Strategic Management and Strategic Competitiveness - Essay Example

? Strategic Management and Strategic Competitiveness Strategic Management and Strategic Competitiveness Successful organizations have to involve strategic management and planning to achieve overall performance and achieve competitive advantage over others. One of the most successful corporations that use such approaches to attain better performance is Apple Corporation. This is a corporation that was formed in the beginning of 1976 and has been able to make positive development in achieving its targets. It is rated as the second largest corporation that deals in information and technology while it is ranked as the third largest company that deals with mobile making. It is also considered one of the most admired companies in the United States since many people recognize its performance and strategic planning (Dowling, 2008). This is mostly seen in the strategies that are used in enhancing its markets. This has been widely attributed by globalization. First, globalization has played a major role in expanding the performance of apple inc. This has been realized as there is increased competition from the corporation. With the induction of globalization, many corporations find it easy to penetrate into other markets (Berry, 2005). As such, they have the legality of selling their products in all markets across the globe. With induction of their products in such markets, many people have access to a variety of products which are available in the market. Since the population has a variety of products, they have the freewill of choosing the best quality products. This will have a positive impact on the quality of products that are sold in the market. Similarly, this is an opportunity to reduce any chances of corporations monopolizing a market. Monopolies have direct control over the market and may likely supply substandard products. However, with the induction of Apple Inc in the market, the corporation has been able to give the market unparalleled products. This has been awaking call for other companies that would like to dominate the market. Secondly, globalization has played a major role in ensuring there are economies of large scale production. Businesses have been stating that the costs of productions are escalating with each passing year. However, large corporations have stated that economies of large scale production are the only solution to effective production. This has been proved by Apple Corporation as it savors large scale production. This reduces the cost of production, cost of labor and other miscellaneous expenses. As such, the corporations are able to produce high quality products to the market at an affordable price. Similarly, the corporation is able to make substantial profits that are used in expansion (Berry, 2005). In many instances, corporations plough back profits into the business with the essence of increasing production. In addition to enhancing the performance of the corporations, globalization has helped these corporations to increase competitiveness. Apparently, this has helped many corporations to reconsider customer needs and their values. As a matter of fact, many customers in the market are now realizing the cost effectiveness of globalization through production of better products that are of high quality. As such, customers feel that their needs and preferences are approached in a satisfactory manner. Thirdly, globalization has helped many corporations including Apple Corporation to realize the positivity of location flexibility. When there is globalization, many corporations find it appropriate to expand their businesses to other untapped markets. These markets provide a substantial demand market for their products as they feel the urge to purchase such products. In the end, the corporation benefits substantially as it increases its profits. In addition to this, the corporation realizes the reduction in costs of production. For instance, when they start another plant in an area, they use locally available labor, materials and other resources in the same area. This reduces the cost of labor and transportation from one place to another (Dowling, 2008). In essence, the corporation does not have to transport its resources from one particular place for continuity in production. Similarly, this has been a booster to many corporations especially corporations that are listed in stock exchange. The stock exchange is a global business that attracts people from all geographical regions of the world. Therefore, expanding the locality of the corporations ensures the corporation is well prepared to participate in the stock exchange. For instance, apple Inc is listed in the national association of securities dealers’ automated quotations (NASDAQ). As such, it has a greater deal when many people across the globe exchange its shares in the stock market (Berry, 2005). This will be beneficial to the corporation as it better prepared to tackle its competitors while providing high quality products and services. According to recent statistics in 2012, the corporation had over US$ 118 billion as total equity. Apple Corporation has used a number of models in ensuring its performance in top notch. For instance, it has used the industrial organization model and resource based model to gain an advantage over its competitors (Dowling, 2008). To begin with, the organization savors effective training in the personnel. The personnel are given substantive training to equip them in giving uttermost services. As such, the corporation is prepared to have a workforce, which is over 80, 000 employees that diligently serves its clientele. This is made possible by using the massive resources they have to train the personnel (Berry, 2005). Without such resource, they are not likely to make a positive approach in business. Secondly, the organization savors learning and sharing information. Sharing information is one vital approach in making strategies. When the employees learn new approaches to business, they share it out and make the best approach in stabilizing the corporation. As such, the corporation will have several strategies that enhance its competitive advantage. The organization then uses its resources to stratify such information to make it understood. Lastly, such organizations use benchmarking strategy. They evaluate the performance of other organizations and their HR practices and how they can improve the performance of the organization. With such an approach to business, it is likely to mark an improvement in its performance. Without such preparations, the organizations are not likely to mark an improvement in serving its clientele. The mission statement of an organization is vital in steering the organization to success. First, the vision statement strengthens the employees’ belief in getting the best performance (Dowling, 2008). This is instrumental as it boosts the morale of workers. Similarly, the mission statement states the virtues of the organization. As such, it ensures all the workers are observant on the virtues and values of the organization. For instance, some organizations insist on giving high quality products. With such a mission, the organization is most likely to give its clientele high quality products and services (Berry, 2005). Similarly, the mission and vision statements enhance corporation and team work. Since all workers are striving for the same mission and vision, they will have collective energy in enhancing the performance. In the end, the company will achieve its stated goals. Stakeholders have various roles to play in ensuring a corporation is achieving its projections. First, there are some stakeholders that have an obligation of using the products of the organization (Dowling, 2008). These are stakeholders that are considered direct beneficiaries of the products. As such, they assist the organization by providing a market for its products. Such stakeholders ensure the organization is recording constant sale of its products and services. The second category of stakeholders has an obligation in the governance of the corporation. Such stakeholders have a vital role in that they have to control auditing, regulating the corporation and stating health directives. This will have direct impact on the performance of the organization. Thirdly, some stakeholders are obligated to influence the direction of the organization. These stakeholders have to ensure the organization is making the right steps to perfect its performance. Lastly, there are other stakeholders that are obligated to provide several resources and assistance to the organization (Berry, 2005). This includes suppliers and any vendor that is directly involved in the organization. Similarly, such a category involves business partners, staff, temporary and permanent contractors. Therefore, all stakeholders have role to play in steering a corporation to success. Without such stakeholders, the organization is likely to stall. References Berry J. (2005). Offshoring opportunities: Strategies and tactics for global competitiveness. New York: John Wiley & Sons. Dowling, P. (2008). Strategic management: Competitiveness & globalization. New York: Thomson Learning Australia. Read More