Familiarize yourself with the following terms and concepts discussed this week in preparation for completion of this assignment: market capitalization, economic value created, sustainable strategy, business-level strategy, differentiation strategy, strategy canvas.
Create a 700 to 1,050-word entry in your strategic management research journal. You will use information from this entry in your presentation due in Week 5. Respond to the following prompts in your journal entry:
Describe the role of strategic planning in achieving a competitive advantage.
Assess Caterpillar Inc. to determine whether their top focus is accounting profitability, shareholder value creation, or economic value creation.
Assess whether Caterpillar Inc. leverages the appropriate value and cost drivers for their business strategy.
Analyze the strengths and weaknesses of Caterpillar Inc’s competitive advantages.
Evaluate the influence of ethics, social responsibility, and legal considerations on strategic planning.
Discuss the value of corporate social responsibility (CSR), and determine if Caterpillar Inc.’s CSR meets those values.
Analyze the role of ethics and social responsibility in developing Caterpillar Inc.’s strategic plan while considering stakeholder needs and agenda.
Planning and Management Strategy can be interpreted as a mechanism through which organizations progress from the current state of affairs to a future desired state. Strategy is most importantly an effective tool used to forecast the future of a good organization premised in long range plans. It makes a strong argument for an organization to effectively position itself within it constrain and environments, thereby maximizing its potential to attain the best that comes with it. Strategy therefore proves to be pivotal in ensuring that market capitalization, economic values, sustainable strategy among others. It is this which will form the basis of this paper as will be robustly discussed.