Strategic Management: Process, Models, and Tools

Strategic Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 & LO4......................................................................................................................................3
1. An introduction including a definition of strategic management............................................3
2. Process used by organisations to determine their strategy.......................................................4
3. Models and tools used by organisations to determine their strategy.......................................6
4. Application of SWOT analysis to M&S..................................................................................9
5. Importance of change management.......................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategies are the course of actions which are planned well in advance so that the long and
short term goals of organisation are achieved. For this resources are allocated according to the
need so that implementation of the strategy is done in most effective manner (Rothaermel, 2017).
Planning is done as per the capacities of the firm as it is important that there are enough
resources with the organisation to follow the strategic path. Marks and Spencer is a retail firm
having its headquarters in Westminster. It was founded in 1884. The following report will cover
the external and internal analysis of the organisation along with eth mission and purpose of the
strategic planning in context of the chosen firm. Various alternatives to follow and apply in the
business will be elaborated which will help in understanding how strategies are implemented in
work context.
LO1 & LO4
1. An introduction including a definition of strategic management
Strategic management is a continuous process through which included monitoring assessing
and evaluating the required modifications of business. it consists of various stages and each stage
focus on facilitating vision for the organisation so that the desired outcome is achieved. there are
different areas of business and depending upon complexities planning has to be done before hand
so that full capacity utilisation of resources is made (Ansoff and et.al., 2018). Environment for
business keeps on changing and hence it makes it necessary for Marks and Spencer to do regular
check on their strategies as this will help in identifying weather any modification in them are
required or not. Effectiveness of the employees in the organisation can be evaluated through
strategic management process as it helps in identifying weather the work is done in accordance
to the strategies planned or not. Strategies are planned according to the goals of the organisation
as where it sees itself in the next coming years. As per the need both long and short term tactics
are planned which has an overall impact on the final outcomes. Marks and spencer is dealing in
retail business which has close rivalry. It is important for referred to organisation that it evaluates
its strategies on regular basis so that in case of any change in the business environment if found
than accordingly alteration in the current working style can be made.
Importance of strategic management:
 Assist in planning for the future coursework.
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 Help in facing the competition present in the industry.
 As common vison is given to the work force through strategic management process,
hence this way the overall efficiency of the operations increases.
2. Process used by organisations to determine their strategy
Formulation of plan is a complex process as before deciding upon a particular action it has
to be tested that it is capable of achieving the desired goals and will give the maximum return
(Freeman, 2010). There are many options that are available with M&S and it has to follow series
of stages that will help it in identifying that which is the best suitable conduct for it from all the
alternatives. In order to explore the framework for strategies the current strategic position is
determine first than all the strategic choices are evaluated on different basis and lastly
management of action as per the set framework is done.
Strategic position – An organisation is affected by different factors like internal and
external factors, investors, shareholders, company’s resources and capacities of doing work etc.
All these elements have direct influence on the strategy that is made for the business. The macro
factors offer various favourable and favourable conditions for business like tax rates, economic
conditions, law related to trade etc. restrictions imposed by government regarding the afety of
environment etc. all these are beyond the control of the management and has to be adopted in the
same manner. while formulating the strategies all these needs to be evaluated first so that such
framework is developed which fulfils all the criteria’s and can assist business in achieving its
goals. Planning is done to manage these forces like following the guidelines given against the
industry, fulfilling the CSR etc. Apart from the external factors stakeholders also has great
influence on eth formulation of tactics (David and David, 2013). They are comprised of different
parties and each one of them has distinct purpose behind being part of business. While designing
the policies management has to make sure that the purpose of stakeholder is not affected and
they have their consent in the new strategy.
Thereafter, comes the other main factor that has its crucial role in policy creation and it is
analysing present means and capacities of the business. It is important that strategy is planned in
accordance to these as only then successful implementations of same can be done. If such plan is
made which is not possible to be executed with the current assets and resources of the company
than it is assured that the planning will fail. Also even if all the required factors are there but if
the code of conduct of the strategy is not in accordance of the regular company culture than also
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