Ask a question to Desklib · AI bot
Key Concept of Strategic Management
Added on -2019-09-24
| 10 pages
| 3501 words
| 206 views
Trusted by 2+ million users,
1000+ happy students everyday
Introduction: Key Concept of Strategic ManagementStrategic managementis basically an incessant process which incorporates from in-depthanalysis, planning ahead, effective monitoring, and carrying out a detailed assessment of allthe points which are essential for an organization to fulfil and attain their desired goals andset objectives. It is one of the vital processes of management planning which includesdiscovering and development of the strategies. This process is undertaken by managers forachieving the goal of improved and delivering better performance while retaining the bestsolution and remains competitive in the market. An organization is alleged to get thecompetitive advantage if the level of profitability is higher than the standard profitability forall the companies in the same industry.“Strategic Management can also be defined as a process for identifying fortune of theresolutions and execution operations by the respective manager or the team who considersand embark on decides the result of the firm’s performance” (MSG)For carrying out the organizational analysis, The manager should have ability to undertakethe in-depth analysis of the industry and market inclusive of the study of the competitiveorganizational environment so as to take correct resolutions. It is the responsibility of theStrategic Team to demeanor the SWOT analysis highlighting the strengths, Weaknesses,Opportunities, and Threats. Thus, they should formulate the best possible deployment of thestrengths, reduction in the organizational weaknesses and should adequate use from thearising opportunities of the business environment perspective and should try to cope up withthe threats. This process applies to planning for both expected as well as unexpectedcontingency, it is being applied to every organization,” no matter how big or small theorganization is”. The key reason is that it can help towards formulating and executing theproper strategies which can help in attaining the desired level of success in the industry. Thestrategic management process includes the detailed research on critically analyzing on thecross-functional decisions before executing. The process majorly includes following:Conducting an in-depth research-analysis of the company’s internal and externalstrengths and weaknesses.Devising the action plans.Execution of the action plans.
Evaluating up to what extent the action plans have been successfully implementedandamending the strategic decisions in the case of the expected results has not beenachieved. (Rawson & Rouse, 2015)In this report, the company which is required to be considered while undertaking the processof analyzing the strategic management decisions and its implication on the organization is‘Woolworth, a supermarket located in Australia’. As per J.M. Higgins, the Strategicmanagement is the process of running the hunt of organizational mission, whereas to managethe relationship of the organization to its environment”. Thus, the report will include andhighlight the strategic management practices, its execution and implication in Woolworth.(Barnat, 2013)Woolworth is the company which is being operated in retail stores for selling the ready to eatfood, liquor, basic home-usage products and home-improvement products in Australia withHeadquarters in Bella Vista. They have almost 2,00,000 employees and I was one of themlast year. The major competitors of the company’s are ALDI, Costco Wholesale, IGA andColes. The company Woolworth has been able to stay competitive and successful due to thereason of implementation of effective strategic management theories. The strongperformance and continuous growth has been able to embark on the market due to thesetheories only. The momentous socio-cultural trends have also been demonstrated in the reportfurther. The company’s has three key value-creating purposes are effective distributionstrategy decided by top-management, inbound logistics and their goodwill. The Theoretical Concepts of Strategic Management As we know the Strategic management is the process in which an organization expansion andexecution of the plans which promotes the company’s goals and objectives of anyorganization. As the process of strategic management is a constant progression which onechanges as the organizational key objectives are being evolved. The businesses engage instrategic management to make sure that they acclimatize to trends and manage the externalchanges such as globalization. The several concepts which will exemplify the strategicmanagement and the development of organizational goals are written as follows: (Josh)
Goal SettingAt the center of the strategic management process is the formation of goals, establishment ofa right mission statement, values and organizational objectives in its recreation of plannedopportunities. It can be done through goal setting by which managers compose the strategicdecisions like how to meet the sales targets and attain the privileged revenue generation.Through the theory of goal setting, the organizations assist how to contend in a progressivelymore competitive and global business era.Analysis for Strategy DevelopmentThe analysis of any organization strengths and weaknesses is the essential and the maintheory under the strategic management process. Except the internal analysis, a companyshould undertake the external analysis of factors such as new or rising technology and thenew competitors emerging in the market. With the help of internal and external analysis, thecompany can form the aim, set goals and the key objectives which can help in transformingthe weaknesses into the strengths category of the organization. The detailed investigation willhelp in assisting the developing and formalizing the strategic ways of acclimatize with thechanging technology and the rising markets.Development of Strategy The formation of any strategy is the idea which would be required for deriving the emergentspecific procedures which can help an organization to fulfil its goals. The strategy formationmay lead to properly use the information through analysis, prioritization, taking correctiveactions and making the requisite/important decisions which would highlight, “how toconcentrate on the important issues which the organization is facing”. Moreover, by theprocess of strategy development or strategy formulation, an organization may look forward todiscover the ways for increasing the profitability and maintaining a competitive advantage.Strategy ExecutionThe implementation of strategy is an implementation of the decided strategy into real groundsfor achieving the set goals. The inspiration behind this concept is to collect the entire relevantinformation essential to fetch the strategic plan to practical life. The organizations normallyemploy the strategies in the course of estimating budgets, developing the requisite curriculumand executing the policies for meeting the goals related to factors such as financial,
Found this document preview useful?
You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss
Paid Plans
Free Plan
Single Unlock
Monthly Plan
Yearly Plan