayal of your
skills and interests.

15. For instance, exaggerated your role in analyzing operating metrics because you think that
is what the job calls for,while failing to place emphasis on your proven ability to identify
cost saving opportunities- acompetency the firm may actually value more
Remember,it become both yu and the hiring manager if you present an accurate picture of
your qualification so an appropriate match can be made to the position.
• FAILING TO TAKE THE OPPORTUNITY TO ASK QUESTION:
Interviewer are two-way street,so be ready with your own questions at the end of the dis
cussion.Prepare a few before you arrive and write down any additional issues that arise
as the conversation progress.
Make certain you ask specific question a company's mission and business practices and
expectations to determine wether they are realistic and in line with your own preferences.
Also,find out about the organizations long-term priorities and how your contributions
would impact these plans..