Questions on strategic management - Research Paper Example

In addition, understanding the business environment through research and other relevant actions ensures identification of strategic factors (Cherunilam 55). This move only makes sure that the international firms will be able to learn more about the business environment. And once they do, it would be easy for them to embrace some changes having the bottom line within the formulation of actual strategic actions. Knowing the business environment is important because this is one appropriate move in order to know the necessary actions the international firms need to initiate.

Multiculturalism for instance is a core value that needed to be integrated especially among corporations having business activities in the international setting. 2. Compare and contrast trend extrapolation with the writing of scenarios as techniques. (Support your answer with an example). Trend extrapolation is quantitative in nature. Information can either be represented in a quantitative format or with numerical value. Graphs and other quantitative representations can be used for this purpose (Cornish 86).

The writing of scenarios on the other hand is qualitative in its form, as this could also turn out historical. Although both trend extrapolation and writing scenarios are techniques that could turn out historical in nature, for they involve the need to look into past events or data. However, they vary in their actual presentation for it would be easy to interpret data transformed into information presented in graphical forms. For example, understanding the past trend of sales generated by a certain product offering could be both implemented through trend extrapolation and writing scenarios techniques.

Both are actually capable of presenting the necessary and relevant information. However, for the convenience of using and interpreting information, there is a good way to find it more possible with trend extrapolation. On the other hand, trend extrapolation may be complex enough as this technique unlike the writing scenarios, requires mathematical implementation. Trend extrapolation may be complex, for it would also require the right number of data in order for the obtained information to be statistically relevant. 3. How might a firm’s management decide whether it should continue to invest in familiar technology or in new but untested technology?

What factors might encourage or discourage such a shift? (Support your answer with an example). There are many factors associated with making this decision, but one of them include efficiency. Firms are looking forward to efficient output in order to maximize opportunity and to generate revenue and eventually profit. The next consideration is productivity. Productive output today requires the use of technology, in order to hit the required volume of production necessary to help the entire business operation to continue operate.

On the other hand, there is also a need to achieve competitive advantage so there is also a need to consider whether to embrace new but untested technology or remain with the most familiar one. There are familiar technologies nowadays that could continue to provide firms with the achievement of the above mentioned factors at a higher remarkable cost saving. So for this reason, a company would be able to choose