Strategic Management in Organisations



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Strategic Management in Organisations REVISED (1)


Strategic Management in Organisations
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Part 1: Strategic Management in Organisations
Strategic management in an organisation is the process of formulating decisions and applying these decisions to achieve the organisation’s strategic objectives (Demir 2018). It also involves evaluating, planning, and implementing strategies to retain or enhance the competitive advantage of an organisation (Lusk and Birks 2014). Strategic management has been used for decades and organisations have thrived in their businesses due to its effectiveness. The external and internal factors should be taken care of during the appraisal process. According to Fuertes et al. (2020), economic models, organisational progress, competitive strategies, worldwide strategy, and collaborative action are some of the components of the planning process in strategic management. The type of leadership in an organisation should build the right organisational structure, create managerial cultures, coordinate processes, and move the organisation through corporate governance in the implementation stage of strategic management.
Lusk and Birks (2014) state that strategic management in an organisation is a dynamic process composed of strategic intent (vision), strategic policy, and delivery. Strategic intent identifies the desired outcome and rationale for action. Identification of organisations' desired outcome is vital since it gives room for pointing out variables that could have an implication to the organisations' goals (Demir, 2018) . The desired outcome for both public and private organisations will enable the stakeholders and management team to establish concrete policies that could prevent any adverse threats. The outcomes also present various opportunities necessary in making rational decisions.
Strategic policy is the second stage in strategic management in organizations. Negulescu (2019) points out that in this stage, policies are evaluated and put into appropriate actions so that the set objectives and goals are made to steer the organisation into the competitive advantage state. These arrays of policies are involved in the mobilisation of the available resources in order to sustain the achievement of organisational goals (Negulescu 2019). Organisations should put in place policies to ensure that critical stakeholders are constantly involved in the decision-making processes and that the strategy is improved. The selected policies should be aligned with the organisations' culture, system and structure to make them more effective and achievable. To achieve the competitive advantage, the policies should be evaluated. In policy evaluation, the team should make sure they are in line with the organisation's goals. If the policies vary and contradict with the set objectives, they should be re-evaluated and re-examined and appropriate changes made.
Strategic delivery is the third process of strategic management in organisations. This stage involves a detailed plan on how the organisation is going to achieve the set policies. Organisations' leaders and team members should formulate a delivery path to make sure policies are delivered in accordance with the culture and structure. Negulescu (20190 points out that the basis for long-term competitive advantage is laid by an effective strategic delivery approach. Strategic leaders devise a method for developing and implementing strategic delivery. In this case, strategic leadership is one of the effective aspects of delivery which include the use of authority and influence by executives to steer the operations of others in the pursuit of an organisation's goals (Negulescu 2019). The definition of a company's vision, mission, and values is the first step in this process. Strategic leaders should seek to clarify these essential concepts by focusing on organisational goals and objectives.
One of the important aspects of strategic management is the analysis of external and internal environments in an organisation (Rossidis, Belias, and Ioannis 2020). The external environment of an organisation is composed of all elements capable of influencing the organisation’s ability to obtain and maintain a competitive edge. Managers can minimise risks and focus on opportunities by studying aspects of the external environment. Consider the source or closeness of external elements to gain a better understanding of how they affect a company. For instance, economic variables (such as interest or currency exchange rates) are external aspects in the organisation’s overall environment that managers have limited direct control over.
Internal elements in the organisation’s task environment, on the other hand, are ones over which are within the organisation and managers have some control, such as the structure of their strategic groups (a group of close competitors) or the industry structure (Rossidis, Belias, and Ioannis 2020). Internal analysis is made up of the organisational resources (such as buildings, equipment, capital resources, human resources, and distribution channels), which can be combined and transformed into capabilities. In strategic management, capabilities are changed to core competencies that are difficult to duplicate and result in a competitive advantage. An internal analysis looks at how they might be enhanced to maintain the firm's competitive edge.
Recently, public sector practitioners that use effective strategic management in the delivery of public services during the COVID-19 pandemic have demonstrated the crucial application of strategic management approaches and tools to solve a global crisis. For example, in Taiwan’s response plans to COVID-19, it efficiently utilised strategic management in public health services delivery to contain and curb the spread of the coronavirus while most countries worldwide were grappling with outrageously high infection and death rates (Hille and White 2020). Taiwan’s delivery of health services and planning during the COVID-19 reflected an implementation of strategy as a process. First, there was a clear establishment of strategic intent to effectively control and manage the spread of the Coronavirus; in this case Taiwan’s vision was to completely eliminate new cases of the coronavirus disease (Hille and White 2020). Armed with a clear vision, the government enforced various policies, including transparency, early travel restrictions, aggressive testing, screening of contacts, and strict quarantine rules. These strategic policies helped Taiwan combat the spread of the coronavirus disease. For example, to achieve set public health goals, available resources were efficiently mobilized. Furthermore, the autocratic system of governance worked to Taiwan’s advantage as people easily cooperated with measures set by the government.
The establishment of strategic policies was also evident in Taiwan’s response plan for COVID-19. Furthermore, these policies were related to crucial ‘lessons learned’ from a previous severe acute respiratory syndrome (Sars) pandemic, enabling practitioners to swiftly establish the scope of action regarding the spread of the virus as well as the input required from the Taiwanese to help the government accomplish its goals. As these policies had proven effective before, Taiwan was quick to isolate policies that would be the most effective.
After identifying policies, the next step taken by Taiwan was formulating a strategic delivery path to work towards enforcing the policies. One of the approaches used in strategic delivery was setting up clear management structures and proactive communication to ensure efficacy of the response plan. According to Lusk and Birks (2014), it is paramount for the public sector to also understand strategic delivery and explore how different support and core support activities can be optimized to enhance execution or adherence to policies. For example, to facilitate the adoption of these policies, Taiwan set up a new regulatory system to “fast-track approvals for newly-developed testing kits when the nation faces the threat of emergency situations, like infectious diseases” (Hille and White 2020 pp. 3). To accomplish this, Taiwan adopted an improved use of resources optimization approach to maximize the use of resources. In addition, this approach enables the Taiwanese government to link resources to strategy, enabling it to increase its capacity to conduct mass testing and ensure hospitals were adequately prepared to treat COVID-19 patients (Hille and White 2020).
Joyce (2021) points out that strategic agility is essential when it comes to developing efficient planning assumptions in government strategies as it helps address public challenges such as delayed decision-making or poor execution, which are highly likely during a pandemic. For instance, in 2020, the UK’s response to the COVID-19 pandemic was failing because practitioners lacked the much-needed strategic agility to deal with an uncharted territory in the country’s history of catastrophes. In ‘muddling through’ the pandemic as a result of lack of preparedness and lack of smart government responses, the country suffered a high loss of life before it was finally manage to get the virus under control (Joyce 2021). This case also reflects a case of inefficiency. According to Lusk and Birks (2014), efficiency in public sector relates to the ability of public organisations to produce the best possible outputs with the least possible amount of resources. Taiwan, through the strategic allocation of resources to improve efficiency during the COVID-19 pandemic, exemplifies how strategic management in the public sector can eliminate bureaucracy, which hampers efficiency and effectiveness.
In strategic management, it is vital to estimate the outcomes that will be produced if no modifications are made to the present strategy to evaluate if to make changes to the current strategy or alter the strategy (Demir 2018). A performance discrepancy exists when the existing strategy is unlikely to achieve the planning period's goals. Gap analysis is a tool for identifying a company's present goals and determining if the current strategy will meet those goals. The company may set a goal of boosting sales by 10% in the next two years, for example. It must perform a projection to establish whether the goal is achievable given the existing strategy and conditions. Lumineau, Wang, and Schilke (2021) state that strategic management requires strategy implementation which involves translating an organisation’s strategies into action. Thus, effective strategy implementation entails moving from the planning stage to execution of the plan.


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