Analysing Strategic Management - Coursework Example

Strategic Management Name: Course: Tutor: Date: Introduction There are many faces of strategic management. Strategy encompasses business approaches and moves that are competitive with the idea of running a venture successfully. Management on the other hand is the game plan which goes into the set achievements that the company is looking forward to. It therefore includes the running of the business, strengthening the competition, customer satisfaction and finally attaining the targets set (Irwin, 1995, p.3). According to Joyce and Woods (2002, p.3), strategic management is the laying down of decisions through different manager types in an effort to realise the company’s stated objectives. It encompasses specifying the objectives, vision, policies and mission and then embarking on a long-term plan to implement them. Many writers have emphasized that strategy is the outcome of a formal strategic planning process and that top management plays the most important role in the process. Although this view has some basis in reality, it is not the whole story (Hill and Jones, 2010, p. 11). This paper seeks to evaluate strategic management in all aspects and also confirm that top management really is the driving force when it comes to the strategic management implementation plan. Analysing strategic management Joyce and Woods (2002, p.3) in their book ‘Strategic management: a fresh approach to developing skills, knowledge and creativity’ seek to explain the ins and outs of strategic management. They analyse the four types of managers namely Zeus, Apollo, Dionysus and Athene and each describes the role one plays in the strategic management process. For instance, Zeus is portrayed as a mighty autocrat who happens to be a Greek god. Apollo is portrayed as an orderly and routine kind of manager who is indeed an athlete. He is also seen as bureaucratic and boring since he sticks to routine. Dionysus is highlighted as a manager who eats life with a big spoon and enjoys getting drunk and having fun. Lastly is Athene who happens to be Zeus’ daughter and has hot temper which prompts her to carry out revenge on all who offend her. This Greek myth represents the process of strategic management and shows how each of these distinct traits complement each other. It also supports the argument that the top management is the deciding factor when it comes to the implementation of this process (Joyce & Woods, 2002, p.4). Joyce and Woods further show the complimenting qualities evident in Dionysus and Apollo where the latter is rational and the former is creative. These are ideal ingredients in cementing a profound working relationship since both are interdependent on each other in order to produce results. For a company to enjoy a productive journey towards the implementation of the desired objectives innovation is essential and this is generated by creativity and imagination, traits that Dionysus possesses. These among other core competences that the different managers at the realm of things have come in handy and in due time given birth to new experiences necessary in taking the company to a whole new level. Strategic management is all about planning and realising the vision which translates to forecast and foresight. According to a research done by Penzhorn and Pienaar (2000), strategic management is all about providing a balanced scorecard. The top managers help their juniors to translate the set strategies and vision of the company and ensure that they understand it well in order to deliver the desired results. They come to a consensus after clarifying the above and this puts them on the same page with their leaders. This is done through communication which is a vital organ of every company. Staff are educated and linked with the information which revolves around the set goals. Planning is then initiated and this involves setting of targets for all involved by the top management. They then allocate the resources which will go into the implementation process. To balance the scorecard, feedback in the form of evaluation is offered and this makes it easy to know if the vision is being articulated (Penzhorn & Pienaar, 2000, p. 208). Strategic planning is of essence according to Lawlor (2003, p.1), and any company looking at reaching its objectives must take time to plan. Strategic planning dictates the survival of a company and the top leaders must formulate innovative and creative ways to stay on top. Times keep changing and this is more the reason why planning is a process and not a one time thing. It gives a company a sense of direction and purpose and this takes us back to the vision and mission statements of companies. The foundation of every company is created on the basis of strategic planning coupled with great execution. Five tasks of strategic management According to Nuttapon (2003), there are five vital tasks of strategic management which define the entire process. The first task entails the formulation of a business mission and vision which further dictates what the company is all about and what the managers want to achieve. Setting objectives is the second task and this lays down the goals that the company is looking at accomplishing. Task three has a strategic approach and dwells on developing strategies which will be used towards achieving the stated objectives. Implementation is the fourth task and here managers execute the developed strategies. The final task lies on evaluation of the strategic management process whereby the overall performance is reviewed and changes are made to the game plan if need be. These adjustments are necessary since not all that is strategised can give the desired results. There is always a need to go back to the drawing board and make some reviews if effective strategic management is to be realised (Nuttapon 2003, p. 2-3). Five functions of management To further confirm that the top management of a company is the deciding factor on how much a company can achieve, we can adopt the ‘five functions of management’ as stated by Erven (1994). The author clearly puts it that management is about creativity in how problems facing the company are solved. Creativity is what gives high ranking companies an edge over others in the competitive industries. This is where the functions of management come in and these include planning, organising, leading, controlling and finally evaluating the strategic management process. To achieve this, the management ensures that the company’s resources are well utilised in order to meet the set targets. Planning, according to Erven (1994) is a process that is geared towards the development of the company’s mission and objectives. It also revolves around how the mission and objectives will be realised. Organizing brings out the role of managers in any organisation on how they distribute duties to their subordinates who chip in to help the company realise its objectives. Staffing is also a preserve of the management whereby they ensure that the company is well supplied with professionals with the right qualifications to take the company to a new level. They have the duty of providing human resource through recruitment, hiring, training and evaluating the performance of the staff. Directing is another vital function of managers and they have the duty of motivating the people under them in order to get the best results. They also ensure that clear communication lines are in place and also instil work ethics in their juniors (Erven, 1994). They play the leadership role and offer group dynamics to ensure that the company’s mission and objective is met as their staff improve their skills thereby uplifting their careers. Controlling is the final function of managers and this involves the overall running of the organisation whereby they evaluate and submit results which show the company’s overall performance. To be able to do all this, creativity is imperative and that is why managers must be creative enough to always give others an edge in the corporate world (Thomson, 2001). Generic management According to ISO (2010), generic management means the application of the same standards to the implementation plan in disregard to type of sector. In this case, the size of the company does not matter at all and neither does the type of business. So, be it a government department, a public administration or a business enterprise, all are handled using the same standards and using the same management system. A management system must meet three objectives if it is to be recognised as a mover. It must meet the customers’ needs and satisfy them, must comply with the stipulated regulations and must also meet the environmental objectives (p.1). In this sense, the managers have the basic duty of ensuring through their juniors that the customers’ needs are being met and that the company is following the laid down strategies in an effort to meet its objectives (Kotelnikov, 2001). Strategic management processes of companies In reference to the Apple Company strategy (Lindinger et al, 2004), we get an insight into the strategic management process. It is termed as a process since it is progressive and keeps going as the company seeks to explore new markets and generate more profits. The strategic process at the Apple Company is headed by its top management, a point that further adds weight to the fact that the top management is the one with the duty of implementing the strategic management process. The top management therefore dictates how the company is run by setting goals that reflect the company’s performance. They have the powers to formulate objectives, oversee the implementation of the plans and strategies and evaluate them. Lindinger et al, (2004) also note that at Apple’s strategic management, the top managers have the responsibility of developing the basic plans which they ensure remain fresh and relevant according to the changing competitive world of technology. They then assign duties to their juniors in various departments. They may be asked to develop their own strategic plans but most of the time they work on what the top managers have already formulated. The top managers come up with a solid plan that incorporates every member of staff into the implementation process and ensure that teamwork leads to the realisation of the set objectives (p.3). As the top managers strategise, they ensure that the proposed strategies revolve around the company’s strengths and weaknesses as well as the available opportunities in the market. They also put the company’s current position into consideration since this also affects the strategies. To sum it up, the top managers have the duty of identifying the company’s mission and setting up objectives in regard to its former and current strategies. They also evaluate the company’s former and current performance and this helps them make the right changes to the operating plan (Lindinger et al, 2004, p. 5). For example, this is excerpt from Apple’s Mission statement: "Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and have entered the mobile phone market with its revolutionary iPhone" (Lindinger et al, 2004, p. 26). Still on Apple’s strategic management, Lindinger and others note that the subject emanates from the company’s leaders. Steve Jobs is Apple Computer Inc. Chief Executive Officer (C.E.O) and among his core competences to be trusted with the biggest company in the technology industry include his strong technical obsession, innovation, creativity, commitment, and enthusiasm coupled with strong entrepreneurial skills. He is cited to say that innovation is a must in a manager and this is what makes the difference between him and the people he leads (Lindinger et al, 2004, p. 34). Conclusion According to this essay, the role of top managers in the process of strategic management is clearly defined and this leaves no doubt that they are indeed the cornerstone of strategic management. Their functions have been highlighted as well as their role in the strategic management implementation process. The subordinate workers in the company are also important going by the fact that they are part of the implementation process. They act on the roles designated to them by the top management and apply teamwork in order to bring the desired results. Apple Company Inc. is a perfect example of the strategic management process in companies and the study sheds light on what again is the role of managers in strategic management. The qualities of a good manager are also defined and their distinct skills and competencies meet at the middle to build successful companies that generate high profits and in return offer employment opportunities to the masses. References Erven, B.L. (1994) The five functions of management: Creative problem solving. The Foundation of management excellence, Ohio State University, Ohio. Irwin, R.D. (1995). The strategic management process: An introduction (9th edition). Thompson & Stickland, New York. ISO (2010) Management standards: Understand the basics. International standards for business, government, and society, International Organization for Standardization, New York. Joyce. P. & Woods, A. (2002) Strategic management: A fresh approach to developing Skills, Knowledge and creativity. Kogan Page US Publishers, New York. Kotelnikov, V. (2001) Strategic management: New approaches for the new era of rapid and systemic change. Strategic Management Institute, London. Lawlor, J.E. (2006) The importance of strategic planning. Practical decisions, Harvard University, Cambridge, MA. Lindinger, A., IIiev, V., & Poettler, G. (2004). Apple computer Inc. Strategic Management and Business Policy, Dublin Institute of Technology, Dublin. Nuttapon, N.P. (2003). Strategic management process: Five tasks of strategic management, Faculty of Business Administration, Siam University, Bangkok. Penzhorn, C., & Pienaar, H. (2000). Using the balanced scorecard to facilitate strategic management, Libri, Vol. 50. pp. 202-209. Thompson, J.L. (2001). Strategic Management – Awareness and Change (4th Edition), Thomson, London. Read More