Strategic Management: Process, Tools, and Change Management

This document provides an overview of strategic management, including the process used by organizations to determine their strategy, evaluation of critical models and tools, and the importance of change management. The case study of Kier Group Plc is used to illustrate these concepts. The document also includes a SWOT analysis and PEST analysis of Kier Group Plc.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
An assessment of the process used by organisations to determine their strategy.......................1
An evaluation of the critical model and tool used by organisations to determine their strategy.
.....................................................................................................................................................4
An application of these tools to a real organisation....................................................................4
Appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability...........................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is the branch of management which is concerned with the
development of company's strategic visions, objectives and implement them by adopting
corrective measures to achieve where it want to be in the future. It is a process which require
strong commitments to the plans which include both long term and short term objectives. It is the
continuous plan which involve record monitoring, analysing and evaluation of the process. It
focusses on changes that take place due to any reason whether it is external or internal
environment and make necessary change in the plans as it when require (Ansoff and et. al., 2018)
. The two main objectives of Strategic management is either to gain competitive advantages to
out stand the industry and competitors or act as guidance to provide direction to the organisation
in order to survive environment of business. For reporting purpose, the chosen organisation is
Kier Group Plc. A global leading construction and infrastructure service providing company
under the chairmanship of the company, Matthew Lester in 2020.
MAIN BODY
An assessment of the process used by organisations to determine their strategy.
To have good understanding of strategic management and the process we need an
exemplary organisation to understand the process its focus area and their strategy to meet the
objectives effectively (Schilling and Shankar, 2019) . For that purpose, on a closer look in the
Kier strategic approach, the company involve majorly five phase of the strategic management
process. The process enable them clearly define objectives, vision and mission of current year as
well as for upcoming years. Due to global pandemic situation many companies are forced to
introduce changes in their organisation and so in Kier Group plc too (Kier Group Plc. 2021).
Which is mentioned below:
1. Assessment of current strategic direction.
At Kier, the strategic plans highlight the following areas of the company. Changes in the internal
management team. Simplified group which reduce the capital allotment, rationalising the
facilities of business management and able to recognise company more discipline organisation
(Kier Group Plc. Strategic Annual Report. 2020). Company also aimed to execute cost saving
programme. Bringing performance excellence such as managing people, process, projects etc.
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The company focused on its core business which is construction and infrastructure, in order to
generate cash as its objective.
2. Analysing Internal and external environment.
To achieve the strategic direction company need to have effective techniques and tools to
analyse its internal as well as external environment. Tools like SWOT and PEST can be helpful
to understand the different environment and their impact on the company, management and their
decision on some certain and uncertain situations.
For that SWOT analyse can be helpful which will provide information regarding Internal
strategic factors like; Strength and Weakness; and for external strategic factors like; Opportunity
and Threat. SWOT analysis help managers of Kier to develop four different types of strategies:
PESTLE analysis is another strategic tool which help in analysing macro environmental
factors affecting the company. Any changes in macro environment can have direct impact on the
business and its functioning. For example during global pandemic situation have force
businesses to bring certain changes and have significant impact on the financial position of the
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Illustration 1: SWOT Analysis tool

company (Pfarrer and et. al., 2019). At Kier, COVID have made company to be focus on
liquidity and cost efficiency also decease the volume of projects.
3. Formulating Action plan.
Kier, introduced its plan in its annual report 2020. The company claim its operating
framework in Jan 2020, which was set out the governance structure within where all the group
operated. It also provided clarity on key roles and responsibilities and cooperation of the new
Code of Conduct which guide the behaviours as expected from those who work for the company.
4. Executing the action plans and,
At Kier, the core businesses such as; construction, infrastructure, highways and utilities,
are essentially cash generative and operate under long-term frameworks through where company
have the opportunity to tender its range of projects. Which can provide good visibility of future
work with an appropriate risk profile.
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Illustration 2: PEST Analysis model

5. Evaluating the action Plans.
Evaluation of action plans gives true reflection of overall plan. Since company have
planned them for upcoming years which will reflect the outcome in next coming year of the
annual report. As company is dealing with infrastructure and construction which have broad
picture not only for Kier but also in the industry. Technologies and advancement have made this
sector as filled opportunity and innovation that can be achieved only through sustainable manner.
An evaluation of the critical model and tool used by organisations to determine their strategy.
In above the company in order to determine the strategic management process company
have to use SWOT analysing tool or SWOT matrix that critically reflect the company's position
both internally and externally. It help the company to test their business strategies. It is
elaborative and comparative tool which identify the weakness and try to convert it into
opportunity (Makadok, Burton and Barney, 2018). Similarly It defines various threats and in
order to eliminate it find its strengths to mitigate them. In short the SWOT matrix helps the
leaders of the organisation to decide whether the organisation's resources and abilities are
sufficient enough to be effective in the competitive business market. Thus these competitive
environment where company have to operate and need to refine its strategy in order to remain
successful in the environment.
An application of these tools to a real organisation.
SWOT matrix of Kier Group Plc.
STRENGTH
 Company have successful track record: Kier have integrated praiseful firms through
merger and investments. The company have successfully integrated several types of
technology companies in recent rime in order to mainline the operations and to create a
trusted supply chain.
 Powerful Brand Portfolio: The Kier have invested in build a powerful brand portfolio.
 Strong distribution network: In recent years the company have built a reliable distribution
channel which can reach numbers of possible market to grow more internationally. Excellent Market Performance: Kier have create expertise by entering into new markets
and also made it success. This market growth have helped in building new revenue
stream and change the economic cycle peril in the markets where they operate.
WEAKNESS
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 The marketing of its services of Kier have leave a lot demanding from its customers.
However, the services are a success in terms of sells but its brand's positioning and USP
of the product were not well defined.
 There are some loop hole in the service offering sell by the company. Where deficiency
of choices can rise a strong competition in the industry. The organizational structure is well matched with only for present business model thus its
confining the expansion in near to service portion.
OPPORTUNITIES
 New policies in environment have bring new opportunities which can develop a high
level of advantage for all the participant in the industry. Which can be a great opportunity
for Kier to drive such advantages with new equipments and gain market large share in the
new service category.
 The developed technologies can provide handful of opportunities to Kier for practising
distinguished pricing strategy in the market. Thus this can enable the company to
maintain its trusted customers base with improved service and help in draw new
customers. The development in market may lead to reduce of competitor’s gain and so it now enable
Kier to enhance its competitiveness in comparison to the other rivals in the industry.
THREATS
 Increase in price of raw materials can be significant threat to the company's profitability
as this can reduce it.
 Rising pay level for workers per hour and increasing prices can lead to serious pressure
on profitability of Kier Group Plc.
 Various Liability laws in differ from countries can impact its export services of Kier
Group Plc and thus can open to different liability claims due to change in policies in
markets.
PEST analysis of Kier Group Plc.
POLITICAL
Since, Kier is operating as a construction and materials in more than one country and thus the
company is disclose itself under several types of political environment also their political system.
The accomplish success in such a ever-changing structure, infrastructures industry across
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different countries need to modify the systematized risk of political situation. Certain factors
must be keep in mind while entering into new markets. Such as:
 Political stability
 level of corruption
 Legal framework
 Trade union and its relation.
 Anti laws related with the business. Here is construction and materials. Employee benefit program to enhance their participation etc.
ECONOMIC
In macro environment the another most significant factor is the economic factor which
include: savings, inflation and foreign exchange and much more types of rates, that influence the
aggregate demand and investment within an economy (Bindra, Parameswar and Dhir, 2019). On
the other side, of micro environment ingredient such as competition that consequence the
competitive benefit of the firm. So it is clear that Kier can exercise any country’s economical
factors like inflation, growth rate, materials and industry growth rate etc. in order to predict the
development etc. for not only in the construction sector but also in other department of that
organization. While considering PESTL tool company must regard the following factors:
 What is the kind of system that host country's economy follow. Such as what type of it
and at what degree it is stable.
 Country's Government intervention in the market of that economy.
 Literacy level in the economy.
 Unemployment rate. Repo and exchange rate etc. stability in the market.
SOCIAL
For any organisation to be survive and operate successfully the role of society and its
culture play significant role. Way of doing things have important impact on cultural environment
of an organization (Moutinho and Vargas-Sanchez, 2018). Mutual notion and the attitudes
among the people play significant role in how marketing team of Kier will interpret the emotions
of the customers of a given marketplace and how will they design the marketing communication
as infrastructure and construction industry for its customers. Several of the factors that leaders at
the Kier must analyse with PEST tool:
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 Demographic changes and skill among the population.
 Cultural significane. Attitude of the people toward company and it objective.
TECHNOLOGICAL
Technology have bring changes but also other than technology other changes with the
help of technology are taking at faster pace. Kier being the construction sector company can
realise the increase in technological up gradation and demand for it making this sector as filled
with growth and opportunities. All the infrastructural development are taking faster than ever to
build future ready city equipped with lots of advancement. Few points need to be considering by
the company:
 In industrial sector how different value chain structure impacted.
 Rate of technology is scattering.
 Recent technological developments by competitors.
Appraise the importance of change management based on the complexity of the transformation
process, its costs, risks and sustainability.
Changes are most common threat that any company and its employees may fear about.
Since the dynamic world filled with opportunities and threats need to be address effectively. The
concept of change management is becoming the emerging concept in the world of business. It is
the capability of the business to make the changes opportunity instead of threat. It also depend
upon the degree of change and how well the company understand it and take necessary steps
towards change (Teece, 2019). Company who handle changes well can thrive in the market while
those who do not may struggle to survive and even may fail. For that purpose one of the famous
model of change management is very well known and practised and adopted by organisation's
leaders. Lewins Change Management model, where the model aims to help organisations to
understand what is successful change or transitions art look like. The model comprises typically
three phases. In upcoming sections will discussed about the each sections :
UNFREEZING
The word unfreezing here refers to the organization’s status quo. In order to bring
change, all the people of the company should understand the plan that are made for future and
why a change is needed (Dzwigol, 2020). This is why leaders need a powerful message that will
make people believe in the importance of the change that is brought about. The more the
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employees feel the importunity, the faster is the current state of the organization can be unfrozen
and changed.
CHANGING
It is the implementation stage of the model. In this stage preparation and communication
play crucial role to help employees to learn the new processes, change the behaviours and accept
the changes positive way(Konovalova and et. al., 2018). All the gossip and negative
conceptualization need to be addressed immediately. Employees need to feel involved in the
whole change process. Education, time and support are needed at this stage.
REFREEZE
In the final stage which involve strengthening and hardening new processes as well as
structures. The new state or changes should become part of the organisational culture and require
ways of sustaining and supporting them in the long term perspective (Certo and et. al., 2020).
On visual represented as the new state being frozen become the new status quo of the company.
In above Kier Group Plc. It can be understand that change management is important and
play a crucial role for the continuous working in such a dynamic environment. Upon using of
any Change management model can help company to introduce changes smoothly. Kier being
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Illustration 3: Lewin's Change management model

the globally recognised infrastructure and construction company have its own importance. Some
of the significance of of change management are mentioned below:
 Several external factors influences to change the organisation form. Due to globalisation
and the fast developments in digital world are keep pushing organisations to answer them
in order to survive and be successful. Thus disregard the external factors will be like
endangering the organisation’s attainment and can ruin the reputation of the company
(Carayannis, 2018).
 One of the major key part of managing such change in an organisation can be occupy
those people who are get affected from the initiative of change. Employees of the
company ultimately get involved in the process. Thus it is necessary to communicate and
engage people of the company as early as possible help to establish the groundwork
later. Therefore the managers of the company are in responsible to bring organisational
change which should have smooth way (Khosiev and et. al., 2019). They use change
management models to make changes such as:
 Re- organise the job roles,
 Re- organise overall business process,
 Apply new technology to upgrade the work.
 When an company adjust itself in improved ways of working, which can result in
increase productivity among workforce (Cescon, Costantini and Grassetti, 2019). On the
mean time it also help in encourage innovation. ON the outcome of it, this provide
assurance of better performance of the organisation in a better surroundings for success.
 When any optimistic change is introduced right way, may help in cut down wastage and
therefore so cut down the costs too. Impressive change in management can make an
organisation to take good choices. Which have an outcome with developed fruitfulness it
low down the risks thus improve the lucrativeness of an organisation.
CONCLUSION
From above it can be conclude that, strategic management have significant role to play
for companies operate on a global level. Strategic management help business to identify all the
environmental changes that taking place both internally and externally. However they have
advantages too depending upon the capability of the leader to understand them. adapt them and
effectively implement them. Tools like SWOT and PEST can be effective for leaders to apply
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them to know its position at local as well as international marketplace. Change management also
play crucial role where any external or macro level changes can be made easily on the
organisation in order to survive competitive level.
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REFERENCES
Books and Journals
Ansoff, H.I and et. al., 2018. Implanting strategic management. Springer.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change, 28(6), pp. 469-478.
Carayannis, E., 2018. Strategic management of technological learning. CRC Press.
Certo, S.T and et. al., 2020. Divided we fall: How ratios undermine research in strategic
management. Organizational Research Methods, 23(2). pp. 211-237.
Cescon, F., Costantini, A. and Grassetti, L., 2019. Strategic choices and strategic management
accounting in large manufacturing firms. Journal of Management and
Governance, 23(3), pp. 605-636.
Dzwigol, H., 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal, 19(4), pp.1-8.
Khosiev, B.N and et. al., 2019. Strategic management and zootechnical control in pig-breeding
enterprises: development of its information base. Research Journal of Pharmaceutical,
Biological and Chemical Sciences, 10(1), pp.1267-1279.
Konovalova, E. E and et. al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of Environmental
Management & Tourism, 9(2 (26)). pp. 241-247.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Pfarrer, M.D and et. al., 2019. Sociocognitive perspectives in strategic management. Academy of
Management Review, 44(4), pp.767-774.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers, 53(1), pp.1-43.
Online
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Kier Group Plc. 2021. [Online] Available through:<
https://www.kier.co.uk/media/blog-posts/this-is-change-transforming-the-construction-industry/
>
Kier Group Plc. Strategic Annual Report. 2020. [Online] Available through:<
https://www.kier.co.uk/media/6069/2020-annual-report.pdf >
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