Topic outline

  • Course Introduction

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    Business strategy is one of the most important factors in leading a successful business. If a business does not have a strategy, it lacks a roadmap or blueprint to help it establish the company's direction. Without a map, it is impossible to know where the business is going. The business strategy allows companies to determine the direction, so all functional business areas can use the strategy as a guide for making decisions within their work units. One of the first steps to creating a strategy is determining internal and external constraints. By understanding these constraints and the market environment, the leader can ensure the strategy is the correct one and implement the strategy from an ethical perspective.

    Establishing a strategy isn't easy because it encompasses and requires commitment from every functional area (such as marketing, human resource management, operations, finance, and accounting) of the business. It also requires businesses to determine their core capabilities and level of competitiveness and leverage these to become a winning team. This course will address the many tools available to help leaders determine strategy and ethical frameworks to ensure the company's strategy aligns with its ethics and sustainability goals.

    The course will give you the tools to assess ethical models, make strategic decisions, and create a culture that will support those decisions.

  • Unit 1: Integrating Ethics into Business Strategy

    In this unit, you will learn the basics of business strategy and ethics. There are many reasons why business strategy is important to organizations. First, the business strategy creates the vision for the organization that all functional department goals tie into. For example, suppose a company's vision is to "Provide the best shopping experience to customers". In that case, all functional areas, such as human resources, marketing, and even finance, should tie into this overall vision. Besides providing the vision for the organization, the strategy also allows a company to more easily set clear goals for the direction they want to go. Creating a successful strategy requires setting clear goals, which ties to the organization's overall vision.

    Creating the strategy for an organization also involves taking an ethical focus in all organization activities. The strategy must harness the vision of ethics and social responsibility to be effective. As you move through this unit, consider how companies you do business with tie their overall vision with ethical and socially responsible behaviors.

    Completing this unit should take you approximately 25 hours.

    • Upon successful completion of this unit, you will be able to:

        • explain the importance of strategy and ethics in business;
        • explain the drivers, such as innovation and markets, that assist in determining business strategy;
        • analyze the importance of leadership and integrity when formulating business strategy;
        • explain how companies measure ethics and analyze social responsibility in organizations; and
        • identify the components of well-written mission and vision statements.

    • 1.1: Ethics

      Do you know the difference between morals and ethics? What about the difference between an ethical issue and an ethical dilemma? Do you know why companies have codes of ethics? This section will address some of the basics of ethics to better understand how ethics ties into overall business strategies.

      • Identifying an Ethical Situation Book
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        Do you know how to identify an ethical situation? Read this text on ethics and social responsibility, which will provide you with information on how to identify ethical issues you could face in business.

      • Code of Ethics Page
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        As you read this resource, look for the elements that make a code of ethics effective. These codes of ethics can show employees how the company expects them to behave when faced with ethical situations.
      • Ethics vs. Morals Page
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        There is a difference between ethics and morals, as this video will explain. Before watching the video, can you guess what the differences are and why understanding the difference is important as a manager?

      • What is Strategy? Page
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        Watch this video for examples of overarching strategies that actual companies use. You should be able to explain the components of an effective strategy statement.

      • Business Strategy Book
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        This resource will address the main phases of the strategy. Consider the tasks associated with each phase, since we will be addressing these in detail later in the course.

    • 1.2: Business Ethics

      As you read this section, look for the elements that guide a person's ethical behavior and watch how strategy and ethics tie together. Do you see the importance of ensuring an ethical business strategy? Can you think of companies that tie their vision and business strategy to ethics or social responsibility?

      • Overview of Business Ethics Book
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        This resource defines ethics in the context of business decisions. What does ethics mean to you? Are business ethics different than personal ethics, in your opinion? Consider this as you read.

      • Why Study Ethics? Page
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        After you read this resource on why ethics matters, you should have a good understanding of why ethics is important in business and define the reasons for good ethics in business.

      • Ethical Leadership Page
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        An important part of ethics is ethical leadership. As you watch this video, look for strategies you can implement as a leader to build ethical teams.

    • 1.3: Business Strategy

      When companies implement strategies, they must consider some forces that could affect their strategies. In this section, consider how the 11 forces affect your business. Are there some that may affect your strategy more than others? Why is this?

      • Strategic Hierarchy Page
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        This resource includes a chart summarizing how businesses may be affected by a strategy decision. As you examine this chart, think about how each level of strategy is interrelated with the others. Any structure must leverage each part's strengths.

      • Porter's Five Forces Page
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        Read this article, which explains Porter's five forces in business strategy development. This model has been the classical approach to industry analysis since the late 1970s.

    • 1.4: Innovation

      Innovation in organizations is one of the main drivers of strategy. Although we often think about innovation as technology-driven, innovation isn't always with technology products and services, as you'll learn. This section will address the types of innovation, how companies can be more innovative, and how to tie innovation to business strategy. As you review this section, consider ethical issues during innovation processes. Have you experienced any of these ethical issues in a current or past company?

      • Management of Technology and Innovation (MTI) Page
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        This text focuses on managing information technology in an organization, which is one key piece to innovation. Many companies use technology to innovate. Can you think of companies that use technology as a form of innovation?

      • Entrepreneurship Book
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        Being creative and open to new ideas can be one-way companies innovate. After you read this resource, you should be able to identify and explain the five steps of creativity and the role of innovation in solving problems.

      • What is Innovation? Page
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        After watching this video, you should be able to define innovation briefly and explain what innovation "isn't".

      • Strategic Innovation Page
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        This video ties strategy development with strategic innovation. Can you explain how organizational leadership can manage ideas to develop the best strategy?
      • Sustained Innovation Page
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        Read this article on the role of innovation in strategic management. As our access to technology grows around the world, there continues to be a growing need to address the role technological advancement plays in the future of organizations. Management plays a pivotal role in ensuring their organizations are prepared to meet the demands of a growing innovative technological society. As a leader, consider the opportunities to embrace technology to best serve your consumers.

      • Innovator's Dilemma Page
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        Read this article. Do you agree that Apple is an example of an innovator's dilemma? Why or why not?

      • Diffusion of Innovation Page
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        Read this article. How does the diffusion of innovations affect access to technology for different cultures? Strategic managers often use this theory to explain the role diffusion innovation plays in helping to spread ideas throughout various groups and communities.

    • 1.5: Markets

      A market is the second driver of business strategy. As you look through this section, consider the various markets businesses can operate in. Which markets do you think are the easiest and the most difficult to do business in? How do you see business strategy change based on the markets? Do you think ethical considerations will be the same no matter what market, or will those change too?

      • Market Structure Page
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        Read this short article and study the diagram. This is a good reference item identifying and defining the four basic market structures. In developing a strategy, one needs first to determine the structure the firm is competing in.

      • Competition in Market Structure Page
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        This video defines and explains competition in each market structure from an economic viewpoint. In which structure might uniqueness be the most important? In which structure might uniqueness be the least important?

      • Perfect Competition Page
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        As you watch this video, pay attention to the terms you've heard in your economics courses. Pause the video and review any terms that are unfamiliar to you. Can you name at least one business or service in your community that is an example of (near) perfect competition?

      • Monopoly Page
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        Watch this video for a better understanding of monopolies. Consider the current evolution of these two structures (perfect competition vs. monopoly) in an expanding global-enterprise environment.

    • 1.6: Diversification

      When considering the drivers of business strategy, diversification is our final driver. Diversification refers to the business managing risk by creating new products or services and expanding into new markets. The amount a company decides to diversify will help drive its overall business strategy. Can you think of any situation where diversification might not be a good idea for a company?

      • Impact of Diversification on Risk and Return Book
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        This text discusses how some companies will try to diversify their risk so if one area of business is not successful, they still have other areas they can focus on. As you read, consider that diversification is not just for finances, it can relate to product and process diversification, among many others.

      • Diversification and Corporate Performance Book
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        There is a link between diversification and corporate performance. Read this article to find out how they relate to one another.

      • Global Business Strategy Page
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        When operating in a global environment, an organization may use several strategies to diversify risk. You should know the advantages of diversification as part of a strategy. Can you name some of the advantages? Please read this resource to answer the question.

    • 1.7: Ethics, Corporate Culture, and Compliance

      We can use several models to examine ethics at personal and organizational levels. This section will address ethical issues at the organizational level and the difference between ethical and compliance issues. Understanding this will allow you to apply the ethical models we will address throughout this section.

      • Ethics, Corporate Culture, and Compliance Page
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        Some companies use value-based ethics and compliance to maintain a competitive edge. As you read this resource, consider the advantages and disadvantages of each approach.

      • Ethical Issues at an Individual Level Page
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        Do you know that nearly every functional area of business can be affected by ethics? As you read this article, look for the variety of ethical issues we can face in each functional business area.

    • 1.8: Ethical Leadership Models

      Ethics in an organization are often characterized by its leadership team. As you read throughout this section, consider how your current manager or CEO leads with ethics in mind. How do you see ethical leadership (or not) in your organization? Consider also how the theories of ethical behaviors we discussed in the last section may impact ethics in leadership.

      • Ethics at the Organizational Level Page
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        Read this resource about ethics at the organizational level. How important do you think leadership is to instilling ethical values? This text will address this and provide actionable best practices for applying ethical leadership in your organization.

      • Ethical Leadership Page
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        This chapter explains the difference between moral leaders and moral persons. As you read, look for why leaders should be role models for ethics in organizations.

      • The Ethical Value Concept Page
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        We've been discussing ethics, but why are ethics and the creation of ethical values so important? This video will answer that question!

      • Integrity Page
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        Read this article to identify the concept of integrity and its implications in business. How do you think integrity can be communicated in a strategic plan? Is this an important value to you personally, and do you think it is important in organizations?

    • 1.9: Deontology, Utilitarianism, Rights, and Virtues

      To better understand ethics and its application to strategy, we will discuss theories as they relate to ethics. As you review this section, consider which of these theories may align with your ethical perspectives and values.

      • Ethical Principles and Responsible Decision-Making Page
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        Many principles help individuals and companies make the right ethical choices. You should understand the different ethical approaches and how they can apply to business.

      • Normative Theories Page
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        As you read this content, consider if you can only apply virtue ethics to personal situations or if they can be applied to organizations too.

      • Part 1: Consequentialism and Utilitarianism Page
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        This video about consequentialism and utilitarianism will continue our earlier discussions on ethical models. Consequentialism is an ethical theory that determines right from wrong by focusing on outcomes. Utilitarianism is a form of consequentialism that focuses on maximized happiness when judging whether an action is good or bad. How do you see consequentialism affecting business decisions versus personal decisions?

      • Part 2: Consequentialism and Utilitarianism Page
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        This video discusses some of the criticisms of ethical theories. Do you agree with these criticisms? Why or why not?
      • Virtue Ethics Page
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        Watch this video on virtue ethics. You learned earlier about virtue ethics. In continuing this discussion, do you think the information provided here can apply to any industry and any functional business area? Why or why not?

      • Deontology Page
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        This video discusses deontology, an ethical theory that uses a set of rules to determine whether actions are good or bad. When considering the conflicting duties described in this video, how might you approach your strategic plan to honor all seven areas?

    • 1.10: Business Ethics and Social Responsibility

      Our last section in this unit will address how companies can promote ethical behavior, and we will also discuss social responsibility and how it ties into ethics and ethical behavior. Do you know the types of ethical issues within a business? Consider how companies can tie social responsibility into their overall business strategy. Can you think of companies that have done this successfully?

      • Corporate Social Responsibility Book
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        This resource will combine all you have learned throughout this unit. As you read, pay special attention to social responsibility and how social responsibility efforts relate to ethical companies and a company's overall strategic direction.

      • Ethics and Profitability Page
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        It has been proven that ethical companies earn more profit in the long term. As you read this content, look for the reasons why this occurs.

      • Conducting Business the Right Way Page
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        In this panel interview, business leaders address how to do business the right way and create trust in business. Watch for emerging themes on how companies can perpetuate positive responses from all stakeholders by being ethical.

    • Unit 1 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

    • Unit 1 Assessment

      • Unit 1 Assessment Quiz
        Students must
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.

  • Unit 2: Management Strategies Analysis

    This unit focuses on the first step to strategy development, which is to analyze the business's current situation. Companies need to look at their core capabilities and competitiveness to succeed with their business strategy. These are the first steps to analyzing the current business situation. Without knowing where a company is currently at, it is difficult to determine the strategy. Therefore, by determining a business's external and internal factors and creating a mission and vision, the company can map where it wants to go from here.

    Completing this unit should take you approximately 15 hours.

    • Upon successful completion of this unit, you should be able to:

      • explain the internal and external factors that affect a business and drive its strategies, such as available resources and organizational capabilities; and
      • identify the components of well-written mission and vision statements.

    • 2.1: Overview of External Factors

      Strategy analysis is the first step to determining a strategy. There are external and internal factors to consider, and you should reflect on the types of competitive advantages you can use. Competitive advantages can come from pricing strategies, operational strategies, and many others. Ponder the kinds of companies you do business with as you read. Can you identify their competitive strategy?

      • Sustainable Competitive Advantage Book
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        Understanding how companies can create competitive advantages is necessary when analyzing external factors during the strategy analysis phase. As you read through this resource, consider the role of customers in helping your company develop a competitive advantage.

    • 2.2: Competition

      As you read this section, consider ways you might be able to research your competition. Your competition is an important external force as you develop your business strategy. Knowing your competition can help you set yourself apart from them and allow you to create a winning strategy.

      • Understanding the Competitive Environment Page
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        After you read this resource, you should be able to explain the importance of analyzing a competitive environment before developing a company strategy.

      • Competing in a Free Market Page
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        Earlier in this course, we addressed the markets companies compete within. At that time, we discussed the importance of understanding the type of market competition to create a better strategy. This resource will focus on the different strategies that can be used depending on market competition.

      • Competitive Analysis Page
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        This video explains the steps you'll take to analyze your competition. Can you identify why this analysis is so important before developing your own company's strategy?

      • Red Ocean and Blue Ocean Strategy Page
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        When looking at competitive strategies, a theory called Blue Ocean strategy addresses how to create value beyond looking only at your competition. Can you identify how innovation relates to a blue ocean strategy?

      • D'Aveni's 7S Framework Page
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        It can be difficult to find the best way to compete in hypercompetitive markets. In the framework discussed in this article, we address the initiatives a company can participate in to give temporary advantages to a firm.

    • 2.3: Driving Forces in Industry

      When you formulate your strategy, understanding what is driving the current industry you're in is key to a successful strategy. The market changes rapidly, so understanding the industry and trends affecting the industry is imperative. In addition to understanding marketing trends, it can be helpful to have an overview of how the government classifies businesses. You will be able to use this information to make solid strategic decisions.

      • North American Industry Classification System (NAICS) URL
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        The North American Industry Classification System (NAICS) is a system that classifies businesses by type of economic activity. As you review this page, consider how your organization can use NAICS data to gain a competitive advantage.

      • Foundations of Business Page
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        There are other forces besides competition you should be concerned with before developing a strategy and implementing it. After you read, you will be able to name the other external considerations when creating your business strategy.

      • Trends in Business Environment and Competition Page
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        There are several trends influencing businesses today that could also affect your strategy. As you read this text, consider the trends that might influence your business' strategy.

      • Trends in Organizational Change Page
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        Once you watch this video, you should be able to name the four main trends that could impact your strategic plan. Knowing these potential impacts will better prepare you to create your strategy.

    • 2.4: Life-Cycle Considerations

      Do you know what a product life cycle is? Perhaps from a marketing class? This same model can be applied to the business' current situation when analyzing external factors. Identifying what stage an organization is at in its lifecycle can help them make strategic decisions. Another important thing to understand is the different types of planning and how our current state of planning might impact our strategy.

      • The Product Life Cycle Page
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        The product life cycle and knowing where your products or services stand in each phase of the product lifecycle is useful information. Read this resource to understand how it can allow you to better align your strategic plan with your current offerings.

      • Planning Page
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        Once you develop your strategic plan, you will implement four planning elements to implement it. As you read this text, look for the four elements, and pay special attention to the time frame.

    • 2.5: Overview of Internal Factors

      You learned about the external factors that should be considered in the last section. The next step to planning your strategy is identifying internal factors that could impact your strategy. These internal factors will help drive the direction of your strategies, such as your human resource capabilities and value chain development. As you read, think about other internal factors that could impact strategy.

      • Stakeholder Management Page
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        Although stakeholders can refer to anyone who cares about the success of a business, this resource will address internal stakeholders. Read this text on stakeholder management, which is an important concept, as you need to determine your internal stakeholders before taking the first step to strategy creation.

      • Factors Impacting Organizational Design Page
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        Before developing a strategy and creating an organizational design, do you know the internal elements you should be aware of? This text will address some of the employee-related factors to consider.

      • Impact of Factors on Strategy Page
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        After you read, you will be able to name the internal conditions to consider and the value chain supporting activities necessary for strategy decisions.

    • 2.6: Resources and Capabilities

      In this section, we will specifically discuss how companies perform an internal analysis so they can better create appropriate strategies. Much of strategy development depends on the organizations' specific capabilities and the resources (financial and otherwise) available to them. Do you think a small business owner could find resources and capabilities as useful as a large business? Consider this question as you read through the section.

      • The Internal Environment Page
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        After completing This text, you will know the types of tools available, such as VRIO, to determine your company's resources and capabilities.

    • 2.7: Resource Allocation and Planning

      After an organization has done a thorough analysis, it is necessary to check its current methods of allocating and planning for resources. If organizations miss this step, they could formulate a strategy for which they cannot gather the proper resources or at the right cost. As you work through this, ponder the role technology can take in assisting organizations in allocating resources and planning for allocating resources.

      • Resource-Planning Tasks Page
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        Planning for resource usage is a key factor in understanding your company's capabilities and resources, and planning for how it will use them. As you read this text, look for reoccurring themes for companies who plan their resources effectively.

      • Resource Allocation Page
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        This page explains the terminology related to resource planning. Do resources always have to be tangible, or can they be intangible?

    • 2.8: Merger and Acquisition Opportunities

      Can you think of companies that have merged lately? Or a company that acquired another company? Often, this can be part of an overall strategy. As you read, consider which companies in an industry are merging or acquiring companies to better understand the business environment.

      • Overview of Mergers and Acquisitions Page
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        When developing a strategic plan, some companies may decide to focus on mergers and acquisitions. This chapter will explain the meaning of both terms and discuss factors to consider when choosing this type of strategy.

      • Merger and Acquisition Strategies Page
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        This video further addresses mergers and acquisition strategies. At the end of the video, you will be able to explain how mergers and acquisitions can be part of an overall strategic plan and the reasons for engaging in these types of business activities.

    • 2.9: Globalization

      Production, development, customer service, and marketing strategies are all internal factors of globalization. When companies consider developing their strategy, they may decide that using an international approach is viable and profitable. This section will address some of the considerations of an international strategy, such as the types of entry modes. Do you buy products from international companies? As you read through, consider their international strategies.

      • International Business Environment Page
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        Some organizations may choose a global strategy. However, before doing so, it is important to know why a company chooses this option and the considerations they must make when going global. After you read, you should be able to pinpoint some of the reasons that make expanding globally an attractive option for some companies.

      • International Market Entry Page
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        When a company decides to expand globally, it must choose an entry strategy. After watching this video, you will be able to explain the types of entry modes and their advantages and disadvantages.

      • Case Study: Unilever Page
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        As you read this case study, consider how international considerations are important for ethics and social responsibility. Review the critical thinking questions at the end and consider other companies that may have similar social responsibility strategies internationally.

      • Case Study: Chicago Tylenol Murder Page
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        As you read this case study, consider the response of Johnson & Johnson in this situation. Do you think it was appropriate? Could they have done more ethically to resolve the situation? Also, review the critical thinking questions at the end of the case and determine what your answers might be.

      • Case Study: Petrobras Page
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        As you read this case study on Petrobras, consider the individual unethical actions and the organization's unethical actions. Consider how corruption and bribery can have negative effects on all stakeholders. Also, read the critical thinking questions and brainstorm answers.

    • 2.10: Establishing a Mission and Vision

      Now that an organization has considered internal, external, and other factors, it is time to write the mission and vision! The mission is vision is what the strategy will be based upon. During your study of this unit, consider this: if you had a personal mission statement and vision statement, what would it be? What characteristics are important in a vision and mission statement?

      • Mission and Vision Statement Page
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        Before creating the strategy, a company must have a clear picture of its vision and mission. As you read this resource, consider the purpose of mission and vision statements, and think about how that can tie into the overall business strategy.

      • Value of an Organizational Vision and Mission Page
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        This text will show you examples of company vision and mission statements. Can you identify the similarities and differences between each?

      • Designing a Vision Statement Page
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        Read this resource to learn how mind-mapping a vision statement can be an effective tool for vision statement creation.

      • The Difference between a Vision and a Mission Page
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        As you have learned, the main difference between a vision and a mission is that the vision focuses on broad aspects of why the company exists. In contrast, mission statements focus on how the company will accomplish the vision. As you read this section, look for overarching themes for making a good vision statement.

      • Vision, Mission, and Goals Page
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        At this point in the unit, you should have a pretty good idea of how to write a vision statement and mission statement. As you read this article, be reminded why companies need strong and well-written mission and vision statements.

    • Unit 2 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

    • Unit 2 Assessment

      • Unit 2 Assessment Quiz
        Students must
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.

  • Unit 3: Managerial Strategy Formation

    This unit will address the various ways to formulate a strategy. One of the most popular ways is to use Porter's Generic Strategies as a starting point. This strategy development method looks at whether a company will focus on the differentiation of its product or service or attempt to be a cost leader. Do you know the types of organizational structures that best support various strategies? In this unit, we will also address organizational structures and how they can help support business strategy. No business strategy is complete without considering ethics. This unit will also talk about the different methods companies can use to ensure a successful strategy and an ethical organization.

    Completing this unit should take you approximately 8 hours.

    • 3.1: Porter's Generic Strategies

      Now that you have an overview of ethics and strategy and identified the various forces that will affect your strategy, it is time to select a strategy to move forward with. This section will address one model for strategy selection: Porter's Generic Strategies. As you review this content, consider the best generic strategy for your organization.

      • Porter's Competitive Strategies Page
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        Porter's Generic strategies can help your company focus on the strategy you want to pursue. Don't forget that you'll also want to consider the internal and external environment, as we addressed in Unit 2, to ensure the success of your strategy. As you read this article, consider the type of generic strategy used by a company you like to do business with.

      • Generic Strategies Page
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        After watching this video, you will be able to give examples of Porter's Generic Strategies and discuss the advantages and disadvantages of pursuing each strategy.

    • 3.2: Business Strategy Tools

      Many excellent tools can help you narrow and define your strategy beyond Porter's Generic Strategies. Before specifically discussing the tools to determine strategy, reading a case study about Target and Walmart will be beneficial. As you read, consider which of Porter's Generic Strategies was used in both companies.

      • Selecting Business -Level Strategy Page
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        After companies select the general strategy, they must choose a specific business-level strategy. This resource gives examples of retailers and their business-level strategies.

      • Purpose of the BCG Matrix Page
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        The BCG matrix is one tool that you can choose to determine strategy. You may remember this matrix from a marketing class. The matrix allows you to see what products or services are doing well and not doing well in your industry. As you read this resource on the BCG Matrix, consider what products or companies you consider to be "dogs". What makes them appear this way to you, and why? Do you think companies can easily identify their "dogs", or is it possible to be "too close" to a product to identify this?

      • Strategic Management Page
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        The balanced scorecard and strategy map approach can be useful tools for determining business strategy. As you read, consider the strategy map used for Mayberry Utilities Company. Do you think this strategy map is missing any potential perspectives? As you read this resource, pay special attention to the corporate strategy map provided in This text. Do you see how you might be able to use a mind map to determine your strategy? This corporate strategy mind map also addresses the internal and external perspectives you learned about in Unit 2.

      • Strategic Management Tools of Performance Book
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        You can use the balanced scorecard to make big-picture strategic decisions. After you read this article, you should be able to create a balanced scorecard for your organization.

      • Strategic Position and Action Evaluation (SPACE) Book
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        The SPACE matrix determines whether you should use an aggressive, conservative, defensive, or competitive approach for your business strategy. As you learned about in Unit 2, internal and external organizational analysis is necessary to use this tool. As you read through this section, think about the advantages and disadvantages of each. The SPACE matrix is yet another tool to help you determine your potential strategy. After you read this content, you will be able to identify the internal and external strategic positions to consider when using this tool.

      • Creating a Marketing Strategy Page
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        This section will address diversification and differentiation of products and services as a potential strategy. As you read, consider the downsides of diversification of products. Do you purchase from companies that offer many product lines? No strategy development would be complete without looking at marketing strategy and how the marketing strategy can work within the overall business strategy. This text will help you compare marketing strategy with business strategy. After you read, you should be able to effectively describe the difference between diversification and differentiation in marketing and strategic planning terms.

      • Diversification Strategies Page
        Students must
        Mark as done

        Determining whether or not to diversify offerings can be a challenge. After you read, you will be able to identify the tests used to determine if you should use a proposed diversification strategy.

    • 3.3: Selecting Organizational Structure

      Some organizational structures are better than others for specific kinds of strategies. This section will focus on what organizational structures work best for different business strategies. Can you identify your current or past organization's structure as you read? Do you think it was a good fit for your particular organization's strategy?

      • Common Organizational Structures Book
        Students must
        Mark as done

        An organizational design is needed to support the chosen strategy. As you read, consider your potential strategy and which structures might work best.

      • Executing Strategy through Organizational Design Book
        Students must
        Mark as done

        It is well known that you can execute strategy more easily with the right organizational design. This text will focus on organizational designs and control systems to implement a strategic plan.

      • Matrix Structure Page
        Students must
        Mark as done

        One of the most popular organizational structures is the matrix structure. As you watch the video, consider how the functional structure and divisional are combined to create this useful structure to help support organizational strategy.

    • 3.4: Ethics in Strategic Planning

      How do companies ensure ethical standards are met? Who do you think organizations should be the most accountable to? Shareholders? Employees? Customers? This section will address the importance of building ethics in business strategy formulation.

      • Including Ethics in Strategic Planning Page
        Students must
        Mark as done
        Part of the strategic planning process is building ethics into the organizational structure and strategy. As you read this article, look for the four elements of ethical alignment.
      • How Organizations Influence Ethical Conduct Page
        Students must
        Mark as done

        Companies have several methods to help implement ethics within their organization. In this section, we will talk about a few of those methods. As you read, consider which methods you think to be the most and least effective. Why do you believe this? How can organizations influence ethical conduct? As you read, consider the different steps that you can use to help build ethical conduct into a business strategy.

      • Code of Ethics Page
        Students must
        Mark as done

        Codes of ethics are used to ensure ethical conduct occurs within the overall company strategy. After you read, you should be able to draft a code of ethics.

      • Professional Ethics and Human Values Page
        Students must
        Mark as done

        This video further addresses codes of ethics. Do you think a code of ethics is enough for an employee to behave ethically, or do you think companies should do more to ensure employees act ethically?

      • Flooding in Houston: What Would You Do? Page
        Students must
        Mark as done

        As you read this case study about flooding in Houston, consider how all stakeholders should be involved in social responsibility decision-making to obtain buy-in. Review the critical thinking questions at the end of the case.

    • Unit 3 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

    • Unit 3 Assessment

      • Unit 3 Assessment Quiz
        Students must
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.

  • Unit 4: Integrating Ethics into Business Strategy

    Now that we have addressed strategy analysis and how to formulate a strategy, we will address how to implement and monitor the strategy. Some companies will develop the strategy but do not provide the necessary resources to support the strategy. This is an imperative step in the strategy process. Besides assigning resources to the chosen strategy, organizations must create a culture that encourages their human resources to support the strategy, which will be a topic in this unit. For example, how do leaders create a culture that supports the implementation of the strategy? Finally, after formulating and implementing a strategy, leaders need to monitor it to make sure it is working! If it isn't, they will make adjustments along the way. Because of this, we will talk about how to measure strategy and the adjustments that can be made along the way.

    Completing this unit should take you approximately 24 hours.

    • Upon successful completion of this unit, you will be able to:

      • apply the steps in the strategic management process, including strategic analysis, strategic formulation, strategic implementation, and strategic evaluation and control;
      • explain how resource allocation, such as time and financial capital, is fundamental to business strategy implementation;
      • explain how factors such as entrepreneurial orientation and learning organizations constitute a business' culture; and
      • determine which measurement techniques and evaluation criteria would be most appropriate for a given business and ethics strategy.

    • 4.1: Steps to Implement Business Strategy

      Now that we have addressed considerations for creating a business strategy, it is time to learn how to implement the strategy. There are many factors to implementing a strategy, such as dividing resources to be effective. As you read, consider how a manager might monitor each step of the process to ensure effective implementation.

    • 4.2: Determining Needed Resources

      One of the most important factors in implementing a strategy is determining what resources are needed and distributing them effectively to meet your goals. This section will focus on the different resources you may need and appropriate resource allocation. As you work through the sections, consider if some resources might be more important than others, depending on the industry.

      • Business Resource Analysis: New Story Book
        Students must
        Mark as done

        This text takes an entrepreneurial approach to strategy and planning. As you read this article about an organization with a mission to combat worldwide homelessness, consider how this same approach would apply to medium and large already-established businesses.

    • 4.3: Securing Financial Resources

      Implementation of the strategy will most likely require financial resources. As you read through this section, think about the various financial resources you may need, such as financial resources for new product development and new marketing strategies. Part of determining financial resources is also budgeting appropriately.

      • Align Finances to Support Implementation Page
        Students must
        Mark as done

        The alignment of finances is extremely important when implementing a strategic plan. After you read the article, you should be able to determine the differences between capital expenditures and start-up costs.

      • Budgeting and Budgeting Processes Page
        Students must
        Mark as done

        There are many reasons for financial budgeting, but these become especially important when shifting resources needed to implement a strategy. As you read, see if you can identify the different types of budgets.

    • 4.4: Implementing Marketing Strategies

      Marketing is a vital resource to help companies implement their strategy. This section will address marketing strategy, goal setting, and aligning marketing strategy with the strategic mission. As you read, consider how a marketing manager needs to be familiar with the overall strategic goals to successfully sell products and services.

      • Marketing: Align Mission, Strategy, and Objectives Page
        Students must
        Mark as done

        As you already know from previous units, setting goals and objectives is important in the strategic planning process. In This text, look for examples of marketing objectives. How can you tie these into the overall company strategy?

      • Inputs to the Marketing Strategy Page
        Students must
        Mark as done

        Marketing strategies can align with the overall organizational strategy. Read this resource to understand how good corporate-level objectives inform the marketing strategy and objectives.

    • 4.5: Implementing Ethical Human Resources Strategies

      Human resources, usually the most valuable resource at any company, must support the efforts of the strategy implementation. As you read, consider the variety of ways the human resource function can accomplish this.

      • High Performance through HR Management Page
        Students must
        Mark as done

        Since human resources are usually the most valuable asset of an organization, they have strategic plans that need to align with the overall vision and mission of the organization. Look for the various human resource functions needed to be effective at supporting the strategic goals of an organization as you read this resource.

      • Effective Selection and Placement Strategies Page
        Students must
        Mark as done

        Read this article, which provides examples of effective selection and placement strategies for human capital. Every company has its own personality and philosophy, and companies need to hire individuals whose needs and ethics match those of the organization.

      • Pay Structure and Pay for Performance Page
        Students must
        Mark as done

        Read this resource, which discusses the elements of a pay system from an individual and a company perspective. How and at what level a manager sets pay for an employee is critical in creating incentives and communicating expectations for that employee's performance.

      • Designing a High-Performance Work System Page
        Students must
        Mark as done

        Read this resource, which discusses how to harness technology to improve performance. By creating workplace systems that increase the likelihood of great performance, companies can optimize and streamline many of their services. This text also provides information on creating and supporting succession plans, which are career tracks and advancement protocols that incentivize an organization's human capital.

      • Case Study: Kronos Uses Science to Find the Ideal Employee Book
        Students must
        Mark as done

        Read this resource, which discusses how the company Kronos Inc. has used technology to help screen potential candidates and reduce employee turnover. Managers are charged with making strategic decisions, often with minimal time to respond. This case study provides an example of a solution that one company created to improve management decision-making.

    • 4.6: Operational Resources

      Depending on the type of strategy chosen, operational resources may play an important role in strategy implementation. This can include supply chain management to create competitive advantages. As you read through this section, consider the role operational resources might differ for a product-based company versus a service-based one.

      • Who Is Responsible for Strategy Development? Page
        Students must
        Mark as done

        There are many discussions surrounding the importance of the Board of Directors taking a guiding role in developing strategy. As you read this text, consider the challenges boards face in carving out a significant role in the strategy process.

      • Building and Managing the Strategic Architecture Book
        Students must
        Mark as done

        This resource explains the connection between operations and strategy. There is, or should be, a direct connection between this functional area and the organizational plan. The strategy provides the foundation for the operational decisions made on a daily basis. In other words, as an operations manager, you choose tactics based on the developed organization's corporate, business, and functional level strategy. Take time to complete the action checklist activity at the end of the chapter.

      • Strategic Planning and Ten-Ten Planning Book
        Students must
        Mark as done

        This resource explains the nature of planning and the importance of analysis to create differentiated products or services or higher levels of efficiency. Understanding the nature of strategic planning and the types of analysis used during the strategic planning process are important for operation managers.

      • Operations Management of Logistics and Supply Chain Book
        Students must
        Mark as done

        Understanding supply chain management is essential for understanding an overall company strategy. As you read this resource, consider the competitive advantages gained using supply chain management.

      • Case Study: Keystone XL Page
        Students must
        Mark as done

        Read this text about the Keystone XL pipeline. What operational considerations Keystone should the organization have taken into account regarding ethics and social responsibility in this situation? Read the critical thinking questions and consider how you might respond.

      • Ethics across Time and Culture Page
        Students must
        Mark as done

        Is it ethical to dump toxic waste in countries that allow it? As you read, consider the differences between unethical and illegal. Is something legal always ethical? Then, review the critical thinking questions and consider how you might respond.

    • 4.7: The Role of Culture in Strategy Implementation

      To have an effective strategy, management must ensure the culture is right. This section will address the many ways culture ties to business strategy and can help support the strategy or hinder it. Look for resounding themes. Are there one or two theories on creating a culture that seems to come up the most?

      • Defining Organizational Culture Book
        Students must
        Mark as done

        After you've read this text, you should be able to explain the perspectives on culture from a business management perspective.

      • Shaping Organizational Culture Book
        Students must
        Mark as done

        Company culture is an important part of ensuring the implementation of the strategic plan. As you read this resource, consider the vital role of communication in organizational culture.

      • Corporate Cultures Page
        Students must
        Mark as done

        As you read this resource, consider the quote by Peter Drucker, "culture eats strategy for breakfast". What does this mean? How can you ensure there is a culture that fits with the strategy you've created?

      • Strategies for Changing Organizational Culture Page
        Students must
        Mark as done

        Consider these examples of creating cultural change in organizations. What is the difference between for-profit and non-profit organizations? Are the factors of implementing culture to support strategy the same?

      • Case Study: Organizational Culture in Montenegrin Companies Book
        Students must
        Mark as done

        How does organizational culture affect business strategy? This case study will focus on this question. As you read, look for the specific elements of organizational culture and how they fit into the overall company strategy.

    • 4.8: Entrepreneurial Orientation

      There are many actions management can take to ensure employees act in an entrepreneurial orientation – thereby making strategy implementation more successful. Look for themes related to successful companies that employ this philosophy.

      • The Value of Thinking and Acting Entrepreneurially Page
        Students must
        Mark as done

        There are many examples of organizations with the philosophy of "thinking and acting entrepreneurially". By encouraging this type of environment, companies can be more innovative. After you read, you should be able to discuss the elements required for an entrepreneurial organization.

    • 4.9: Learning Organizations

      Creating a learning organization can help support business strategy implementation. As you read, consider if you've ever worked for an organization focused on learning and its benefits to your organization.

      • Building Learning Organizations Page
        Students must
        Mark as done

        As you watch this video, consider the importance of individual learning and how that contributes to organizational learning. By the time you finish the video, you should understand the components required to create a learning organization.

      • Growing a Learning Organization Page
        Students must
        Mark as done

        As you watch this video, look for the steps to create and sustain a learning organization. After viewing this resource, you should be able to discuss how learning organizations can support the business strategy.

    • 4.10: Rewarding Ethical Behaviors

      As you will read in this section, part of strategy implementation is ensuring an ethical culture. How has a company you worked for rewarded ethics? Was it effective?

      • Becoming an Ethical Professional Page
        Students must
        Mark as done

        In this resource, look for the role of leadership in creating an ethical workplace. Consider how ethics support an overall business strategy as you read.

    • 4.11: Strategy and Employee Communication

      Sometimes companies fail to do one of the most important things when implementing strategy: communicate the strategy to employees. The information here will address the various methods you can use to communicate strategy to your employees and address the various roles managers should take in employee communication.

      • The Process of Managerial Communication Page
        Students must
        Mark as done

        Employee communication is necessary, especially when it comes to strategy, so all employees know the organizational goals. As you read this resource, consider the various methods you can use to communicate strategy to employees.

    • 4.12: Motivating People

      There are several methods managers can use to motivate employees. This type of motivation can assist with successful strategy implementation. As you read through the various methods, try to identify what methods may work best with the different personalities of employees. Is there one method that might motivate everyone? Why or why not?

      • Personal Values and Ethics Page
        Students must
        Mark as done

        Employee values motivate employees. Read through this resource, then consider your values and how your values affect what motivates you at work.

      • Diversity and Inclusion at the Workplace Page
        Students must
        Mark as done
        This resource highlights that diversity can enhance performance and drive innovation.
      • Leading, Guiding, and Motivating Others Page
        Students must
        Mark as done

        After you read, you should be able to identify the types of power management can use to influence others. Which is the best type of power to use when attempting to incentivize employees?

      • Managerial Responses to Motivation Page
        Students must
        Mark as done

        While employee motivation often comes from internal employee values and management style, you can use several other methods to reward employees when they have been successful at strategy implementation. Consider the types of rewards you have been offered at work before. Did you find them motivating or not?

      • Case Study: Adrian Duane and IXL Learning Page
        Students must
        Mark as done

        As you read this resource, look for the human resource aspects of this case. What did IXL Learning do wrong? Did Adrian Duane do anything wrong? Then, review the critical thinking questions at the end of the case.

    • 4.13: Empowerment

      Empowering employees can help the implementation be much more successful when you implement your strategy. When employees are empowered, they have a sense of ownership, which causes them to make the best decisions for the organization. As you read, consider companies' methods to empower employees.

      • What Is Empowerment? Page
        Students must
        Mark as done

        Read this article and consider the following questions: What is empowerment? Why is empowerment important to organizations and employees? How can an organization's culture encourage or discourage employee empowerment? Do you feel empowered in your work environment? Why or why not?

      • The Benefits of Empowering Employees Page
        Students must
        Mark as done

        Read this article and consider the following questions: What are some of the benefits of empowering employees? How important is employee empowerment to improving an organization's productivity? Does the company you currently work for, or one you are familiar with, empower employees? If so, how does this philosophy benefit the organization?

    • 4.14: Pay for Performance Systems

      We already know employees are motivated by different things, and of course, pay is one of those things. This section will address the types of pay systems that you can use to reward performance. As you read, remember that pay is only one factor that can be used to reward employee performance.

      • Reward Systems in Organizations Page
        Students must
        Mark as done

        This text addresses why you should put reward systems into place for employees. Once you read, you should be able to identify the difference between intrinsic and extrinsic rewards and the conditions that need to be present for pay to be a motivator to employees.

      • Influencing Employee Performance Page
        Students must
        Mark as done

        We've already discussed the different types of rewards employees can be given for successful strategy implementation. Now, we will address the types of pay systems that you can implement to reward performance. As you read this information, look for best practices in pay-for-performance design systems.

    • 4.15: Measurement Strategy

      The last step in implementing your strategy is to measure the plan's effectiveness and adjust as needed. This section will discuss some ways to measure the success of your plan. As you read, compare the difference between competitive measures and financial measures. Is one more valuable than the other?

      • Measuring and Evaluating Strategic Performance Page
        Students must
        Mark as done

        After you read, you should understand the difference between performance measures and performance referents. Are you able to have a performance measure without a performance referent? Why or why not?

      • Choosing an Appropriate Method of Measurement Page
        Students must
        Mark as done

        When an organization uses a competitive strategy, it can use several forms of measurement. As you read this article, consider which method might be the most effective for your industry.

      • Performance Measurement: Indicators and Metrics Book
        Students must
        Mark as done

        This article addresses many of the performance indicators companies use and how they might utilize them to see if their strategy is on track. As you read, consider the categories of performance measures such as financial/non-financial and strategic/operational.

      • Market-Driven Performance Factors Page
        Students must
        Mark as done

        This video addresses additional performance measures. As you watch, look for the importance of market-driven factors of performance, such as customer satisfaction and market penetration.

    • Unit 4 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

    • Unit 4 Assessment

      • Unit 4 Assessment Quiz
        Students must
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.

  • Study Guide

    This study guide will help you get ready for the final exam. It discusses the key topics in each unit, walks through the learning outcomes, and lists important vocabulary. It is not meant to replace the course materials!

  • Final Exam Preparation

    These case studies are an excellent way to review what you've learned so far and are presented by one of the professors who created the course. Review these materials before you take the final exam.

  • Final Exam

    • Practice Final Exam

      Take this practice exam to help you get ready for your final exam. This exam can be taken as many times as you like, and it will cover topics similar to the final exam.

      We recommend that you take a look at the practice final exam before proceeding to the final exam because you will only have three tries to pass the final exam with an 80% or above.

    • Proctored Final Exam

      Take this Proctored Final Exam to complete this course.

      The exam requires a proctor and a proctoring fee of $5. To pass this course, you will need to earn a grade of 80% or higher on the Proctored Final Exam. Your grade for this exam will be calculated as soon as you complete it.

      If you do not pass the exam on your first try, you can take it again up to a maximum of 3 times, with a 30-day waiting period between each attempt. You may not create another account to exceed these limits. After your third failed attempt you will not be able to pass this course, so we recommend taking the Practice Final Exam as many times as you need to feel comfortable.

      We are partnering with SmarterProctoring to help make the proctoring fee more affordable. We will be recording you, your screen, and the audio in your room during the exam. This is an automated proctoring service, but no decisions are automated; recordings are only viewed by our staff with the purpose of making sure it is you taking the exam and verifying any questions about exam integrity. 

      Requirements:

      1. Desktop Computer
      2. Chrome (v100+)
      3. Webcam + Microphone
      4. 1mbps+ Internet Connection

  • Course Feedback Survey

    Please take a few minutes to give us feedback about this course. We appreciate your feedback, whether you completed the whole course or even just a few resources. Your feedback will help us make our courses better, and we use your feedback each time we make updates to our courses.If you come across any urgent problems, email degrees@saylor.org.

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