Strategic management is the process regulated and formatted by the top level management in accordance with the policies and the rules of the top level management. These are developed in order to acquire the market share as well as to attain the goals and the objectives in the target market. The strategies developed and adopted by the management are the tools through which the efficiency could easily be enhanced in order to attain the desired goals and the objectives for the organization. Apart from these, there are certain actions which are implemented by the top level management on behalf of the directors and the organizational owners in order to attain the better and effective outcomes. For implementation of the tools Continue reading
Strategic Management Terms
Strategic Thinking Dichotomies: Logical Thinking vs. Creative Thinking
It is mutually agreed that the converses of intuition and analysis generate tension during the strategic thinking process. Researchers and contributors to strategic management making the case for logic argue that for strategy to be effective, the strategic thinking process must involve extensive formal analyses and objective collection and processing of data both from within and without the corporation. Rational reasoning enables managers gain an accurate perspective on the different options available before identifying the strategic option that best serves the organization’s cause: achieving its goals and objectives. Logical analysis encompasses assessing internal and external risks, strengths and weaknesses, market need and so on; so that strategy can be thought out to fit each of the above factors. In contrast Continue reading
Porter’s Five Forces and Three Generic Strategies
The long development of Porter’s Five Forces Analysis has brought to the fact that those forces become the determinants of the industry’s competition. These five forces are treat of new entry, rivalry among existing firms, treat from substitute products, bargaining power of buyers, and bargaining power of suppliers. Furthermore, five forces analysis is treated by the organization to measure the level of competition, besides that, it is used as a strong first step in understanding how one industry compares to another and also to determine industry profitability because they influence the prices, costs, and required investment of firm in an industry. In order to be competitive enough, a normal company that seeks profitability would have to understand how they work Continue reading
Link Between Core Competency and Competitive Advantage
In order to explore the link between core competency and competitive advantage, it is crucial to understand the implications of both terms. Competitive advantage could imply exploitation of resources resulting in an organisation’s distinctive position compared to competition. While most firms view the attainment of competitive advantage as earning greater investment returns, it can comprise of various aspects, for instance, enhancing environmental impact or capturing a greater market share can be viewed as a source of competitive advantage for a particular firm. Porter (1985) defined competitive advantage as the value delivered by a firm’s products that exceeds costs of creating that value. In this context, competitive advantage was achieved by a firm through adoption of either a differentiation or cost Continue reading
What are Dynamic Capabilities?
Concept of Dynamic Capabilities of a Firm A dynamic capability refers to company’s ability to integrate, build and transform internal and external competencies. They can help an organization to achieve innovative forms of competitive advantage through integration, building and transformation of internal and external competencies, as to respond to changes in the environment. This management theory was defined by David Teece, Gary Pisano, and Amy Shuen in their 1997 paper Dynamic Capabilities and  Strategic Management. In the context of achieving organizational change, aligned to the external pressure: namely, these capabilities are perceived as business processes that use resources — specifically the processes of integration, restructuring, acquisition and release resources — to adapt or create market changes. Dynamic capabilities are especially Continue reading
Organizational Reflection
A successful organization can be described as thinking and seeing organization. Such organizations are characterized by high levels of information flow and awareness among all its members. The availability of information improves the awareness and understanding of organizational weaknesses, strengths, threats and opportunities. The organization members are also able to understand the history and strategic future plans for their organization as well as full awareness of the resources within the organization and the changing competitor environment. On the other hand, a thinking organization is an understanding organization that has a well stipulated vision, mission, objectives and the business environment that are well understood by all the stakeholders. Many organizational businesses collapse because they lack both foresight and hind sight necessary Continue reading