Introduction to Strategic Management and Business Policy

Introduction to Strategic Management and Business Policy

Innovation is the machine that generates business opportunities in the market; how- ever, it is the implementation of potential innovations that truly drives businesses to be remarkable. Although there is a value in being a first mover, there is also a tremendous value in being a second or third mover with the right implementation. PC tablets had been developed and sold for more than two decades before the iPad stormed the mar- ket. Many people forget that Apple released the Newton tablet back in 1992.21 Not only was the timing not right, but the product was not promoted in a way that consumers felt a compelling need to buy one. Many elements have to come together for an innovation to bring long-term success to a company.

IMPACT OF SUSTAINABILITy Sustainability refers to the use of business practices to manage the triple bottom line as was discussed earlier. That triple bottom line involves (1) the management of tra- ditional profit/loss; (2) the management of the company’s social responsibility; and (3) the management of its environmental responsibility.

The company has a relatively obvious long-term responsibility to the sharehold- ers of the organization. That means that the company has to be able to thrive despite changes in the industry, society, and the physical environment. This is the focus of much of this textbook and the focus of strategy in business.

The company that pursues a sustainable approach to business has a responsibility to its employees, its customers, and the community in which it operates. Companies

ASEAN: REGIONAL TRADE ASSOCIATIONS

GLOBAL issue

the region accounts for over 600 million people and a combined GDp of about $2.6 trillion in 2014. historically, aSeaN has been one of the most liberal and attractive invest- ment regimes among developing countries. It has liberalized intra-aSeaN trade over the last 20 years by establishing the aSeaN Free trade area (aFta). During 2001-2013, it was the second fastest growing economy in asia, i.e., China (575%) and aSeaN (313%), while those in the U.S. and e.U. have slowed down significantly. It is expected to rank as the world’s fourth-largest economy by 2050. With the drop in FDI from developed countries, the emergence of FDI from aSeaN, which is rising, could complement the drop. Further- more, aSeaN countries such as Singapore, Malaysia, and thailand are also gradually extending their contribution to world FDI.

SoUrCeS: Lee, C. and y. Fukunaga,“aSeaN regional Coopera- tion on Competition policy”, Journal of Asian Economics, (2014), 77–91; and eleanor albert, “aSeaN: the association of South- east asian Nations,” Council on Foreign relations, (September 1, 2016), www.cfr.org.

the association of South- east asian Nations (aSeaN)

was formed in 1967 with 5 founding members: Indo-

nesia, Malaysia, the philippines, Singapore, and thailand in an effort

to reduce regional hostilities and to fight the potential threat of communist-led insurgencies at the height of the U.S. war in Vietnam. they signed the treaty of amity and Cooperation emphasizing aSeaN’s promotion of peace, prosperity and stability. Later in 1990s, Brunei (1984), Vietnam (1995), Laos and Myanmar (1997), and Cambodia (1999) joined the aSeaN. along with the regional security objectives, aSeaN have established its regional economic integration, aSeaN economic community (aeC). the aeC’s four pillars include: the creation of a single market with the free flow of goods, services, investment, and skilled labor; fair economic competition; sustainable and equitable economic development; and integrating aSeaN into the global economy. aSeaN have liberalized intra-aSeaN trade over the last 20 years by establishing the aSeaN Free trade area (aFta).

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