MBA717 - Strategic Development Essay 2 - Brief

APA

MBA717 - Strategic Development Essay 2
– Brief
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Smith Brother’s approach to strategic management of knowledge and organizational learning
................................................................................................................................................3
Evaluation of strategic tools and framework use...................................................................6
Importance of knowledge in strategic development, strategic marketing, competitive
advantage, managing strategic corporate change and sustainability......................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic development is fundamental to creating and operating a venture within
particular market. It is defined to embrace management procedures that inform, support and
shape strategic judgements confronting a company. It is also considered as process of
researching and determining strategic options, chosen the most promising and deciding how
assets can be allocated across firm to achieve set aims and objectives in effective manner. The
current assignment will be based on Smith Brothers Company, which falls under list of leading
companies in renewable energy industry, UK. This study will discuss organization’s approach to
strategic management of knowledge & organizational learning. It will evaluate their use of
strategic tools and frameworks, including significance of knowledge in strategic development,
sustainability, managing strategic corporate change and competitive advantages as well.
MAIN BODY
Smith Brother’s approach to strategic management of knowledge and organizational learning
Strategic management of knowledge refer to utilization of a company’s capabilities and
strengths to leverage external and internal knowledge sources to develop value and sustainable
competitive edge (Hebibi, Raimi & Milićićević, 2019). Knowledge is the key element of Smith
Brother Company and many activities at workplace resolve around using, acquiring and storing
knowledge. It is really very important for organization to manage and keep appropriate
knowledge in context of business and others things like competitive advantages etc. There are
different types of approaches available in world of business that can be used for strategic
management of knowledge in regard to chosen firm.
Process approach –
It is one of the best approaches Smith Brothers can use for strategic management of
knowledge. It attempts to codify organizational knowledge through formalized procedures,
process, controls and technologies (Intezari, Taskin & Pauleen, 2017). Company can adopt this
method by implementing explicit policies governing how knowledge and understanding about
specific things to be gathered, stores and disseminated throughout business. It frequently
includes use of information technologies to increase and improve quality and act of knowledge
creation and distribution in venture. These advanced technologies may include data warehousing,
decision support tools, intranets, groupware, knowledge repositories etc. All these technologies
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help in knowledge management related to products or services offered by company, in effective
and systematic manner.
It is considered as management strategy that manager in chosen organization can use and
manage internal and external procedure of business effectively. When manage use this method, it
means that they organize and control that procedure that make up his or her firm interactions
between these process and outputs & inputs that tie these things together. By using this approach
to manage production and other functions related knowledge, company can find that they can
better measure how manufacturing and marketing functions are performing, determine and
implement improvements within it systematically. It is quite beneficial and useful approach that
Smith brother can use and manage knowledge related to overall activities.
Practice approach-
Strategic knowledge management and organizational learning have become key elements
of organizational development across boundaries as an outcome of their abilities to cater
strategic results related to competitiveness, profitability, productivity and capacity building
(Venkitachalam & Willmott, 2017). This approach to knowledge management assumes that a
better deal of company knowledge is tacit in nature and that formal measures, procedure and
technologies are not appropriate for transmitting this kind of understanding. More than
developing and implementing formal system to manage existing knowledge, concentrate of this
method is one building communities of practice and social environment that help to facilitate
sharing of tacit comprehending. With the help of this method, company can maintain level of
knowledge. Communities of practice are teams of individuals with common professional interest
who perform together informally and communicate with other for sharing knowledge. Within
such a community, people collaborate and communicate directly, teach each other and share
personal experiences in order to work even better. It is most common method used by many
companies for strategic management of knowledge.
According to this approach, when manager share their experience with workers at
workplace and provide appropriate direction to them, it can lead to knowledge management,
which is quite valuable for growth and long term success of business. With this practice firm can
obtain desire outcomes and give tough competition to its competitors by keeping better
knowledge about external and internal factors.
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Organizational learning and knowledge management play vital roles in growth and
success of company. It also play essential roles in organizing and defining firm tactics, procedure
and structures that affect business survival, leading to achieving vision, objective sand aims in
effective manner (Carcello & et.al., 2018). Organizational learning is defined as procedure of
creating, transferring and retaining knowledge within a firm. It is also considered as process by
which Smith Brothers improves their business practices and performance over period through
gaining right experience and utilising that experience to create better knowledge at workplace.
Firm can consider different approaches of organizational learning.
Management training-
It is one of the best method company can consider and implement at workplace in context
of organizational learning. It is training activity that concentrates on improving and enhancing an
individual’s skills as a manager and leader (Pallavicini & et.al., 2016). When firm undertake this
approach they can introduce to and retrained in common management methods such as balanced
scorecards. It conveys people idea of making individual more alike than different in some
aspects and attempting to deemphasize each applicant’s differences in some specific areas. With
the help of training leader and manager within company can learn new things. After getting
knowledge about specific things like marketing and strategic management they can provide same
info to people who can learn and work accordingly. The overall procedure defines organizational
learning process that is quite beneficial and helpful in term of increasing performance level even
better. For instance, a number of workers are trained at workplace to operate a complicated
system of technology.
Once technology is implemented and used, hopefully to specifications that optimizes
employee ability to operate system, training programme are effectively implemented in order to
provide appropriate learning and knowledge. It can be said that management training may also
concentrate on venture side of being a manager such as reporting to high authority, more
effectively and efficiently leading performance reviews & acquisition of talent. It is beneficial
and effective approach that enhances organizational performance and productivity.
Organizational development-
This concept or approach is different from management development and management
training. It can be defined as an objective based method utilized to initiate a modification of
system in an entity. It is achieved through a shift in communication and interaction. This element
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defined as transferring data and key information to produce better understanding about activities
and practices at workplace. Organizational development is a science and critical based procedure
that aid company to build their capacity and ability to change existing business actions and
obtain desire outcomes. It also help firm to achieve greater effectiveness by creating, improving
and reinforcing tactics, procedure and structures. Furthermore, with the help of this method
Smith Brother can increase their abilities in effective manner which makes them able to perform
even better than other players exist in same market.
This approach improves organizational and operational effectiveness and also support in
learning by getting more knowledge about several things. Organizational development helps by
establishing effective relationship with business with and between groups and workers to achieve
common aims and objectives in ethical manner. All above approaches and methods are beneficial
for Smith Brother Ltd, which falls under category of large, turnkey electrical contractor with
more than 20 eras experience. They can learn many things from these approaches and maintain
knowledge for longer period of time to beat competitors and sustain in industry.
Evaluation of strategic tools and framework use
A strategic tool or framework is structure approach utilizes to define how a work or
initiative supports and help key objectives of company and its stakeholders effectively. There are
varied types of strategic frameworks are accessible in world of business that company or
manager can use to gain knowledge about various aspects such as competitive advantages,
strategic marketing, sustainability etc.
Porter’s five forces is one of the best and most effective strategic management
frameworks that firm can use to gain knowledge about competitive edge. Competitive
advantages refer to external factor that permit an organization to produce items and services
better and more cheaply than its rivals, which turn into increasing profit margin and productivity
(Eidizadeh, Salehzadeh & Esfahani, 2017). It is strategic tool that management can use for
analysing its business’s competitive environment, which is actually very important and useful in
context of gaining further advantages. With the help of this framework it is quite easy for
manager to get knowledge about degree of competitiveness in marketplace where Smith Brother
Ltd operates since for so long.
Threat of new entrances, threat of substitute products or services, bargaining power of
buyers, bargaining power of suppliers and competitive rivalry between existing players, are the
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major elements of this tool that help firm to understand forces affecting profit margin in its sector
and can aid to inform decision relating to whether to enter a particular sector or market; whether
to increase ability and developing competitive tactics that are actually very important to do.
Without gaining knowledge of competitive edge in market, organization would not be able to
sustain for long and retain their buyers successfully. On the other hand, it can be said that this
framework cannot be applicable to non profit companies because of simplest thing that it centres
on determining rivalries, and competitors in market.
Along with this model, Ansoff’s growth matrix also helps to gain knowledge about
strategic development which is really very essential and important to know for management. It is
one of the most successful tactic frameworks of all time (Loredana, 2017). This implies that
company attempts and efforts to expand depend on whether target market is different, based on
current services and items can be new and market still an older one. This framework helps in
strategic direction and development of strategies and provides knowledge about how to take
affective decision for making business more successful and productive than other players. It
guide firm to take decision by using available options that are suitable for its business success.
With this model, company can gain understanding in strategic development which is very
beneficial for in term of taking right actions to overcome challenges and varied issues that may
affect profitability and productivity. By getting knowledge in context of strategic development
firm can beat competitors and manage their current knowledge in effective manner.
This framework is helpful to classify firm strategic options and evaluate risk, it can be
utilize as firm tool or single departments such as marketing. It is an easy way to direct discussion
of option and easy to understand. Furthermore, it analysed that Ansoff’s matrix model is not
applicable in strategic development of company because it does not capture some of detail of
market and competitors clearly that create issues while selecting the best options.
SWOT analysis is the best strategic frameworks, it considered as business internal
environmental analysis method that help to identify elements that affect sustainability and
practices of company. It was developed to systematically and successfully cut down defects and
issues in business practices that affect environmental and business sustainability negatively (Ben
Ruben, Vinodh & Asokan, 2017). It can be evaluated that SWOT analysis model help company
to improve their business practice and drive them towards sustainability. It aid to improve quality
and eliminate factors or things in business operations procedures that influence negatively on
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operational efficiency and strategic development. Sustainability means meeting organizational
and market needs without compromising ability of further consumers to meet their own
requirements. This model helps to know more about sustainable practices and activities that
provide greater benefits to management. It concentrates on reducing of defective items such as
production and fixing of ineffective services. This framework can even aid in empowering and
strengthening workers and maximizing consumer’s satisfaction. All these things are considered
important for quality improvement, increasing consumer base and consequently, prove important
for Smith Brother to prosper and grow. Within this model, there are well define approaches and
techniques for guiding overall activities of company. For example, by using this approach
company can understand sustainable business practices importance and use environmental
friendly materials in cabling and other products.
SWOT analysis concept stands for strengths, weaknesses, opportunities and threats that
help firm to improve and enhance sustainable business activities in effective manner. It can be
said that along with benefits, this framework consist some drawbacks that affect final outcomes.
This framework becomes impossibly subjective without appropriate data and information. It has
only one of main elements, which is not suitable for business planning which requires range of
pieces of analysis, data and research.
It can be said that along with getting knowledge about above areas it is really very
important for company and management to get Knowledge in Managing strategic corporate
change. It provides strength to manager and enhances their abilities for managing performance of
workers effectively. To get success in this process, company can consider range of strategic
management tools and models that efficiently help in managing and balancing organizational
procedure at workplace with approval of workers. It caters knowledge to manager about how
business change process can be managed. Organic models of strategic planning is the best
model that company can use for strategic development and to understand this concept. It is often
uses as technique known as concept boarding to permit workers to develop their own thoughts
and innovative ideas before sharing them with other team members. This model begins by
clarifying organizational culture values utilizing dialogue and storyboarding methods that help in
strategic development. On the other hand, it requires frequent informal judgement between team
members that consumers a lot of time.
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Importance of knowledge in strategic development, strategic marketing, competitive advantage,
managing strategic corporate change and sustainability
It can be said that above tools and strategic management techniques helps company and
its workers to develop their knowledge about varied areas which are important to know and
understand completely. For example, knowledge about competitive advantages are essential for
employees and management to gain because it makes them able to gain competitive edge by
working effectively and developing plans.
To get success in this process, company can consider Kotter’s 8 step change models that
efficiently help in managing and balancing organizational change procedure at workplace with
approval of workers. It caters knowledge to manager about how business change process can be
managed. Kotter change model is an key 8 step approach to manage change in company that
may affect staff performance and productivity level (Wentworth, Behson & Kelley, 2020). It
gives clear information about change management and direction how to do this without making
any mistakes at workplace. Create a sense of urgency, build guiding coalition, form strategic
initiatives & vision, enlist volunteer army, enable action by reducing barriers, generate short term
wins, sustain acceleration and institute change are the important eight elements of this
framework that guide manager to manage change at work area and enhance performance level
without facing any challenges that is essential and beneficial for firm while running in its sector.
CONCLUSION
By summing up above discussion, it has been concluded that Smith Brother while
managing and operating their business activities within industry uses several approaches to
organizational learning and strategic management of knowledge. It has been identified that
method in context of these things providing several benefits to company in term of increasing
their productivity level and enhancing performance even better than its competitors. Smith
brother with the help approach to strategic management of knowledge effectively sustain within
marketplace. Furthermore, it has been analysed that by using strategic tools and frameworks that
include importance of knowledge in strategic development and other activities, Smith Brother
successfully managing their business operations.
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REFERENCES
Book and Journals
Ben Ruben, R., Vinodh, S., & Asokan, P. (2017). Implementation of Lean Six Sigma framework
with environmental considerations in an Indian automotive component manufacturing
firm: a case study. Production Planning & Control. 28(15). 1193-1211.
Carcello, J. V & et.al., (2018). The value to management of using the internal audit function as a
management training ground. Accounting Horizons. 32(2). 121-140.
Eidizadeh, R., Salehzadeh, R., & Esfahani, A. C. (2017). Analysing the role of business
intelligence, knowledge sharing and organisational innovation on gaining competitive
advantage. Journal of Workplace Learning.
Hebibi, L., Raimi, N., & Milićićević, R. (2019). Knowledge management and the importance of
knowledge management for the organization's performance. Ekonomika. 65(1). 117-126.
Intezari, A., Taskin, N., & Pauleen, D. J. (2017). Looking beyond knowledge sharing: An
integrative approach to knowledge management culture. J. Knowledge
Management. 21(2). 492-515.
Loredana, E. M. (2017). The use of Ansoff Matrix in the Field of Business. Annals-Economy
Series, 2, 141-149.
Pallavicini, F and et.al., (2016). Virtual reality applications for stress management training in the
military. Aerospace medicine and human performance. 87(12). 1021-1030.
Venkitachalam, K., & Willmott, H. (2017). Strategic knowledge management—Insights and
pitfalls. International Journal of Information Management. 37(4). 313-316.
Wentworth, D. K., Behson, S. J., & Kelley, C. L. (2020). Implementing a new student evaluation
of teaching system using the Kotter change model. Studies in Higher Education. 45(3).
511-523.
Online
THREE APPROACHES TO ORGANIZATIONAL LEARNING. 2018. [Online]. Available
through: < https://home.snu.edu/~jsmith/library/body/v16.pdf>
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