1. Based on an understanding of the case study, discuss the sources of Komatsu's success and the elements of its strategy that have successfully exploited these sources. Make recommendations for future strategy.
The strategic process is concerned with the interactive relationships between an organization and its environments, and with the functional decisions required in order for an organization to effectively interact with its environments. The strategic process, thus, requires the identification of market segments, the development of product strategies, the development of pricing strategies, the development of distribution strategies, and the development of advertising and sales promotion strategies.
Formal strategic planning is the process of determining the mission, major objectives, strategies, and policies that govern the acquisition and allocation of resources to achieve organizational aims. Strategic planning is a process which generates specific actions which are required to carry out a particular strategy.
The entire strategic process within an organization is a set of highly interrelated components which function within a dynamic environment. Strategic planning is closely associated with an organization's external environment. It is, thus, necessary for the strategic planner to know of what the external environment of an organization consists, and understand how an organization's external environment affects the strategic planning process.
A firm's external environment is composed of an incredibly complex and diverse array of factors. Unfortunately, all of
these factors have a dynamic characteristic. The one thing that strategic planners can count on is that the inputs on which they rely will not remain stable for very long; over the short term, perhaps, but over the long term, certainly not.
Of even greater significance, however, is the recognition that an effective strategic...