Features and styling with more buyer appeal. The soft skills are equally important to steer the implementation. The complexity in the external domain of business has increased and forecast-based planning may no longer be feasible or reliable. Strategic plans aim at achieving strategic goals. The concepts and techniques of strategic management have evolved over the years beginning in the 1970s in a lukewarm way. Strategic management plays a dynamic role in achieving success in today’s business world. Although the SMEs in this study had limited financial and human resources, they were still able to develop technological solutions that allowed them to reduce operating costs, increase capacity, diversify product and service offerings, increase exposure with clients and expand their market share. Get e-Books "Strategic Management" on Pdf, ePub, Tuebl, Mobi and Audiobook for FREE.There are more than 1 Million Books that have been enjoyed by people from all over the world. In the 1950s, 60s, and 70s the conditions for business were more benign. It becomes much easier when competitors do not have offsetting competences. And competitive advantage comes from strategies that lead to some uniqueness in the marketplace and high perceived value in the eyes of customers. Strategic thinking implies thinking beyond the boundaries of one’s assigned domain such as a function or a division. Changes are continually occurring in demographics, economic conditions of the country where a business is located, trade practices due to deregulation/ liberalization, diversity of workers such as entering more and more female workers in the workplace, technology, and globalization trends. The site’s search engine allows clients to input the features they want in a home and quickly access an appropriate model. What are the ethical implications of forbidding a company’s purchasing agents from accepting gifts from vendors while encouraging sales agents to give gifts to prospective buyers? Strategic Management Courses is considered one of the most important courses that you will take during MBA postgraduate degree as it integrates other courses, builds on them, and acts as a stepping-stone to the real world of business.. For example, the vision and technological know-how of managers at Auberge de La Fontaine, a small hotel in Montreal, and Colibri Tours, a travel agency, led these companies to develop a Web site. They can show by examples – they must practice ethical standards. Since then, the body . Having the best-made product on the market. According to Michael Porter, the undisputed guru of competitive strategy, “strategy is about the competitive position, about differentiating yourself in the eyes of the customer, about adding value through a mix of activities different from those used by competitors.”, In his book, he defines competitive strategy as “a combination of the ends for which the firm is striving and how it is seeking to get there.”. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. According to the definition provided by Thompson and Strickland, a strategy is the means used to achieve the ends. (answered by the intent/mission), and. Dunham and Pierce have defined strategic planning as the top management’s active and conscious effort to design a plan to place an organization within its external environment. Once established within an organization it becomes the philosophy of the organization. Revue Gestion, for instance, established an on-line database for individual and corporate clients. Suppliers relationships and procurement practices. As Table 2 indicates, most of the SMEs in our study chose the preservation model. Business strategies are composed of competitive and cooperative strategies. They must also think strategically about the impact of changing conditions. Our study shows that SMEs usually develop Web sites and e-shops that complement their products and services, and fulfill their need for identity and independence. Not to grant a franchise to an individual who already owns another fast-food restaurant (policy of an international fast-food chain). According to David, [1] strategic planning is sometimes confused with strategy formulation, because strategic plan is constructed in this stage. Effective implementation is as much a reflection on managerial capabilities as is the formulation. Organization-wide learning is initiated if the organization is adapting to global-level changes. Examples of the competitive strategies include differentiation strategy, low-cost strategy, and focus or market-niche strategy. There is a wrong notion among some people that strategy-making and strategy implementation are the prerogatives of senior managers only, especially the Chief Executive Officer (CEO). It incorporates industry conditions, competitive situations as well as the vision, mission, objectives, and strategy. When Ford was a dominant manufacturer the demand for the cars could be estimated and extrapolated, the market was homogenous, a regulation was limited, and manufacturing was localized. E-Commerce & Strategic Management Chandra Shekhar Pandey Assistant Professor- SRCM 2. In the implementation phase, the organization also accomplishes strategic change since the structural configuration of the organization, leadership, and culture may undergo an intended or inadvertent change. Strategy-focused objective­setting is concerned with establishing long-range objectives for the organization to achieve the vision and mission. (R. Amit and C. Zott, “Value Creation in E-Business”, Strategic Management Journal, 22, 2001, p.493-520.) The strategic management process developed over the years from the erstwhile planning approaches such as corporate and strategic planning. The last element of the strategic management process – strategic evaluation and control – aims at establishing standards of performance, monitoring progress in the implementation of strategy, and initiating corrective adjustments in the strategy (if anything goes wrong). This decreased turnaround on orders from 12 days to less than 48 hours, and reduced the number of errors. (Answered by corporate strategy). What business is it doing or does it want to do in the future? Is the response ad-hoc or systemic? Strategic management is the process of strategic analysis of an organization, strategy-focused objective-setting, strategy formulation, strategy implementation, and strategic evaluation and control. Policies are formulated to ensure clear guidance to managers and other employees throughout the organization. Their beliefs about, for example, the importance of employees as individuals, of formality in communication, and belief in superior quality and service are reflected in the philosophy. In our study, only Revue Gestion established a set of indicators to assess the performance of its e-business project prior to implementing e-business. Because of the liberalization of trade and financial services, companies are becoming more and more globalized. It synergizes the strategic and operational orientation and provides an overall framework for resource allocation among different units and time horizons. Many of these indicators are automatically captured on Revue Gestion’s Web site (see Table 3). A policy is a broad guideline for decision making. How is it going to conduct itself to achieve this strategic position. This article illustrates the strategic management process involved in adopting e-business, based on the experiences of 11 Canadian small- and medium-sized enterprises. When defined this way, objectives are considered as part of strategy formulation. Initially, the concept of long-range planning was used in a few large companies in the USA. All rights reserved. Strategic management is a process of analyzing the major initiatives that contain resources and performance in external environments, which a firm's top management manages on behalf of the company owners. And though SMEs usually have limited material and human resources at their disposal, these authors state that successful e-business solutions are still within the reach of these companies. After many years of negative growth, Revue Gestion, a magazine for business practitioners and academics, also sought to boost readership by going on-line. The answer to this question was that the risk owing to the astronomical escalation in the price of prime real estate was too high. And so uncertainty creeps up. Is the export of a product banned in home country ethical practice for a multinational company? The world is moving online—across all industries. La Ferme Martinette, a maple-product business in Quebec’s Eastern Townships that markets its merchandise on-line, must rely on Canada Post to deliver goods to its customers. Functional strategies are adopted to support a competitive strategy. Strategy implementation requires: The objective of the evaluation phase is to check if there is any fundamental flaw in the strategy that can be corrected. After acquiring a sound understanding of how to create economic value with e-business and determining the firm’s desired positioning, managers must finalize objectives relating to sales growth, cost reduction and profitability. The other objective is to judge performance through operating results. However, the company did not go on-line until 1998, and in 2000 the Auberge enhanced its Web site with more complete information; a database and real-time pricing system were also set up. Its publication proved to be a landmark moment in the development of stakeholder theory. Changes can impact the entire industry. This improvement is largely due to the introduction of corporate on-line subscriptions for businesses and associations, which increased subscription rates from 2,500 to more than 30,000 in one year. Business people deploy resources of various types to achieve objectives. Integration among different units’ processes and functions. Organizations gradually take up the entire spectrum of the strategic management process. Social, political, economic and technology-driven events that are external to the organization have a bearing on the products, market and technology-related choices the organization makes. This post presents the context of long­term decisions, discusses, in brief, the changing nature of the external context and how organizations respond to the ever-changing external context by adopting strategic management. The concept of strategic management got worldwide attention in the 1990s. The existence of a code of ethics or code of conduct makes an environment in organizations where all people try to make ethical conduct a way of life. The Model T manufactured by Ford Motor Company is different from today’s motor car but it was also made with a different perspective altogether – a perspective that placed the manufacturer at the center and not the customer! The functioning of business was impacted more by concern for meeting escalating demand in the developed world. It provides a “blueprint” for operating a business, establishing a competitive position, ensuring customer satisfaction, and reaching strategic objectives or goals. Such a strategy describes the company’s overall direction in terms of its various businesses and product lines. The purpose of this course is to enhance your capacity to do the job of a general manager responsible for strategic performance. A strategic objective provides statements of definable and measurable achievements. Previously, clients had faxed their handwritten orders, and these were not always easy to read. For example, 20 per cent of Polar Plastic’s customers wanted the Montreal-based plastic-ware manufacturer to adopt an electronic data interchange (EDI) system, which was too costly, given the company’s small client base. Privacy Policy. Revue Gestion’s on-line presence has increased the company’s revenues by over 25 per cent. In addition, firms that select this model generally place a high strategic value on the project. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. (policy of a manufacturing company). Creation of a sense of ownership among managers for the decisions which systemically would be changing the organization. Strategy formulation entails making decisions about selecting the strategy to achieve the long-range objectives. Other functional strategies such as marketing strategy, advertising strategy, and financial strategies are also to be formulated appropriately to support the business-level competitive strategy. Being in a more convenient geographical location. This shows how evaluation helps in avoiding suicidal mistakes and how flexibility can be built in strategic decisions. The travel agency was able to improve the speed and quality of its services, reduce its promotional costs and lock in customers. It is a general guide for action and that is why it is the most general form of standing plan. For example, Toyota Motor Company of Japan is believed to have core competencies in the design and manufacturing of cars using just-in-time philosophy. The process by which the organization responds to the environment. Fairness in selling and marketing practices. These plans are set by the senior-most managers (directors in the company’s board and the CEO plus other senior-level people). Thompson and Strickland have prepared a list of topics that organizations usually cover in codes of ethics: Organizations should develop procedures for enforcing ethical standards. The strategic management process entails several pertinent issues that need clarification for better understanding. It specifies the organization’s response to a designated problem or situation. Most successful companies have been found to have a strategic plan in the form of a written document. Basic concepts and issues such in Strategic Management are; Organizational philosophy establishes the relationship between the organization and its stakeholders. This step is equally crucial for e-business planning. The advantages of strategic management in an organization, especially in a business organization, include: A strategic plan is prepared to cope with several issues, such as the industry and competitive conditions, expected actions of the key actors in the industry, and any obstacles to the success of the organization. Every manager must have a clear understanding of the relevant concepts as well as the basic issues of strategic management. The competitive strategy aims at gaining a competitive advantage in the marketplace against competitors. The strategy provides a way to deal with changes and their accompanying uncertainty both inside and outside the organization. Table 2 presents four different procurement models: partnership, preservation, outsourcing and recovery, and the solutions adopted by each SME in this study. Strategic Management Definition: The term ‘strategic management’ is used to denote a branch of management that is concerned with the development of strategic vision, setting out objectives, formulating and implementing strategies and introducing corrective measures for the deviations (if any) to reach the organization’s strategic intent.It has two-fold objectives: Small- or medium-sized enterprises that adopt an e-business model must often make significant changes in their business processes and in the way they interact with customers and suppliers. Even though the managers responsible for implementation may be different from those responsible for formulation in large diversified organizations, on­going consultation between the two to probe, discuss and decide the plan of action is important to lend the phase a push. Until recently, the cost of contracting this particular EDI solution through an intermediary was a few hundred dollars per month. Admission will be granted only to students who secure a minimum of 60% marks in the admission test (admission policy of a university). It familiarises the student with the terms that are associated with strategic management and is used extensively in the post later. The response spans the domains of marketing, finance, operations, human relations, technology and innovation, leadership, motivation, organization, culture, design, and systems. If they continue doing what they have been doing, they might end up with having a future even worse than the past. The realization of such achievements marks the fulfillment of an organization’s mission statement. The strategic management process entails several concepts and issues that need clarification for your better understanding. A product moves from the stage of raw materials to the benefit of this course is to create commercialize... 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