Strategic Management and Case Study

Strategic Management

3900 Words on Strategic Management

Why are you taking this course?

I am undertaking this course in strategic management because not only is it a field that I am greatly interested in, but it is also largely for the reason that strategic management is a course that is important and applicable in different fields and aspects. To begin with, strategic management is greatly applicable to globalization which can be deemed to be imperative for the existence of business. Any global aspect has an influence practically on all strategic decisions that are made. In the present day society, the borders of nations do not have any restrictions to the ingenuities that we have and organizations can only continue to exist and flourish if they used the different perspectives of the world. Through the knowledge and understanding of strategic management, managers are able to have clear apprehension of markets, prices, suppliers, creditors, stakeholders and consumers all over the globe. It is imperative that the level of quality as well as the set price is reasonable on a global basis. This is simply because the distance and restriction between business sectors has become almost negligible through globalization (Virtual University, 2014).

Secondly, there is e-commerce which has presently come to be an integral constituent for strategic management. More and more institutions are attaining a comparative advantage by making use of the internet for retailing and also for communicating with the various stakeholders and concerned parties of the company. Not only can companies be able to retail products through e-commerce, they can also undertake advertisements, get rid of paperwork and also be able to convey information. In general, e-commerce is reducing the costs incurred and time spent as well as resources and space and distance used in undertaking business which in turn brings about better service for the consumers, increased efficiency, superior products and higher levels of profit (Virtual University, 2014).

The third aspect is that the natural setting and environment that we live in has come to be a significant and integral strategic subject matter. Since communism is no longer there and with capitalism taking a strong place, perchance there is currently no bigger threat to the society and to commercial activities than the incessant exploitation of the natural environment. There are unlimited wants and desires but the resources required are very much limited. Therefore, so as to satisfy the wants, it is imperative to ensure that there is proper utilization of resources. By studying strategic management one is able to incorporate different themes and subject together. Different courses such as Finance, Research, marketing and management are incorporated and brought together through strategic management in order for companies to flourish and thrive in every industry (Virtual University, 2014).

2.

What do you expect to learn in this course?

I have several expectations from this particular course. I expect to attain knowledge of strategic management which adds to accomplishing the education result concerning comprehensive understanding of economic, management, and environmental characteristics of project management in industrial situations. I expect to gain knowledge in different fields and areas such as viewpoints, contexts and perceptions within business level strategy, corporate level strategy, and network level strategy; the setting in which a company's strategy is undertaken, as well as viewpoints on companies' strategic tenacity, visualization and corporate social responsibility in addition to conceptions and contexts within these viewpoints (NTNU, 2014). I expect to gain competencies and understandings in the analysis of a firm's situation with particular focus placed on the business, corporate and network levels. I also expect to develop recommendations for the modification and enhancement of the strategy of a company (NTNU, 2014).

3.

How will this course help you in your current employment or future career?

In the culmination of this course, I will have the ability to make application of particular processes or procedures of making strategic decisions so as to detect and ascertain strategic selections and opportunities and thereafter be able to come up with a strategic idea for a business corporation within a certain cultural or global setting, and in the end be able to substantiate the inferences or commendations drawn. This in particular will be of great significance in my future career. This course will also assist me in being able to evaluate the impact of the internal environmental factors as well as the external environmental factors that influence the capability of a business organization to attain its strategic objectives and goals. I will also be able to mirror and replicate upon individual and professional understandings, abilities and proficiencies which add to the efficacious management of organizational resources and also be able to assess and evaluate the role of values, principles and characters in attaining definite objectives. Through gaining knowledge form this particular course, I will be able to make rich and intelligible demonstrations of pertinent strategic management understanding and philosophies or ideologies indicating logical objectivity and the instigation and cultivation of novel conceptions (NTNU, 2014).

Assignment Two

Briefly define Strategic Management, its key processes and pinpoint its benefits as why this management approach has come so important to today's corporations

Strategic management can be described as a group of activities and resolutions undertaken by the management that in the end govern and regulate the performance of the company in the long-run. It encompasses making consideration of the internal and external factors affecting the company environment, the formulation of strategies and forecasting of plans, the execution of these particular strategies, assessment and in the end control and regulation. Taking this into account, it can be defined that the study of strategic management focuses on the checking and assessing of the external prospects and intimidations as well as the company's strong suits and weak points (Wheelen and Hunger, 2012: pg. 5).

Strategic management encompasses key procedures. It makes an analysis the main creativities taking into account resources and the performance in external environments that a business's topmost administration and executive team takes in the best interests of the stakeholders. The three initial strides in the whole strategic management process are included in the phase of formulating the strategy. This takes into account the examination, the formulation of the strategy and setting the objectives into place. The last two steps in the whole process consist of execution and enactment. They consist of coming up with the internal system of the organization and thereafter obtaining response or reaction from the process. Having all of these steps incorporated into the whole process of strategic management, the executive managers of the company can make sure that the allocation of resources goes hand in hand with the main objective and values of the organization (Boundless, 2015).

Research undertaken indicates that in general, establishments which take part in strategic management have a better performance compared to the companies which do not employ strategic management. Obtaining the proper fit regarding the company's setting and its strategy, system and procedures have constructive influences in the performance of the company. According to a study undertaken by Wheelen and Hunger (2012: pg. 6) of just about fifty companies in a diverse number of nations and industries located the three most valued and esteemed benefits and gains of strategic management to be a stronger sense of the company's strategic visualization, a better understanding of what is strategically significant and an enhanced comprehension of a greatly shifting and varying setting.

Assignment Three

Based on the reading from week one, Chapters One through Five and Chapter Twelve, write a report on what elements constitute a viable strategic analysis

A strategy audit consists of evaluating the actual course or path that a business is currently taking in comparison with the path that the business is required to take in order to succeed in a changing and altering environment. The actual path of a firm is the total of what the company undertakes and does not undertake, how well the company is internally affiliated to backing the strategy and the viability of the strategy when matched to the actualities of competitors, financial aspects and the external market. It is imperative to take note that the internal evaluation and the external evaluation are exactly what form the main constituents of a strategy audit. The main reason why this strategy is undertaken is to provide the managers of a company with the elements, knowhow and the devotion to assess the extent and magnitude of focus and advantage that is offered by their prevailing strategies. In general it can be said that an audit process brings about the information necessary to determine whether there is a need for change in strategy and the precise changes that ought to be undertaken (Carey, 2009).

Environmental Scanning

The environmental scanning is the analysis of the internal as well as the external environment. This covers the analysis of the threats and opportunities to the company as well as the strengths and the weaknesses to the company in a respective manner. The main elements in this analysis include environmental monitoring as well as the determination of strategic impacts. Environmental monitoring consists of three phases. The first phase includes examining the environment to seek for indications that might signify or indicate imperative changes such as financial trends, scarcities, inflation, technological developments and industry congestion. The second phase involves identifying the commodities that may be impacted both negatively and positively from the changes within the environment. Lastly, there is the assessment of the probable outcomes and results to the organization of the alterations and modifications in the situations of supply that arise from the changes in the environment and the likelihood of the occurrence of such changes (Maliti, 2012).

The External Environmental Assessment

The orthodox mission for every company is to be able to provide dissimilar and diverse products and services to the consumers are a value that is much better compared to that being offered by the competitors. If a company lacks a strategy, the important resources will not be properly utilized, the employees will lack focus and motivation and there will not be any form of dissimilarity or diversity in its products. The evaluation of a company's external environment offers it a vital connection or affiliation between its consumers, competitors and the products and services that it offers. The essential reason for inspecting and assessing a firm's environment in the practice of expounding on its strategy can be deemed to be to make certain that the firm meets the needs that are apparent in the environment, preclude other companies from being able to offer better satisfaction to those needs and coming up with ways to meet any needs that emanate or come about in the future (Carey, 2000).

Understand the external environment at a macro level

The initial phase in the assessment of the environment is to come up with a solid comprehension of the tendencies and aspects that will substantially change and in turn affect the industry. The general understanding of the industry emanates from observing and scrutinizing the components that impact the environment. Some of these components include economic factors, political factors, social factors, threat of new entrants to the industry, industry capacity, capital markets and so on (Carey, 2000).

Understand the industry/sector components in detail

When it comes to the segment encompassing the product and the market, an industry analysis will define and offer a description of the five forces of competition. The first force emanates from the consumer segments that constitute the markets. The consumer base and their significance offer the power to discuss prices and transactions that decrease the productivity of the industry. The size and development of segments define their possible effect on product improvement and extent of competition. A second force emanates from the rival companies and the strategic approaches used for attaining market share. Every rival company offers a number of products and services that make an attempt to offer better value to the product market segments that they take account of. Amplified competition over and over again brings about competition in the prices and services which can decrease the profitability of the business activities (Boulton, 2007).

A third force emanates from those that supply the industry. More often than not they control the vital inputs that can hinder the ability of a company to compete. Accessibility to these vital equipment and components can define exactly what companies will be the frontrunners in the industry. Therefore, product outsourcing brings about lower entry buyers for new competitors. The fourth force signifies the barriers that come about when attempting to change the structure of the industry either from new competing entrants or prevailing competitors in the industry. Some of the barriers include high capital investment and equipment. Some of the barriers to exit consist of the unsettled warranties and contracts for services that have to be undertaken. The fifth and last force signifies the likelihood for change in the product market stricture of the industry by substituting products and services with different methods that can meet the needs of the consumers. This necessitates the pinpointing of potential substitutes and features that would bring about hasty substitution (Boulton, 2007).

Integrate the components into an environmental picture

After gathering the results from the analysis of the stakeholders, consumers and competitors, the members if the audit team ought to go back and incorporate the data and information. The incorporation of these different elements will be of assistance to the team in understanding the environment in which the company functions. This process should be undertaken in two levels. The Strategy audit of the company or business provides a comprehensive context for the analysis of this data. In short, it ought to shed light on the important changes in the environment and the effects of those changes on the competitive status of the company within the industry. It ought to take into account the main question as to how the firm can impact its environment in the forthcoming periods and how the company will seem like if it is to prosper and thrive in the future periods. Furthermore, the analysis ought to pinpoint the necessities and competencies that are necessary within the firm or organization to meet external demands. These necessities and wants ought to then be linked up with the existing abilities defined in the organization evaluation. This will permit the leadership or management team to ascertain the general placement of the business's strategy to its environment (Carey, 2000).

The Organizational Assessment

The capability of a company to execute its own strategy relies on both the business procedures as well as functions that provide a backing for its strategy. Contingent on the nature of the company, the abilities and talents of the business procedures and functions are vital to the execution and implementation of the strategy. These abilities can be categorized into functions and processes for creating products or services and also functions and processes for the delivery and satisfaction of products and services. Product-related operations and procedures are reliant on a company's Research and Development as well as manufacturing/purchasing proficiencies. This encompasses the following four processes:

1.

Research and Development Function and Process

The Research and Development function brings about exclusive technologies and advancements that can be employed in the improvement and production of new products. For instance, in the electronics sector, accessibility to basic elements and parts such as hard disk drives as well as equipment for advanced accuracy production are vital in the creation of smaller and lighter products that are of better quality. Every group or set of smaller products such as palm coders motivates and arouses growth in the market for the firm that gets to the marketplace first. Similarly, every group or set of smaller products lessens the costs for shipping and packaging, cuts down the consumption of power, increases battery life and are more convenient to carry as they are more portable.

The time-to-market process is needed for the incorporation of novel and fresh technology into a company's products. In the contemporary, competitive advantage is more often than not associated with the speed at which a company is able to instigate and unveil the next generation of technologies into the marketplace by means of developments and advancements in processes and products. Once the development of the product is done, the only constraint to market growth becomes the capacity for production.

2.

Manufacturing / Purchasing Function and Process

The manufacturing function changes a group of constituents and software that are purchased by the company into products. One aspect that is vital in generating sales revenue is having acceptable products available in an efficient manner. The proficiency to offer the best quality products in the timeliest manner allows firms to be able to increase their market share by offering reasonable and economical prices as well as accessibility and availability. Having great experience in generating high volumes of products can bring about lower expenses in the process.

The incorporated supply chain process brings together the purchasing of constituents and apparatuses for assembly, outsourcing for the product and if not making certain that the product are readily available and can meet consumer demand and preferences. Product outsourcing and having alliances with other firms increases its capacity to offer a comprehensive variety of products or to have the ability to unveil new product in a faster way. As a company becomes more flexible, it becomes an advantage compared to its competitors regarding the swift changes in the market (Boulton, 2007).

After the analysis and examination of the environment of the company, the managers ought to make consideration of the qualities and traits of the firm itself that have an impact on what can be realized with regards to strategy. The following part of the paper encompasses organizational assessment. The subsequent steps discussed below will offer an understanding and awareness of how effective the prevailing strategy of the company is and will offer recommendations and a course of action for increasing the strategic effectiveness.

Strategy Clarification

This assists the leadership group to ascertain the business they are in, the path and course of the business, and context or measures for undertaking strategic decisions in the impending periods. If there is lack of clarity regarding any of these three areas for the individuals at any level of a business, it becomes quite hard and challenging for them to focus their attention, be collaborative with other groups and bring together their endeavors to attain competitive advantage against rivaling businesses in the marketplace.

Viability and Robustness

Gauging and determining viability and robustness is of great assistance to a leadership in testing out strategies and conceptions against forthcoming circumstances in the world to ascertain whether the strategies being considered can be achieved and realized and maintained. By evaluating the market and economic robustness and viability in diverse circumstances and situations, it becomes possible for a management team to perceive exactly what will bring gain and benefits in the forthcoming periods and the precise procedures that ought to be executed to observe the changes in business conditions.

Business Processes

This encompasses the general flow of work that goes about in a company and consists of constituents like the design, production or manufacture and delivery of a product. A proper and fitting process analysis will assist a leadership or management team to ascertain what ought to be undertaken taking into account the strategy of the company and exactly how these procedures can be augmented and enhanced.