Strategic Management - Essay Example

15 academic references Comment on 6 references areas of strategic management you consider to be critical to the strategic success of contemporary organization Use the case as example, to discuss the topic. Show understand of the cases Student number: Name: DateSubmitted : Topic: Strategic Management Assemble and consider the tutorial exercises you have attempted from weeks 1 through 10 of your tutorials and lectures. With reference to Grant et al (2014), and at least 10 academic and peer reviewed journal articles, create a commentary on the areas of strategic management you consider to be critical to the strategic success of contemporary organisations. Campus: Lecture time: Lecturer: Tutor: Tutorial Time: STRATEGIC MANAGEMENT Word Count: 2741 words INTRODUCTION Strategic management is as a process that revolves around the formulation and the implementation of the major goals and objectives that are set by a company. It offers directions to the top management of a company in the goal attainment process. This is done through a critical analysis of the resources of a company and setting them in line with the goal achievement process. Through the aligning of the resources, the strategic management process allows for the maximum utilization of the resources. Through this, any wastage that may arise are eliminated. It helps in the fostering of the decision making process. Through the creation of an effective and an efficient process, all processes of the company are aligned to meet the set goals in a cheaper and an easier way(Lynch, and Lynch, 2008).  Different companies across the globe have employed different techniques to see to it that the process of strategic management has been undertaken successfully. One of the important aspects that have been employed is the product differentiation. A company that has created differentiation is Facebook Company. Differentiation in this case is between the competitors and the other entities that are operating withinthe space. Differentiation has the benefit of creating a competitive advantage for the business as compared to the competitors. Through this, they have better returns from their activities as compared to the competitors. Through this, they will be able to achieve the objectives and other goals that they have set and which they had earlier intended to achieve. Through differentiation, a company is able to develop its unique values. This gives it an upper hand as compared to the competitors in the market. With product differentiation, the product of a company is able to gain recognition in the market at large. As such, it is able to attract more customers to itself. With this, it is able to increase the levels of returns on investments that are made by the company. With greater returns. Value for the money of the company is made and achieved. (Pearce and Robinson, 2008).  Another important aspect of strategic management is the development of corporate social responsibility. This is a process, whereby a business commits itself, to have an ethical behavior. Through this, an organization is able to contribute to economic growth and development of the society around the organization. This is in order to improve the quality of the life of the people and the workforce of the organization, their families, the local society and the community at large. It is through corporate social responsibilitythat massive success of the company is achieved (Subba, P2010). This is because the company is well embraced by the society. With the good will of the society, the chances of success of the company are very high. A company that takes part in the empowerment of the society reaps from the benefits that accrue from the benefits. Empowerment can be through the participation in community based undertakings. They include forums on environmental management. The company can also take part in infrastructure development of the local community. This increases the ease of the local communities to undertake their daily chores. A cordial relationship exists between the people of a certain locality and a company that is able to assist them in the addressing of their daily needs (Pearce and Robinson, 2008).  A company can also have corporate social responsibility by reducing the vices that characterize other companies. The major one in this case is pollution. Pollution results to degradation of the environment. Companies should ensure that they have put inplace adequate measures to reduce and if possible eliminate all pollutions that they may cause. This can be through the treatment and the detoxification of the gases that they release to the air. They can also treat the wastewaters that are released. Toxins in the water cause the death of marine life. The garbage issue should also be addressed. This is through putting in placegarbage disposal and collection mechanisms. They are aimed at reducing the littering that they make to the environment. Through this, the community will be able toappreciate and embrace the company. It should also sponsor and get involved with the local community in sensitization campaigns that are focused on the environment. Thecompany should also adhere with the standards that are set by the government in terms of the pollution and the disposal of their wastes (David, 2010).  Climate change has emerged to be an issue that affects the world at large. As such, the company should put in place strategies that are aimed at the addressing of climatic change conditions. Global warming has become a global issue over the recent past. The company should hence focus on the alleviation of the effects of global warming. It should also see to it that it has as much as possible set its standards high so as not to in any way contribute to the global warming(Jeff, 2008).  Another strategic management tool that has been put intofull use by companies is corporate branding. It is an important factor in the success process of a company. It refers to the process of promotion of the brand name of a given company. It has constantly been put to use by football teams that seek at the selling of their names. Through this, they have gone an extra mile and made great returns. This is unlike the trend that exists of the promotion of the products, goods and services of a company. Corporate branding refers to the selling of a companyby itself rather than the promotion of its products. Strategic managers believe that by selling a company, the proceeds of the process will greatly surpass those that would be made by the selling of the products of the company. This is usually due to the belief that exists that when people have trust in the company, they will be able to consume the products without hesitation. Through the selling of a company name, the customers will be attracted to the products through it. This process greatly relies on the cooperation of all the branches of the company. They are the management, the employees and the external stakeholders. There should exist a good relationship between the stakeholders and the arties stated. The management on its part should strive to accomplish the vision and the mission of the company. On the other hand, the employees on their part should believe in the performance of the company. Through this, they should put extra effort in the seeing to it that their efforts are aimed at the attainment of the objectives of the company. The image of the company should also be improved to the external stakeholders. When they believe in the company, the chances of success of the company are very high (Freeman, 2010).  Similar to this, is the concept of globalization. A company makes its operations to extend outside the local boundaries through the process.Globalization has many benefits that come with it. First, it has created an increase in the number of customers for the products of the company. The global market is vast and this is the reason why themarket is suitablefor the prosperity of a company. Marketing is also a tool that falls in this category of strategy. A company in order to achieve its desired goals should be able to well market itself and its activities to the world at large. Successful companies can be termed as those that have been able to put in place proper and efficient marketing tools. This is because by making the customers aware of the existence of the company and its products in the market will seek to consume its products. A company can employ many different marketing tools. The most effective one that has emerged is social media marketing. This involves the posting of the company products in the social media sites. TheyincludeFacebook, Twitter, Instagram, LinkedIn, Google+ and Skype among manyothers. Their popularity is due to the high number of people that are using them. They have emerged as a market by themselves. They also have the cost benefit, as they are very cheap to use. Other marketing tools that can be used by a company include advertising. This is through the advertising tools such as television adverts, posters, and banners. Another marketing tool that can be used is personal selling. It involves the use of personal sellers who visit people who are include potential customers and tell them about the company. Sales promotion is also another tool of marketing that can be used by a company (David, 2010).  Another strategic management strategy that has been put into use is the creation of market penetration efficiency. An example of a company that applied this strategy is AirAsia. It is with this strategic management tool that it has been able to penetrate into the airline market and become a force to reckon with in theindustry.This is where a company aligns itself to see to it that it has followed the aims and objectives that it has set. Some of the main objectives of companies mayinclude the achieving of cost efficiencies. This is where a company sets prices, which are globally competitive. With this, it is able to counterthe competition that exists in the market. A company is also able to attract the consumers with such prices. This as such creates customer conveniences. It is also through this strategy that a company is able to initiate and develop innovative and inventive measures. Innovation and invention have many benefits that they bring to the company. The first benefit is that they reduce the time spent in the undertaking of certain activities by the company. With this, the operations of the firm are faster as compared to before. It is also through this that efficiency is attained in the processes. Efficiency in this case is in the quality of output that is produced by the company. High quality output is made as compared to before. Efficiency is also in terms of the cost of processes. They reduce the overall costs that are incurred in the operations of the affairs of the company. This has also led to the creation of a company culture. This culture ispassed between the different generations of the workforce of the company. A company is well defined by the culture that it has (Jeff, 2008).  Technological developments is also a strategy that can be adopted and which is crucial for the continued growth and advancement of a company. Technology has many advantages that come with it. The first advantage is that it results to reduced costs of operations. This is because it allows for easier undertaking of tasks by the company. It allows for quick speeds in the operations. Technology also has the benefit of making the company to become globally competitive in its operations. This is because advancements in the levels of technology enable the company to access information and data from all corners of the world at fast speeds and at low costs. Technology also helps in the improvement of the quality of output that is made by a company. This is because through it, more output of high quality is produced at lower times and lower cost with the same or even lower quantities of input. Technology can be termed as the catalyst of expansion of a company (Freeman, 2010).  Summary In summary, strategic management is crucial for the continued growth and expansion of a company. However, key attention should be placed on some vital areasin the process. The first area is the corporate social responsibility. This is where a company should strive at being socially responsible to the society in which it exists. The company should also have key focus placed on climatic change and global warming. This is due to the effect that they have to the local societies. It should set its strategies in line to reduce the effects. It should also strive at the reduction and elimination of cases of pollution to the environment. Pollution causes environmental degradation. The company should hence be on the forefront in the removal of pollution. The strategic management should also pay key attention on the marketing of the company. Marketing is crucial as it fosters the spread of the brand knowledge of the company to the world at large. This increases the returns of the company (Aswathappa and Keddy, 2010).  Globalization is also a key factor that should be considered by the strategic management of a company. The benefits of globalization are many and well evident to the company management. Technology advancement is also crucial in order to achieve the goals of a company(Henry, 2008).  It should ensure that it has employed market penetration mechanisms. This is to create a new blend of customers and demand for the companies’ goods and services. Product differentiation is also crucial for the company. This is due to the fact that is helps in the giving of the products of the company a new identity fin the market. It helps distinguish them from those of the competitors. Differentiation is hence important for brand identification. Conclusion In conclusion, companies should align their strategic management tools to be in line with the demand and market patterns. This is because the benefits of so doing are many for the company. However, the proper setting of strategies for the company, it will be able to meet its goals and objectives. The organizations should also concentrate on the adherence to its vision and mission statements. This is because they act as guidelines for the company in the undertaking of its activities. The company should also ensure that it has maintained high standards in its operations. Through the following of the objectives and the observance of utmost professionalism I the operations, the company will be able to make handsome returns from the operations. Adequate returns will result to the company gathering enough resources to expand and to increase their grip of the market. With expansion and good returns also, the company will be able to advance its tools to be socially responsible to the society. The impact that it will make to the society will be great. This will be translated in the end to an increase in the loyal customers to the products of a company. Through proper strategy formulation, a company will also be able to meet all the demands that exist in the market. Through this, it will be able to outwit the competitors that are present in the market. This will make it to be a strong force to reckon with in the market. References Jared, B2008, Strategic management, London, Rutledge Aswathappa, K&Keddy, S2010, Strategic Management, New Delhi, Himalaya Pub House. David, F2010, Strategic management, Harlow, Pearson Education. Freeman, R2010, Strategic management: a stakeholder approach. Cambridge, Cambridge University Press. Henry, A2008, Understanding strategic management. Oxford, Oxford University Press. Jeffs, C2008, Strategic management, Los Angeles, SAGE. Jeyarathnam, M2008, Strategic management, Mumbai, Himalaya Pub House. Lynch, R & Lynch, L2008, Strategic management, Harlow, Financial Times, Prentice Hall. Pearce, J& Robinson, R2008, Strategic management, New York, McGraw-Hill Higher Education. Saloner, G, Shepard, A& Podolny, J2008, Strategic management, Hoboken, NJ, Wiley Custom Services. Subba, P2010, Strategic management. Mumbai [India], Himalaya Pub House. Read More