Strategic Quality Management - Essay Example

Strategic Quality Management By Affiliation Question Strategic Management David (1989), defined the strategic management as a conduct of putting into practice, drafting and assessing cross-functional decisions that assist or help an organization to attain its long-term business and operational objectives. According to David (1989), the strategic management is the course of action of realizing the business and organizations vision, mission, and objectives, shaping or developing policies as well as plans, frequently in terms of programs and projects, that are intended to attain these objectives, and then assigning resources to execute the plans and policies, programs and projects. In the business a strategic management balanced scorecard is frequently utilized to weigh up the on the whole performance of the organizations as well as its development towards objectives (David, 1989). In most simple words strategic management can be defined as, “strategic management is the course of action of developing the goals and policies of strategy and managing its execution” (Tyran, Dennis, Vogel, & J. F. Nunamaker, 1992). According to (Olsen & Haslett, 2002), strategic management organizes or systemizes all the components of strategic planning, execution, and performance management in a continuing or constant cyclic procedure. It starts by addressing the questions “where is our organization at the present, where does our organization to be, how does our organization get there, and how do we determine movement?” (Olsen & Haslett, 2002).In their paper (Olsen & Haslett, 2002) also presented some thoughts from other researchers who improved this classified five processes, while all these tasks put together a course of action, which is continuous. Five tasks are: (Olsen & Haslett, 2002), 1. Building or formulating a strategic vision and business mission; 2. Deciding objectives; 3. Developing a strategy to accomplish objectives; 4. Putting into practice and implementing the strategy; 5. Measuring performance; assessing new developments and beginning counteractive adjustments. Kotelnikov (2009) does not consider the strategic management as a task, on the other hand rather a set of administrative expertise that should be utilized all through the business processes or activities, in a broad diversity of functions (Kotelnikov, 2009). Successful and flourishing firms are those that draw attention to their efforts deliberately. Business Strategy should be an extended process, not a robust. To attain and beat customer approval, organization’s management requires pursuing a generally organizational policy. A flourishing strategy encompasses value for the targeted clients over the extended run through consistently meeting their requirements in an enhanced manner as compared to competitors (Kotelnikov, 2009). Kotelnikov (2009) outlined the generally purpose of the experimental strategic learning and management process is to establish which strategic actions or elements thereof are robust across the scenarios and make use of the most healthy actions to build strategic intent. Kotelnikov (2009) outlined that strategic management is adaptive as well as carries-on an organization relevant process (Kotelnikov, 2009). Business Strategic planning is basically imperative in strategic judgment as well as guide to strategic management. Business Strategic planning is the foundation for an efficient organization. An environment support is primarily the power that persuade or delays the success and completion of that function; and originality in building well-organized and resourceful reactions to those forces. It weighs up the strategic management as the application of strategic decision making to the job of an organization (PIM, 2009). In strategic management an esteemed authority on strategic planning and marketing, presents a agenda intended for identifying strategic management. It engrosses deliberation to the "big picture" as well as the motivation to fiddle with to transforming circumstances (PIM, 2009)." Melé & Guillén (2006) outlined the recent studies regarding the strategic management which evaluate its development as well as transformations in its intellectual structure. Despite the fact that, little concentration has been established to the association among social and ethics responsibility as well as strategic management (Melé & Guillén, 2006). Nature and scope of strategic management Barnat (2005) addressed the main scope of the strategic management as the management procedures as well as decisions that establish the continuing activities and structure of the organization (Barnat, 2005). The main scope of the strategic management is aimed at covering the following aspects: (Barnat, 2005) and (Gray & Larson, 2006): Management decisions: strategic management is mainly aimed at resolving business issues or problems and take effective and helpful decisions those have to relate visibly to a solution of apparent problems (how to keep away the organization from a threats; how to earn profit from an opportunity). Management process: strategic management becomes the component of business management process as it relates to how policies are transformed and developed. Structure of the organization: strategic management offers an organization the capability to administer and supervise the people inside a structure. The decisions that result as of the means that managers work together within the structure would be able to result in strategic transform. Time scales: strategic management engrosses the strategic time horizon as well as its valuable management. Though, for an organization the difficulty is very short. Activities of the organization: strategic management is a potentially unbounded area of study and we usually give attention to entire activities that affect the business. Strategic management issues scope Strategic management process at any organization entails an extensive variety of decisions. Normally, strategic concerns have six certain scopes (Barnat, 2005): Strategic concerns are future oriented Strategic issues typically have foremost multifunctional or multi-business outcomes Strategic issues demand judgment issues in the firms outer environment. Strategic issues engross top-management judgments Strategic issues engage the part of huge quantity of business resources Strategic issues are possible to have major impact on the enduring prosperity of the business Barnat(2005), outlined that strategic management procedure stands for an orderly, logical, and objective approach intended for developing an organizations future tracks. Despite the fact that, an apparent division is required among the managerial course of action through which an organization weighs up, formulates, controls, and implements the associations among its strategies, its objectives and its environment (Barnat, 2005). Barnat(2005), also preseneted some strategic management models for identifying the concept of strategy and the fundamentals essential for improvement of a strategy in helping the firm to convince its operation. Formerly, numerals of models and frameworks have been presented that present diverse normative techniques to policy determination. Although, the scope of all the models comprises following processes (Barnat, 2005): 1. Planning organizational policy 2. Applying organizational strategy. 3. Assessing and handling strategy. 4. Applying an environmental analysis. 5. Ascertaining organizational direction. Barnat(2005), considered the method of strategic management as a dynamic and continuous process. So, it should be implicit that every element works together with the support of other element as well as that this contact frequently takes place concurrently (Barnat, 2005). 2. Briefly explain the strategic management process. This section presents the strategic management process. In this regard (Bosari, 2009) states that strategic management is a process intended for organizations to develop and improve the strategies that assist the organization to take action swiftly against new challenges. This is an active process that facilitates an organization to discover new as well as well-organized means to perform business. There are main 4 elements of the strategic management process those are (Bosari, 2009): Situation analysis Strategy formulation Strategy implementation Strategy evaluation According to (Gray & Larson, 2006, p. 24), the elements of strategic management are intimately associated, and all are intended for upcoming accomplishment of the firm. Strategic management needs well-built associations among mission, goals, objectives, strategy, and implementation. The mission offers the common idea of the firm. Goals offer comprehensive targets within the mission. Objectives offer particular targets to goals. Objectives increase development of strategies to achieve objectives. Lastly, strategies involve operations and process to be executed. The typical succession of actions or operations of the strategic management process is given below; (Gray & Larson, 2006, p. 24) 1. Review and define the firm’s mission. 2. Set long-range goals and objectives. 3. Analyze and build strategies to achieve objectives. 4. Put into practice strategies through projects. Figure 1 Process of Strategic management Image source: http://www.info-source.us/project_management/integration-Strategic-Management-Process-4-Activities.html, and (Gray & Larson, 2006, p. 25) However in another research the process of strategic management is defined as a six-stage process, that run in-house typically through a strategic management group. It is sustained through a variety of experts and accessible to outside stakeholders. The practical techniques and stages for the strategic management process for public as well as voluntary organizations are given below (Mycoted, 2009) Historical analysis: in this phase of the overall strategic management process we look at the former trends as well as the appearance of a future vision that is intended for the way ahead in the business enhancement The next stage in the strategic management process is about the detailed situational assessment. In this stage we carry out a responsibility free SWOT Analysis of the at hand situation Subsequent stage is about the strategic issue agenda, that discovers concerns from above given points 1 and 2 as well as recognize the dealings that exist among business processes This next stage is strategic options analysis where we classify a lot of positive solutions to conquer the future vision and SWOT analysis. At this stage we are aimed at defining strategies, feasibility, effectiveness, outline costs, and acceptability. In the next stage of feasibility assessment, a range of policies are observed in the course of resource analysis and stakeholder analysis. In this last stage of the strategic management process we have process of implementation that is aimed at assessing the stakeholders’ requirements. In this above given stages the initially three stages follow a series of assessment steps those involve search, for ideas and information, Synthesis of gathered information, observation of trends, patterns. Then we perform the selection and conclude precedence for action. In the ending stages of the process of strategic management we are aimed to assess the quality, acceptance, innovation and preservation (Mycoted, 2009). Bosari (2009), states that by addressing every part of the strategic management process in the arrangement, businesses would able to assess and re-evaluate positions since they build up. Here we always examine to make certain that business has placed itself appropriately in the business setting. Situational analysis is the initial as well as main fundamental element of business process management (Bosari, 2009). Bosari (2009) outlines that situation analysis in the overall strategic management process engages looking over the corporation’s inner and outer environments as well as the background in which the business fits in those situations. It initiates by means of observing the corporation’s inner environment, looking at how workers cooperate with each other at the entire levels. It is useful to grasp interviews, discussions and surveys to obtain a better and clear picture of the current background. To look over the outer environment, managerial staff has to see at the relations among clients, creditors, suppliers and competitors (Bosari, 2009). According to Barnat (2005), the next stage of the strategic management process is formulation a business and organizational strategy. This engages shaping the company’s powers to choose which approach can be applied. In this stage of the strategic management process strategies are equipped. According to Barnat (2005), the operational strategy engroses routine functions, formulating the procedures, and procedures through which the corporation performs business. A competitive strategy entails finding means to struggle by a particular business or company. Corporate strategy is a long-term strategy that directs generally the ways the corporation plans to obtain (Barnat, 2005). Strategic management process third process is strategy implementation. According to Bosari (2009) it involves placing the planed policy into place. At this stage, management procedures spotlight on techniques and dealings designed to perform their strategies as well as the order in which approaches should be applied (Bosari, 2009). The ultimate step in the process of the strategic management engages examining the outcomes of an applied policy. This examination is fundamentally the similar as situational analysis, starting at the inner and external situations and the company’s background in which organization decides if a plan should be reformulated (Bosari, 2009). According to Barnat (2005) the strategic management process is connected with a long-run viewpoint. The time scope concerned frequently is at least 3 years and usually can be 5 or 10 years into the prospect. Though, in certain tremendously dynamic businesses, the strategic management procedure could be linked by means of much smaller time frames (Barnat, 2005). We can also say that the strategic management process is the management of transformation. This engages the system of business values, the business culture, as well as the entire managerial process of transform, like that planning, leadership, human resources management and control (Bosari, 2009). 3. Enumerate at least three differences between a corporate and a business strategy? Johnson & Scholes (2009) describe the difference between corporate and a business strategy. In this scenario they defined the strategy as a pattern of resource allocation that facilitates business to uphold or enhance their performances. An excellent strategy makes safe the exploits, threats, capitalizes, opportunities on strengths as well as fixes weaknesses. Johnson & Scholes (2009) has outlined the Corporate Strategy as it is linked by the general purpose plus scope of the company to convene stakeholder requirements. This is a vital level as it is greatly influenced by financier in the business as well as performs to direct strategic decision-making all through the business. Johnson & Scholes (2009) has spotlighted that corporate strategy is frequently declared clearly in as a mission statement (Johnson & Scholes, 2009). Corporate strategy is acknowledged as way by which a firm attains and sustains accomplishment or goals. Up till now, it infrequently grows to that rank, regardless of a great quantity of corporate strategy theories and vital research from numerous corporations over the past few years. The transformations over the years are well thought-out in the structure of small, theoretical refinements, instead of huge and major steps necessary for further management change (Verena, 2006). About the business strategy Johnson & Scholes (2009) stated that it is associated more with how a firm struggles efficiently and successfully in a specific marketplace. It connects more to strategic decisions regarding the selection of products, taking benefit over business competitors, achieving the requirements of clients, developing or creating new prospects (Johnson & Scholes, 2009). Jaquier (2009) stated the difference between business strategy and corporate strategy as these are matched to the organization structure of the usual multi-business company. Corporate strategy is the task of the top management team, supported through business strategy staff. On the other hand, business strategy is planed and applied mainly through the individual companies (Jaquier, 2009). An example of difference corporate and business strategies; Figure 2 Difference between Corporate strategy and business strategy Images Source; http://www.ecofine.com/strategy/What%20is%20SM.htm Darden (2009) considers the corporate and business strategies a way in which the overall organization operates. For a corporation that has not expanded further than its foundational business, in that business corporate and business strategies are indivisible. Its corporate strategy was principally to place its manufacture facilities in a small number of strategic locations and to assign its rum distillate as well as marketing capacity to the mainly capable marketplaces about the world. In this setting, it needs to assess how corporate and business strategies are combined (Darden, 2009). The deliberation of upper management turned as the selling of an extremely diverse portfolio of brands, products and operating companies. Temporarily, operating management in the region of the world paying attention on the details of competing in their variety of marketplaces and businesses (business strategy) (Darden, 2009). An illustration of this debate, at a business headquarters of an establishing corporation, we might hear administrators speaking of main achievements in the operations that are synergistic by means of present business, how this might persuade EPS as well as the tax picture, also what the cash-flow propositions are. Lastly, they might confer whether or not the projected attainment will assist move them more gradually into the "energy business" or "technology trade." These business strategy planning can be conceptual in nature (Darden, 2009). At the present, at the division level we might observe discussions regarding working additional closely by means of supplier X, conferring customer Y at a exacting deal, or developing a negotiating policy intended for the subsequent labor contract. This argument might be joined with theory regarding how exacting competitors are obtainable to be treatment the similar issues. These are business strategy discussions (Darden, 2009). The main difference between business strategy and corporate strategy is that, the corporate strategy defines the market as well as businesses in which a corporation operates in a better way. On the other hand, a business strategy is different in this scenario it defines for a given business the basis on which it will operate. Business strategy is defined for a given businesses the foundations on which it will compete (Hooke, 2009). Corporate strategy is generally decided in the context of presenting the business aims and future plans. This vision and future plans is presenting what business will accomplish or carry out in future. It also defines why business exists in the market and what it will perform in coming years (Hooke, 2009). On the other hand, business strategy defines how a corporation intended to compete inside a selected marketplace areas/region (Hooke, 2009). According to Hooke (2009) corporate strategy presents how a business or corporation needs to be, and a business strategy present carves out the position in which it will subsist in the market. The main element that makes different business strategy from corporate strategy is its nature that makes it successful typically hinge on corporate specific strengths, weaknesses, and capabilities in relation to external market nature and the corresponding capabilities, weaknesses and strengths of its competitors (Hooke, 2009). According to Oguz (2002) both the strategies focus on the corporation decisions. This decision based on the corporate strategy incorporates unification as well as acquisitions, new business distribution of business resources, etc. In contrast the business strategy is linked by how the organization competes inside a particular business. In assessing another view it is what outlines the business competitive benefit corporations have to achieve so as to win or to carry on in a business. Consequently, business strategy is as well referred like a competitive strategy (Oguz, 2002). Oguz (2002) also defined the business and corporate strategies as they are not division however rather a hierarchy. In this top down level the subsequent level is functional strategy that looks at functional decisions intended for finance, production, personnel, sales, and marketing. In this way the corporation that obtains larger, the difference among functional as well as business strategy grows (Oguz, 2002). 4. Explain the Principle Value of a mission statement? According to (Gray & Larson, 2006, p. 24), the mission describes "what an organization wants to achieve". Mission statements classify the scope of the firm in terms of its products or services. A mission statement presents spotlight for making decisions when it is shared by organizational managers and staff. The mission statement interacts and recognizes the function of the corporation to all stakeholders. Mission statement can be utilized for assessing firm’s performance. The workers of the firm should be devotedly attentive of the organizations mission (Gray & Larson, 2006). Jones Hill (2008) defines the mission statement as a company’s or organizations formal short written statement of the business aims and purpose. The company or organization mission statement should direct the procedures of the organization, give details about its general objective, present a sense of direction, as well as direct in effective decision making. It offers "the support or framework in which the corporation´s strategies are built or formulated (Hill, 2008). Zahorsky (2009) stated about the mission statement “mission statement should be evident or noticeable and succinct illustration of the business’s function intended for existence”. It should incorporate commonly considerable and meaningful principles addressing ideas like that the ethical/ moral position of the business, target market, products/services, public image, the geographic domain and also expectations of profitability and growth (Zahorsky, 2009). The aim of the mission statement should be the early reflection premeditated for any worker who is evaluating a strategic decision. The mission statement can differ from a tremendously straightforward to a very complicated group of ideas. Traditional components established in the mission statements are main products and services, target customers and markets, and geographical areas. Additionally, statements often consist of key technologies, public image, organizational viewpoint, and involvement to society (Gray & Larson, 2006). Also, such elements in mission statement relate straightforwardly to the organization’s success. More precise mission statements present superior results for the reason of a tighter focus. Mission statements diminish the probability of wrong directions by stakeholders. For instance, evaluate the phrasing of the following mission statements: 1. Present information technology services 2. Augment shareholders value 3. Offer high-value products to our customers 4. Provide hospital design services 5. Provide voice/data design services Obviously, the last two statements leave a fewer probability for the misunderstanding than the others. A rule-of-thumb assessment for a mission statement is, if the statement can be anyone’s mission statement, it will not present the direction and spotlight planned. The mission builds the parameters for setting goals (Gray & Larson, 2006). Zahorsky (2009) outlines that scores of strategic experts and business planning present a mission statement that is compulsory for an organization’s course and finance rising. Other advisors propose writing a mission statement turns out to be an insincere, few sentences gathered dust anywhere in the office. Zahorsky (2009) described that mission statement is a personal and corporate mission essential for accomplishment in todays hostile business environment (Zahorsky, 2009). Zahorsky (2009) outlined the need of the mission statement. He stated that the answer of the need about mission statement relies on whether or not the mission statement has prepared for the some major meaning to an organization, or is immediately an additional business exercise in ineffectiveness. A mission statement is able to direct the organization in bad and good times. An important mission is able to carry out like a moral and also like corporate range. It is able to facilitate an organization to formulate decisions aligning by our goals and values (Zahorsky, 2009). One eminence of numerous flourishing organizations is that they have a proposal intended for their business. They are familiar and up-to-date with what they are carrying out towards, as well as they are producing a business that will be similar to their vision of the future. Also they have objectives that hold up them (Realgoalgetter, 2009). (Toftoy & Chatterjee, 1990), outlined the principle value of a mission statement. They stated that mission statement is a fundamental part of the business plan of a corporation. It could be considered that those corporations devoid of a business plan and also not having a mission statement are assumed to be having mission is a small part of the business plan. In other words, a corporation having no mission statement is similar to a ship having no rudder (Toftoy & Chatterjee, 1990). According to (Toftoy & Chatterjee, 1990), a business’s mission is an everlasting statement of functional aims that differentiates its business as of its peer business, discovers its scope of operations, represents its business viewpoint and reveals the image it looks for to project. The mission statement responds the preliminary question of every business enterprise: What company is it in and what are its causes for being in marketplace? Setting up this principle in black and white has to approach first so as to proffer a sense of trend to the business. Organizations that do not have an evident and brief written mission statement, there are still lot of risks present in their overall business areas. A written mission statement spotlights the small business manager to think regarding what he/she is carrying out and where the business is headed. According to (Toftoy & Chatterjee, 1990), a mission statement portrays an organization’s idea, clients, services or products, marketplace position, area of functioning, business viewpoint as well as fundamental functioning mechanisms. A mission statement has to be the mainly evident and extensively exposed fraction of a strategic management procedure, and for that reason it is essential that it comprises the following: (Toftoy & Chatterjee, 1990), The requirements of customers and marketplaces that inform the organization regarding the company’s main customer’s requirements the company will effort to satisfy The identification of main services and products, that tells everybody what displeased, requirements the company services intended for the public. The requirement of geographic area that answers the question: where does the company struggle? The recognition of foundational expertise is essential to recognize if technology is a main concern for the business. The appearance of commitment to growth, survival and profitability, elucidates whether the business is enthusiastic towards monetary aims. The establishment of main elements in the business philosophy that wraps the fundamental thoughts, viewpoints, principles, aspirations and theoretical priorities of the firm. The acknowledgment of the firm’s desired public image provides to the query whether the firm is reactive to community, social and environmental matters. References Barnat, R. (2005). Strategic Management. Retrieved 10 27, 2009, from 24xls.com: http://www.introduction-to-management.24xls.com/en214 Bosari, J. (2009). What Is the Strategic Management Process? Retrieved 10 27, 2009, from Wisegeek: http://www.wisegeek.com/what-is-the-strategic-management-process.htm Darden. (2009). Corporate Strategy. Retrieved 10 17, 2009, from http://faculty.darden.virginia.edu/bourgeoisj/files/Chapter%206.html David, F. (1989). Strategic Management. Columbus:Merrill Publishing Company . Gray, C., & Larson, E. (2006). Project Management, The Managerial Process. . New York: McGraw-Hill. Hill, C. J. (2008). Strategic Management. Houghton Mifflin Company:. New York: page 11. Hooke, J. C. (2009). M & A: a practical guide to doing the deal. Retrieved 10 27, 2009, from John Wiley and Sons. Copyright. : http://books.google.com.pk/books?id=wxGc4QzKFbcC&pg=PA1&lpg=PA1&dq=corporate+strategy+vs.+business+strategy&source=bl&ots=_RcyGkWo9A&sig=BddI5bZ-A4qhR_QCdcp_7dXroS0&hl=en&ei=31zpSoSpLoODkAWpiriYDw&sa=X&oi=book_result&ct=result&resnum=10&ved=0CCQQ6AEwCTgK# Jaquier, B. (2009). What is strategy ? Retrieved 10 27, 2009, from http://www.ecofine.com/strategy/What%20is%20SM.htm Johnson, & Scholes. (2009). strategy - what is strategy? Retrieved 10 27, 2009, from http://tutor2u.net/business/strategy/what_is_strategy.htm Kotelnikov, V. (2009). Strategic Management. Retrieved 10 27, 2009, from New Approaches for the New Era of Rapid and Systemic Change: http://www.1000ventures.com/business_guide/mgmt_strategic.html Melé, D., & Guillén, M. (2006). The Intellectual Evolution of Strategic Management and its relationship with ethics and social responsibility. Retrieved 10 27, 2009, from IESE Business School.: http://ssrn.com/abstract=960663 Mycoted. (2009). Strategic Management Process. Retrieved 10 27, 2009, from http://www.mycoted.com/Strategic_Management_Process Oguz, M. T. (2002). Business Intelligence in Competitive Strategy. Retrieved 10 27, 2009, from http://www.information-management.com/news/5601-1.html Olsen, J. E., & Haslett, T. (2002). Strategic Management in Action . Systemic Practice and Action Research, Volume 15, No. 6 , 449-464. PIM. (2009). MANAGEMENT FAQs. Retrieved 10 27, 2009, from strategic management?: http://www.pim.com.pk/faq.htm#Strategic%20Management Realgoalgetter. (2009). Business Mission Statement, Do You Have A Vision? Retrieved 10 27, 2009, from http://realgoalgetter.com/573/business-mission-statement-do-you-have-a-vision/ Toftoy, C. N., & Chatterjee, J. (1990). The Value of Mission Statements for Small Businesses. Retrieved 10 28, 2009, from http://74.125.153.132/search?q=cache:PtZ5-pgTASoJ:www.gwu.edu/~business/casb/casb/Mission_Statement.pdf+Principal+Value+of+a+mission+statement&cd=1&hl=en&ct=clnk&gl=pk Tyran, C. K., Dennis, A. R., Vogel, D. R., & J. F. Nunamaker, J. (1992). The Application of Electronic Meeting Technology to Support Strategic Management. MIS Quarterly, Vol. 16, No. 3 , 313-334. Verena. (2006, July 10). The Meaning and Importance of Corporate Strategy. Retrieved 10 27, 2009, from Artclesbase.com: http://www.articlesbase.com/corporate-articles/the-meaning-and-importance-of-corporate-strategy-40448.html Zahorsky, D. (2009). Writing a Meaningful Mission Statement. Retrieved 10 26, 2009, from http://sbinformation.about.com/cs/businessplans/a/mission.htm         Read More