Book Summary of Strategic Management and Business Policy

Junior (College 3rd year) ・Management ・APA ・3 Sources

In an effort to connect sustainability, globalization, and innovation for strategic business management, a three-dimensional strategy is used. A fascinating idea that a successful organization must invest in for the development of their business is brought to light by the three policy issues. The three strategic issues are each represented by a different vignette. The method used is really strategic and useful. Additional business aspects like corporate leadership, social responsibility, and operational strategies will also be covered.

The case study's foundation is an expressive explanation of company sustainability, business expectations, and innovation as the most important factor in business competitive advantage. (Thomas L. 2004) The research is resource based to help students better understand the concept of competitive advantage. Advanced investigation and modern consultation practices have been added to the study in the strategy formulation and implementation. The strategic management model has been made operational through the strategic audit. (J. David 2004)

Unity is enhanced through strategic management model. Operationalization of decision making strategic processes is checked in the analysis. Roles of top leadership regarding corporate governance is included in the Sarbanes-Oxley Act effects. (Allan N. Hoffman 2004)

Relevant Factual Information about the Problem or Decision the Organization Faced

Guajitole potential of growth was faced with multiple challenges including those the balance between accessing enough mahogany and cutting down enough according to the environment regulation requirements. Forests were running out of mahogany. Guajilote was in other words restricted to cut down more trees, besides the constraints of cutting the mahogany and processing them by hand, he was also constrained by the number of wood it could handle at a go as well as the transportation problem. In many instances, firms are required to make a tough choice between applying horizontal strategy and multipoint competition strategy. Failure of innovation and creativity among the firms is another problem to be faced. As much as change boosts businesses, in some instances, it has failed efforts of some firms to run efficiently. (Elton 2016)

Relevant Factual Information about the Problem or Decision the Organization Faced

Organizations faced competition as a major challenge to the companies. Thousands of firms competed in the U.S although most were minor businesses with sales for as little as 20 million dollars or even less. Competitiveness primarily depended on the kind of merchandise a firm sold and the market share it was projecting. Standardized products regarding design with less variation from one company to another primarily competed on pricing strategies. The decision of purchasing process was also highly influenced by after sales services and reputation of companies in the citizens as well as its history. (O'Riordan, A. 2016)

Explanation of Relevant Concepts, Theories, and Applications Derived from Course Materials

The case introduced some issues that need to be examined in the business world. First, innovation is key to business success and product differentiation. But if not carefully monitored, it might hamper business success. This challenge can create more problems to respective firms with frustrated and dissatisfaction of their clients may choose to source the service elsewhere. However, this is not the only issue. Stiff competition is another serious issue. Product differentiation and advertisements will cost firms more. These activities will make the firms make small profits. (J. David 2006)

Due to lack of vision and adequate measures in place, Guajotole finds itself unable to meet market and regulatory demand. These put them in a hard position of trying to find an amicable solution that will enable them to meet both the expectations of customers and regulatory body. This misstep could lead to major profit losses at the least, and incompetency at the worst, hence exiting the market.


Firms that find themselves in such a position that businesses were caught in the case above, they should approach their challenges not only from the competitive financial perspective but also the company’s reputation angle. (Hefley, W. E. 2016). By BlackBerry majoring their market base in few countries, for example, would only allow the company to maintain its production practices, it would probably help them in maintaining their market share. Financially, they would breakeven. From all the dimensions, one is recommendable. If maintaining market share is the only imperative there are economically similar, but reputation better solutions pursue; such as licensing and innovation. (In Wang, 2016)

Alternative recommendations

The most amicable way to address the problem faced by the firms, it would be advisable not to end up in the situation in the first place. But if the firm is already caught in the mix, innovation should be fine-tuned to stand out from the rest (Kasahara, E. 2015). Analytics are becoming essential for businesses to remain strategic and competitive. The best thing a firm should do for itself is to invest in a robust Analytical Department and frequently consult it on the company’s direction and status in market share and internal state. (Kasahara, E. 2015).


Firms found themselves in the mix of making hard decisions pertaining competition in their attempt to contain sustainability, globalization, and innovation. Their mistakes ended up costing them financially and potentially end up in losing their position in market leadership. However, they should not risk their damaging their reputation in an attempt of making up their supply shortfall. In the future, firms should invest in Analytical Departments to aid them in fundamental planning to keep them on top of market dynamics.


Elton, J., & O'Riordan, A. (2016). Healthcare disrupted: Next generation business models and strategies.

In Wang, Y., & In Hefley, W. E. (2016). The global impact of unconventional shale gas development: Economics, policy, and interdependence.

Kasahara, E. (2015). Practical strategic management: How to apply strategic thinking in business.

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