Assignment on Importance of Strategic Management
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Added on 2019-12-03
Assignment on Importance of Strategic Management
Added on 2019-12-03
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Strategic management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 IMPORTANCE OF ACHIEVING STRATEGIC FIT......................................................1Strategic management process.....................................................................................................2The general and competitive environment...................................................................................2Structure conduct performance....................................................................................................3TASK 2 PORTER’S FIVE FORCES FRAMEWORK AS A TOOL OF COMPETITORANALYSIS......................................................................................................................................4Porter’s five force Framework.....................................................................................................4SWOT analysis............................................................................................................................6Game theory.................................................................................................................................7THE RATIONALE FOR ADOPTING A REVOLUTIONARY AS OPPOSED TO ANEVOLUTIONARY APPROACH TO CHANGE...........................................................................8Generic competitive strategies.....................................................................................................8Blue ocean strategy....................................................................................................................10Organization strategies...............................................................................................................10Balance score card.....................................................................................................................11THE CONCEPT OF STRATEGIC DRIFT AND HOW IT MIGHT BE AVOIDED..................11THE CONTRIBUTION OF ADMINISTRATIVE MANAGEMENT TO IMPLEMENTINGSTRATEGY IN RESPECT OF LEADING STRATEGIC CHANGE..........................................13CONCLUSION..............................................................................................................................13
TABLE OF FIGURES(Figure 1: Strategic management process)......................................................................................2(Figure 2: Structure Conduct Performance Model).........................................................................3(Figure 3: Porter's Five Force Framework).....................................................................................4(Figure 4: SWOT analysis)..............................................................................................................6(Figure 5: Game Theory Model)......................................................................................................7(Figure 6: Generic Competitive Strategy Model)............................................................................8(Figure 7: Balance Scorecard).......................................................................................................11
INTRODUCTION Strategy is an action that is required to take for the purpose of organizational goals. It is ageneral direction set with various components to accomplish desired actions of future. Its mainaim is to stagnate and collect all the organizational resources and lining up all for theaccomplishment of organizational objectives (Schuler and Jackson, 2005). It is significant as itdetermines future course of action that helps the organization in long term sustainability. It iscreated to take into account the probable behaviour of customers and competitors. Strategiesdealing with employees will predict the employee behaviour. The management is required tohave a deep and intense knowledge and understanding so that to take appropriate decisions andthis will also be helpful in achieving competitive environment (Crossan and et. al., 2011). TASK 1 IMPORTANCE OF ACHIEVING STRATEGIC FIT Strategies and its implementation are required as in a business for the purpose ofachieving organizational goals and objectives. With the help of effective strategies, business canachieve the policy of differentiation by which it can create competitive edge over others.Strategies can help the business to set a particular direction so that all the employees can followthose aspects. With the help of strategies, business can achieve certain advantages such as:Customer retention (Graham, 2008)Effective utilization of resources Opportunities of diversification and expansion Strategies help the business to set a desired direction and this is also assists in effectivedecision making process. With the help of effective decision making process, business canachieve competitive advantage as departments can make effective decisions regarding differentfacets. There are so many kinds of strategies that can be put into use for resolving conflicts, foreffective leadership and for managing strategic aspects of a business. Companies are beingforced to compete for competitive advantage so that to sustain for long time at the marketplace(Haines and Bandt, 2002). 1
Strategic management process(Figure 1: Strategic management process)(Source:Henry, 2008)In order to make strategic aspects more successful, it is requisite for the business toimplement it in a proper way. Strategic management process defines or assists the organizationto frame effective strategies for business purposes. It has basically four steps:Environmental scanning: It is also known as economic analysis which is done to collectthe information of outer world. It helps the company to analyse external as well as internalfactors that influences business environment (Henry, 2008).Formulation of strategy: Under this process best coarse of action is being determined forthe purpose of achieving organizational objective and organizational goals and it also facilitatescorporate and business function strategies. Strategy implementation: The process implies making strategies or putting it into action.It comprises of different aspects such as designing organizational structure, allocation ofresources, developing decision making process and management of human resources(McDonald, 1996).Strategy evaluation: Last but not the least; it is the step of evaluation of strategy. Thisincludes various activities such as root factors of current strategies, performance measurement,and remedial actions. It facilitates suitability of the desired strategies that have been adopted byorganization (Lowenthal, 1994). The general and competitive environment Environment is the main factor that influences the work conditions of organization andthat may also lead alterations in the work processes. External environment considerably affectsthe competitive environment of an organization as it consists of industry and markets in which ithas to compete. There are various competitors of baby care products in the external environment2
that probably can affect global market (Nijssen and Frambach, 2000). As the industry fulfilsdemand of around 4 million babies all along in a year and this thereby helps the company togenerate revenues of around $ 7 billion. The market can be segmented into varied parts ofbecause the demand for innovation in products has been increased. With the help oftechnological advancements and greater marketing approaches, retailers have to widen themarket as demand is increasing at the market place due to huge increment in number of babies.Consequently, there are many competitors such as Johnson & Johnson, Procter and Gamble,Novartis that are providing several baby care products with several effective strategies for thepurpose of achieving market share and competitive advantage (Partington, 1996). Structure conduct performance (Figure 2: Structure Conduct Performance Model)(Source:Partington, 1996)Conduct performance model is a model which is being developed to predict the structureof the market that help the company to determine firm’s conduct and employee performance.The SCP model basically focuses on three steps i.e. at the initial steps it focuses on segregatingand segmenting the market on the basis of number of competitor’s present in the market. Movingon to next level, it shows that this model is comprises of specific prices and of some outputwhich is conduct by firm which is generally arises through market power (Power, 2004). This3
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