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Basic management theory
Basic management theory
Basic management theory
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Sun Microsystems Inc., Customer Focus Is Their Strategy Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
Strategic Planning—the process of developing a plan to achieve organizational purpose—is a management tool used to focus a workforce’s energy. Strategic planning ensures that the workforce achieves an organization’s mission. It is used by large organizations to increase the chances for long-term growth and profitability (Auka, 2016). Lockheed Martin’s strategy is well-aligned with the organization’s mission, vision, and values, reviewed carefully by a well-qualified team, and regularly measured against the appropriate objectives. This has positioned the corporation for success.
A complete analysis conducted on the financial statements and status of Sun Microsystems exposed key issues determined to be of great import to shareholders. After examining the research findings and analysis, it seems that Sun Microsystems finances have not maintained a steady incline. In fact, it had definitely experienced some highs and lows in its return on investment and stockholders’ equity over a four- year evaluation spanning the years 1998 through 2001. In an effort to decipher the problems within the company’s operations, data from the following reports and ratios offered considerable clues.
The Strategic management is help to accomplish the goals and intention for organizations recourses and future plans by following the important elements, which are planning, controlling, analyzing by study both internal and external strengths and weaknesses.
An organization is established, it has some mission and vision. This mission and vision define its operation and research. To fulfill the organization’s mission they have to develop top level plans and sustain long term competitive advantage that is Strategy. Following this definition, when an organization has mission, develop a plan and understand the “sustainable” competitive advantage - where competitor cannot easily duplicate the firm’s strategy.
According to Wheelen & Hunger, strategic management “is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2004, p2). All eleven good to great companies are benefit from strategic management and gain long term strategic advantage then lead to outperforming compared companies.
Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning), strategy implementation, and evaluation and control (Hunger & Wheelen, 2011). In this report I will do research about the strategy of Marriott International, Inc. I will give advise on how Marriott can improve their strategy and I will come up with an advisory strategy.
One of the duties of the managers of a company is to engage in strategic decision making. Strategic management is a broad subject on its own that borrows from other social science disciplines. According to AllBusiness (2011), strategic management involves all the activities undertaken by management to better place the company in the industry it operates in. It is important for every manager to realize that his firm does not exist alone in the business environment. Its environment has parties like competitors and customers, both internal and external; suppliers and government authorities that must be analyzed and addressed appropriately. Laying down the best strategy will involve assessing the needs of the market and the firm’s capabilities, formulating its mission and vision and communicating the goals and objectives set down to the employees. Once all this is done, managers have to assess the tasks to be done and allocate resources in a manner that will avoid wastage.
Strategic planning is a group of processes and analysis and analytical processes that allow a company to understand where they are within their market, and create a clear path to their future. Companies usually have short term goals and have set some long term plans, these goals or plans should be a part of the mission statement. The mission statement should clearly state who the company is, what they do, why they do it, and what they plan on doing. Strategic planning assesses both long and short term goals within the planning process. There are three questions that all managers, no matter what organization or sector of the market, have to ask themselves:
According to Lamb (1984), “Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” [1]
Throughout the global economic environment the desire to out-perform the competition is always present. In every situation, the companies who do better are the ones with superior strategy (Rothaermel, 2013). Strategic management is therefore important in every company, no matter what industry or market they operate in; and as stated by M. Carpenter and G. Sanders, 2013, is described as "The process by which a firm manages the formulation and implementation of its strategy". Strategic management is a constant topic under discussion with different schools of theorists with different beliefs and attitudes which is described as "A tense array of disagreement" (Rees, 2012).
According to Thompson et al (2007), strategic planning is a competitive move and a business approach that managers make use of in order to achieve the targeted levels of performance, grow the business, conduct operations, attract and please customers and compete successfully. On the other hand, according to Johnson, Scholes and Whittington (2008), strategic planning includes making of strategic choices to position a firm at an advantage against competitors in the long-term. Strategic planning can also be defined as a top management function concerned with making decisions in connection with the determination of the organization functional policies, objectives, strategies, mission, philosophy and vision (Sababu, 2007). To put it briefly, strategic planning is a long-term and a rational process, action oriented and futuristic in nature since it transforms strategic thoughts into strategic actions and involves selecting from among likely courses of action to make strategic decisions that bring an organization to its general objective (Namaswa, 1989, Bruce and Longdon, 2000, Drucker,
Apple, Inc is a well known name in the computer technology world; Apple, Inc leads the computer industry in innovation thanks to the award winning desktop and notebook computer known as OS X operating system (Yoffie & Slind, 2008). This paper will focus on Apple Inc., strategic management and why is it critical to the success of the organization in meeting its goals and mission. It is therefore important to define strategic management, according to Certo, Peter & Ottensmeyer, (2005), strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment. Strategic management benefits organizations by providing personnel, capital, helps to set standards and most importantly activates people. For an organization to have a successful strategic management plan, the mangers must learn to think strategically and have the ability to evaluate their environment and develop new ideas. Steve Jobs one of the founding fathers of Apple Inc used strategic planning to his advantage by making Apple’s mission a simple one- bringing easy to use computers to the general market, revolutionizing the computer market.
...c management or planning presents a structure or agenda for dealing with issues and solving problems, therefore, understanding potential risks or pitfalls of strategic management and being prepared to deal with them is critical and vital to success. Strategic management not only permits top leaders and managers to be more proactive than reactive in building or developing their own potential or outlook in an organization, and it also lets them to make the first move and influence activities, consequently, executives and management can control or in charge of the company’s own future, and achieve its main goals and objectives. Overall, increasing cost-effectiveness and efficiency, improving the value for its stakeholders, and advancing customer services and management excellence are the key objectives of strategic management and decision making in an organization.
Strategic planning is a process wherein the company will allocate its resources and focus its priority in creating a strategy that will meet the company’s set goals according to its mission and vision or its future plans of evolving or expanding. This might involve change in processes or plans to make the operations of the company more efficient or improve the overall status of the company. The main focus is to make sure that everyone in the company and its stakeholders are focused towards common goals and there are a set of realistic and feasible results or expectations that could lead the company to being a better one. That way, once the strategic plan has been set and implemented, the success of it can be easily evaluated.
This indicates the importance of strategic management for organisations in making appropriate decisions and selecting strategies which will assist them to gain strategic competitiveness and as a result earn above-average returns.