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Accounting information system
Corporate Level Strategy
Formulation of company strategy
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Part A
An organization needs three functional strategies: the product, the people, and the support processes. Product strategies include the design, the production-operations and marketing. These strategies include how and where products will be produced. Once the products are produced, a marketing plan must be developed. The people strategy is human resources. This process includes hiring employees, motivating them and compensating them fairly. The support process strategy includes information systems and financial-accounting systems. This process includes the choice of system technology, budgeting, and managing the financial-accounting area.
When organizations adopts a competitive strategy they must decide what separates them from their
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Each have their own role in ensuring the organization does what it’s in business to do and whether it achieves its strategic goals. In order for successful implementation of the corporate strategy, it must have the resources, capabilities, and competencies that are being developed and used in the competitive and functional strategies. According to Mary Coulter the author of our textbook “Strategic Management in Action”, competitive and functional strategies implemented must support the overall strategic direction and corporate strategy. The three corporate strategic directions are moving an organization forward, keeping an organization as is, or reversing an organization’s decline. Moving forward’s the organization’s activities or operations or to “grow”. Keeping an organization “as is” means it is not growing but it is not declining either. This is a stability strategy. Reversing an organization’s decline is recognizing an organization has problems and may be seeing declines in one or more performance areas. This is discussed with a renewal …show more content…
Entrepreneurs seek out new opportunities and are willing to take risks. A small business is an independent business that is independently owned, operated, and financed, with fewer than 500 employees. Small businesses don’t necessarily engage in any new or innovative practices and usually have little impact on their industry. These type of organization are important in three areas: job creation, new start-ups, and innovation. Small businesses just getting off the ground create new jobs and seem to have more stability. Innovation leads to technological changes and employment growth.
There are mixed opinions on the importance of spending time on strategic planning. The strategic planning process for entrepreneurial ventures and small businesses is a less formal approach. A lot of time shouldn’t be spent on developing elaborate business plans. A business plan is useless without customers. Researchers generally agree that the strategic planning process in small organizations versus large organizations should be less formal. Flexibility is crucial to an organization’s competitive success and should be aware of and open to environmental change. If the process is too formal, rigid or cumbersome, flexibility may be lost which is a crucial part of its success. Value is more in “doing the process” itself,
As with many small business owners they vision of their business usually only extends to their own abilities. They are driven and full of determination and believe their abilities will be able to sustain the business to success. Unfortunately, many small businesses lack the knowledge to be able to effectively be owners’ and leader’ to their organizations.
Strategic planning is crucial for the success of all business endeavors. Analyzing currents trends in technology, consumer markets, competition, and the workforce can play a pivotal part in whether or not the organization can survive. Overtime, strategic planning strategies must be modified in order to compensate for changes in the industry. Goals and strategic planning often necessitate change to ensure that the organization is performing at peak level, while offering the most beneficial and quality services to consumers.
As per Henry Mintzberg, former president of the Strategic Management Society, “strategy cannot be planned because planning is about analysis and strategy is about synthesis. Strategic planning involves a structure or framework, a set of procedures both formal and informal, and of course content. Beyond these basic elements, the underlying assumptions about strategic planning are that the future can be anticipated, forecasted, managed or even controlled, and that the best way to do so is to have a formal and integrated plan about it in place. The process of planning itself may turn out to be more important than the results, and that process requires both analysis and synthesis. Planning simply introduces a formal “discipline” for conducting long-term thinking about an institution, and for recognizing opportunities in and for minimizing risks from the external and internal environments.
A strategic plan is a tool that delivers guidance in achieving a mission or goal with maximum proficiency and control for an organization. Strategic planning is used to transform and revitalize organizations. The plan helps provide an inclusive understanding of opportunities and challenges both internally and externally for the organization. The plan delivers an assessment of the strengths and limitations that are realistic within the company. A well-developed strategic plan will offer a comprehensive approach and empowerment for the stakeholders involved. It is an opportunity for learning and understanding priorities that will drive the business to succeed. Jones (2010), describes how in health care organizations, strategic plans characteristically concentrate on operational and organizational goals such as when to obtain new technology, how to meet competitive challenges, and what staffing, tools, or facilities are needed to ensure organizational survival. The mission and value statements are significant in determining the quality of a strategic initiative. Forcing the organization to look toward the future creates proactive objectives in which both short-term and long-terms plans and goals are necessary in order to succeed.
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
It is a little known fact that small businesses make up a major factor of the American workforce. Since the word small is in the title most people think nothing of them, but when one takes the time to think that there are millions of small businesses, most with at least two to ten workers, the amount of people begins to add up. There are many factors that could contribute to a business failing, and it happens all the time in America. Small businesses must have solid business plans, a good use of technology, appealing merchandise, and appropriate financing to survive and prosper in the economy.
Kaufman, Roger. Strategic Planning Plus: An Organizational Guide. Sage Publications, Inc.: Newbury Park, California, 1992.
The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.
Entrepreneurship is not generally the same as maintaining a business, however the two may cover fundamentally. Most entrepreneurs are profoundly autonomous, which can bring about issues when their endeavors succeed. In a small organization, however this is unrealistic once the organization has become past a certain
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
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971).
Definition: A small business may is a business with a small number of employees. The definition of "small business" often different by country and industry, but is generally under one 100 employees in the United States, while under 50 employees in the European Union. These businesses are normally privately owned corporations, partnerships, or sole proprietorships.
What is strategic management? In this study we will view what a manager’s role is and the development of strategic management has an affect on their companies performance. We will examine strategic management, what the benefits and problems are when utilizing strategic management, and how to implement strategic management in the company.
- It encourages job creation and local economic development through the support of small businesses in surrounding communities.