Introduction
Strategy is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.
The strategy is a result of strategic management which is a set of managerial decisions and actions that determines the long-run performance of a corporation. Strategic management includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Moreover, evaluation and control is involved in every stage of strategic planning and management. (Wheelen & Hunger, 2012)
Figure: Basic Elements of the Strategic Management Process
Strategic management has become very popular and important to business for a variety of reasons. Strategic management considered to be the pathway to success. it shows the corporation currently situation and it’s future destination. Through strategic management the goals of the business are set.
When strategy is formulated and implemented the decisions of the strategic management team must set realistic goals. They need to consider the current market and the direction that the market is navigating towards, the competitors of the business, as well as the resources afforded to the business. Strategic management spends a lot of time and resources balancing the objectives of the organization, the stockholders, and the desires of the consumer.
But Strategic Management doesn’t always lead the corporation to the success stage. The primary factor of strategy success centralized on execution. According to researches nine out ten implementations fail around the world. But why do so many organizations fail at strategy implementation?
Most of the times, the strategy isn’t the real problem but the real issue...
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Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
Wheelen, Thomas L. and J. David Hunger. Strategic Management and Business Policy, 13th Ed. Upper Saddle River, NJ: Pearson Education, Inc., 2012. Print.
During the late 1990’s many new companies were set up to utilise the perceived advantages from using the internet in business, however, with their rapid rise and fall they soon created a phenomenon known as the ‘dot.com’ era (Lovelock, 2001). Questions were then raised about the added value that the internet brought to business and how these technologies could be used competitively. Grocery companies chose to diversify their service by introducing online equivalents of conventional stores. Porter (2001, p.62) criticised numerous pioneers of Internet business for infringement of fundamental strategic principles:
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 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 management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
Introduction In 2009, the adoption rate in which a company can evolve and adapt to their new business environment is paramount to their survival. The early versions of the dotcom companies have experienced noticeable needs for improvements, whether they are technological, infrastructural, or research and development that supersedes the initial strategy of these organizations. These changes require a new way of thinking and creative innovations that will lead to sustained grow and perpetuate their status in the marketplace. Yahoo played a pivotal role in the how internet users shifted from novice users for entertainment purposes to creating a new virtual marketplace for consumers, however; this did not happen without considerable growing pains
Strategy is a course of action to attaining an organization 's purpose (De Wit and Meyer, 2010). It entails an elaborate, definitive and systematic plan or course of action to solving complicated events.
The strategic management of an organisation is one of the key responsibilities of managers in any organisation and is critical in ensuring its employees understand the purpose of the organisation, the specific objectives set to achieve that purpose and the values that members of the organisation adhere to. (Jones & Hill, 2010)
Marketing Strategy as the Key to Business Success Marketing strategy helps a company to meet it's objectives by finding an ideal medium between the company's available resources and opportunities that present themselves in the market. A strategy would involve the creation of plans that would enable a company to achieve its overall objectives. The idea of a strategy portrays an image of a well thought out plan as it has had careful evaluation of the market and the company to come up with a suitable strategy to meet the goals and targets for the company's medium to long term future. The purpose of a strategy is to allow management to be aware of what direction the company is heading in and for them to convey this to the workforce so that the whole company is pulling in the same direction so the objectives of the company can be met relatively easily compared to if there was no sense of cohesion between one department and the next. A perfect strategy will take into account company objectives, customer requirements, the activities of competitors and a well looked into prediction of future market patterns that will affect the company.
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
Strategy is the ‘how’ of the operation. It does not establish who is fulfilling the work (leadership), or what needs to be accomplished (entrepreneurship). Strategy determines “how an organization will achieve its objectives (Principles of Management. (n.d.).
Strategic management is a process to enhance the goals of your business. This gives managers a strategic awareness and value of the company when strategic management is implemented. Having a strategic plan in a company makes the business successful. When a manager takes lead in the change of the environment it allows the company to improve on their short and long term goals. Managers
That reminded me from the case study the director how to plays round of the company to succeed this Colombian Memorial Hospital. External control view of leadership, situations in which external forces where the leader has limited influence determine the organization 's success. Strategy, the ideas, decisions, and actions that enable a firm to succeed. competitive advantage firm 's resources and capabilities that enable it to overcome the competitive forces in its industries. Operational effectiveness, Performing similar activities better than rivals. Intend strategy, strategy in which organizational decisions are determined only by analysis. Realize strategy, strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource limitations, and changes from managerial preferences. Strategy analysis studies of firms ' external and internal environments, and there with organizational vision and goals. Strategy formulation, decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.
The strategic management model, has been a set of decisions and actions that result in the scheme and activation of strategies in achieving the set objectives. It provides an overview of the nature, benefits, and terminology of and the need for strategic management. “The Nature and Value of Strategic Management,” emphasizes the practical value and benefits of strategic management for a firm and or individual. It also distinguishes between a firm’s and or individuals strategic decisions and its other planning tasks. The section stresses the key point that strategic management activities are undertaken mostly at three levels: company, business, and functional. The distinctive characteristics of strategic decision making at each