Strategic Management: Ethical Issues, Culture, and Impact

This essay delves into the multifaceted nature of strategic management, evaluating its benefits and drawbacks, particularly concerning ethical issues. It examines how strategic management aids in decision-making, employee motivation, and organizational success while also highlighting potential pitfalls like self-gain, social impact, environmental concerns, and public interest conflicts. The essay further explores the crucial role of corporate culture in strategic management, emphasizing its influence on organizational performance and the importance of aligning cultural values across all levels. By analyzing these aspects, the essay concludes that while strategic management offers significant advantages, its ethical dimensions and cultural integration are critical factors in determining its overall effectiveness and potential for organizational failure or success. The essay draws upon contexts of neoliberalism and the militaristic tone of strategy to provide a comprehensive view of the topic.

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IS STRATIGIC MANAGEMENT GOOD
System04121
5/9/2019

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This essay involves the discussion about strategic management. Strategic management is a
procedure of continuous monitoring, development, analysing and all the other activities
which are needed to achieve the organizational goals. This essay primarily discusses about
ethics and strategic management and also about the ethical issues of strategic management.
Apart from this, in this essay strategic management is also linked to the organizational culture
or the corporate culture. Strategic management helps an organization in different ways.
Although it has many positive and negative aspects, it has certain ethical issues which can
lead to the failure of an organization. On the other hand strategic management also have
multiple benefits and it can help an organization to reach its success point such as it helps the
mangers to take good decisions by using various strategic management tools. The mangers
are able to know the strengths and weakness of the employees which helps them to build a
team accordingly in order to reach the areas of the organization, apart from this, strategic
management also helps in building good association with the employees by motivating them
which helps in giving the company good results and the organization also achieves success
and high results.
Neoliberalism is also a part of strategic management which is profit-driven and exceptionally
motivated on finance it has negative and social impact on strategic management as it raises
corporatisation of state companies and other assets the shift of welfare policy toward
patronage and entrepreneurship and individual ‘responsibilisation’ for health, welfare and
education. Military strategy is a set of ideas realized by military organizations to pursue
looked-for strategic goals. Military strategy deals with the conduct and planning of the
campaigns, the disposition and movement of the forces.
The term strategy comes from the root of etymological roots and Greek word “Stators” which
simply mean to lead. The term strategy comes from one warfare that developed a certain
amount of complexity and problems in the large forces. In the militaristic origins of concept
strategy it will be seen that how it is practiced in the business. Strategic management involves
the formulation and the usage of goals in the organizations top management which is also
based on resource management in the organization (Dull, 2010).
Strategic management gives direction to the firm and enterprise and also helps the firm to
reach the objectives of the organizations. Strategic management also helps in making a lot of
decision making process in the organization.

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Strategic management is important in various ways in the organization; the first thing it helps
in is the alertness in the employees. The alertness between the employees increases the
objectives of success among the employees and also the targets. The strategic management
studies helps in knowing the weakness and strengths of the employees and also the ways to
improve them.
Apart from this strategic management helps in increasing the profitability of the firm. The
profitability of the firm totally depends on the maximum usage of the limited resources, by
the usage of strategic management implements the manages cannot use the financial
resources but also the maximum man power in order to increase the overall profitability and
productivity of the unit (López-Nicolá and Meroño-Cerdán, 2011).
Strategic management also helps in motivation of group activities. By taking a lot of strategic
decisions the integration between the members of the group increases on the various optional
strategies which results into unity and co-operation, this also helps the managers to take
advantage of the strength of group members (Simosi and Xenikou, 2010)
Strategic management helps in accepting the organizational changes as well the employees
does not accept the changes that are made in the organization as changed in the bring change
in their roles as well. In strategic management the capabilities of the employees are
considered and then the changes are made in the organization so that the employee does not
have to change their jobs.
Ethics strategy helps a company and an organization improve the ethical issues and problems.
This strategy aids in understanding the culture of the company. This strategy helps in
knowing the corporate cultures well as the core values of the society. The ethic strategy of
Frederick is same as freeman’s strategy wand it does not need resources, it does not need
finances. Ethics is used for a firm’s competitive advantage. Ethics management is important
in order to ensure that the organization is aligned to the values and ethics of the organization
ns and the ethics can also help in improving the strategy of the organization.
There are a lot of social issue in strategic management. The first ethical issue is self- gain,
this is one of the biggest issue that the company faces which is related to corruption and this
usually occurs when the managers are at a powerful position and they make contracts that
benefit himself and not the company or the stakeholders (Wilmot, 1993). A company should

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hold all the employees together and the decisions should be in the favour of the employees
and the company. The business relations, knowledge, resources and equipment’s which
belong to the company should not be used for the personal gain; it should be used for the
company.
Another ethical issue in strategic management is the social impact, a business strategy many
need cost operational ways to produce goods for the company. For example, contracting out
of factories in the developing countries because the labour and material are cheaper and this
could save a lot of money for the company. However the social impact of the company
impact might not be worth it. If the workers are employed with low wages in the shops with
very poor working surroundings. A company should pay attention to the ethics service and
the social responsibility.
Apart from this the third ethical issue in the strategic management is impact on the
environment. A lot of companies take actions when it comes to the negative impact of the
environment for example the natural resource exploitation and the pollution in the
environment in more than one operational location. A company or an organization can make
a lot of better and good decisions in order to protect the environment by using the
environment management system, this structure includes the standards communal by the
company in the industrial and commercial sector’s including the rules and regulations.
The last ethical issue that impacts strategic management are public interest, a lot of
companies can develop and operate in large arena and the amount of resources that the
company control makes them more powerful than the poor countries. In this ways the
decision that seems to benefit the Company becomes a matter of public interest. A company
should study the impact of the business strategies (Hitt and Duane Ireland, 2017)
In this essay now we are going to discuss the importance of corporate culture in strategic
management. Culture or corporate cultures the top management believes and values and the
way they manage a business (Sabri, Ilyas, and Amjad, 2011)
Culture has a lot of importance in the strategic management and it can impact the strategic
management in many ways. Culture plays a vital role in all the dimension of the
organizational it also determines the success and failures of an organization. even in the
leadership concept as well the also needs the organisational culture as this is the most

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important thing for the strategic leaders which helps them to take decisions and to create a
dynamic organization (Hubert, 2002).
Culture reflects the way in which the people behave in the organization and set the
objectives, mange the resources as well as perform the tasks. Organizational culture change
the ways people behave in the company and are also influence the ideas, perceptions and
believes (Allameh, Zamani and Davoodi, 2011) Once a form of culture is accepted in an
organization the leaders use the culture as a strong management tool in order to
communicate and energize the employees of the organization.
Organizational culture also behaves as a competitive advantage in the strategic management.
Culture plays an important role in the success or the failure of the business and it also
contributes to the competitive advantage of the business. One of the major concerns for any
organization or business is to have a competitive advantage over the other organizations; this
is because it helps the organization to be different from others and strengthen the market
position in the market (Zheng, Yang, and McLean, 2010)
Organizational culture is the identity and uniqueness of the organization that helps the
company to differentiate the company or the organizations from the competitors
(Linnenluecke Griffiths, 2010) If the companies know how to make use of the culture in the
strategic management it will help them to use the culture as a powerful tool in order to sustain
the business and to maintain the competitive advantage in the business
Corporate culture is a significant portion of strategic management because of a lot of reasons,
the first reason is culture influence, and the organization culture has very impacting results in
the success and failure of the company. (Daley, 2012).
Next thing is alignment, the organizational cultures are very unique in nature and it offers
strategic advantages. That is the reason that the companies consider culture in strategic
management. After this the culture in strategic management includes internal and external
strategy. Another way in which the culture supports the strategic management is the balance
between the internal and external strategic elements. Strategic management helps in carrying
the mission, vision of the organization.

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The first thing is the leadership of organization which is one of the factors that affects the
organizational culture. The organizational culture is a collection of attitude and psychology
which are communicated by the leadership team and the ethics, believes and the values
which are then incorporated for the work execution for reaching the objectives of the
organization.
The culture of the organization is connected with the control environment and the internal
control it can be also defines as the leadership of the organization. The mission, vision and
strategy are communicated by the senior management and they are the link that hold the
organization together and that move everyone together. Culture can also have negative
impact on the organization as if the different business department will have different cultures
they cannot work towards a common goal in the organization.
Apart from this the team can also impact the culture of the organization. Team work is one of
the most important things in the organization. The organization culture brinks everyone in the
firm on a common platform. All the employees in the firm should be treated fairly and no one
should feel left out in the organization. it is significant for the organization to make the
employees feel comfortable. In team work organizations the members try to have a positive
relationships with the employees.
Each and every organization has their own way of culture making and also making it
different from the other by giving it a sense of direction which includes a lot of assumptions.
Culture of an organization can affect the strategic management in a positive as well as a
negative way (Ackermann and Eden, 2011).
From this essay it can be concluded that strategic management is good although it has some
ethical issues which are self-gain, social impact, environment and public interest. These are
some of those ethical issues that impact strategic leadership and can lead to the failure of an
organization. Apart from this the culture of an organization also impacts strategic
management. Organizational culture should be the same at all the levels of an organization in
order to reach the goals of the organizations .However strategic administration also have
various benefits as it helps in motivating the employees, making decisions and organizational
success.

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