Question:
Discuss About The Concludes Viability Limitations Involved?
The strategy process involved in management realizes the crucial point of strategic reorientations, which is a necessity with the developing and changing economy. This tendency involved in marketing process tends to introduce alternatives intending that change is never full-proofed and thus introduces alternative approaches towards strategic management. While Strategic management is a formulated technique for the implementation of prime goals and decisions, involving initiatives of different aspects by the higher level management system as representatives of the owners of any organization or company (Laudon et al. 2012). The management plan actions accordingly, based on certain factors, considering the availability of resources and an intense assessment regarding the prevailing internal and external conditions influencing the sustainability and competence of the organization,. Another aspect of this is the Strategic Management Accounting (SMA) is the process to merge objectives with information of management accounting to create a model that would assist the management to take beneficial actions relative to productivity (Barney 2012). Thus, as a result, the strategic management is an organization majorly sets the priorities by channelizing the energy and resources in the correct oriented path to strengthen operations and establish a profound foundation. This report deals with the various approaches and limitations involved in strategic management. Alongside, mitigations are suggested towards a sustainable stature.
Discussion: Strategic management is a consistent process involving the access to the business and the industries in which it is an essential part. This can be defined as an art and science that enables and evaluates the cross-functional decisions that enable an organization to achieve the set targets (Brodie and Mylopoulos 2012). The process generally involves the reconfigurations on an annual or quarterly basis. Certain strategy models implied in business planning is implemented, which can be discussed with the help of literature reviews on it. Distinctive group corresponds to the model strategy, one of which is the linear approach to strategic management (Hitt et al. 2012).
The linear strategy approach majorly focuses on the planning or setting of objectives for an organization based on its competencies and an elaboration on the methodologies to achieve the same. In this approach, the leaders decide the ways to overcome endeavors set as a hindrance in the path of development and the achievements of goals (Hill et al. 2014). The key stages in the model involve managing profit figures and performances. The agreement on the visualization and value setting process is important following the engagement with the stakeholders and understanding their needs. This step in the process considers the revision of the instructions set to develop and achieve the objectives. Next to this step, is the analysis of the environment in a comprehensive manner, which helps in the determination of the strength, weakness, opportunities and threats, in short a constructive SWOT analysis is performed to achieve the targets (Wang and Feng 2012). A crucial step in this strategy model is the proper definition of goals and a strategic plan even in form of business models to provide a transparent view about the goals and methodologies. This step in the strategy also considers the availability of resources and the competencies of the organization involved in the discussion to support the implementation of the strategies. Another aspect involved is to develop an integrated annual business planning (Lee and Saen 2012). This plan includes the prospective of marketing, finance, human resource management and the operation management, developed and designed to interconnect each of the segment that complements each other. As an example to this, the segment dealing with the marketing strategies must prepare evaluations subjected to revenue targets and the service experiences dedicated to meet the demands from the potential customer base must be customized and redefined on a regular basis. Proper briefing and training to the employees about the objectives is essential, as appropriately as possible. This strategic move has the potential to interlink the various components of a business plan to maximize the profit section of the organization (Rothaermel 2015).
The section dedicated to management of profit and performance ultimately determining the execution process of a strategy. This involves financial management set for the optimization of the profit and provides the updated information for decisions regarding the strategic planning, then is the operational productivity that determines the proper supply chain and delivery for maximizing the efficiency of an institution, the proper management towards employee effort and developing an advanced customer relationship.
While alongside the visible advantageous measures of strategic management certain shortcomings or disadvantages is also involved in this process. Strategic management majorly involves long-term goals and plans allowing an organization to leverage potentials, maximize the opportunities and thus provide the competitive advancement. This type of management also involves certain failures, which are difficult to handle or manage. This is a complex, time consuming and difficult implementation in a business process.
Elaborating about the various shortcomings in this process demands the prior mention of the complexities surrounding this implementation or model (Peppard and Ward 2016). Strategic management involves persistent assessments of critical attributes mainly external and the internal environments influencing the business concepts, the infrastructure and the control management. These factors to an extent are in correlation, an effect on any one of these might affect the entire integrity, affecting the management and the leadership of the company. Next, this process is time consuming as a major section of time management is dedicated to the systematic planning research and appropriate communication of the decided strategies to the team, which might just impede the daily operations and adversely affect the productivity. Issues, if not solved timely, high level of employee turnover is the result (Barney 2012). Difficulty in implementation is another factor that involves many aspects to be dealt with. An active participation and engagement between the employees and the manger is an essentiality otherwise ranging to incompatibility. Another essentiality is the skillful strategizing that involves a talented leader with an innovative thinking yet with potential to build a sustainable system and the management should be able to anticipate the future and strategize risk management.
Various approaches relative to strategic management are profoundly established through all these years of organizational management. Firstly, the stakeholder approach to strategic management is discussed in the upcoming section of the report (Weiss 2014). The idea of stakeholder approach to strategic management is suggestive to the formulation and implementation of processes satisfies all and those who have expertise in business. This model integrates by connecting the interests of the stakeholders, employees, customers and all the other groups involved in the system. This particular approach lays its emphasis on an active type of management of the business relations and promotions (Asif et al. 2013). This approach comprises of certain distinctive characteristics. First in the queue, this approach provides a single strategic framework that help in dealing with changes in the environments relative to business without the requirement of regular reconfiguration of rules and codes. Secondly, this approach is more a part of management rather than planning process, as a result building a direct guide for the organization to excel and in contrast determines how these changes will benefit the environment. The central theme for this approach is the sustainability of the organization. This approach constantly balances and integrates different or multiple objectives. Stakeholder approach in all ways ensures the development of relationships that would be beneficial in the long-term basis. This is in turn the promotion or support towards a value-based management in the business arena. This approach is conceptually perspective and descriptive in nature rather entirely empirical. This collaborate the political, economic and moral analysis. As this is based on facts and analysis it is descriptive in nature but always needs to go beyond the description to suggest directions for the business. It is more likely a process to create and influence rather than just adapt. This finally is an integrated approach towards strategic decision-making. The strategy satisfies multiple stakeholders simultaneously, paying attention towards integration rather than the concept of overshadowing perspectives.
Recent developments oriented in the recent theories relative to stakeholder approach involve the normative theories of business ensuring the investment in the long-term objectives and relationships. The stakeholder approach to corporate and organizational management theory is developed by analyzing the comparison between the traditional views that corresponds to pleasing the shareholders while the recent concentrates on benefiting the shareholders. Alongside, this approach concentrates on the social performance and responsibility.
Another interesting paradigm is the dynamic capabilities involved in strategic management with purpose to provide a framework in coherence with the functionality to integrate existing conceptualizations, the descriptive knowledge and the facilitating prescription (Teece 2012). This strategic approach has some basic assumptions that organizations have the possible potential achieve and sustain competitive advantages through the adaptations of dynamic capabilities approach to address the rapidly varying environmental conditions.
Segregating the term, ‘dynamic’, refers to the capability to reconfigure competencies in order to achieve compatibility with the change prevailing in the business world. While, capabilities emphasizes on the key potential of the strategic management to adapt or accept the changes of the economic society. This approach provides a reflection to an organization’s capability to achieve and create innovative ideas that forms the basis of the competitive advantages, provided the path dependencies and marketing positions. The dynamic capability framework comprises of certain segmentations involving processes, positions and paths. Initiating with the first segment, it describes the way things should be done inclusive of patterns, routines and relative learning. Second segment describes the recent or the current endowments for example technology, UP, complementary assets and other external relations. The path determines all the possible strategic alternatives present involving returns and attendant path dependencies. This is a developing approach towards potential integration of recent and valuable resources for the competition in the market. To be strategically correct, a firm must be honed to the customer demands, relatively unique, which is difficult to replicate. The dynamic capability approach should take advantages of the paradigm to solve the complexities (Teece 2012).
As an example to the involvement of dynamic capabilities, Apple and IBM are two companies that have real learning of evolution and its execution, supporting the rapid change of the society. Apple is a unique case, the company even not being a technological leader has proven its expertise in marketing technology-based stuff to the consumers and developed features that are valued. IBM, while, may be termed as a true innovator in all technical sense both in the internal and the market that they are part of. In recent times, they run a successful IT-based citing.
Another approach in the strategic management is the idea of sustainability, which is an important aspect that should be maintained for a persistent growth of a firm or an organization. Sustainable development is an aspect of attention in the global business market. The benefits of sustainability are at times so indirect that it becomes a difficult aspect to be measure. The financial result that matters for an organization is a direct consequence of sustained practices maintained in any organization (Peteraf et al. 2013). This in turn results in a sustained profit. For sample understanding consider firstly, Cost Savings- a well-structured framework involving all the environmental protection witness less consumption of resources and thus bears low operational costs (Govindan et al. 2013). This is not just for any advanced technologies but also dependent on human behaviors, employees and the existing and potential clients (Ashby et al. 2012). Another example set for this is the increased sales- correct and maintained sustainability witness a growth and higher level of productivity with increase in service quality providing customers with higher level of satisfaction, in return gain the loyalty from customers thus the brand excels in sustained practices (Markard et al. 2012).
Conclusion
On analysis of the processes and approaches involved in the strategic management as pre-mentioned are extremely beneficial but of course there is always a need to check through different measures and prospects involved in the process inclusive of the viability of approaches or the steps involved, the suggested benefits, implementation issues and limitations involved in the practices.
In context to stakeholders approach, it would be appropriate to comment, this model was assumed to be flawed, the reason not only being that of uncertainty and unpredictability but also due to the absence of a single-decision making criteria (Balzarova and Castka 2012). This approach is more vulnerable than all the non-shareholder constituencies as is discussed and predicted. The shareholders legally do not have the authority or power regarding any initiation of corporate actions. Researchers and analysts suggests and illustrates the use of positive reinforcing cycles of inclusion, which might help in building of stronger and more corporative stakeholder based relationships (Helfat and Peteraf 2015). The viability issue persists with certain implications surrounding the agenda for future research prospects involving critical issues such as the separation theory relative to stakeholder approach to develop more like an ethical issue rather than business theory and secondly, the stakeholder approach grew out of practical aspects of business management, which requires more generalized solutions with theory developments.
In context to dynamic capabilities, there are some potential critiques, primarily revolving about the difficulty to operational management of the same; there is a lack of algorithmic procedures surrounding the translation of environmental factors into the capabilities model. Another limitation lies in the path dependency and constant dynamics involved in the system. Using the present paradigms of the model, it is an essential requirement to develop a model with competence, which would prove sustainable with each changing dynamics of the society.
In context to sustainable approach, sustainability is an important issue and a concern for any organization especially dealing with the changing dynamics of the society and environment (Eskerod and Huemann 2013). Even after this condition, it is suggested to each senior level management to take measures towards high-level approach in sustainability involving services and innovation techniques to satisfy and meet up with the demands from its customer base. Such an approach in strategic terms more than in operational or moral, it would be possible to connect the senior management with issues. This would help in management between short-term and long-term goals.
References
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain management and sustainability literature. Supply Chain Management: An International Journal, 17(5), pp.497-516.
Asif, M., Searcy, C., Zutshi, A. and Fisscher, O.A., 2013. An integrated management systems approach to corporate social responsibility. Journal of cleaner production, 56, pp.7-17.
Balzarova, M.A. and Castka, P., 2012. Stakeholders’ influence and contribution to social standards development: The case of multiple stakeholder approach to ISO 26000 development. Journal of Business Ethics, 111(2), pp.265-279.
Barney, J.B., 2012. Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of supply chain management, 48(2), pp.3-6.
Brodie, M.L. and Mylopoulos, J. eds., 2012. On knowledge base management systems: integrating artificial intelligence and database technologies. Springer Science & Business Media.
Eskerod, P. and Huemann, M., 2013. Sustainable development and project stakeholder accounting: what standards say. International Journal of Managing Projects in Business, 6(1), pp.36-50.
Govindan, K., Khodaverdi, R. and Jafarian, A., 2013. A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, pp.345-354.
Helfat, C.E. and Peteraf, M.A., 2015. Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), pp.831-850.
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.
Laudon, K.C., Laudon, J.P., Brabston, M.E., Chaney, M., Hawkins, L. and Gaskin, S., 2012. Management Information Systems: Managing the Digital Firm, Seventh Canadian Edition (7th. Pearson.
Lee, K.H. and Saen, R.F., 2012. Measuring operations sustainability management: A data envelopment analysis approach. International Journal of Production Economics, 140(1), pp.219-226.
Markard, J., Raven, R. and Truffer, B., 2012. Sustainability transitions: An emerging field of research and its prospects. Research policy, 41(6), pp.955-967.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Peteraf, M., Di Stefano, G. and Verona, G., 2013. The elephant in the room of dynamic capabilities: Bringing two diverging conversations together. Strategic management journal, 34(12), pp.1389-1410.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Teece, D.J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of Management Studies, 49(8), pp.1395-1401.
Wang, Y. and Feng, H., 2012. Customer relationship management capabilities: Measurement, antecedents and consequences. Management Decision, 50(1), pp.115-129.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.
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