In Cynthia Montgomery’s the book “The Strategist”, she explains that becoming a strategist is an essential component of a leader, and this book provides a strategic framework where it is easy to understand. Throughout the book, she emphasizes that a good strategy starts with a strategic leadership, a compelling purpose, and a system of value creation, and she believes that a leader and a strategist in inseparable. I agree with this because a leader guides the company to find its purpose and mission, and this is what a strategist is good at as well. Therefore, a leader should be a strategist who apply strategic management in its corporations or organizations. Throughout the book, Montgomery illustrates many real life examples regarding to the importance of strategy plays in the success of a business, such as Masco’s failure in its expansion through furniture manufacturing. She also emphasizes that a strategist or a leader must understand the purpose of a company exist in order to success. Then, she analyzes practical models such as five forces to help the reader understand how these model connect to strategy as a whole. Her “Strategy Wheel” framework is a viable tool that could help the business leader in developing their strategies. Through many business cases that Montgomery explains such as Masco, Ikea, Walmart and Gucci, these cases are an excellent …show more content…
Referring back to the IKEA’s example, when the company has a mission and purpose, it gives the employees a sense of purpose as well, and believes in themselves that they are able to make a difference. I think that a great manager help employee to understand the company’s mission and purpose that is directly related to the individual’s responsibility, and assists employees find a connection between company’s value and their own. Hence, a good strategy supports company’s purpose and makes the corporation became a company that
Management is characterized as pursuing organizations objectives in an efficient and effective manner. This is accomplished by incorporating the work of its employees through the stages of planning, coordinating, and leading (Kinicki, & Williams, 2013). Mark Ledogar and Gary Vik exemplify the definition of management as true visionaries. When they realized that a strategic plan would not work for their company they decided that,”Instead of investing the time in that, we have
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
and will work their best to achieve them. With this management style, IKEA can use various methods of communications (see E5). However this type of management style could make decision-making slow and is not appropriate to some businesses such as, manufacturing industries. The organisational structure, culture and the management style of IKEA have to perform successfully so that, together they can achieve the company’s objectives. For example, to increase profitability: the communication within the organisation have to be clear so that, staff can understand what jobs have to be carried out; staff have to be motivated to perform the job; the relationship between managers and staff have to be strong and committing; the organisation have to encourage staff to create new ideas and share them amongst others; democratic managers have to listen and act on the opinions of workforce, democratic managers have to make sure that the workforce is well aware of the objectives of IKEA, etc.
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
The theories on strategy development and associated concepts of strategic thinking and strategic leadership are becoming more and more popular in today’s business environment. Leaders possessing strategic skills could turn to be the best strategy of their own as well as for their respective organizations.
The managers must set organizational goals aligned with the company mission. This will provide a strategy for achieving those goals. For example, planning can be seen at every level such as creating goals for sales as well as for the customer experience (Higgins, 1994).
Managing employees contribute to a competitive advantage because employees know what is expected of them. Employees need to be given goals, motivated, and taught the company’s values. If companies did not manage employees, the company would not function at an optimal rate or even fail.
Thompson, A.A., Strickland, A.J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin
in the similar manner, Hill, & McShane, (2008), argued that managers remain the most important asset of the business that drives the business towards path of development and growth. Additionally, the importance of managers, their roles and functions cannot be neglected. As the business environment has become highly competitive with market segments highly fragmented forcing business entities to adopt and integrate effective business practices that can ensure that the business is heading towards the path of competitive advantage. In this regard, it is realized that the role and function of manager has become highly indispensable. The early theory of management, as per stated by Need, (2006), argues that the core functions of manager are to Plan, Organize, Staffing, Leading, and Controlling. Augier, & Teece, (2009), within this regard stated that effective and efficient managers do not just go and perform haphazardly, in fact, good and effective managers discover their strengths, ensure they are making the most out of the existing resources and mastering the above mentioned five basic functions. The overall role of manager is highly significant, mainly because of the fact that manager while performing these five functions guide the entire business and
“Strategic management analyses the major initiatives taken by a company’s top management on behalf of owners, involving resources and performance in internal and external environments”. There are many well known strategists for strategic management.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
That reminded me from the case study the director how to plays round of the company to succeed this Colombian Memorial Hospital. External control view of leadership, situations in which external forces where the leader has limited influence determine the organization 's success. Strategy, the ideas, decisions, and actions that enable a firm to succeed. competitive advantage firm 's resources and capabilities that enable it to overcome the competitive forces in its industries. Operational effectiveness, Performing similar activities better than rivals. Intend strategy, strategy in which organizational decisions are determined only by analysis. Realize strategy, strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource limitations, and changes from managerial preferences. Strategy analysis studies of firms ' external and internal environments, and there with organizational vision and goals. Strategy formulation, decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.
Good management is practiced in many forms and in a great diversity of business situations. There are basic principles of how to manage, but they would be applied differently in different situations. In an effective organization led by good managers, there is a clear set of strategic objectives I consider skill essential in an effective management such as: communication, motivation, teamwork and goals.
The lack of success at Omega, Inc. rested in the hands of an incompetent sales staff who were not informed of the company’s mission statement and goals. The staff received limited training on the jobs they were to perform. Omega was faced with the challenge of getting the employees to achieve their sales quotas. According to (Aguinis, 2007), “There are two important prerequisites required before a performance management system is implemented: knowledge of the organization’s mission and strategic goals and knowledge of the job in question.” The benefit of superior knowledge of the organization combined with clear and agreed upon mission and strategic goals of their unit would afford employees the opportunity to make contributions that will have a positive impact on the organization as a whole. In addition, one must possess the knowledge of the job in question to execute the tasks necessary to be done and how they should be done. This knowledge is obtained through a job analysis. Omega failed to implement strategic planning throughout all the franchises. According to Aguinis (2007), “Strategic planning allows an organizati...