The use of Strategic Management Techniques

The consumption of strategical Management TechniquesStrategic commission is concerned with formulation and execution of instrument of dodge within an system of rules. dodging in general refers to Business purpose, values or activities headache is engaged in and the way it carries come to the fore its activities, compete or operates.It freighter be described as a systematic analysis of inner factors (organization itself) and external factors ( comparable competitors, suppliers, customers etc.) to provide the basis of rethinking the current management practices. As a discipline, strategical management certain in 1970s, but it has evolved in response to changes in organization structure and corporate culture. With a great empowerment, scheme has become a great concern not just for the heads or higher superlatives of the keep company but even for employees at totally level. Its one of the main objectives is to achieve greater alignment in business policies and strategie s. It can be used to de margeine the values, goals, objectives, roles, responsibilities etc. of a business. It involves the application of corporate strategy to all aspects of organization, especially to decision making.Major Areas The three major areas of strategic management are strategic analysis, strategic formulation and strategic implementation.Strategic Analysis This area includes formulation of business vision, in foresight study of internal and external environment (PESTEL) and analysis of firms industry (task environment). The internal analysis can armed service in identifying the firms strength and weakness and external analysis reveals the opportunities and threats. An industry analysis can be performed with the answer of Porters Five Forces which evaluate entry barriers, suppliers, customers, substitute product and industry rivalry.Strategic Formulation Provided the information from the environmental scan the firm should match its strength to opportunities that has b een identified in context to its weakness and threats prevailing in the environment. To gain superior profitability firm tries to seek competitive advantage over its competitors. outline implementation This is termed to be the last stage of strategy management where all the designed strategy is implied in actual manner in the real corporate world. It is implied by means of programs, budget and procedures. The way in which strategy is implemented can be of significant impact on whether it will be successful or not. So care must be taken while implementing and communicating strategy to others.Two surface shotes for Strategic ManagementPrescriptive onrush/Planned Strategy Prescriptive appeal pictures the formulation of strategic management as a systematic process of rational thinking and logical decision making. After analyzing the business environment, strategists must set well defined objectives and formulate, select and implement strategies to achieve the defined objectives. I t emphasis that strategic management is a rational process analyzing where the organization is, where it wants to go and how it is going to get there. It is formal readying method and is most applicable in those organizations where conditions are stable and within complex and diversified organizations where correspond and coordination is from top to bottom. It has three stages and all work in a sequential manner. It includes strategy analysis, strategy schooling and strategy implementation.Long term monitoring and pull stringsSource Lynch, 2009Long term monitoring and controlThe above diagram shows that first of all analysis of business environment and resources are done in accordance to defined organizational objectives, then different strategies are designed and best strategy is chosen among all and is implemented.Example Prescriptive Strategy to Build a World Airline Singapore Airlines(Richard Lynch, fourthly Edition, Page 42-43)Widely regarded as one of the worlds largest leading airlines, Singapore Airlines started as small regional airlines in 1972. After break away from Malaysian Federation in 1995 Mr. Lee Kuan Yew (Prime Minister at that time) recognize that relatively small country care Malaysia needs a strong and distinctive strategy if it was to run short and grow. Following prescriptive strategies were under takenThe airline decided that it would build a reputation of superior service to its rivals. Thus, it introduced free drinks, hot towels and headsets form outset in 1972- such amenities are relatively cheap and quick to introduce.Substantial investment in staff training, employee welfare and related activities. Singapore Airlines took the view that staff were crucial both in-flight service deliver and also to aircraft safety through expertise in ground and related operations.Development of a modern airport at its main base in Singapore Changhi Airport Coupled with related strategy of ensuring for airlines.The investment in new flee t aircraft like for example airline introduced the new ultra long range Airbus A340-500 aircraft in 2004.AdvantagesClear objectives provide steering for the business.Makes it possible to organize complex activities and information, set targets against which performance can be evaluated and generally increase the gradation of control that can be exercised over the operation of the business.It is often linked to Competitive Positioning approach in which analysis of the business and its environment is done to get a competitive advantage resulting in outperforming its rivals.DisadvantagesThere are often discrepancies between planned and realized strategy.Rigid planning in measure of dynamic and turbulent business can be unproductive.Rigid adherence to plans may mean some(a) missed opportunities and further more it can stifle creativity as well.Does not take into good will fallibilities of the manager, culture, politics or the experiential learning abilities of organization.Emergent Approach / Incremental Strategy Emergent approach or incremental views that strategy must be evolved incrementally over a period of time. This view is base upon the premise that business is complex social organization operating in ever changing environment. downstairs such circumstances business will evolve its strategy by interacting between its stakeholders and its environment. In this the final objective is unclear and strategies are implemented on an incremental and continuous basis, it has no long term plans or process and there is unstructured in form. However, this approach does not completely ignore all the stages of strategy development. Strategy analysis is still important but strategy development and implementation is inseparable and is based on experience, trial and error adjustment.Active experimenting, learning and adjustingActive experimenting, learning and adjustingSource Lynch, 2009As it can been seen in the diagram shown above that emergent strategy is somewhat similar to hit and shack method. It involves trail and experimentation of different approaches, no single approach is chosen for implementation instead strategy is build over a time period. There is no clear distinction between strategy development and its implementation and strategy keeps on changing according to prevailing circumstances.Example Emergent Strategy at Virgin Group (Richard Lynch, Fourth Edition, Page 47)Richard Bran tidings developed a small record get off order business in 1969 and two old age later opened his first record fail and subsequently developed it into the Virgin Megastore. Looking for further opportunities using Virgin brand, luckily he met with an enterpriser wishing to develop an airlines business. This eventually led to Virgin airline business and in later years business moved into various ventures. Its business strategy is described as belowVirgin company takes the view that there are always some opportunities available for a hungry business. Th ey look for opportunities where they can offer new and better value for money than other companies, where other companies lack complacent like trains, insurance, banks and where new internet might deliver business opportunities. So the main thrust of the strategy has been to go on new market opportunities where company believes its brand name can create competitive advantage. Contrary to what citizenry may think, there constantly expanding and adverse empire is neither reckless nor random. Each of their business demonstrates the discipline picking in right market and at the right time.AdvantagesIncreases flexibility.Reflects reality and corresponds with what actually happens in an organization and their environment.Flexibility of emergent strategy allows implementation to be integrated and modified as events unfold for the organization.DisadvantagesThe downside of this approach is that no planning takes place and the organization muddles through with managers who are biased and h appy to seek lone(prenominal) satisfactory implementation rather than maximizing the objectives of the organization.It may result in lack of purpose in strategy it can make it difficult of evaluate performance, because organization has no set objectives, performance against it cannot be measured.Case Study of Easy JetIntroduction Easy Jet was founded by Stelios Haji Ioannou, the son of Greek shipping tycoon who reputedly used to hate the internet.Richard Lynch, Fourth Edition, Fifth Editionwww.businessdictionary.com/ commentary/strategic-managementwww.fieldoperative.com/Tools/Glossary/Glossary%20s.htmBusiness Strategy an introduction, By David Campbell, George Stonehouse, Bill HoustonStrategic Management, By Chris Jeff.Comparative Approach To Program Planning, By F. Ellen Netting, Marry Katherine OConnor, David P. Fauri.Understanding Strategic Management, By Claire Capon.Strategic Management for Travel and Tourism, By Nigel Evans, David Campbell, George Stonehouse.