It is always a good business strategy
to have a scenario plan in place, to prepare for any future endeavors.
According to the text, scenario planning is an act where managers look outside
of the box and envision what could happen in the future and design a plan (Rothaermel,
2017). Amazon has been in the press recently because they have moved toward cashier
fewer stores, these stores allow
customers to set up accounts and just walk in the store scan it and walkout. The scenario plans her is to create a relaxed shopping environment without long
lines. The what-if comes into play if prices are incorrect,
products are not scanned incorrectly,
etc. There must be a plan in place to combat these issues.
A firm that provide product over
service the manager’s actions may not be such a huge influence. The external
factors would be dominant and have a more important effect than the manager.
This can be seen more in firms that are smaller and that is not top heavy. The
smaller the business the more focus they are on customer service, because the
customers is what keep them in business.
When firm effects are more important
that is a statement showing that the manager’s actions has a huge influence on the firm’s overall performance. When this
happens the profit margins are lower and there is a higher return on the firm
effect. External environment at this
point would play a very small role in determining the firm’s performance.
BP can benefit from some advice on
how to manage their stakeholders and rebuild the relationship. Just like any
other relationship BP has to regain the trust of the stakeholders and assure
them that they will not be negligent in their works. Some significant change
must take place. BP is at a point that they need to revisit policy, training,
and management. This can be done by recognizing their social responsibility. BP
lost their competitive advantage during this time of uncertainty, but can regain it if they put rules in place and make
sure that all of the laws are followed.
Rothaermel (2017) prioritizing and addressing concerns and responding in
a timely manner is another way that BP can gain an ethical edge over its
company must find what makes them competitive and stand out from the
competition. In today’s society companies must understand the importance of
their stakeholders and how they play a huge role in the success of their
company. Target’s stakeholder’s relationship is a well -organized plan, and it
shows the excellence in service they have been recognized for. .Target gain
value from its employees, customers, local communities, and vendors by
providing programs that bring insight on and give back to the stakeholders
(Rothaermel, 2017). The AFI framework shows how each stakeholder contributes to
the organization and the rewards that are
expected in return. Target must first
determine its main stakeholders and find out what their interest is, find out
if the stakeholder is a benefit or a threat, what power does the stakeholder have, and what can be done about
the issues of the stakeholders. Target managers can collect important data from
its employees and other stakeholders
about the specific areas that may be a concern to them. Target can reach out via email, or links and numbers to web and
phone surveys. In past instance, Target has rewarded its stakeholders for their