Strategic Management and Decision Making

This assignment delves into the crucial aspect of strategic management: decision making within organizations. It examines how various factors such as advancements in technology, evolving customer preferences, and competitive landscapes influence organizational decisions. The assignment emphasizes that while these external forces can pose challenges, organizations can effectively navigate them by implementing strategic options.

Strategic Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Company's approach to business strategy development and implementation.............................3
TASK 2............................................................................................................................................4
Strategic direction that Apple could follow in future for sustainable competitive advantage.....4
TASK 3............................................................................................................................................6
Implementation challenges and recommendations on the changes needed to be achieved.........6
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9
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INTRODUCTION
Strategic management in referred to as continuous planning, monitoring, analysis as well
as assessment of all that is essential for business in order to meet its aims and objectives. It
includes formulation as well as implementation of major goals and initiatives taken by the top
management on behalf of owner on the basis of resources and examination of external and
internal environment where firm competes (Strategic management, 2014). In the present report
strategic management has been discussed with respect to Apple. The study entails to evaluate the
company's approach on strategic development and implementation. In addition to this, the report
covers strategic direction that Apple could follow in future for sustainable competitive
advantage.
TASK 1
Company's approach to business strategy development and implementation
It is important for the business to develop effective plan for tactical development and
implementation so as to achieve high market share and profitability. There is need for the
organization to carry out analysis of environment where it operates so as to gain insight to the
opportunities and attain competitive advantage. The top level management of Apple makes
identification of several strategic options that assist in attaining desired targets. The firm adopts
suitable tactics that helps it in succeeding and achieving competitiveedges. The firm can
implement Blue Ocean as well as Porter's Generic with an aim to attract potential customers and
develop the firm (Strategic Management Journal, 2014). It is essential for the management of
organization to identify the needs and requirements of the customers so that they can be satisfied
in an effective manner. The management of Apple makes effort towards re-invention of its
products continuously. This can be done through involvement of unique designs and features so
as to attract large number of buyers. The approaches of top business strategy development and
implementation has been enumerated in the manner below: Porter Generic strategy: This strategy assist Apple in gaining edge over rivals. Further it
acts as an aid for the organization in introducing unique and innovative design in the
products so as to attract consumers and increase market share (Kim, 2004). With this
approach Apple can determine its performance and can give cut throat competition to the
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rivalries. It includes cost leadership, differentiation, focus cost and focus differentiation.
It is important for corporation to adopt strategy that can be either differentiation or cost
leadership (Varbanova, 2013). For example, by implementing cost leadership Apple can
gain effective cost in operation and can enhance its features and product quality. This
results in increasing satisfaction among the customers. Along with this, strategy of
differentiation lay emphasis on diversification within product range in order to get
competitive advantage. Apple undergoes hybrid plan with an aim to attain desired targets.
Through implementation of such strategic approach organization can grow and develop
its activities.
 Blue Ocean strategy: It is regarded as another critical strategy that assist company in
bringing innovations within the market place. With the assistance uniqueness in the
product range and services Apple can win over competitors. This strategy is effective for
organization in case of market expansion and attaining desired outcomes. For example,
Apple does not lay emphasis on adopting Blue Ocean strategy as they are planning to
adopt several tactics and models (Hitt, Ireland and Hoskisson, 2012). Taking into account
existing market conditions, organization needs to comply with such strategy, as such it
allows in expansion of firm outside the boundaries and promotes business in launching
products and services in the emerging marketplace. It has been determined therisk taking
approach that occurs when motivation does not exists in the market and such results in
declining the productivity of firm and which further leads to failure of organization.
It has been examined that through application of several business strategy such as Porter
Generic, Apple can effectively attain desired targets. With this, the company can attain high
profitability and can enhance its stock price by more than 80%. For instance, the company has
launched new iPad and became most successful technological firm. This results in enhancing the
market share as well as profitability of the business (Larsen, Tonge and Lewis, 2007). The focus
of Apple is on differentiating the products in accordance with the target segment. This results in
offering required goods to buyers.
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TASK 2
Strategic direction that Apple could follow in future for sustainable competitive advantage
The role of tactical direction is effective for Apple in gaining sustainable competitive
advantage. The strategy of Porter Generic assist organization in attaining future growth. For
example, there are several competitors of Apple which includes Samsung, Blackberry. All these
have launched tablets in past few years (Hubbard, 2014). Thus, the organization is required to
bring various innovative ideas within its features so that continuous improvement can be bought.
Such assists in overcoming the rivalries and attaining business targets in an effective manner.
Through adoption of differentiation technique Apple can give cut throat competition. For
instance, the firm introduces unique featured gadget in the market so as to attract customers and
attain suitable outcomes. The competitive advantage that Apple has earned so as to become
successful. These are as follows: Product pricing in accordance with customer segments: It is important that prices of
products are set in accordance with several buyer segments so as to satisfy them. Apple
launches it products with diversified features and create unique portfolio of the product.
This is in order to attract large customer base that leads to enhancement of sales and
profitability of the corporation. For example, when most recent Apple iPhone 4G was
launched by Apple then for such it adopts strategy of decreasing the price of 3G version
so as to persuade large number of customers (Marren, 2007). Thus desired targets can be
attained. With this, high profit margin can be attained by Applethrough undertaking of
penetration strategy the price conscious people can buy 3G version and can become
iPhone users. Thus, the company can possess opportunities to re-price its successful
products and attract clients to take purchase decisions.
 Listening to clients: It is important for Apple to listen to its clients so as to offer those
desired products and services. For example, through social media, customers can gain
awareness regarding the product and can get it as and when required. Further they can
provide their opinions regarding the products which assist the organization in making
innovations in its offerings to a significant level. There is greater need for the firm to
adopt unique strategy of marketing so that it can launch its products such as iPhone 4s
and iPad. Thus, it results in increasing the demand as well as sales of business in
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comparison with competitors. It is specific way in which business can listen to the needs
and wants of the customers. It facilitates in providing required products and services for
future. For example: iPad recently launched is not similar as compared to iPad 2. The
firm did not redesign the entire product. However, the new iPad includes several major
concerns that were expected by the clients while launching iPad initially (Snyman and
Kruger, 2004). The firm directs its research and development as well as marketing team
to includes desired features as presented by the customers so that needed product can be
launched and thus results in attainment of the success. There is presence of various
businesses that gives tough competition to Apple. However, the company overcome it by
introducing unique range of product that possess innovative features.
Through the implementation of Porter Generic strategy, business can attain sustainable
performance and can overcome the challenges faced by them. It has been presented that Apple
undergoes suitable business tactic that assist them in developing products and services within the
market. Management needs to execute suitable strategies with an aim to attain desired targets.
With the technique of differentiation, innovative design of the product can be introduced. Thus,
assist Apple in gaining competitive advantage (McManus, 2011). With this tactical decision
making can be determined. For example, with the execution of needed changes, business can
attain desired goals in terms of increasing sales and profitability. Apple launches unique products
in comparison with its competitors so as to attract a large customer base. Implementation of
changes are done by senior management team who assists in survival of the organization in the
market place to a greater extent. There is need to create strategic map that helps in identification
and assessment of critical factors so that success can be achieved (Stacey, 2007). With
implementation of these tactical factors Apple can enhance its performance that results in
satisfying needs of the buyers. If the goal of Apple is to offer excellent customer service, then
this company requires to examine the queries and offer desired products. With this, desired
targets can be attained.
TASK 3
Implementation challenges and recommendations on the changes needed to be achieved
There are several challenges that are being faced by the firm.Further it is essential to
overcome those so as to attain desired set of outcomes. While implementing business strategy
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company can face various challenges which can be overcome by using several approaches. These
have been stated as under: Financial issues: Organization faces issue in relation to the lack of finance while
executing strategy. Due to unavailability of finance, strategy cannot be implemented in an
effective manner. This results in affecting the entire budget of the project. Further, it calls
for the need to arrange for source of finance (Webb and Hogan, 2002). For example,
Apple includes various sources of funds such as issue of shares, retained profit etc. so as
to accomplish its need. Funds are needed for the purpose of completing business
activities in an effective manner. Market conditions: At present, the environment in which business operates is highly
competitive. The competitors of Apple includes Samsung, Microsoft, and Google etc.
The company such as Apple is renowned for its luxury products. It is essential that there
is a presence of favorable marketing conditions so that business can attain success. For
instance, several economic factors like recession, inflation, purchasing power etc. affects
business activities to a greater extent (Madichie, 2008). The changes in market are being
encountered in relation to taste and preferences of the customers. The issues regarding the
market forces can be eliminated through analysis of trends, application of forecasting
techniques and regression analysis etc. It is important for Apple to hire experts who can
effectively gain insight to the market conditions. Skilled manpower: Another major challenge is the lack of skilled employees. For
implementation of strategic approach, sufficient contribution is required from all the
resources (Perrott, 2011). Employees are regarded as an asset for the firm without whose
effort achievement is impossible. There is greater need for the firm to make use of
standardize recruitment practices. As such would assist in attaining advantage over
competitors.
 Competition: This is the major issue that is being faced by the management of Apple. The
company faces cut throat competition from its rivalries such as Samsung, Blackberry etc.
These competitors gives race to the business in both international and domestic market
(Novicevic and et.al., 2008). For the purpose of overcoming this, it is essential for the
organization to examine the needs and requirements of the buyer so that suitable products
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and services can be offered to them. This results in assisting firm to gain advantage over
competitors.
CONCLUSION
It can be concluded from the study that the role of strategic management is crucial as it
helps in achieving success by the firm. Through implementation of strategic management
approach like Porter Generic strategy as well as Blue Ocean strategy Apple can create unique
brand image in the market. Further, with the assistance of such innovative products can be
offered to customers which results in satisfaction of their needs. Along with this, there are
various challenges and issues that are being faced by the management in relation to technology,
preferences of customers as well as competitors’. This affects the decision making of an
organization. However the firm can overcome such through implementation of strategic options.
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REFERENCES
Journal and Books
Hitt, M., Ireland, R. D. and Hoskisson, R., 2012. Strategic management cases: competitiveness
and globalization. Cengage Learning.
Hubbard, G., 2014. Strategic management. Pearson Australia.
Kim, K. S., 2004. Strategic planning for value-based management: An empirical examination.
Management Decision. 42(8). pp.938–948.
Larsen, P., Tonge, R. and Lewis, A., 2007. Strategic planning and design in the service sector.
Management Decision. 45(2). pp.180–195.
Madichie, O. N., 2008. International Business: Competing in the Global Market Place.
Management Decision. 46(2). pp.342–344.
Marren, P., 2007. High-functioning business strategy. Journal of Business Strategy. 28(6).
pp.37-39.
McManus, J., 2011. Revisiting ethics in strategic management. Corporate Governance. 11 (2).
pp.214–223.
Novicevic, M. and et.al., 2008. Historicism in narrative reviews of strategic management
research. Journal of Management History. 14(4). pp.334–347.
Perrott, E. B., 2011. Strategic issue management as change catalyst. Strategy & Leadership.
39(5). pp.20–29.
Snyman, R. and Kruger, J. C., 2004. The interdependency between strategic management and
strategic knowledge management. Journal of Knowledge Management. 8(1). pp.5–19.
Stacey, R. D. 2007. Strategic management and organisational dynamics: The challenge of
complexity to ways of thinking about organisations. Pearson Education.
Varbanova, L., 2013. Strategic Management in the Arts. Routledge.
Webb, L. K. and Hogan, E. J., 2002. Hybrid channel conflict: causes and effects on channel
performance. Journal of Business & Industrial Marketing. 17(5). pp.338–356.
Online
Strategic Management Journal. 2014. [Online]. Available through:<
http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1097-0266/>. [Assessed on 9th February
2016].
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Strategic management. 2014. [Online]. Available through: < http://strategicmanagement.net/>.
[Assessed on 9th February 2016].
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