Strategic Management: Process, Models, and Tools

This document provides an introduction to strategic management, including its definition and importance. It discusses the process used by organizations to determine their strategy and evaluates critical models and tools used in strategic management. It also includes an application of these tools to a real organization, Burberry. Additionally, it highlights the importance of change management in the transformation process, considering its costs, risks, and sustainability.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
An introduction including a definition of strategic management................................................1
A critical assessment of the process used by organisations to determine their strategy.............2
Evaluation of the critical models and tools used by organisations to determine their strategy.. 3
An application of these tools to a real organisation of your choice............................................4
The importance of change management based on the complexity of the transformation
process, its costs, risks and sustainability...................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management is the management of the organisation or assessment of the
necessary resources that an organisation needs to fulfil their goal and objectives. Strategic
management helps in setting the objectives, analysing the competitive environment, and also
helps to analyse the internal organisation, evaluating strategies, and also ensure that organisation
is using these strategies or the strategies are working or not in organisation environment.
Strategic management is the latest strategy added in the management discipline, it is all about
success and failure of the company (Almutairi and Sriramesh 2020). Strategic management has
ability to plan the wars and win of the company, effective strategic management has ability to
change the company performance of an organisation. Ineffective strategic management can ruin
the carrier of company executives, and also can bankrupt companies. Strategic management
helps in a decision-making to get equipped with the management process, or keep changing and
directing the organizational activities along with the right path.
MAIN BODY
An introduction including a definition of strategic management.
Strategic management helps a decision maker to get in use of management tools or
performing changes and directing the organizational activities along the right path. Using the
strategic management tools reduces the risk of operations by helping the enterprise to innovate
on time and an early action on behalf of the company. Also strategic management is objective
oriented and provide all the employees with clear ideas about what to do, when to do,where to
do and how to do. Thus ,an orientation towards strategic management can confirm better
performance and greater unity in the organisation. There are reasons related to strategic
managent and briefly defined below,
Allows firms to anticipate changing conditions; those are saying that conditions
changes so fast, that mangers can not do any planning especially the long term planning
(Ateba,and Prinsloo 2019). And also some of the myth about change in the planning is more
difficult for the organisation, so the firms need not all the time react to change, they can make
changes happen.
Research in advancing so that the process can help managers; this arguments
represents that managers pay little attention to research and studies are not they doing well. And
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also not keep focused for doing research or gaining the knowledge for company, yet it is noticed
that managers are not practising strategic management in a widely manner.
Business which perform strategic management are more effective: the most important
thing is there are many reasons for success and many organisation are effective without formal
planning. There is no such thing as a definitive which proves the strategic management is giving
the best performance of the employees in the organisation. And also ensure the organisation that
it will give 100% results if we use strategic management properly.
A critical assessment of the process used by organisations to determine their strategy.
It is the strategic approach of a company that decides the path through which it will
accomplish its goals. In the market exist numerous strategies which are according to the need and
mindset of the companies (Ateba,and Prinsloo 2019). Hence the a major concerns arises of how a
strategy can be formed and and put to effective use; because not every strategy applies to all the
firms and organisation. Different companies have different approach and on the basis of these
approaches a strategy can be decided. In order to finalise the strategic approach that a company
will be continuing its process with, following stepwise method is used in its given order,
Goal setting: The very first and most helpful step of the strategic formation process is the
organisation asking itself about its goal. When an organisation is clear about a goal and a time
frame in which the goal is to be achieved, then rest of the steps of finalising the strategies
become complimentary as they will ultimately fall in line. It is much better if the vision of the
company is seen along with the time frame with these two variables kept together, formation of
strategy becomes easier.
Analysis: Based on the goals or target set by the company a research is to be done of both
the external and internal factors that either help or challenge the target achievement of the
company. This analysis is done on many factors that affect the market and the company either
directly or indirectly (Carter, and Stickney 2019). The preliminary objective of this step is to get
as much information as possible in order to cover all the factors so that the strategy formation
can be effective.
Strategy Formation: The 3rd step in the process is the formation of strategy. By now the
company is well aware about its targets and the factors that could affect the company both
positively and negatively, hence the next step is to plan a strategy accordingly in order to follow
a path towards goal while taking care of every hurdle and utilising every supporting factor.
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Strategy Implementation: Further in the process is a predictable step yet difficult to
execute. The strategy formed must be implemented with effectiveness for the growth of business.
No matter how much analysis and blueprints of the plans one makes, it is the execution that
always consists of hidden uncertainties the strategy chosen can not be considered successful until
the complete implementation and operational comes into existence.
Strategy Monitoring: When a strategy is applied and the entire operation is carried out
according to the plan, there are many additional factors and barriers that are observed (Dias, and
Ferreira 2019). The strategy implementation and working is to be observed and the results
achieved must be compared with the target and goals of the company. With the factors now
affecting the business the strategy is to be modified accordingly so that assurance for the growth
can be achieved.
Evaluation of the critical models and tools used by organisations to determine their strategy.
There are various models for the different strategies of market analysis. These models
reflect the mindset of the company and also define their path of growth in the market.
Understanding of the market for performance of company very important and these models help
in achieving the knowledge. Models like S.W.O.T and P.E.S.T are for the analysis micro and
macro factors of the market. With the help of these models the company can find out the internal
and external factors that affect the company. Ansoff's model and Porter's Forces are another set
of model that are precise to the approach of the company. These models help the company
achieving its target or in attaining the necessary information.
S.W.O.T analysis : The following analysis provides information about micro factors in
the following way,
Strength Through the analysis of this factor the organisation comes to know about the
strength of the company that is strictly available to it. Loyal customers, brand I
image, market share etc are examples of strength of a company
Weakness When a company comes to know about an inner issue that is bingen the hurdle
in the path of better performance then it is considered as the weakness of the
company. Weakness of any company is essential to be put light on in order to
solve the issue for the continuity of growth (Fenwick and et. al., 2019).
Opportunity There are some factors existing in the market that could help the company
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achieve success if it reacts quickly towards them. These opportunities can be
analysed through the swot analysis and the company can take the first mover
advantage.
Threat This is a negative external factor and hence given the name threat. These points
can damage the success rate of the company if it doest adjust to the threats and
ignored them. Legal issues and environmental concerns are being the threat for
many well established companies in the present times.
Porters Five Forces: This model was created by Michael Porter in 1979 in order to check
on the attractiveness and and competition in the market. Through the analysis of the competitive
forces the company is expected to make an adjustment move.
Competitive Rivalry: Through the analysis of the market the company can get to know
about the competition factor and how much does it affect the business of the company.
Supplier power: this point informs the company about the bargaining power of suppliers
and how much do they control the profitability for the company.
Buyer Power: This factor spots the light on the bargaining power of the a customer of the
company and how much does its choice affects the profitably of the company (Kalyuzhna,
Pisarenko, and Nesterenko 2018).
Threat of substitution: This point inform the company about how much the company
has threat of being substituted, which in returns points out at the profitability being lost to the
competitors.
Threat of new entry: This point emphasises on finding out the threat and loss of market
associated with the introduction of a new competitor in the market.
Through these strategies and market analysis models the company cam always prepare
itself to react accordingly and make strategies based on the market conditions and its approach of
business.
An application of these tools to a real organisation of your choice.
The discussed tools a highly reputed in the business world because of the effective results
their application have given to the brands in the history and all around the world. Burberry, a
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British premium clothing brand is no different when it comes to analysing the market. Following
is the application of Porter's Five Forces
Competitive Rivalry: Burberry is a multi nation brand with its competition being Gucci,
Lois Vuitton, Prada and a few more. The only competition they have is in the overall sales and
not per the preference of each individual. Burberry has loyal customer who prefer it for its class
and not from the trendy appearance.
Suppliers bargaining power: Bargaining power of the suppliers is low in case if the
brand because of the market reputation and availability of multiple suppliers throughout the
world. The company over its several years of existence through out the world has good market
relations with which comes a stability and reliability with its fellow business people (Sax and
Andersen 2019). Hence the brand isn't much affected by the bargaining powers of the suppliers
not just because of its market position but because of the way of doing business.
Buyer bargain power: As the product has always delivered a premium class of clothing
the bargaining powers of customers never affected the brand because of its unique class
appearance and brand value which has established itself as the symbol of luxury in the society.
With the well established market position and reputation of the brand Burberry in the market the
bargaining power of the buyers can not affect the brand on a large scale. It is majorly because of
the industry the brand serves in. As in the clothing industry there are million of buyers and hence
the bargaining power of each individual decreases with the increase in numbers. As the
bargaining of quality and trend is majorly subjective to every individual the brand is expected to
not be heavily affected by it.
Threat of substitution: Burberry is a 165 years old brand that has seen a lots of up and
down of the market over the years of its existence. The brand has not just witnessed a lot may
rivals but also seen the economical crisis after the world wars. It is not by luck that the brand
overcame all these struggles of business environment but by its strategic formation and its
implementation (Stamevski, Stamevska, and Stankovska 2018). Today the brand is one of the
world's best performing clothing brand around the globe. With this performance comes not only
brand image that helps in all condition but also a high revenue and capital for the investment to
try and compete with the new arrivals in the market. Burberry is known for its class and quality
in the market and a substitution in the field less likely because of its well established market
shares among the class preferring people.
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The importance of change management based on the complexity of the transformation process,
its costs, risks and sustainability.
Market all around the world in current times are changing rapidly with the change in
technology and everyday growing environment concerns. Markets are constantly changing
because of the change in needs of the customers and because of the change in the way of
fulfilling the needs of customers. In other words the markets are in an ever changing sates.
To cope up with these changes the company and organisation have to change respectively. This
adaptability to changes are brought up by transforming the earlier used method or way of
carrying out a task. These transformation are necessary in the business because they help the
company stay in the market competition (Todorov, and Akbar 2018). With the help of
transformation the primary objective of the brand is to be able to improve the quality and reduce
operational costs. Through these target oriented transformation the company can attract the
customers better than ever.
Transformation although a necessity for the continuity in the market; are not an easy task
to carry out. Some classical examples of transformation digital transformation and technological
transformation. Companies in the present market want to leave no margin of error in the final
product; for which the technology is extremely important. This change requires proper
management as without the proper conduct of this transformation the company can take heavy
toll, hence the change management is helpful to the company is the following ways,
Cost effective: When ever the change is carried out there comes a lot of troubles because
of the change in the methods an adoption of new technology. If this transition phase of
transformation is left unchecked it could cost a lot of cost to the company, which is reduced by
the change management
Risk: With the adoption of new ways comes risk associated as there are new skills
required and new methods of bringing out the task. This is to be properly taken cared by change
management by looking at each and every factor associated with the transformation carefully.
Sustainability: With the transformation comes the risk for the company, because many a
times the staff is not able to cope with the change, such an adverse effect can hinder the
sustainability of the company, for which the change management comes in play (Tumidei,
Alexiou and Bourne2020). This management department needs to make sure everyone in the
company is well adaptable to the changes.
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CONCLUSION
It has been concluded from the above report the strategic management play a crucial role
in success of the company, and that there are several methods to chose the strategy of a
company. These tools to analyse the market are extremely helpful in setting the goal for the
company and executing the tasks accordingly. The report gives us the insight on the strategies
that are by the brand Burberry in order to analyse its market and react accordingly.
Transformation are to be managed properly and are vital for the success and growth of an
organisation.
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REFERENCES
Books and Journals
Almutairi, T.M. and Sriramesh, K., 2020. Strategic management of public relations in
Kuwait. Corporate Communications: An International Journal.
Ateba, B.B. and Prinsloo, J.J., 2019. Strategic management for electricity supply sustainability in
South Africa. Utilities Policy, 56, pp.92-103.
Ateba, B.B. and Prinsloo, J.J., 2019. Strategic management for electricity supply sustainability in
South Africa. Utilities Policy, 56, pp.92-103.
Carter, W.R. and Stickney, L.T., 2019. A capstone for the capstone: An experiential exercise in
strategic management. Journal of Management Education, 43(3), pp.233-261.
Dias, C.S. and Ferreira, J.J., 2019. What we (do not) know about research in the strategic
management of technological innovation?. Innovation, 21(3), pp.398-420.
Fenwick, M., Vermeulen, E.P. and Corrales, M., 2018. Business and regulatory responses to
artificial intelligence: dynamic regulation, innovation ecosystems and the strategic
management of disruptive technology. In Robotics, AI and the Future of Law (pp. 81-
103). Springer, Singapore.
Gallo, P. and Tomčíková, Ľ., 2019. The analytical view of the methods of strategy creation and
involvement of managers of individual control levels in the production of strategies in
strategic management in manufacturing companies in the conditions of the Slovak
Republic. Calitatea, 20(170), pp.3-8.
Kalyuzhna, J., Pisarenko, D. and Nesterenko, S., 2018. Strategic management of labor resources
of agricultural enterprises on the basis of marketing. Agricultural and Resource
Economics: International Scientific E-Journal, 4(2), pp.55-68.
Sax, J. and Andersen, T.J., 2019. Making risk management strategic: Integrating enterprise risk
management with strategic planning. European Management Review, 16(3), pp.719-
740.
Stamevski, V., Stamevska, E. and Stankovska, A., 2018. Some aspects of strategic
management. Economics and Management, 14(2), pp.129-133.
Todorov, K. and Akbar, Y.H., 2018. Strategic Management in Emerging Markets: Aligning
Business and Corporate Strategy. Emerald Group Publishing.
Tumidei, D., Alexiou, C. and Bourne, M., 2020. A choice and inevitability framework in
strategic management: empirical evidence of its real-life existence. Review of
Managerial Science, pp.1-38.
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