About Strategy Management
- Competitions in United States for outfall malls and other discounters are growing day by day. This has made the top European e-tailer’s Vente-privee.com to expand in Europe itself.
- Charles Schwab a famous chairman known mostly for his financial services companies is been worried for his customer’s sake. The major reason for worrying is because the entire success of the company lies in hands of financial advisor, who can keep customer active in equity market.
- A private firm of C. Dean Metropoulos & Company ultimately reached agreements in order to purchase Pabst Blue Ribbon, one of the popular beer brands of times with a minor hope of recreating the brands share within competition of market.
- Facing a terrific pressure over the privacy issue by the users, CEO of Facebook Mark Zuckerberg has released some set of control that would help people to understand in a better way which information they need to share online.
These all are few of business stories from one week view which usually every company faces. Here in the section, focus will be on what strategy managerial is all about and how it is important. Strategy management is a part from business that often all managers do follow.
What do you mean by Strategy Management?
The discounted retail industries are well good example of revealing what exactly strategy management is about. Both Walmart and Kmart Corporation (presently a part of Sear Holdings) has been fighting against each other for markets since the year 1962 of their foundation. These two chains also possess some similarities like store atmosphere, markets being served, organization purpose and names. Why did this difference between performance happened? The reason is for variant strategy and competition ability. Walmart has been successful in excelling strategy management whereas Kmart has failed to use them effectively. Yet, performance of Walmart in terms of finance and elsewhere it has so far been surpassing to those of Kmart. Since then Walmart has been largest retailer of world whereas Kmart has been a largest retailer for seeking Chapter 11 protection against bankruptcy.
Strategy Management is one which managers follow to develop organization strategy. This task includes all necessary functionalities like planning, leading, organizing, and also controlling being needed. What falls under organizations strategy? Plan that organization does on how to work for business and how to complete them successfully. Other than this how to attract customers and satisfy them with desired goals.
One terminology that is frequently used in Strategy Management is the model of business that describes how this company makes money. Two things are mostly focused on:
- Whether any money can be made with this or not.
- Whether a customer would value to services being provided by company,
For certain, Dell introduced a new model of business where they sell computers straight to customers rather than doing it with help of retailers just like the other manufacturer do. Did the customer value those? Yes of course! Did Dell achieve goal of making money? Yes, for sure! Since manager think all about making strategies, it gets necessary for them to think all about their business module of the company.
What makes Strategy Management important?
The summers of 2002, has seen evolution of a popular show from British television named American Idol that became best and also the most popular shows in the history of American television. Even after featuring 9 seasons all together, this show has still been the most favorite on TV even though some audiences declined for 4 seasons. Moreover, the producer eventually mentioned, “If the team is smart enough, then no reason could stop Idol’s from moving ahead”. You simply look at “The Price is just Right”. It has been more than 35 years of how effectively managers of the show American Idol has understood strategy management importance and evenly exploited aspects of business like, television show, music, concerts including all other associative products that are licensed. Now, the most challenging task for the team is to retain a strong existence within markets for the franchise with varied strategy.
Why is this Strategy management so vital? Three reasons would summon it up. The most beneficial point is that it makes a difference on how accurately an organization can perform. Why are some business seen succeeding other even after going through same worst conditions? (Remember the case example of Walmart and Kmart.) Various Researches has seen positive relation in between strategy planning and its performance. In other terms, it has been noticed that organization that makes usage of strategy management pursues higher performance level. And this fact helps managers perform well!
Another important reason is that the managers from different organizations are seen facing continuous situation change (As discussed in the chapter 6). In order to handle this situation they usually follow strategy managerial processes to examine all factors and perform on actions relevantly. At the official depot, as an example, the store managers across the entire company informed the CEO, Steve Odland about how strapped consumers with cash do not wished to buy printer papers and pens in bulk. For a certain instance, business executive across industries tried to cope up with global downturn they even worked on making flexible strategies. This made the company to create special display to promote single Sharpe pens along with five-ream of packages with paper, being half size of original big paper box.
Finally, it states that strategic managerial processes are important as organizations are diverse and also complex. Each parts of the process need to work jointly such that goals are achieved through strategy management. For example, over 2.1 million worldwide employees who work in different departments and functional area, Walmart stores, Inc., are using strategy management in order to help them to correlate and emphasis mostly upon the employees efforts upon the work of achieving managerial goals. These days, both business oriented organization along with non profitable organization are suing strategy management.
For illustration, U.S Portal services are been locked beneath the competitive battle of overnight companies of package delivery, telecommunication company, e-mail as well as texting services, and also private mail facility. In the year 2006, more than 213 billion mails used to be handled by postal services. This has reduced to 177 billion in 2009 with 17% of decline. To overcome this situation USPS’s CEO, John Potter is following strategy management for a perfect response. One action plan that most of the critics consider as drastic is probably discontinuing mail delivery system of Saturday. However, some or the other way strategy change is needed as though the USPS face loss of $238 billion for the next age. Strategy managerial technique continues to be vital for operation. It’s better to check organizations Vision of 2013 that outlines the internal plans for future. The strategy management for non profits has yet not been for well research it has for profitable organization, it is vital for this organization as well.
Links of Previous Main Topic:-
- management and organizations a managers dilemma
- Understanding managements context constraints and challenges
- Managing in a global environment
- Managing diversity
- What is social responsibility
- Managing change and innovation
- Managers as decision makers
- Foundations of planning
- Strategic management
Links of Next Fundamentals of Management Topics:-
- The strategic management process
- Corporate strategies
- Competitive strategies
- Current issues of strategy management
- Case 1 application gaga over gaga
- Case 2 application faded signal
- Summary of chapter nine with learning outcomes
- Contemporary planning processes
- Planning tools for the techniques module
- Preparing tips for the career
- Techniques for resource allocation
- Techniques that will focus more upon environment
- Basic organizational design
- Adaptive organizational design
- Managing human resources
- Managing teams
- Understanding individual behavior
- Managers and communication