The Strategic Management Process and Importance of Stakeholders
Question:
Discuss About The Strategies In Managing Information Systems?
What is known as the strategic management process and work of strategic leaders? Explain why the stakeholders are essential for organizations and describe the ability to influence the organizations?
The strategic management process is the set of rules and it is philosophical approach to the business. The four stages of the process are as follows:
Setting goals is essential in nature wherein collecting and scrutinizing the information is required to be done as this will help in analyzing the internal and external factors that will play an essential role.
Formulation of strategy is the second stage wherein best course is decided to understand the best course of action for achieving the organizational goals in an effective manner.
Implementation of strategy helps in designing the structure of the organization by distributing the different resources and managing the human resources.
Monitoring strategy is the final step that helps in appraising the external and internal factors that are the root of the different present strategies.
The strategic leader of the different organizations helps in influencing the organizations by aligning the different kind of systems and organizational culture as to ensure the consistency with the required strategy of the organization. The strategic leadership helps in influencing the others in introducing the different kind of techniques for enduring the success of the organization. The transformational kind of leadership can be adopted by different managers of organization as this will help in leveraging the relationships with the external kind of parties that can help them in achieving the goals in an effective manner (Galliers & Leidner, 2014).
The different kind of stakeholders are as follows:
- Product market stakeholders include the shareholders and the banks
- Capital market stakeholders include the unions, host communities and primary customers
- Organizational stakeholders include different managers and employees of the organization (Hill, Jones & Schilling, 2014)
The stakeholders are essential part of the organizations as they can affect the success or failure of the organization effectively. The organizations need to understand the different requirements as this will help them to gain strategic competitiveness in an effective manner. The new technology trends have to be incorporated in an effective manner as this will help in meeting requirements of the stakeholders. The strategic flexibility is required to be present in different organizations as this will help in coping with different kind of risks and this will help companies in gaining competitive advantage.
What are the models of strategic management used by the firms in earning returns? Describe the importance of technological and globalization innovations in shaping the organizations?
There are different models of strategic management that is used by different firms in earning returns in an effective manner. The models are as follows:
- The Industrial Organization Model is based on different assumptions that include external environment along with industry and the competitive environment that imposes pressures and constraints on different companies. Proper study of the external environment is necessary as this will help in identifying strategy to develop and acquire assets for implementing such strategy in an effective manner that will engage in profit maximizing behaviors (Lasserre, 2017).
- Five forces model of competition is wherein the attractiveness of the industry that equates to the potential for profitability as this will help in earning above average returns. In this model, the profitability of industry is the function of different interactions among the five forces in an effective manner (Trigeorgis & Reuer, 2017).
- Resource-Based Model is wherein the competitive advantage has to be built in an effective manner in order to build competitive advantage in the organization. The resources and capability of the resources is required as this will help in gaining competitive advantage (Frynas & Mellahi, 2015)
The different globalization and technological innovations help the organizations in adopting different techniques that will provide proper analysis of the other competitors in the marketing. The companies need to analyze the issues that are faced by them and implement different technological advancements as to solve such issues in an effective manner (Slack, 2015).
What is the importance of analyzing the external and general environment of different firms? Explain the difference between general and industry environment?
Models of Strategic Management and the Impact of Technological and Globalization Innovations
The external and general environment are essential in nature as this will help in understanding and providing knowledge about the competitors in an effective manner. The external environmental analysis is strategic tool that will help in analyzing threats from the external competitors and their bargaining power. This will help and analyze the companies to generate strategies to overcome such issues in an effective manner.
Furthermore, the general environment comprises of the seven elements that include global, physical, technological, sociocultural, economic, demographic and legal factors. These are the general environmental factors that help the firms in analyzing the critical global markets, application of new technological knowledge and gain knowledge relating to the different inflation and interest rates.
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General Environment |
Industry Environment |
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It refers to the different external kind of conditions that can affect the organization. It helps in describing the ways wherein the society can affect industry in an effective manner. These include government rules and other taxation policies (Bromiley et al., 2015) |
It refers to the different kind of conditions that affect the business within boundaries that are strict in nature of the financial sector. It includes the five forces model of Porter’s model. |
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It can be seen that the general environment represents different elements in broader society that influences the industries and firms to compete in such industries |
It is the constellation of the different factors that directly influences firms and establishes position in the entire competitive industry as well |
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The segments are political, demographic, social, global segments and socio-cultural segments as well. |
The factors are threat from new entrants, rivalry among existing competitors, threat from substitute products |
What is meant as strategic groups and influence on firms? What are the factors that are required to be known by the firms about their competitors?
Strategic Groups is defined as the concept wherein that groups different companies within industry that have same kind of business models along with combination of such strategies (Rothaermel, 2015).
- Bargaining power of the suppliers
- Threats from existing rivalries
- Rivalry against the existing firms
- Bargaining power of the buyers
What is the importance of internal environment along with determination of criteria that is required to determine the capability of core competencies? Define value and capabilities and their importance?
The internal environment helps in analyzing the different strategies that can be used by the firms to gain competitive advantage sustainable in nature. Proper ethical implications are required to be done as this will help in influencing ability of firms to earn above average returns. The firms need to analyze the kind of risks that can be taken by them as this will help them in solving such issues.
Values is defined as characteristics of performance of products and the attributes of products that will be bought by the customers in an effectual manner. The value is created by the firms by leveraging and building the different resources along with capabilities. The values have to be created as this will help in solving the analysis of general and industry environment in an effective manner (Bettis et al., 2014).
Capabilities is defined as wherein the firm needs to analyze the different kind of threats from the other firms in the competitive market. The capability of the firms is essential in nature to identify such issues that can affect their business against the competitors in the market (Pearlson, Saunders & Galletta, 2016).
State the differences between tangible and intangible resources? Explain the techniques used by firms to analyze value chains?
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Tangible Resources |
Intangible Resources |
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In tangible resources, the structure of the firm is formal in nature and the distribution facilities are different from the intangible resources |
The human resources include the different knowledge and trust to provide abilities to collaborate with others |
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The borrowing capacity of the firm is better than the intangible resources |
There are different kind of resources such as capacity to innovate in an effective manner |
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There is huge availability of the technology-based resources and this will include trademarks and patents |
There are different kind of reputational resources that include positive reputation and this creates positive reputation |
The different techniques used by the firms to analyze the value chain is by analyzing the marketing and sales wherein the customers can purchase different products and induce them in order to maintain proper value of the product. The operations of the firm has to be analyzed in order to convert the inputs in an effective manner that will help in providing and distributing products to customers.
References
Bettis, R., Gambardella, A., Helfat, C., & Mitchell, W. (2014). Quantitative empirical analysis in strategic management. Strategic Management Journal, 35(7), 949-953.
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk management: Review, critique, and research directions. Long range planning, 48(4), 265-276.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA.
Galliers, R. D., & Leidner, D. E. (Eds.). Importance of Strategic Leaders in Organization(2014). Strategic information management: challenges and strategies in managing information systems. Routledge.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Lasserre, P. (2017). Global strategic management. Palgrave.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
Trigeorgis, L., & Reuer, J. J. (2017). Real options theory in strategic management. Strategic Management Journal, 38(1), 42-63.
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