For a constant rise in returns or stability in the level of income, an organization has to take into effect a good management process. An organization therefore has to strategically manage its affairs. The authors Brian ‘et al’(1996, p 1) defines strategic management as the process of systematically analyzing the competitors, customers and the organization itself so as to provide a basis for maintaining optimum management practices. Proper strategic management enables an organization to maintain operations in the business world and overcome any challenges that arises.
Brian ‘et al’ (1996, pp 1-2) further argues that the main objective of strategic management is to achieve a better alignment of both the corporate policies and strategic priorities within an organization. Therefore for an organization to stand the operational challenges and operate effectively, an organization should strategically manage its affairs to avoid heavy losses, threat of closing down among others. Strategic management enables a firm to gain a competitive advantage over other firms, hence high returns.
The Domain Synthetic Fibre is a manufacturing company which manufactures synthetic fibres. The company has a mission to be the leading natural synthetic fibre and chemical production company in the United Kingdom. Currently the company is in a crisis because the patent on established product is about to expire. Though they have a potential replacement of the patent, it still has engineering problems associated with bulk production of the replacement (Crylon). This may be so due to the ineffective strategic management in the company. This may also be as a result of adoption of a formal approach to strategic management. Brian ‘et al’ (1996, pp 4-7) stat...
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...ave been purposely integrated to achieve a desired end test. Core-competencies of a firm are the capabilities that serve as a source of competitive advantage for a firm over its rivals. DSF has several capabilities that are unique, valuable and inimitable to its competitors. The production of the crylon is inimitable to DSF’s competitors due to the high production cost. It also commands the 40% of the market share.
DSF should therefore use its core-competencies to moderate rivalry among competitors, face minimal threat from substitute hence high entry barrier. This creates a high profit potential. They should also develop suitable, acceptable and feasible strategies so as to acquire high returns.
References
Brian Kenny, Edward Lea, Luffman and George A, 1996. Strategic Management: An Analytical Introduction. Retrieved from:
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Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
Pearce, J.A., & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and Global Competition. (13th Ed.). Boston, MA: McGraw-Hill/Irwin. ISBN-13: 9780078029295
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies.
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
Works Cited Carpenter, MA & Sanders, WG 2007, Strategic management: concepts: a dynamic perspective, Prentice Hall, New Jersy. Furrer, O 2010, Corporate level strategy: theory and applications, Taylor & Francis, New York, NY. Hill, C & Jones, G 2009, Strategic management theory: an integrated approach, Cengage Learning, New York, NY.
Hill, C. W. L & Jones, G. R. (1998). Strategic Management Theory (4th edition). Boston New York: Houghton Mifflin Company
Hitt, M., Ireland, R. & Hoskisson, R. (2010).Strategic Management: Competitive and Globalization, Concept and Cases. Mason, Ohio: Cengage Learning
• Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005.
For instance, Harley Davidson may be forced to change their marketing strategy due to the entrance of a new competitor into the market. Second, Harley Davidson has to learn new skills and technologies quickly. For example, technologies are changing rapidly, so it is crucial for Harley Davidson’s business plan to change or alter in order to keep up with innovation. Third, this organization has to effectively leverage its core competencies while competing with its competitors. This is, Flexibility is required for Harley Davidson to learn how to use primary value-chain activities and support functions in the way that allow the organization to produce their products at a lower cost with differentiated features compare to their competitors in the market
Stabell, C.B. and O.D. Fjeldstad. (1998). Strategic Management Journal. 19, 413-437. Retrieved November 11, 2006 from EBSCOhost database.
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: planning for domestic & global competition (13th ed.). New York: McGraw-Hill/Irwin.
Strategic management is a disciplined effort or control to make necessary decisions that have an effect on a business or an organization; the aim of strategic management is mainly to develop new, innovative or diverse ideas and opportunities for potential or development, and facilitates or assists an organization to achieve its goals (SM, 2010). In reality, strategic management not only can be used or applied to determine mission, vision and values or objectives, but it also establishes roles and responsibilities or timelines in a business (David, 2009). In the following sections, this study will focus on and examine the nature of strategy formulation, implementation, and evaluation activities, and analyze the potential pitfalls or risks in using a strategic-management approach to decision making.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
Strategic management is the “identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them” (Business Dictionary, 2016). In order for industries and organizations to thrive, they must have strategies in place and strategic management processes to stay competitive, profitable, attractive to stakeholders, and to sustain advantages that set them apart from other competitors (Barney & Hesterly, 2015). The strategic management process involves a set of procedures that lead to choosing a strategy that will eventually lead to competitive advantage (Barney & Hesterly, 2015). The six steps of the strategic management process involves defining
Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitive and Globalization, Concepts and Cases. In M.Staudt & Stranz (Ed).