Strategic Management: Analysis of Recent Focal Strategic Issue

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
Part 1: Analysis of a recent focal strategic issue within a nominated organization...............3
Part 2: Application of the focal strategic issue to own organizational context......................4
Part 3: Reflection and analysis of possible second level impacts from the focal strategic
issue........................................................................................................................................6
Part 4: Research and application of theoretical frameworks to focal strategic issue.............8
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12

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Introduction:
Corporate strategy can be understood as a scope of management that includes the
development and implementation of important objectives and initiatives taken by the Top
management of the business on behalf of the owners or Board of Directors (Noe et al. 2017).
It is the highest strategic plan made by the business through which the goals and objectives
are clearly defined within the strategic management process. Ideally, the corporate strategies
can be made using tools such as SWOT and PELTLE and a balance score card can be used
for its implementation. Moreover, corporate strategy should also include several important
aspects such as the product portfolio, company resources as well as partial strategic
documents on which the organizational model can be developed. Several organizations still
face strategic issues that put the fundamental policies and long term objectives of the business
at risk thereby adversely affecting the organizational performance, its mandates, values and
missions, management process as well as the products and services (Moutinho and Vargas-
Sanchez 2018). The strategic issues therefore need to be addressed through the business
strategies to mitigate the risk and improve preparedness for such issues in the future (Ansoff
et al. 2018; Wheelen et al. 2017).
Currently I am working with Algorithm SAL that is an Australian pharmaceutical company
in Melbourne. The company produces originated drugs and is the leader in the local market at
2nd position after Himca which is a Lebanon based drug manufacturing company. My
organization employees more than 1200 employees, with 18% CAGR (algorithm-lb.com.
2019)
The aim the study is to analyze a recent strategic incident within an international organization
and evaluate its application within the strategic focus of my organization and how the issue

3STRATEGIC MANAGEMENT
can have second level impacts on the organization I work in. Additionally, theoretical
frameworks would also be researched and applied to the strategic issue selected for the study.
Discussion:
Part 1: Analysis of a recent focal strategic issue within a nominated organization
In March 10th, 2019, the Ethiopian Airlines, flight 302 crashed resulting in the death of 125
passengers and another crash also occurred in the Lion air flight 610 in October 29th, 2010 in
Indonesia causing the death of 189 people. Both these flights were using the same model of
Boeing 737 Max. The incidents raised significant concerns on the safety of the Boeing
aircrafts and affected the customers’ trust on the company. After the report of the two crashes
authorities at Boeing, including the CEO Dennis Muilenberg initiate an immediate
investigation into the design and security of the Boeing 737 flights to understand the reason
of the accidents and how such incidents can be prevented through the design of the plane
(Nowacki and Olejniczak 2018). The organization acknowledges that it has the highest
responsibility to assure the safety of the passengers as well as the employees working on the
flight and eliminating the probability of any accidents related to Maneuvering Characteristics
Augmentation System (MCAS). The MCAS is a system that helps airplanes to improve the
pitch stability and thereby helps in automated flights. This system is activated during
abnormal situations where the pitch of the flight goes out of control and this system can be
activated to stabilize the airplane. The analysis of the crashes of the two Boeing 737 Max
airplanes showed that a faulty MCAS flight control law that was designed for the 737
airplanes in order to increase the Angle of Attack (AOA) caused a faulty pitch in the plane
due to which the stability of the aircraft was compromised mid-air leading to its crash
(Arumugham 2019).