Introduction
Strategic management is one of the key pillars for any organization. Managing strategies properly is vital to the success of any organization. According to Mintzberg H. Quin B. (1997, p39) "Strategy is the pattern plan that integrates an organizational goal, policies and action sequences as a whole." This makes it imperative for the top level management of any organization to be absolutely precise about the strategies they want to follow and implement them into the market for the success of the organization and to be able to stay ahead of their competitors in the business. Strategies enable an organization to actively participate not only in the national but even in the global market. There are many strategies which have been used in the past by organizations to enter other countries. The main strategies used to enter new markets globally have mainly been foreign direct Investment (FDI), Mergers, Acquisitions, collaboration etc. However all the strategies mentioned above would be the second step when an organization tries to get into cross border investment. This could be international borders or could just be new area of investment within the national market.
Initially this essay would look at models defined by Henry Mintzberg, which is about the schools of strategy and comprises mainly three schools they are the cultural school, the planning school and the positioning school. This would be followed by some international theories such as the, SWOT analysis, Porter’s Generic Strategy, Porter’s five forces, Porter’s diamond, and product life cycle of an organization by analyzing strategies adopted by Amul Inc. India.
Background of Amul India
The Birth of Amul and development of India’s Dairy Cooperative Movem...
... middle of paper ...
...om - accessed on 18.01.2011
Web 2
2. http://www.12manage.com - accessed on 18.01 .2011
Web 3
3. http://www.fmcgmarketers.com - accessed on 23.01 .2011
Web 4
4. http://www.google.co.uk/imgres?imgurl=http://tutor2u.net/business/images/Ansoff%2520Matrix%2520w500.gif&imgrefurl=http://tutor2u.net/business/strategy/ansoff_matrix.htm&usg=__KNZ2A9A - - accessed on 2.02 .2011
Web 5
5. http://www.rediff.com/money/2005/sep/23spec.htm - accessed on 2.02 .2011
Web 6
6. http://www.emeraldinsight.com/journals.htm?articleid=865317&show=html - accessed on 2.02 .2011
Web 7
7. http://www.clusterland.at/822_ENG_HTML.php - accessed on 10.2 .2011
Web 8
8. http://economictimes.indiatimes.com/markets/commodities/amul-to-increase-milk-prices-by-rs-1/litre-in-maharashtra/articleshow/7505498.cms - accessed on 16.2 .2011
Web 9
9. www.bizcovering.com - accessed on 16.2 .2011
Background Information In implementing a strategic plan for Coastal Medical Center, our consulting team has conducted many analyses and formed numerous strategies in order for Coastal Medical Center to be successful. Such assessments include an internal analysis, external analysis, gap analysis, and SWOT analysis. In conducting these analyses, our consulting team was able to better understand the internal environment, external environment, where the organization currently stands in terms of performance, and the major strengths, weaknesses, opportunities and threats that oppose the Coastal Medical Center. From our inquiry, we will be able to establish a strategic plan that best fits the organization’s needs.
After analyzing the Coastal Medical Center, it is apparent that the employees and staff have no conception of the mission, vision, and values of this health care facility. In addition to this lack of structure, CMC has many projects in the midst of production that lack support of a common goal, employees are unsatisfied with their jobs, the two boards lack ability to agree on strategic decisions for the organization,, and the medical center has a dismal reputation when it comes to quality care.
... process essentially entails functions such as planning, organising, leading or directing and controlling the resources of an organisation. Strategic management is the application of this management process at the top level of the organisation. At this level the focus is on the resources, capabilities and core competencies or the company as a whole and on the ways to achieve success over the long term within the context of changing and ever-competitive environments. According to Johnson et al, strategies do no happen by themselves. Strategies involve people, especially the managers who decide and implement. Strategic management consists of 3 elements, understanding the strategic position of an organisation, making strategic choices for the future and managing strategy in action. Strategic management thus entails two tasks, strategy making and making strategy work.
There are four strategies businesses choose from. The first is corporate level strategy which assist companies in selecting new business strategies that is anticipated to increase its worth. Second, is merger and acquisition strategy where two companies assimilate or one company buys out another business. Thirdly, international Strategy concentrated on selling products and services outside of the national market. Finally, cooperative strategy affords companies the opportunity to join forces to achieve a common goal. (Hitt, Reland, Hoskinsson,
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
The scope of this essay is to address coherently with examples a number of key areas of strategy; strategy and its importance, challenges in relation to development and implementation of strategies, and a discussion of the relevance of strategy in the modern
The first portion of the novel is centered on understanding the essence of strategy. The understanding strategy, according to the author, is derived from truly comprehending what strategy
Each strategy is based on being high or low in the following two categories global integration and national responsiveness. To have a low global integration it means the company doesn’t operate in every country. If the company is low in national responsiveness it means your customers use the product in the same way – no matter which country they are in and vice versa for high. International strategy is low in both global integration and national responsiveness. While, global strategy is high in global integration and low in national responsiveness. This particular strategy is low in cost. Next, Transnational strategy is high in both global integration and national responsiveness. This strategy is considered high in costs, but the most common strategy companies pursue. Lastly, multi- domestic strategy is low in global integration and high in national
Hitt, M., Ireland, R. & Hoskisson, R. (2010).Strategic Management: Competitive and Globalization, Concept and Cases. Mason, Ohio: Cengage Learning
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
From the A12 redesign proposal, it shows that the current standard cost system is unable to link the reduction in the number of parts to activity reductions and cost savings. The labor-direct-based standard cost system reflects the cost of A12 is distorted. Using the ABC system, according to the activities of A12 allocate the overhead cost to A12 that could find that the current overhead cost of A12 was overstated by the standard cost system. At last, A12 Junction Box could be identified it is an attractive and profitable product, at the same time, it demonstrates the value of ABC.
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).
There are various schools of strategy that have been vigorously debated on and after a consolidated effort; three schools of strategy were produced. They are the planning school, the positional school, and the resource based school of strategy (Ritson, 2013). All these strategies will be described with examples to buttress each.
Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitive and Globalization, Concepts and Cases. In M.Staudt & Stranz (Ed).
Firstly, multinational corporations are not something new in this 21st century. There are more and more international corporation as people try to boost the process of globalization. The development of these multinational corporations depends on the management of the owners. Transnational strategy is needed in order to operate such a big system of companies. Every nation in this system has to be managed thoroughly in order to help running the corporation, as well as to keep the system as one consistent body of business. Managers also find it important to look for opportunitie...