Essay about The Value of Management Strategy

Essay about The Value of Management Strategy

Length: 940 words (2.7 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

‘’A company’s strategy is managements game plan for growing the business, stacking out a market position, attracting and pleasing customers, competing successfully, conducting operations and achieving targeted objectives’’ (Thompson, Strickland & Gamble 2008). Porter (1996) states strategy as choosing different set of activities to deliver a unique mix of value. Markides (1999) states strategy as a position a company takes to answer certain questions about the organization. Strategy can be viewed as a way to which the organization achieve its competitive advantage. Competitive advantage is the way in which the organization meet consumer needs better than their rivals. Strategy is used in decision making in which managers monitor the ever changing external environment, in which an effective strategy would allow the organization to use resources and capabilities to exploit opportunities and limit threats (Ireland & Hitt 1999). Strategy therefore can be defined in a number of ways. Strategies are devised to achieve certain goals. A company may seek a strategy to identify who are the customers, which services to offer and how they can operate efficiently.
Strategy entails an organization matches its resources and capabilities to the external environment to achieve competitive advantage (Lado & Wilson 1994). Organizations set goals to achieve. The organization will therefore analyse the problems which the firm face, and then formulate a strategy and implement it to achieve competitive advantage.
Strategic making process therefore:
1. Set a corporate vision, mission and values and the organisation goals and objectives.
2. Analyse the external environment
3. Analyse the organization internal environment
4. Select strategies that help th...


... middle of paper ...


...an be achieved by product performance, marketing as profits may fall. Therefore a company may seek to formulate and execute a strategy that addresses how to deal with new entrants, suppliers, their customers– how best to serve them and to deal with substitutes for example providing comfort in low budget vehicles to serve the need for customers who need low maintenance vehicles but seeking luxury at the same point (Porter 2008).


CONCLUSION
Strategy is pivotal to the success of the business. It encourages the organisation matches its resources and capabilities to the external environment to achieve competitive advantage. Luck can make a business successful but a business strategy can provide a guide line to follow to achieve competitive advantage. One can safely say that strategy rather than luck is important to the future running of the business








Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Value Chain Management Essay

- Value Chain Management Royal Caribbean Cruise Ltd (RCCL) has two distinct supply chains which create a unique challenge. Each supply chain is managed by a Provision Master. The first supply chain includes all food, beverage, and lodging inventories that needed for the trips. The second supply chain encompasses “corporate spend” materials, such as office supplies, printing services, hardware and software, printed materials, computer supplies, marine consumables (spare parts, fuel, lubricants, any and all services associated with the ship maintenance and etc)....   [tags: Business Management Strategy]

Free Essays
1070 words (3.1 pages)

The Value Of A New Product Essay examples

- In order for an organization to increase its value over a period of time it uses what is often referred to as strategic capability. With this process, businesses use competitive strategies to reach targets. (Hartman, n.d.) As competitive strategy goes hand in hand with strategic capabilities, the Business Directory defines competitive strategy as a “long term action-plan that is devised to help a company gain a competitive advantage over its rival.” It goes on to state that these strategies are useful in relation to discrediting another organization’s products or services; as such, they are a main part of advertising campaigns....   [tags: Marketing, Strategy, Management, The Return]

Better Essays
831 words (2.4 pages)

The Operations Strategy Of Lenscrafters Essay

- The operations strategy that LensCrafters uses is kind of unique because they use differentiation strategy in their operations. With differentiation strategy, they believe that to get the best of customers, they have to live up to their standard. LensCrafters has accomplished everything in their power to make a difference in their products and services. In terms of making a difference in the following ways: • LensCrafters proudly offer ninety days return policy or exchange if customers are not 100% satisfy with their merchandises....   [tags: Management, Operations management, Value chain]

Better Essays
1108 words (3.2 pages)

The Role of Management Accounting in creating Added Value to the Firm Essay example

- The essay sets to provide a perspective upon Management accounting and the effect it can have in creating added value for a firm. It purposes to do so by first giving a short definition and history of management accounting, identifying the differences between management accounting and financial accounting and then proceeding to analyzing some of the most important tools for management accounting. The pylons of the essay will be defining the strategy and its role in management accounting, presenting the plan–do–check–act cycle, the strategy map and the Balanced Scorecard....   [tags: Business Strategy, Step by Step Analysis]

Better Essays
1519 words (4.3 pages)

Essay about Value Creation In The Airline Industry

- The basis for Value Creation of a classical hub-organised airline consists of its operating hub and spoke strategy. This system implies that all flights move along spokes connected to a hub placed at the centre. In fact all long-haul flights depart from the hub, to which all passengers are flown in the first place. Therefor it is necessary to own a heterogeneous fleet to secure an outstanding efficiency of the long distance flights. To have an attractive and used to capacity hub at one’s disposal is the linchpin of the entire operation....   [tags: Airline Industry Strategy Management]

Free Essays
853 words (2.4 pages)

Report on Knowledge Management Strategy Essay

- Introduction From the last decade, the discipline of the Knowledge Management (KM) has a long foot development, which was established since 1991.(Sven C. Voelpel and Han, 2005) As the weight of the investment to KM system increasing, the researches of management to knowledge get more complex and integrate. The purpose of this report is to identify the current position on the KM of Siemens, and the recent KM effort within the industry. Furthermore, it will apply the model of Knowledge Management Value Chain to Siemens....   [tags: Business Management ]

Better Essays
1110 words (3.2 pages)

Value Analysis : Value Chain Essay

- The aim of the value chain structure is to maximize the value creation while minimizing costs. Value Chain Analysis is a useful tool for working out how you can create the greatest possible value for your customers. Value chain analysis relies on the rudimentary economic principle of competitive advantage -companies are best served by operating in divisions where they have a relative prolific benefit compared to their competitors. Concomitantly, companies should ask themselves where they can deliver the paramount value to their customer....   [tags: Strategic management, Management, Value chain]

Better Essays
984 words (2.8 pages)

Essay Marketing Management : Marketing Mix And Strategy

- A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy....   [tags: Marketing, Strategic management]

Better Essays
932 words (2.7 pages)

Developing Company Value Essay

- Developing Company Value In a world of continual evolution and strong competition in the work environment, investment in employee education should be viewed as a huge benefit for the organization to stay competitive and be progressive at the same time. To meet this challenge, organizations need to realize the importance of developing its’ current employees’ while allocating funds along with time for this development....   [tags: Business Management Strategy Analysis]

Free Essays
1130 words (3.2 pages)

Customer Relationship Management Objectives, Strategy, And Tactics Of Kroger

- This paper discusses Customer Relationship Management objectives, strategy, and tactics of Kroger, Inc. Kroger, founded by Bernard Kroger in 1883 and currently operates over 2500 supermarkets in more than 30 states. Managing customers is top priority for this company and is much of the reason it is the top grossing supermarket chain in the country. OBJECTIVES From the very beginning, Kroger worked to please customers. He believed in never selling anything that you yourself, would not buy and set out satisfy customers and provide goods and services that were needed in the Cincinnati area....   [tags: Customer relationship management, Marketing]

Better Essays
1859 words (5.3 pages)