Explain the Concept Of Strategic Management and The Notion O
For an organisation to operate it has to first have goals and aims in order to then operate in manner whereby it can achieve the targets it has set for itself. Such targets are the basis of what Strategic Management is all about. Strategic Management is the process through which managers formulate and implement strategies geared to optimising strategic goal achievement (Bartol et al 2001). One of the main general goals of every organization is to gain Competitive advantage in its respective industry. Competitive advantage being the significant edge over competition in dealing with competitive forces (Bartol et al 2001). This essay will deal with the formulation and implementations of Organisational Strategies, which then lead to helping an organization achieve a competitive advantage in its industry.We must first look at how strategies are developed in an organization in order to them attain its ultimate goal. The strategic management process is divided into two stages namely; Strategy Formulation and Strategy Implementation. Strategy formulation deals with identifying the need for new missions or strategic goals by conducting competitive analyses and then formulating new strategies to assist in achieving these new strategic g
Considering all the above factors and the environmental assessment helps in formulating strategy that works both internally and externally of the organisation to ultimately improve the competitive position of an organisation. Differentiation is an attempt to develop products and services seen as unique by the industry (Bartol et al 2002). Finally the Manager has to monitor the progress of the new strategic plans put in place and can do so by through strategic control. It is important for SWOT analysis to occur in an organisation as a continual basis as economic markets are getting increasingly competitive and volatile and thus organizations have to foresee new opportunities or threats as they rise and implement new strategies to take advantage of such opportunities or diminish the dangers new threats may pose. An opportunity is an environmental condition offering significant hope for improving an organisation's situation whereas a threat is an environmental condition with significant prospects to undermine the organisation's competitiveness (Bartol et al 2001). page 11)The most important factor in the Strategy Formulation Stage is conducting competitive analyses (or SWOT analysis) that identify an Organisation's Strengths, Weaknesses, Opportunities and Threats. Strategic management and planning in an organisation does help in achieving competitive advantage but it is essential that strategic planning occurs as a continual process in an organisation as a company's competitive advantage is easily lost as it is gained in the present and increasingly competitive world market. Strategies formulated specifically to gain Competitive Advantage are considered as Business-level strategies. Value is the first, which refers to a company's resource or capability that allows the organisation to capitalise on opportunities or nullify threats. The focus strategy specialises by positioning for overall cost leadership, differentiation, or both but within a segment or segment of an entire market (Bartol et al 2001). However the costs of a focussed organisation may be very high compared to that of an all rounded organisation therefore putting the organisation in a less competitive situation. The forces being rivalry, bargaining power of customers, bargaining power of suppliers, threat of new entrants and threat of substitute products and services (Bartol et al 2001). This strategy works well as the organisation can then tailor and price their products according to the purchasing power of the market segment attracted to its product and capitalise on that. There are various factors to be considered during the implementation of a strategic plan some of the principal ones being; technology, human resources, reward systems decision processes and structure of the organisation.
Common topics in this essay:
Cost Leadership,
Threats Strength,
Model Thomas,
Finally Manager,
Finally Organisation,
Competitive Advantage,
Strategic Management,
Strategy Implementation,
Organisational Strategies,
Implementation Strategy,
bartol et,
competitive advantage,
bartol et al,
et al,
et al 2001,
al 2001,
gain competitive advantage,
gain competitive,
swot analysis,
strategic management,
strategic plans,
strategic plan,
opportunities threats,
conducting competitive analyses,
five competitive forces,
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