【正文】 es Evolve? ? A pany’s strategy is a work in progress ? Changes may be necessary to react to ? Financial crisis ? Fresh moves of petitors ? Evolving customer preferences ? Technological breakthroughs ? Emerging market opportunities ? Changing political or economic climate ? New ideas to improve strategy Figure : A Company’s Strategy Is a Blend of Proactive Initiatives and Reactive Adjustments 121 122 Linking Strategy With Ethics ? Ethical and moral standards go beyond ? Prohibitions of law and language of “thou shalt not” to issues of ? Duty and “right” vs. “wrong” ? Ethical and moral standards address “What is the right thing to do?” ? Two criteria of an ethical strategy ? Does not entail actions and behaviors that cross the line from “should do” to “should not do” (because such actions are unsavory, shady, unconscionable, injurious to others, or harmful to the environment) ? Allows management to fulfill its ethical duties to all stakeholders A Firm’s Ethical Responsibilities to Its Stakeholders Owners/shareholders – Rightfully expect some form of return on their investment Employees – Rightfully expect to be treated with dignity and respect for devoting their energies to the enterprise Customers – Rightfully expect a seller to provide them with a reliable, safe product or service Suppliers – Rightfully expect to have an equitable relationship with firms they supply and be treated fairly Community – Rightfully expect businesses to be good citizens in their munity 123 124 Role of Senior Executives: Linking Strategy with Ethics ? Forbid pursuit of ethically questionable business opportunities ? Insist all aspects of pany strategy reflect high ethical standards ? Make it clear that all employees are expected to act with integrity ? Install anizational checks and balances to ?Monitor behavior ?Enforce ethical codes of conduct ?Provide guidance to employees in gray areas ? Display genuine mitment to conduct business activities ethically 125 Test Your Knowledge A pany39。McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. Chapter 1: What Is Strategy and Why Is It Important? Screen graphics created by: Jana F. Kuzmicki, . Troy University “Strategy means making clearcut choices about how to pete.” Jack Welch Former CEO, General Electric “Without a strategy the anization is like a ship without a rudder.” Joel Ross and Michael Kami 14 Chapter Learning Objectives 1. Understand the role of business strategies in moving a pany in the intended direction, growing its business, and improving its financial and market performance. 2. Develop an awareness of the four most reliablestrategic approaches for setting a pany apart from rivals and winning a sustainable petitive advantage. 3. Learn that business strategies evolve over time because of changing circumstances and ongoing management efforts to improve the pany’s strategy. 4. Understand why a pany’s strategy must underpinned by a business model that produces revenues sufficient to cover costs and earn a profit. 5. Gain awareness of the three tests that distinguish a winning strategy from a soso or flawed strategy. 6. Learn why good strategy and good strategy execution are the most trustworthy signs of good management. 15