Describe about the Strategic Management of Competitive Advantage Concepts and Cases.
The following essay evaluates the role of strategic management strategies in an organization, operating in the global market. The topic chosen refers to assessing the benefits of the strategic management policies in terms of the operational and the financial competencies of the business organization. Strategic management can be defined as the formulation of the essential business strategies as well as long term depending on the internal and the external market environment in the organization (Barney and Hesterly 2015). Thus, the role of the strategic management policies has to be well-defined, in order to assist the business organization in achieving market growth. It critically analyzes the sources related to the adoption of the strategic management techniques and presents a fair discussion on the topic.
Mellahi and Frynas (2015) mentioned strategic management techniques have to be upgraded, in order to bring about the necessary innovation in the workplace. As such, it can be said that the necessary innovation shall have to be introduced in order to ensure survivability in an intensively competitive market environment. However, Stead and Stead (2013) noted that the strategic management techniques can only be upgraded as per the inherent financial strength of the organization. In addition, the current market position of the organization shall also have to be analyzed, in considering any upgradation in the existing strategic management techniques of the organization.
Boyd et al. (2013) mentioned that the strategic management relates to all aspects of the production and the operational processes. Thus, it would concentrate in innovation about finance, marketing and the operational activities of the business enterprise. However, the strategic management policies shall only be effective if it assists the organization in achieving commercial viability.
According to David and David (2016), strategic management has been a key aspect of the operational activities of the business enterprise. Thus, the management of the organization has to play a decisive role in structuring the strategic management policies of the business enterprise. However, the strategic management policies of the business organization have to be implemented as per the needs of the business entity. In this regard, it can be said that the strategic management techniques have to be executed as per the long-term goals and objectives of the business entity (Lasserre 2012). The intensity of market competition is another relevant factor that has to be evaluated before forming any specific strategic management guideline.
Hill et al. (2014) mentioned the efficiency of the strategic management policies of the organization should depend on the financial and the operational competencies of the business entity. Thus, these factors have to be considered in framing the strategic management policies in a business organization. Thus, Carpenter and Sanders (2013) noted that the financial as well as the operational competencies of the organization have to be assessed accurately in the context of the existing market position. This shall help the business entity to gain a substantial market share in the international market.
In this regard, the nature of the product and the service line has to be considered in the adoption of the strategic management policies in the business organization. This is especially important in the case of a retail entity, where there the product ranges is wide and caters to various needs of the customer. On the contrary, Mellahi and Frynas (2015) opine that the strategic management techniques have found wide acceptance in the manufacturing sector as well in the retail sector. However, it can be said that the strategic management techniques can be applicable in any business segment, if there is a genuine need. Reputed manufacturing entities have been using the strategic management strategies to achieve wider business growth and create a distinct brand identity.
Discussion
For the purpose of the study, the benefits achieved through the implementation of the strategic management policies to the production, manufacturing as well as the distribution adopted in the business organization is assessed. According to Hill and Jones (2013) strategic management has far-reaching benefits if it is implemented as per the needs as well as the long term goals and the objectives of the business organization. However, this has to be structured as per the nature of the product and the service line the firm is currently operating.
In the case of manufacturing and retail entities, it is essential that the strategic management policies have to be implemented in the business organization. Hitt et al. (2012) mentioned that the strategic management policies adopted in the business organization should enable the business entity to offer distinctive product offerings to the buyers. In addition, it would assist the business enterprise to develop the brand identity in the market position. Besides this, it shall assist the business entity to overcome the pertinent threats that are present in the external market environment that has been negatively influencing the business performance of the entity (David and David 2016). The key attribute that has to be considered here is the inherent financial and the organizational competencies of the business organization. Thus, in the benefits achieved in the terms of the financial and the operational efficiencies should be correctly assessed in the context of the adoption of the strategic management strategies of the business entity. In this regard, Rothaermel (2015) noted that the adoption of the strategic management strategies should only be implemented if it is financially feasible for the business entity. Thus, the commercial viability of the organization shall have to be considered in the adoption of the strategic management strategy of the business entity. In addition, the strategic management strategies that are to be adopted should match with the mission, vision and the values of the organization (Lasserre 2012). Thus, the core constituents of the organization have to be consolidated, in the process of adding of adopting the strategic management policies in the business organization.
According to Mellahi and Frynas (20150, the management of the business entity shall have to take the lead, in guiding the business enterprise towards achieving growth. As such, the various aspects of the business functionalities that include the operational activities of the business enterprise shall have to be conducted as per the policies determined through the strategic management strategies at the outset. Barney and Hesterly (2015) stated that there are several pertinent issues that arise when strategic management policies are implemented in the business entity. As such, there is a certain resistance within the organization. This includes the resistance from the workers as well as the stakeholders in the business organization (Goetsch and Davis 2014).
The human resource policies in the organization have to take the initiative in developing training schemes for the employees Stead and Stead (2013) stated that this would assist the employees to acquire the related skills and aptitude that would assist the organization in enhancing the productivity. The use of advanced technology mechanism is one of the attributes that would assist the business enterprise in the development of financial as well as operational competencies in the business enterprise. Stead and Stead (2013) mentioned that the adoption of technology should be vital for the organization in ensuring smoother business operations and surviving in an intensely competitive market environment.
The following steps reveal the implementation of the strategic management techniques in the business organization.
Determining organizational strategy- Formulating the necessary organizational is essential for ensuring profitability and stability in the business enterprise in the long run. This structural guideline would enable the business organization to execute its business functionalities in an appropriate manner. According to Goetsch and Davis (2014), the strategic management strategy evaluates the existing position of the business enterprise in terms of the operational and the financial competencies of the business enterprise.
Specific Purpose and Objective- The purpose and the objective of the business organization, shall be clearly stated in the pursuit of the implementation of the strategic management objectives of the business enterprise. According to Lasserre (2012), the strategic management policies in the organization would be framed to assist the business organization in its growth. However, the daily business functionalities would be framed in such a manner, in order to achieve the long term goals and the objectives of the business entity.
Existing Business Situation – The existing business situation of the business enterprise shall be assessed, to enable the business organization to respond appropriately (Griffin and Pustay 2012). In this regard, it can be said that the strategic management policies shall assist the business organization to identify the discrepancies in the existing policies of the business enterprise and respond appropriately.
SWOT Analysis– Performing SWOT Analysis shall assist the business entity in analyzing its own strengths and weaknesses of the business entity. According to Morschett et al (2015), the SWOT analysis of the organization shall assist the business organization in developing strategies to overcome the weaknesses. However, the SWOT Analysis that is conducted has to relevant to the existing market condition of the business entity.
BCG Matrix – The BCG Matrix shall assist the business entity in conducting a portfolio analysis of the organization. Ward (2012) mentioned that the BCG matrix should assist the business entity in developing financial strategies that shall add to the financial strength of the organization. The BCG matrix is an essential financial tool that would evaluate the financial condition of the business enterprise, and identify the discrepancies in the organization (Hill and Jones 2013). The strategic management strategies of the organization shall assist the business organization in evaluating the operational strategies as per the market value and the relative market share.
Market Needs – The market needs of the organization shall have to be addressed in analyzing the market policies of the organization in setting up of the strategic policies of the organization. The strategic management of the organization shall have to be developed based on the operational and the functional accounting needs of the organization (Morschett et al 2015). In this regard, the organizational needs of the organization are the prime considerations in the implementation of strategic management strategies in the business organization.
Hubbard et al. (2014) mentioned that the primary concern of strategic management is innovation. Innovation is a necessary criteria in the existing global market. This ensures that the operational policies of the business enterprise are aligned to attain the long term goals and the objectives of the organization. Ward (2012) stated that strategic management leads to the establishment of pertinent operational strategies that would assist the business organization in its growth. In the case of the manufacturing and the retail entities, the distribution strategies taken by the organization is essential for the achievement of business sustainability.
As per Priem et al. (2012), the strategic management of the business organization has assisted the business organization in ensuring the efficiency of the distribution policies adopted in the business organization. In this regard, it can be said that the strategic management policies adopted in the business organization has to be implemented in the context of the economic policies prevalent at that point in time (Priem et al. 2012). The inflation, economic condition of the buyer as well as the existing trends and preferences of the consumer shall have an impact on the strategic management policies implemented in the business organization.
According to Carpenter and Sanders (2013), the pricing policies followed in the business organization is an essential determinate on the strategic management strategies adopted in the business organization. The reasonable pricing policies adopted in the business organization. According to Boyd et al. (2013), the pricing policies have an impact on the consumer behavior in the organization. As such, it can be said that the organizational pricing issues shall be addressed by the strategic management policies adopted in the business organization. In this regard, it can be said that the strategic management policies followed in the business organization shall assist the management of the business organization in aiding the financial policies n adopted in the business entity. This includes the external financing needs of the organization (Hitt et al. 2012). The strategic management of the organization has to assist the business entity in selecting the appropriate operational strategy of the business organization. Thus, the amount of money raised through the shares and the debentures as well as the money borrowed from the financial institutions. Griffin and Pustay (2012) mentioned that the operational policies of the business enterprise have to be framed in accordance with the strategic management policies adopted in the business organization.
The strategic management policies followed in the business organization shall be of assistance to the business organization to enhance the operational policies currently existing in the business organization (Carpenter and Sanders 2013). However, the nature of the strategic management strategies followed in the business entity shall depend on the scale of operations of the business enterprise. As such, it is necessary that the strategic management policies that are adopted shall vary in the case of the production of luxury goods than in the case of goods which shall require mass production. Mellah and Frynas (2015) mentioned that strategic management policies shall assist the business organization in enhancing the production policies of the organization. In this regard, it can be said that the strategic management implemented in the business organization shall have many far reaching benefits.
Lasserre (2012) argues that strategic management strategies assists the organization in reducing the production expenses of the business enterprise, thereby, assisting the business organization to achieve business sustainability. In addition, the strategic management adopted in the business organization shall assist the business organization in identifying the target segment of consumers and responding appropriately to assist the business organization in achieving business growth (Hubbard et al. 2014). Identifying the market segment of customers and their appropriate preferences shall assist the business organization in delivering business sustainability. This would assist the business entity in achieving the appropriate market share in the global market. This is an essential part of the strategic management policies of a business entity. According to Griffin and Pustay (2012), the strategic management policy adopted, would assist the business organization to develop pertinent marketing as well as operational policies of the business entity. It develops the necessary financial as well as the operational policy of the business enterprise to ensure business sustainability in a competitive market environment (Priem et al. 2012). Besides this, the strategic management policies adopted in the business organization shall assist the management of the organization to aid organizational growth.
Hill et al. (2014) mentioned that the strategic management policies implemented in the business organization should concentrate in every aspect of the production, manufacturing and distribution process of the organization to make it effective to assist the organization to achieve further market growth. The strategic management policies of the business enterprise shall be developed to attain the long-term objectives and the goals of the enterprise
As such, the strategic management policies have the ability to determine the operational policies of the business enterprise to assist the business entity in its growth. Stead and Stead (2013) stated that strategic management changes in the organization shall re-innovate the existing business operation s the business entity. As such, this shall assist the business entity in implementing innovative business policies that shall develop a positive perception on the consumers. Therefore, it can be said that strategic management strategies has a number of benefits that includes – production, marketing as well as operational efficiencies.
Conclusion
It can be said that strategic management policies shall assist the business organization in executing the operational strategies of the business organization. However, its implementation depends upon the needs of the organizations and the existing market position of the organization.
The strategic management policies adopted by the business enterprise would facilitate the business entity in developing well –defined roles and regulations for the employees. The strategic management policies are implemented through a series of steps, considering the financial viability of the organization. These steps include the following – the market needs of the organization, SWOT analysis, the BCG consulting matrix as well as the long-term goals and the objectives of the business entity. These tools shall assist the business enterprise in bringing about innovation and strengthening the financial resources of the business entity.
The strategic management policies of the business enterprise shall be implemented after considering certain factors like the market demand. Identification of the target segment of the consumers is essential for the business enterprise to implement the strategic management techniques. Strategic management is a necessary tool in the global business market in executing consistent business performances in a regular basis.
References
Barney, J.B. and Hesterly, W., 2015. Strategic management and competitive advantage concepts and cases. Pearson.
Boyd, B.K., Bergh, D.D., Ireland, R.D. and Ketchen, D.J., 2013. Constructs in strategic management. Organizational Research Methods, 16(1), pp.3-14.
Carpenter, M. and Sanders, G., 2013. Strategic Management: Pearson New International Edition: Concepts and Cases. Pearson Higher Ed.
David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. pearson.
Griffin, R.W. and Pustay, M.W., 2012. International business. Pearson Higher Ed.
Hill, C.W. and Jones, G.R., 2013. Strategic management theory. South-Western/Cengage Learning.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic management. Pearson Australia.
Lasserre, P., 2012. Global strategic management. Palgrave Macmillan.
Mellahi, K. and Frynas, G., 2015. Global strategic management. Oxford University Press.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management. Springer.
Priem, R.L., Li, S. and Carr, J.C., 2012. Insights and new directions from demand-side approaches to technology innovation, entrepreneurship, and strategic management research. Journal of management, 38(1), pp.346-374.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
Stead, J.G. and Stead, W.E., 2013. Sustainable strategic management. ME Sharpe.
Ward, K., 2012. Strategic management accounting. Routledge.
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