Role of Strategic Management Assignment
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Added on 2019-10-01
Role of Strategic Management Assignment
Added on 2019-10-01
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Strategic Management 1Strategic managementClassTutorInstitutionDate
Strategic Management 2IntroductionAs Ahmadi, Salamzadeh, Daraei & Akbari (2012) point out, proper strategic managementplays an integral role in the running of any company. The companies, which have good strategicmanagement system frequently, formulate and implement new ideas into the organization forefficient running of the business within the company (Atkinson, 2006). The managerial staffs aremostly involved in the implementation, analysis, and monitoring of the activities which aim atimproving the performance of the organization and help achieve its objectives and the mission.The incorporation of the dynamic capabilities (DC) within the organization greatly helps inmaximizing the profit margin of the company. The DC promotes the competiveness and the needto explore the unexplored areas within the business environment. The dynamic capability mayinvolve merging with the major business partner in the same field to come up with a moreimproved products and services in the market. For instance, the merging of the HMD clinicaltechnology company with the Sun Microsystems helped both of them to come up with a moreadvanced machine, which could be used in the development of the new drugs during thepreclinical stages of the drug development process.The dynamic capability is of beneficial to any organization for purposes of gaining themaximum profit in the competitive environment. When a smaller company merges with the one,which is well established in the field, they enjoy the mutual benefits from each other, whichmake them proper in the emerging business world. The union between the Sun Microsystems,which is one of the major corporations in Scotland, was of beneficial to the HMD Companysince it had the required technology to affect the idea, which the HMD had. So, in forming thealliance, the two organizations benefitted from each other in promoting their product. IanDavision the Co-founder of the HMD commented of having achieved the mission of building theprototype, which was of interest using the technology of the Sun Microsystems. Conversely, thesun also appreciated the idea which came from the HMD company regarding the in the inventionof the machine used in the drug development process. The urge to get exposed to the newtechnology promotes dynamic capability within the business since it helps the company tomaintain its competitive advantage. Failure to strategize on the current trends within the businessmay result in the minimization of the dynamic capability within the organization hence affectingits performance among other businesses in the market.
Strategic Management 3Dynamic capability further benefit the organization by incorporating the new ideas in thedecision making process. Through interaction with people with various ideas, the company isable to integrate the new technology into the business, which they never had before. Theopportunity for identifying the external knowledge helps in expanding the business to the nextlevel. As a result, organization’s performance improves hence increasing the productivity and theexpansion of the business. The inclusion of the third party into the business helps in thegeneration of the new intellectual technology in the business, which further improves theperformance index of the business to meet the required standards within the marketNetwork relationship such as strategic partnership plays significant role in enhancementof the dynamic capability within the organization. Forming alliance with the other organizations,which trade in the same line, ease the marketing activity hence reduces the marketing cast. Forinstance, when the related companies merge, they will bring in the strengths they posses into thebusiness and decide on the best option to take among the many available options. As a result, theoutcome of the activity becomes perfect. Strategic partnership helps the involved teams to bringtheir best talents and strength into the business (Parisi, 2017). All people have unique strengththey can demonstrate when required. Therefore, honoring the partnership in any organizationgreatly promotes the performance of the business. The incorporation of the new partners withinthe organization helps in generating new creative ideas and finding the problems, which mayexpose the business into the risk. For example, HMD came up with the idea and the Suntechnology help in implementing the idea. Eventually, both the companies benefitted from theinvention. Consequently, partnerships in businesses help diversifying the business into areas,which were not initially served. Through partnership, the company can get access to the newarea, which they never had access before. In the case of the HMD, upon partnering with the SunMicrosystems, they were able to get into the UK and the Western Europe to market theirproducts.Some of the reasons, which may lead to dynamic capability within the organization,involve: need to increase capital, cost saving, fast growth, and global penetration. Since businessrequire substantial amount of money, an individual may not raise the money alone. Therefore,strategic partnership enables the companies to unite and generate capital collectively to expandthe business. The dynamic capability within or across the organization reduces the operation cost
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