Business Ethics and Strategic Management: A Comprehensive Analysis
Business Ethics and Strategic Management
Ethics refers to any commitment regarding the defense of the interests of the organization, as well as to all matters concerning the management of disputes arising under that defense. The exercise of any activity is legitimate while not harming the interests of others. Ethics is the recognition that all organizations must recognize that there are certain rights and guarantees of the general good that must be respected above all other interests.
Moral Administration
Moral administration strives for success, provided that it enables the company to remain within the precepts of behavior accepted by society. The law is considered a minimum to meet ethical standards. The basic hat on which rests the address is profitability, legality, and morality.
Immoral Administration
This development seeks success at almost any price. The laws are seen as a hurdle to overcome in the pursuit of money. Its basic objective is profitability. Immoral administration not only lacks ethical principles but is also against ethical conduct.
Amoral Administration
Although situated between the other two forms, it is not a central point on a continuum. Amoral administration is different by nature. It has two variants:
- Intentional: Believes that ethics is not about business and therefore ignores it.
- Causal: Ethics is not included as a variable as it is thought that corporate actions have no side effects on society and its members.
Strategic Management and the Specific Environment
Specific environment refers to factors that directly impact a company’s competitive landscape. These factors include:
- The threat of entry of new competitors or potential competitors (economies of scale, cost disadvantages (the effect of experience, patented product technology, favorable access to raw materials), product differentiation, market conditions for capital, switching costs, access to distribution channels, government policy)
- The intensity of rivalry among existing competitors
- The threat of substitute products
- The bargaining power of customers
- The bargaining power of suppliers
Scenario Planning
The method of scenarios can be considered the most important of forecasting models. This method is to define a future state of a system now known and indicate the various processes that can go from the present to the future image. The next step for further research into the method would be to say what we mean by stage. Thus, a scenario is a hypothetical sequence of events constructed for the purpose of focusing attention on causal processes and any key decisions. A scenario is not a forecast of the future but a qualitative analysis of how that future can be.
Phases of Scenario Planning
The basic construction and preparation of the scenarios.
The Delphi Method
The Delphi method is a prospective technique for essentially qualitative information, but relatively accurate, about the future. It basically consists of systematically seeking the views of a panel, but aside from the open discussion, thus avoiding its drawbacks.
The Cross-Impact Method
The cross-impact method allows investigation of the interrelationships that may occur between different events that are expected to occur. Impact is said to be crossed between two events when the probability of one of them varies according to its occurrence or not the other. If the probability of occurrence increases, it is said that the sense of the impact is positive; if it decreases, the sense of the impact is said to be negative; if the probability does not vary, there is no crossover impact.