Chapter 2 In today's global economy, competitiveness and quality go hand in hand. You can now compete by offering your services and goods globally. There is always competition to do better than you, so you must always enhance your quality. In order to deliver the best service or product, you must continue to make improvements and eliminate problems. Poor quality is always disadvantageous to you in competition. Customers may believe they can get something better from someone else who sells higher-quality goods, which might hurt your ability to compete. For instance, if you read a few product reviews and everyone is lamenting how they had such a negative experience, You'll probably discover another business that can provide a superior item or service. Due to the abundance of products or services on the market, you must make sure your product or service is always of the highest quality that anybody would want to purchase. Even in the American context, the negative influence due to poor quality can be seen, and its impacts are even felt today. After World War II, American manufacturers failed to pursue ultimate quality because they were content with being the top economic powerhouse in the world. They did not become aware of what the rest of the market was developing too rapidly. The other nations were well integrated into the global markets after they realized that quality and value were crucial for success in the global economy. The United States quickly transitioned from being the largest creditor to having one of the worst trade deficits in history. Many issues, such as those relating to business and government, family, and education, might hinder competitiveness. Fear of hostile takeover efforts and pressure from lenders or shareholders fuel the emphasis on short-term earnings. High medical expenses and excessive liability expenses that are exaggerated by attorneys who are paid on contingency also hinder competitiveness. Businesses and the government must collaborate in good, constructive cooperation to adopt laws that will minimize non-value-added costs in order to overcome these business-related obstacles. A crucial factor in the competitive equation is human resources. The labor pool will be better if it has more individuals that are informed, talented, motivated, and able to learn. This can be seen in the situations of both Germany and Japan. Both Japan and Germany realized after World War II that their human resources were their sole remaining significant resources. They realized that for the global economy of business, labor, and government to function, collaboration is necessary from all stakeholders. Despite the cultural differences between these countries, they compete using the same strategies. The effectiveness of our workforce is also significantly influenced by the educational system. The antithesis of total quality is management by accounting. The idea of management by accounting is one where the dog wags its tail. Instead of controlling the variables that result in positive financial results, it equates to making decisions based on an organization's financial performance (people, processes, and quality). Management by accounting causes: (a) decision-making based on financial spreadsheet analysis as opposed to taking into account the elements that contribute to organizational excellence and top-tier quality. (b) focusing on short-term cost cuts rather than long-term improvements in quality, value, and competitiveness.and (c) leadership that is only narrowly focused on financial considerations rather than adopting a more comprehensive approach that takes into account all aspects that contribute to organizational performance. In conclusion, quality is an important factor in competition. The US has fallen from the top spot and the Asian regions of Japan, South Korea, and China have overtaken it. Many businesses have since adopted the concept of high-quality products at low prices. Chapter 3 For a firm, strategic management entails a lot of specific decisions, actions, and operations. The planning, monitoring, and analysis/assessment portions of the report are quite extensive and include the core tenets of how the business will function and achieve its objectives. Cost leadership, differentiation, and market-niche strategies are all tactics that firms may use to create a lasting competitive advantage. Strategic planning and strategic execution are the two key facets of strategic management. Strategic planning is coming up with novel solutions to get rid of "sacred cows" that undermine competition. Organizations define their vision, purpose, guiding principles, broad objectives, and methods to achieve the broad objectives through the process of strategic planning. It's crucial to examine key measures that will position you and your business for success before you start the strategic planning process. The basis for all subsequent work is laid during this preparatory stage. To decide where you need to go and how you will get there, you must first know where you are. Include the appropriate parties early on, while keeping internal and external sources in mind.By speaking with corporate management, utilizing consumer insights, and gathering market and industry statistics, you may pinpoint the most important strategic concerns. As a result, you will have a clear understanding of your position in the market and consumer intelligence as a result. After determining your present position in the market, it's time to come up with goals and objectives that will help you get there. Your goals should be in line with the mission and vision of your organization. Now is the time to put together a strategic plan to accomplish your objectives. This phase entails choosing the strategies required to achieve your goals, setting a deadline, and outlining roles and duties. You are now prepared to put your strategy into action. First, share pertinent documents with the organization to explain the plan. The actual job then starts. The option to examine your priorities and make course corrections based on earlier successes or failures is provided by the plan's last step, review and revision. A company's competitive edge in the market is derived from its core competencies, which set it apart from its rivals. Instead of tangible or monetary assets, a company's collection of abilities or knowledge in a particular field is typically referred to as its core competency. A core competency can also be stated as a task that a business performs so expertly that it may be considered a competitive advantage. It helps to increase client demand and makes it hard for rivals to imitate. It's what you do really well and is challenging for others to match. Strategic planning requires the use of creative thinking. The capacity for creative thought is the capacity to come up with novel solutions to problems that arise often. As client expectations fluctuate and competition is constant, there is always potential for innovation in finding new ways to do things differently or better. You inspire applicants to think creatively and push themselves to go above and beyond the goal statement. Make sure your employees are aware that you are interested in hearing all of their suggestions, and provide enough time for fresh ideas to develop. SWOT analysis can be employed to determine how internal and external variables affect a firm. Strengths, Weaknesses, Opportunities, and Threats analysis is often known as SWOT analysis. It responds to the following queries: What are the company's advantages and disadvantages? What dangers and possibilities do you see in your company's business environment? The responses to these inquiries offer extra information required for the process of strategic planning.   Opinion Chapter 2 The most important factor in the competitive equation currently for the US is education, as it seems to be the one pulling us down. The United States does not lack in human resources or other important aspects of the competitive equation, with the only exception being the education sector.The effectiveness of our workforce is significantly influenced by the educational system. I think the United States ranks last when compared to other nations in matters of productivity; a greater education will help you land a better career. This is because, in comparison to other nations, our educational system does not establish greater criteria for our students. Employers in the US are now required to teach their staff members the fundamentals, which they ought to have mastered in elementary school. How can we compete with other nations when our workforce is inferior to that of other nations? The United States starts teaching the fundamentals of how to form a whole word or paragraph in third grade, whereas other nations train their workers in advanced work-related abilities. Chapter 3 One thing that can cause confusion is how important strategic management is. Like it or not, VR everyday wearable technology is mature. The very next day, mobile phone manufacturers prepared a well-known strategic plan for it. I don't think most companies have prepared for that. So, even though strategic management is important in a real world situation, I feel that companies have planned only upon a spectrum of its importance. If strategic planning was important, companies like Yahoo would not have fallen.