SIM 336 Strategic Management Assessment
Added on -2021-02-21
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SIM 336StrategicManagement Assessment
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3K 1 Origin and various approaches to strategic management. ...................................................3K 2 Complexity of relationship between organisation and environment....................................5K 3 Understanding global strategic thinking..............................................................................7K 4 understanding the applications of strategic ideas in practice...............................................8CONCLUSION..............................................................................................................................10Recommendation...........................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONStrategic management is that term which is used to formulate the policies and implementthem for achieving the major goals of the company(Ansoff and et.al., 2018). The policies areformulated by the top management authority taking into consideration the impact of internal andexternal environment on the business. The chosen company for this report is sainsbury'scompany which deals in retailing industry in UK. The organisation was founded in year 1869and headquarter of the company are situated in 33 Holborn, London, EC1, United kingdom. Thefirm operates second largest supermarket chain in UK. The Sainsbury mainly retails groceriesand the firm was first that adopted self-service retailing in UK. In this report the discussion willbe based on the origin of strategic managements and various approaches of strategicmanagement. Further the study will describe the complexity that is faced by the organisation inrelation with environment. The study will put light on global strategic thinking. Last but not leastthe discussion will be based on the applications of strategic ideas which are in practice. MAIN BODYK 1 Origin and various approaches to strategic management. Origin of strategic management was in 1950 and 1960. The contributors in developingstrategic management were Philip Selznick, Igor Ansoff, Peter Drucker and Bruce Henderson.Thousands years back the term strategy was only used for wars and politics and not used forbusiness(Noe and et.al., 2017). During 1960s many companies used term strategic planning fordeveloping or building functions of strategic management that is to develop, execution,formulation or implementation of processes.Peter Drucker was author of many management books and had his career in the field ofstrategic management since five decades. Peter raised fundamental question related to thestrategic management in his book 'The practice of management writing', the responsibility ofhigher management is to ask question that 'what is the business is all about' as the answer whichhe gave in the book was studied and carefully analysed that business is all about to serve thecustomers. Peter recommended main eight areas which are innovation, market standing, publicresponsibility, managers performance with development, profitability, financial and physicalresources, attitude of workers and performance and last is productivity.
Porter wrote in year 1980 , the companies can seek competitive advantages for makingchoices and their scopes, that can be either to enter the market with lower cost product ordifferentiated product and services. As porter revised the strategy in 1985, the performance,activity and process of the company depends upon the value chain that is specific channel fordelivery of the product and services(Ginter, Duncan and Swayne,2018).The key approaches of strategic management are SWOT analysis, competitiveadvantages, corporate strategy and portfolio theory, generic competitive strategies, etc. all thesestrategies are explained below SWOT analysis: The concept of SWOT analysis used as matching the distinctive competencylevel of the company. The internal competencies are strengths and weaknesses of the companyand the external competencies are opportunities and threats for the company. Sainsbury'scompany used SWOT analysis to know it competency level in the market of retailing.Competitive advantages: Porter defined competitive advantages for the company in two typeswhich will help the company to gain advantages over rivals. The two competitive advantages aredifferentiated or lower cost with this advantages the company will be able to get competitiveadvantages by establishing superior market position, resources or skills(Hitt and Duane Ireland,2017). Generic competitive strategies: In this strategies porter targets on cost leadership,differentiation or focus as these are known as generic competitive strategies. The strategies canbe applied on any type of organisation or different size of organisation. In this strategies theindustry can targets multiple segments by the firms. The targeting of segments known as thecompetitive scope and lower or differentiated product are known as competitiveadvantages(Morden, 2016). Value chain: In this strategy of the porters the description is based on the activities of the chainthat is process of collection which organisation operates to deliver the product or services in themarket. The strategy used by Sainsbury company helped to gain the competitive advantages inthe market from the rivals. As porter explained that when the value chain of the company will beeffective it will help the firm to grow towards the path of success.PESTLE analysis: It is another approach of strategic management which assist company toanalyse and monitor the external environmental factors that may affect and impact on theoperations of the business. This strategy is use full for the company which are establishing new
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