The Significance of Strategic Management in Enhancing Competition through Innovation
Strategic management is very crucial for the maintenance of the organizational property and another business processes and procedure. It entails setting of corporate objectives and goals that are leading to opportunity identification and increases competition chances. Strategic decision making helps in getting a better understanding of the global issues related to property maintenance and business activities. It helps in the examination competition advantage, and environmental dynamics can be built through proper planning and cost-effective means. (Tomczak, Reinecke, & Kuss, 2018). Innovation is a crucial component that enhances or increases the organizational competition. In the market, the uniqueness of the product or services increase the chances of making more sales. Strategic management of the business or any enterprises determine the actions, goals, and utilization of the resources. Achievement of the long-term organizational goals is highly linked to the initial planning and the management. The stakeholders of the enterprises must be consulted, and their interest addressed. The process of decision making and problem-solving entails representative from various department and the views of the stakeholders are given consideration. Top management does not control everything but there is collaboration and working together to achieve the set goals. Strategic planning and management of the facility or property need a set of plans for the future. A proper understanding of the organizational purpose, internal relationships, business principles, basic strategy, standards policies and the culture is also essential for planning and management. (Bettis et al, 2014). Strategic management involves stages such as strategic evaluation, implementation, and evaluation. It requires the establishment of the mission and vision, long-term goals, assessment of the performance, and implementation of the strategies. It helps in showing the processes and the procedures that are critical for the business and the continuous action for the success of the enterprises.
Management of the enterprise requires excellent leadership and strategic planning. It easy for a business to fail if proper decisions and steps are not put into consideration. Planning and management are very crucial in the economic and business environment. For the success of every organization, formulation of strategies for its operations helps in understanding the effects of strategy on the productivity or performance of the business. Strategy management helps to prevent the collapse of business and enhance its operations (Goldfarb & King, 2016). Many organization experience both planning and management problems. For instance, it becomes hard for the enterprises to make a profit and increase the productivity. Every business aims at making a profit and accomplishing its missions. When a business fails to achieve its mission, it leads to poor performance. The relationship with the customers is ruined, and the probability of the business collapsing is high. The primary goal of the document is to assess the impact of strategic management it the business operations.
Challenges in Decision-Making and Problem-Solving
The study aims at understanding the strategic management and the impact it has on business operation. Planning and management determine the success of the facility or property. The research enlightens those involved in the management or planning to make a wise decision. The overall activities which take place in the organization are based on the solutions provided to any problem and objective of the organization. The following are the objectives which are discussed.
- To identify the elements and approaches that are used in the strategic management and planning of a facility
- To discuss the benefits of the strategy management
- To identify the maintenance management in a business operation
- To discuss the effects of strategic management concerning a business
One of the challenges faced is incomplete answering of the questions. The questions were not adequately answered which took time for the analysis of the data. The information had to be compared with the other respondents’ answer and come up with concrete information. Some of the respondents also gave points that were outside the information I was collecting. The action was compensated through analysis of the valid information only.
The collection of data employed both secondary and primary sources of data collection. The data was gathered from various managers who are in charge of the big and successful business. It was collected from planners involved in the process of making decision and provision of a solution to some problems. The interview was to get information about the impacts of strategic management in business operations. The activities which can lead to the success of the organization after strategic planning and its impact on general operations. Questionnaires were utilized to collect information about how the organization engages in strategy management. The stakeholders who might be involved in the process of decision making and how generally it affect the operation of the facility. The study also reviewed the information from books and journals which helped to gain more understanding of the topic (Moutinho, & Vargas, 2018). The analysis of the data was done through descriptive analysis and presented in table and pie chart.
Strategic planning
The general approaches that apply to strategic planning are resource based where the plans of the capabilities and competencies of the business are laid down (Klingebiel & Rammer, 2014). The position of the business is also analyzed based on the external approaches. Accounting led of the enterprises focuses mainly on the financial targets including ways to increase sales in a business, growth targets and mechanisms to improve business operations or make more profits. It can be considered to take place in various phases. Some of the phases that characterize strategic planning are analysis, monitoring, formulation, and implementation of the strategies (Brewster, 2017). The policies, practices, tactics and the objectives are also given priority in the action of planning. The statement of the policies and long-term goals help in making the strategic plans complete. The tasks or the tactics are broken down into more straightforward actions that can be achieved more conveniently. The process can be time-consuming and incur a lot of cost, but the final results are worth the procedures are taken. The business needs clear analysis of the existing circumstances, come up with any possible ways to tackle them and implement the best options strategy management elements
Preventing the Collapse of Businesses through Strategic Planning and Management
Some of the assets which are incorporated in the strategic planning and management are financials, machines used in the production or service delivery. There are also other tools that helps in the smooth running in the organization and need proper care. The workforce provided by the employees and the leadership training are considered as part of the facility (Dibrell, Craig & Neubaum, 2014). When budgeting, the managers and other stakeholders involved in the financial issues give attention to the finances of the property. The process looks both the assets which have been bought and the money in the bank. The strategic management and the planning team also budgets on the maintenance cost that needed to ensure the equipment used in the operation are in good condition. The organization budget on the on the money used for the payment of the employees and any other services provided. The assets are managed through regular maintenance and repair of the worn out parts (Wolf & Floyd, 2017). The assets can be managed by replacement of the poor leaders and promotion leaders with desirable qualities. The report on the condition and the budget of the assets is represented to the department concerned either monthly yearly. The assets are owned by the organization or the owner of the facility who bought them. It is the own by the organization and the manager ensures all the operations involve the safety of the assets.
Strategic management is comprised of the strategic choice, implementation, and analysis which are crucial for enterprise operations. The strategic analysis encompasses items such as objectives, resources of the organization, environment of the business operation and the expectation of the stakeholders. It ensures a smooth running of the businesses and the operational activities. The choice of the strategic management and planning can be based on the options for the generation evaluation and the choosing of the proper strategic plan (Jarzabkowski & Kaplan, 2015). Choice helps in making the success of the business and building a strong foundation for business operations. Resources, stakeholders, and the organizational structure determines the strategy implementation. The policies and practices aid in the maintenance of the culture of the organization and the interrelationships between people. Strategic planning for any facility or business activities puts into consideration feedback from the stakeholders, control, and the review activities. Feedback is valuable because it gives the organization opportunity to monitor the regular events and the laid down strategies. Based on the input provided, it is easy to take corrective measures of the enterprise. The increase of the productivity can be realized and the expansion of the business operations. Similarly, strategic analysis happens in a series of steps. Identification of the statement of the mission is the first step (Jarzabkowski, & Kaplan, 2015). The purpose of the enterprise and the attributes which can make it successful. It is followed by the profoundly examining the objectives of the business regarding financial targets, timescales or the expected profits. Thirdly, analysis of the environment regarding the threats which might be involved and the opportunities available. The weakness and the strengths are also considered so that all factors are analyzed. Fourthly, the position of the organization which is characterized by the resources which are available for business activities and the internal environment. The customers, level of technology utilized in the organization and the products help in understanding the effectiveness and the efficiency of the business. Lastly, the overall progress of the based in analyzed. It is based on
Maintenance of the facilities in any organization requires strong management that ensures both the resources and the equipment are used in the best ways possible. The management team provides the stakeholders to handle the assets of the organization correctly. Continuous service and cleaning of the structures, operational machines, and the building are very critical. Some of the customers can be impressed by the outer appearance of the business. Therefore, it is very crucial for the strategy management or planning to design the outward appearance to be attractive to the customers. The quality of the equipment or the machines used determines the kind of the product offered if the devices are of high quality and are maintained at the required level, it easy to produce reliable and quality products. (Dibrell, Craig & Neubaum, 2014). To attract more customers, the uniqueness of the product is needed, and this is facilitated by the resources used. The top management, managers, and other employees need to collaborate in most of the activities to realize the success of the business. The management maintenance can be performed through replacement of leaders who are not playing. Employees who are doing better can be promoted. Management performance can also be done through replacement of the old machines which are used in the process of production. The management and maintenance of the property also entail strategic planning. It helps in making the decision that is relevant to the organization and related to the goals, mission and the objective of the enterprise. The leaders are given a chance to allocate enough time for each of the tasks carried out and transparently ensure distribution of the resources.
For proper decision making and the success of the business and detailed approach to strategies are needed. It focuses on the changes that might take place in the course of specific projects, goals, experiences, past practices, and the regular reviews (Grant, 2016). Logical instrumentation is one of the approaches considers the short-term and small decisions operated on the business of the experience. The experience helps in the determination of the activities which can work productively and those who have shortcomings. Continuous decisions are made based on the short-term goals and the past practices or the experience which was gathered previously (Malekpour, Brown & de Haan, 2015). A logical process is used in the evaluation of the decisions which can work efficiently. It is assisted by regular reviews activities as well as taking into account the past practices. Furthermore, a new approach that involves regular events which leads to increasing the operational activities of the enterprise. It is believed that the strategy is built from tactics that are utilized by the organization and the operational activities. Moreover, Freewheeling opportunism suggests the activities or the actions which are preferred by the entrepreneurs. The entrepreneurs have their suggestion and view of issues. Some of the matters are preferred because they lead to the success of the business. It includes looking for the business opportunities and taking into account activities which involve a lot of risks. Most of the decisions and the solution provided by the strategic are related to short-term goals. Short term goals that include a lot of risk-taking have increased opportunity or probability of making profits.
It can be related to the position of the enterprise operations, strategic direction choice and the method used in achieving the set goals. It is imperative for the organization to identify its capabilities and the position in the market. The choice made is based on the ability to come up with best solutions in the enterprise that can increase the productivity or business performance. For the success of the business, competitive advantage should be thoroughly analyzed and its sources. The sales will depend on the ability to outdo the competitors and the uniqueness of the products or services provided. The strategy will be formulated if the business has implemented ways to be more competitive in the market. The primary tactics for competitive advantage that should be addressed are related to the cost of leadership and ability of differentiation (Epstein, 2018). The cost of leadership focuses low cost of production and increase on both quality and profits. Differentiation gives an opportunity for the organization to exploit either the services or product that are seen as unique in the selected industry of business operations. Differentiation can be achieved through the increase of the size, change of the image, providing services or products to many market target groups and increasing the quality.
Additionally, Porter’s model helps in the process of strategic management or planning because it encourages the organization to analyze the position of their rival using research in the market. It can also use cost structures. The model aids in the analysis of the risks which are related to their current strategies including a change in technology. Generally, the Game theory is very important for the competitors. In the situation of competition, the strategists put themselves in the condition of the competitors and use their logical view to choose the best strategy. It also helps in the critical and creative thinking. It entails choosing a strategy that gives a deeper understanding of the business outcomes or action that is taken. Development of a new product for the available customers do the business to expand due to demands. The products can be developed from the existing materials or come up with new and unique products. The strategy gives morale to the customers to innovate new products and discourage other similar business entry into the market. Product diversification can also increase the potentiality of a business (Galliers, & Leidner, 2014). When a business comes up with another alternative source of income or funds, it becomes easier to expand the existing business activities. Product or business diversification are facilitated by zeal to exploit the economy scope, power increment in the market, coming up with above processes and an increase of the management competencies. However, the formulation can be based on various approaches such as resource approach and core competencies. Resource bases approach is applied in the process of distinguishing the capabilities of the organization the resources which are used (Lasserre, 2017). The resources are utilized as the inputs in the process of production and the capability utilized to show the performance of the team involved. The core competency mainly entails the research support and the purpose of clearly outlining the behavior of the organization. The performance of the business is based on the active organizational culture and enhanced relationships that create room for business operations.
Management of energy helps in cost reduction in enterprise operations. The energy can be the power that is used in the production process or service delivery. Top management and other stakeholders also can be part of the energy utilized in the business. The managers ensure the operation of the energy follows the right procedure (Hill, Jones & Schilling, 2014). Achievement of safe energy management can be done through strict observation of the safety measures which are related to power utilization. The standards rules and regulation provided by those in power should be adhered to for the progress of the business. The production process can employ a mechanism that consumes less energy, and the managers should make sure those guidelines for saving energy are followed. Collaboration and working together as a team helps in the management of energy.
The study is significant in understanding the essential elements and approaches that should be considered for any business operations. The research addressing the issue of competition shows the importance for the management of the facility to take advantage of the opportunities available. It also shows how strategic management helps in the success of the business by coming up with reliable solutions to the problems facing the organization (Trigeorgis, & Reuer, 2017). The study articulates the importance of management maintenance and the assets which should be taken care off. Any entrepreneur will know the assets such as equipment, leaders and the resources which are used in the business. Capital and leaders essential tasks in facilitating the progress of the enterprise (Lichfield, Kettle & Whitbread, 2016). Furthermore, the study benefits the organization through understanding different activities of managing energy. The employees and the managers will get conversant with the benefits which are linked to the maintenance of the energy and how it reduce the cost.
The managers involved in energy management should ensure employees adhere to the safety measures provided by the department of power. It will reduce the cost through saving energy. The process of production and service provision should ensure that all the activities use the methods and procedures which consume less power. Strategic management and planning should put these processes, practices and procedures into consideration. Similarly, maintenance management should encourage proper use of the organization resources and the assets. Proper use will reduce frequent maintenance and will save the cost used in the process. Planning and management should purchase equipment and tools which have long durability. The resources should involve the trend in the modern technology and incorporate strategies that meet the needs and the desires of the customers.
References
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