Strategic Management Practices for International and Banking Organizations

Running Head: Strategic management practices 1
Strategic management practices
Name
Institution

Strategic management practices 2
Question 1
B. impacts of strategy formulation and implementation of strategic management practices
International and banking organizations face several challenges, given their global
statuses, which often require that they make essential strategies to drive their operations. This
makes the strategy formulation part of their o0peration the most difficult because they deal with
money (Babiak & Trendafilova, 2011). One major issue here is, hence, finding a skilled and
qualified strategic planner. The effect of this on strategic management is that bank, and financial
institution managers must always incorporate the opinions and contributions of the leaders in
other departments to create a large pool of knowledge (Beske, Land & Seuring, 2014).
The implantation process may also be plagued with different issues, one being that
everyone who is to take part in implanting the plan must first be duly informed and made well
conversant with the plan and its requirements. The problem here is that not everybody will have
the necessary expertise required for the implantation to succeed (Bloom & Van Reenen, 2010).
Therefore, the manager may have to hire services from outside of the organization, and this may
lead to the incurrence of a lot of unplanned costs.
Another issue in the formulation and implementation of strategies is the law. Before
banking organizations formulate or implement their strategy, they have to ensure that they are
well within the constraints of the legal requirements of the particular environment they are
operating in (Bloom et al., 2012). For example, a bank may decide that to increase their lending
to improve their competitive advantage, but the government may also require that only a certain
maximum amount of money can be lent to an individual at a time. The formulation and
implementation in such a case then fail.
Question 3
a. Analysis and assessment of strategic management practice
As were had been earlier informed, the analysis and assessment phase of important
management practice is majorly concerned about the internal and external factors affecting
business and how they are developed (Chen & Huang, 2009). We are going to talk about a few of
these factors and attempt to find out how they are related to the operations management of a
technology organization that is globally known in its present and immediate operating
environment.

Strategic management practices 3
Capital is one internal factor that is usually of utmost importance to the performance of a
business (David, 2011). When a company lacks enough money, it is likely to stall or collapse.
The relationship of this with operations management is that it is capital that acquires the
necessary equipment and labor that efficiently converts the material into goods and services for
maximum profit.
One important external factor is the availability of the market for the company's products.
Companies must always analyze their markets accurately before they can use the information to
design how they will manage their operations (Freeman, 2010). In such a case, management
practices, for example, management designs that will produce too many goods or services for a
small market are avoided.
Other critical external environmental factors affecting operational management are
economy, competition and government policy (Goetsch & Davis, 2014). Other internal factors,
on the other side, include human resource and the culture of the company.
b. Strategy formulation in strategic management practice
Strategy formulation calls for the development of a high-level strategy and ensuring that
the organization level strategy is duly implemented (Golicic & Smith, 2013). Most of these
strategies must always include the operations section of the organization, alongside other
segments such as human resource management and sales and marketing department. Global
technology organizations must always strive to choose the most suitable course of action and
apply them to their operations design because they serve a large population, the global
population. Serving a community that large is not easy mainly due to the fact that the spread of
technological advancement is not uniform across the world (Green Jr et al., 2012). Therefore,
while some practices will be profitable in some countries, the same methods may be futile if
applied in another country. This phase of strategic management, therefore, requires that
insightful strategic objectives are set followed by much in-depth performance analysis. This will
be helpful in making the right choice of strategy (Wheelen & Hunger, 2011). Operations
managers are often advised to do thorough research on both internal and external environments
of the business before making decisions on the design of strategic policies (Hair et al., 2012).
c. Strategy implementation in strategic management practice
Successful strategy implementation must always follow a strategy plan, which is a
written document that spells out the processes and steps required to reach plan objectives. This is