Walmart is a low cost leadership and in order to

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Walmart is a “low cost leadership” and in order to implement the strategy they have to have the behaviour of “focusing on activities that add financial value” which needs the supporting cultural belief of “ everything comes down to money” 6) How would you define “Frozen Preferences” and what is the impact of this concept on strategy formulation, alternative analysis and recommendation? Managers don’t like to make major strategic changes once decisions have been made (except in the case of overwhelming evidence) as they will look unprepared and ineffective and their creditability is damaged Frozen preferences Management has made a decision and over time analysis shows that their decision may not be the best choice However they feel compelled to maintain their current strategy even if it is not the best course of action. As management preferences becomes a larger part of the organization (personnel changes, budgets etc), it becomes more and more difficult to change direction. A tendency to avoid reversing changes even if it was not the best choice In reality, past expenditures are sunk costs and the organization should use a clean slate to look at new choices, but to the manager, this will come at great personal loss. This relates to strategy because it is important to understand the effect management has on it. If a manager will suffer personal embarrassment or a loss by adopting a new (although better) strategy, they are more likely to simply stick with the current course of action. This can be avoided by assessing and addressing the problems of an organization prior to major investments being made Implication on strategic choice, as they can act for the betterment or detriment of the organization. Differences in manager’s preferences are specific to their individual personalities, experiences and situations. Differences in these factors among managers will lead to differences in their strategic preferences, so you must assess the implications of the differences when analyzing alternatives and reconcile them . 7) It is said that “Decisions cannot be divorced from those that make them”. Define and describe the factors would need to be considered to determine if a recommendation is likely to be supported by the decision makers? Please provide an example covered in the textbook or discussed in class. Management Preferences  Personal attributes generate tendencies toward certain types of action. Basic needs, belief and job contexts of managers  shape their strategic preferences. 
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Basic needs  refer to central aspects of a manager’s personality. They include the need for  achievement, power, security  and recognition.
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