Final answer:
The strategy-making process involves determining products or services, production processes, output amounts, pricing, and labor requirements. This process is influenced by internal management and the competitive market structure. The firm must adapt its processes to the unique conditions it faces to be effective.
Step-by-step explanation:
The strategy-making process in a company involves several steps to determine the efficient running of the business and meeting its goals. Each step of the process plays a crucial role in the overall success of the company’s strategic plan. This process includes:
- Determining what products or services the firm should offer.
- Deciding on the production process or how the firm should produce these products.
- Establishing the amount of output that should be produced to meet market demand.
- Setting the appropriate price for its products or services.
- Deciding how much labor to employ to create an efficient workforce.
The effectiveness of these steps depends on various factors, such as the production and cost conditions the firm is facing and the competitive market structure. It also involves understanding the company’s market power, product distinctiveness, and barriers to entry for new firms.
Managerial aspects such as work style, efficiency, transparency, and team satisfaction are also crucial in executing the strategy effectively. A manager's role in strategy implementation can heavily influence the decision-making process and overall job satisfaction among team members.
In conclusion, the effectiveness of a firm in completing strategy-making steps may vary based on internal management and external market factors. Each firm must tailor its strategy-making process to its specific production, costs, and market structure to achieve optimum outcomes.