Strategic Management in Business

Running head: MANAGEMENT THEORY AND PRACTICES
Management Theory and Practices
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1MANAGEMENT THEORY AND PRACTICES
Table of Contents
Introduction:...............................................................................................................................2
Analysis:.................................................................................................................................2
Recommendations:.................................................................................................................8
Conclusion:..............................................................................................................................10
Reference:................................................................................................................................12

2MANAGEMENT THEORY AND PRACTICES
Introduction:
Strategic management and plays crucial role in the development of any business
organization. In this competitive era, where all the business organization is incorporating best
practices to battle against the rival companies and earn the desired target in the society,
strategic management and works as strength of the business organization that enhances the
competitive advantage of the companies (Hill, Jones, & Schilling, 2014). Toyota Motor
Corporation is one of the renowned automotive manufacturer that has put a strong impact on
the on the car industry by its innovative practices. The journey of Toyota has been started in
1937. The organization covers a huge market share. Toyota has brought revolution in the
motor vehicle industry by introducing hybrid electric vehicles. As per the report, Toyota
earns 28.40 trillion revenue per year by providing its service worldwide. The organization has
not only set an example in front of the world by its profit margin, but it has become a pioneer
in terms of strategic management and (Chiarini & Vagnoni, 2015). The organization has
adopted a unique style of leadership that has led the organization to achieve the desired
position in the local as well as global automotive industry. This innovative management style
of Toyota leaders has distinguished it from the other business organization. Toyota is
considered as one of the pioneer of strategic management. The leaders of Toyota has left no
stone unturned to maintain healthy environment within the organization. They pay close
attention to their relation with the stakeholders (toyota-global.com, 2017).
The following article has concentrated on the strategic management and managerial
skills of Toyota. It has enlightened all the practices of Toyota management that influences the
growth of the organization. The objective of the article is to provide a vivid picture of the
organizational structure of Toyota.

3MANAGEMENT THEORY AND PRACTICES
Analysis:
Strategic management is considered as one of the key success factors of the business
organization. It has been argued that it consists of three major stages that plays crucial role in
the growth of any business organization, such as- strategy formulation, strategy
implementation and strategy evaluation (Rothaermel, 2015).
Strategy formulation is considered as the primary stage of strategic management. In
this stage, the management team of the business organization forms suitable strategies for the
organization. This stage plays crucial role in the development of the organization. Leaders
need to consider all the aspects of the business organization while constructing the
organizational strategies (Harrison & John, 2013). Otherwise, it may lead the organization
towards the wrong direction. Before making any strategy, it is important to analyse the
situation of the organization and conduct market research. It will be beneficial to construct a
suitable set of norms for the organization that can support organizational growth.
The second stage of the strategic management is to implement the formulated
strategies within the organizational structure. While implementing strategies, the
management of the business organization needs to make sure that all organizational members
are aware of the newly constructed strategies and they are willing to adopt these strategies. In
order to achieve the goal, the organizational management needs to maintain healthy and
interactive relation with all the internal and external stakeholders. They need to provide a
transparent idea about the organizational strategy and the objective of the management to
incorporate such strategies. It will be helpful for the members to adopt these strategies
(Morden, 2016).
The last and final stage of the strategic management is to evaluate the consequence to
implement these strategies. This stage plays crucial role in the development of the