Strategic Management Model: Bryson’s Strategy Change Cycle for Strategic Planning

In ensuring effective strategic change in an organization, strategic planning is inevitable for organizations to develop and implement strategies through the strategy change cycle. A strategic change cycle is a systematic procedure that is indispensable in determining whether an organization will be successful. The strategy change cycle is among the primary processes of strategic management that links the processes of planning and implementation and ensures that the process is carried out consistently and in alignment with specific organizational goals. The following section discusses ten vertical steps in the change cycle by keenly describing why they are essential for organizations in planning and implementing their strategies. Its purpose is to develop a consistent commitment to the mission and vision of an organization, both internally and externally, at the same time with maintaining a clear focus on the organizational agenda with the help of relevant activities and decision-making processes. Strategy Change CycleContinue reading

Business Strategy Implementation

The business strategy will be implemented through the concerted actions of all staff working within a partnership framework. The Board will set objectives and parameters, for the business strategy implementation, and will review progress in achieving objectives. Management will take ownership, give leadership and agree with staff clearly defined roles and responsibilities in achieving targets and milestones. It is also recognized that resources issues may affect the full implementation of the strategy. To assist management in carrying out its role in delivering the strategy and whatever may evolve in the future, an integrated management development programme, with a particular focus on business planning and performance management, will a particular focus on business planning and performance management, will be provided. It is anticipated that other issues will emerge as the process evolves. The project groups will comprise of management and staff, at all levels, who have expressed an interest, and whoContinue reading

Business Level Strategy vs Corporate Level Strategy

Business level strategy is defined as an organizational strategy that seeks to determine how an organization should compete in each of its businesses. In contrast, corporate level strategy is an organizational strategy that seeks to determine what business a company should be or wants to be. At the heart of business level strategy is the role of competitive advantage. This is what sets a company apart from its competitors and gives it a distinct edge. Sustaining competitive advantage will be based on the interplay of the five forces in an industry. According to Porter (1990), these five forces are the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers and rivalry among firms. By performing an industrial and internal analysis, a firm can then identify its competitive advantages so that it can pursue the right strategy. There are a few majorContinue reading

The Role of Intelligence in Strategy Formulation

Strategic management is that ideas and injunctions that enable the organization achieve its objective or long-term target to perform a better performance. The purpose of strategic management is to seek the opportunities for better future of the organization. Generally, good strategic management practices can improve the organization performance and achieve the organization target objectives. The strategies on an organization are made by the management itself to ensure the successful of the organization. The strategic management process consists of three stages which are strategy formulation, strategy implementation and strategy evaluation. Strategy formulation want to ensure that the organization achieve the objectives that they have been made. Strategy formulation includes the decision on what business to conduct, how to allocate the resources, and whether want the business join or enter to international market. Besides, strategy formulation phase includes developing a vision and mission, identifying an organization external opportunities and threats, determining internalContinue reading

How Innovation Contributes to Competitive Advantage?

From competitive environment, products within the same marketing from each provider are quite similar and difficult for customers to realize the difference. Innovation capability is the key productivity that creates competitive advantage by perceiving or discovering the new or better way to compete in an industry and launch them into the market. One of success factor depends on innovation’s relative advantage. Innovation has become the most important asset that creates competitive advantage for company, and the first mover advantage when getting magnitude of market acceptance. In the long run, maintaining product innovation is the way to sustain competitive advantage and drive the growth of productivity for further competitiveness of the company. However, product innovation always comes along with new process technology. Around half of the Fortune 500 in 1980s was disappeared from the list in 1990s because of three fundamental forces; wealth, fashion and invention. From this information, it showedContinue reading

Organization Design

Designing organizations is a complex exercise. Organization Design involves making choices about how to group individuals and structure their tasks. According to Harvard Business School professor Robert Simons, in his article “How Risky is your Company?”, organization design must take into account the company’s strategy, competitive environment, stage of the life-cycle and various other factors. In short, it is a fine balancing act. In the early days of an organization, organization design receives little attention. But over time, problems emerge as the charisma of the founders becomes insufficient to manage a larger enterprise. Systems and processes become important. This is when a functional structure is typically chosen. After some time, the functional structure becomes inadequate to respond to the needs of the market place because of centralized decision making. At that point, a divisional structure becomes necessary. But with time, a divisional structure leads to fiefdoms. Coordination becomes difficult, resourcesContinue reading