Discussion on Strategic Management Planning and Decisions -Sample

Question: Discuss about the Strategic Management Planning and Decisions. Answer: Introduction The process of strategic management involved all types of planning and decisions making process that are taken by top management of a business organization. The overall business planning is decided with the help of the strategic management process which aims to improve upon the performance of a business organization and also raise the amount of profitability. All the major marketing decisions and management process are done with the help of strategic management. It is important for all business organization to properly plan the strategic management process in order to properly implement the entire business plan in practical that can help to build a strong foundation for the future. The current essay will focus on the strategic management practice that is implemented by enterprise Life Insurance Company. It will help to define the concept related to strategic management practice and also the importance of strategic management in context of modern day business processing. The innovative strategic management techniques that are practiced by the business organization are also highlights it along with providing few real life examples of strategic management. With the help of this assignment it is possible to highlight upon the importance of strategic management practice that can help in development of business plan. Strategic Management? In any business corporation there are many ups and downs that represent challenges and hurdle in the path for success and attaining sustainability in the market. With dynamic economy changing its stride every day, this is corporations belonging to different disciplines and with different target markets are struggling to cope with the cut throat competition. The human society advancing a new notch every day, placing the customer base is not an easy task anymore. The consumers are more aware of their types and importance now more than ever before and the struggle for the different organizations to be at the top of the game has become an everyday challenge to overcome. With a new challenge to overcome everyday strategic management and execution of smart work has become any pursuit of business organizations nowadays. Business organizations strategic management as an armor to overcome any hindrances that may come in the path for it success and prosperity in the market. Many business analysts have team strategy to be the central part of organisational life and pivotal activity in order to facilitate awareness and physician in the critical decision making involved with corporate scenarios. There are two integral elements of organisational strategy, when strategic thinking and the other is is strategic decision making (Moutinho 2011). The fact does not need to be more pronounced that both these elements are extremely interlinked and are vitally important in Association with corporate challenges and problems. In simple terms strategic management can be defined as the formulation and implementation of prime goals and initiatives undertaken by the organisa tional body to cope with the disruptions in growth graph of the organization facilitated by factors belonging to the internal and external environment of the corporate organization. It should not escape noticed that in the face of dynamic economy that will even the place of strategic management in the corporate scenario is Paramount and without the foundation of strategic management the growth of organizations can fall to pieces (Eden and Ackermann 2013). Importance of strategic management in organizational perspective Every business organization wants to make wise critical decisions, in order to ensure extreme profit for the organization and avoid the chances of any laws that the company may face. However making the perfect critical decision in case of a potentially harmful challenge in the corporate scenario can be very tricky. Studies suggest a strategic management is the new face of Corporate understanding however it is the same subject that is often misunderstood and flawed used in the concept of business organization. In very simple terms the word strategy indicates at an important tool to extract elements from different cognitive dimensions that are influential in Planning and undertaking actions that are the perfect fit for a particular adverse situation. It has to be mentioned that any risk situation that has a considerable risk matrix ratio in the organisational perception, man's planning and implementing a set of actions that can positively antagonize the effect that the particular risk has the potential to inflict. Strategic management is the one way out for proactive and reasonable decision making in the face of any risk situation to prevent and to manage and neutralize the adverse effects of it (Swayne, Duncan and Ginter 2012). Other than the telltale importance of strategic management as a coping mechanism for risk situation, the importance of strategic management is much broader spectrum. Strategic management is an accident mechanism to manage the business operation processes in a day to day basis and planning for future success by the means of financial planning HR management and facilitating focus for a mission statement. Other than that corporate governance is also advantage of having an effective and efficient strategic management in the organization under consideration (Wheelen and Hunger 2011). Mini business analyst have considered strategic management to be one of the core competencies required for successful business management, according to their views without a proper strategic management most of the corporate decisions and operational processes will be massacred without an order to neutralize it. Last but not the least facilitating and pre-fixating future goals and missions is also largely faci litated by active strategic management, with proper and efficient strategic decision making critical analysis of factors affecting the growth and prosperity of the organizations will be easier and simplified, which will eventually lead to setting the optimal goals and objectives for the business organization to achieve through its hard work and statically smart actions (Hill, Jones and Schilling 2014) Approaches to Strategic Thinking Complexity Perspective According to Bryce (2017), the process of strategic management is one of the important parts that are involved in the overall action of decision making. It is important to have an effective approach in order to deal with the strategic management process which decides upon the success rate of an organization. The strategic management practice can help to set the long term goal of an organization and also fix up on the objective that need to be achieved within a certain period of time. In case of the insurance company the long term plan can include implementing new policy that needs to be sold to the customers in order to increase the market range of the company. All the details about the policies can also be decided upon with the help of strategic management practice. The company can also decide upon the financial planning process with the help of strategic management techniques. It is also possible to set short term goals with the help of strategic management practice. For example the insurance company can have a short term goal of selling fix number of insurance policies within a fixed group of target customers. It is also important for the insurance company to have the policies of the strategy management that is made according to the needs and the lifestyle of the target customer groups. Strategic management approach can also aim to reduce the overall cost of the organization and also help to improve upon their profit rate. It is also important for all companies to have proper strategic management in order to avoid all possible future risk and unfavorable business environmental condition. Morden (2016), have mentioned that it is important for all business organization to have proper market approach to increase the level of brand awareness among the customers that will help them in the overall process of increasing the popularity within the market. The message that is send to the public in the form of advertisement is one of the popular ways to have effective strategic management approach. The message that the company can use to communicate with the public will depend on the target group of customers. The commander approach is regarded as one most popular ways of strategic management implementation of decision making process. In this type of approach the top management of the company takes all the crucial decision related to policy making and thereby implement and execute those policies in practice. The leader of the organization plays the most important role in this type of approach. Nevertheless, one of the most negative point of this kind of technique is that all the workers and employees cannot take active participation in the crucial decision making process of the organization (Ethiraj et al. 2016). Collaborative approach of strategic management is also regarded as one of the effective way to implement business policy in practice that is usually done with the help of business partnership. One of the major advantages of collaborative approach is that all types of stakeholders within the organization take part in business policy implementation process. There is also the cultural policy of business strategy implementation, which is regarded as one of the important part of the business policy making process. With the help of most of this kind of approach, it is possible to implement the democratic type of leadership within the organization. The company increase upon their popularity within all culturally diverse business environments (Ethiraj et al. 2017). New Ways of Thinking about Strategy We live in the age of dynamic changes and exponential impact, and in order to sustain the niche in the market business organizations need to always be a step ahead. It has to be understood that surprised if element that is always appreciated, and in order to keep the customers captivated the business organizations need to wear the armor of constant changes. Along with that with the economy and the market inflation being in a constant state of upheaval, newer and better strategies are required in every step of the way. In order to facilitate new Strategies for overcoming any challenges that may present itself in the organization scenario the strategic management concepts and methods is utilized need a fresh start as well. It has to be understood the strategic management as well as an age old concept with the tools and methods and theories being not very recent. However the organisational risks and challenges are no longer what it used to be a decade ago. Therefore it does not need mor e emphasis that there is a pressing need for innovations in the strategic management and strategic thinking as well. As mentioned above there are various theories for strategic management, a varied number of schools of thoughts addressing the needs of different types of risk and challenges (Hitt, Ireland and Hoskisson 2012). The prevalent School of thoughts regarding strategic formation are the cognitive school, the learning school, power school, and the cultural School among many others. On a more elaborative note, all the schools of thoughts have a single focal point foundation of which the entire process of strategic thinking and decision making is established. For instance in the cognitive school of thought this approach for strategic thinking is focused on analysis of the different levels of perception in different people and the patterns it brings to the mix, Silicon eventually concentrating on the actions on the outside world and relating it to the different perceptions of those happenings to articulate a proper strategy to combat with the effects are the actions are inflicting. And on the o ther hand the learning school of thought exercises on the management paying close attention on the actions that do work and the actions that are not applicable in the particular scenario (David 2011). The school of thought exercises on the distinction between effective Strategies and an effective Strategies and therefore articulating the best possible means of dealing with any risk or challenge by the means of strategic thinking. All this schools of thought have effective in implementing and articulating strategic actions to combat with the challenges and risks in the last decade. However it should not escape noticed that the challenges and the risk associated with Bose challenges have changed over time with the changes brought about in the organisational scenario in the last decade. In the current age of the strategic thinking requires Complex adaptive systems and analytical tools to judge the efficacy of the Strategies prior to implementation of them. Usage of these adaptive tools and models facilitate evaluation of the patterns in the changes that the risk situation has represented and based on the evaluation implementation of strategies that will counteract those changes and manipulate them for the benefit of the organization. One such innovation in strategic management is the complexity chaos and entropy model that is abundantly used in organisational sectors (Freeman 2010). Modeling Complexity The implication of the adaptive system is one of the best techniques that can be applied within an organization that forms an important part of the strategic management approach. The complexity approach of strategic management helps to implement the learning methods that form an important part of the business plan of the company. There is also high probability that with the application of the adaptive system, it is possible for the Enterprise Insurance Company to have effective planning for the future. It is also possible to adopt the goal based adoptive techniques that can help in the overall process of dealing with the business complexity. One example of a business organization that has faced risk situations requiring apt strategic management is Enterprise Life (Leaders 2017). Due to using the strategic management, it may require to change the organizational structure. However, the management of the company needs to identify the issues at first before applying the strategic management in the organization. Eden and Ackermann (2013) mentioned that biasness is unethical and strategic management can help to reduce the biasness. For this, the organization needs to make the mission, vision and goal so that the employees of the company can set their own short- goal, vision and mission to achieve those. Moreover, some of the employees complaint that they have no efficient leader, who can motivate them. Hence, it is necessary to reduce the gaps and train the leaders to take efficient steps to motivate the employees and reduce the issues. The Quality Insurance Company is another insurance company that faced the problems like Ent erprise Life Assurance Company. However, the company got help by implementing the strategic management in their company and thus reduced the issues. Hill, Jones and Schilling (2014) mentioned that the strategic management is one type of processes that help the organizations to develop and implement new plans to set the goals as well as aims and objectives. This can ensure the concepts of strategic management to meet the needs of the organization. The first thing, Enterprise Life Assurance needs to adopt is to make the achievable goals. The managers need to take the initiatives to set the goals, aims and vision and mission so that it can help to build a healthy environment for the employees where they can work peacefully. Moreover, the strategic management helps to enter into the international market and thus expand the business and reputation (Stark 2015). The strategic management helps tin the employee motivation that helps to increase the productivity and the revenue as well. This will help to analyse the strategic formation. By the strategic management, the management will be able to identify the strengths and weaknesses of the organization, which will help them to reduce the issues created in the organization. The internal and external analysis is necessary for the development of the position of the company. The analysis facilitate s to strategize the paths to adopt the changes of the technologies in the organization and the emerging markets. Due to using the strategic management, it may require to change the organizational structure. From the analysis, it is clear that the Enterprise Life Assurance company needs to develop their organizational structure (Leaders 2017). Hence, they need to use the strategic management. The employees of the organization need a strong and positive environment to work peacefully, where no biasness would occur. The managers will take the initiatives to set the goals, aims and vision and mission so that it can help to build a healthy environment for the employees where they can work peacefully. Organization will be able to develop and implement new plans to set the goals as well as aims and objectives. Conclusion On a concluding note, it can be sent the strategic management is an important person for a business organization to survive the rising types of economy and sustain a stable position in the market. It has to be understood that the customer preferences are changing rapidly and to cope up with the demands and sustain in the face of unbelievable competition, a business corporation needs to be one step ahead of its competitors. It has to be understood that importance of strategic thinking is integral as a core competency, without which the organizations cannot hope to sustain a stable presence in the target market. However, it must not escape notice that the patterns of corporate market is changing and so are changing the business processes and operational statistics. Hence, as a cumulative affects the challenges and risks in the business scenarios are also changing, along with the objectives and aims. Hence in order to survive these tides of transformation the business corporations need to adapt to innovations in even strategic thinking associating with complex adaptive systems to ensure optimacy of the startegic thinking procedure. References: Bryce, H.J., 2017.Financial and strategic management for nonprofit organizations. Walter de Gruyter GmbH Co KG. David, F.R., 2011.Strategic management: Concepts and cases. Peaeson/Prentice Hall. Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic management research and the quest for integration.Strategic Management Journal,38(1), pp.4-16. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2016. Replication in strategic management.Strategic Management Journal,37(11), pp.2191-2192. Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2017. Reviews of strategic management research.Strategic Management Journal,38(1), pp.3-3. Freeman, R.E., 2010.Strategic management: A stakeholder approach. Cambridge University Press. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012.Strategic management cases: competitiveness and globalization. Cengage Learning. Leaders, S. 2017.Enterprise Life Assurance Company Limited (ELAC) - Ghana Investment Promotion Centre (GIPC). [online] Gipcghana.com. Available at: https://www.gipcghana.com/89-ghana-club-100/sector-leaders/355-enterprise-life-assurance-company-limited-elac.html [Accessed 7 Jun. 2017]. Morden, T., 2016.Principles of strategic management. Routledge. Moutinho, L. ed., 2011.Strategic management in tourism. Cabi. Rothaermel, F.T., 2015.Strategic management. New York, NY: McGraw-Hill. Slack, N., 2015.Operations strategy. John Wiley Sons, Ltd. Stark, J., 2015. Product lifecycle management. InProduct Lifecycle Management(pp. 1-29). Springer International Publishing. Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012.Strategic management of health care organizations. John Wiley Sons. Thompson, J.L. and Martin, F., 2010.Strategic management: awareness change. Cengage Learning EMEA. Wheelen, T.L. and Hunger, J.D., 2011.Concepts in strategic management and business policy. Pearson Education India.