Assignment Sample on Corporate Strategy
1. Introduction
The study is focusing on the CEMEX construction company and assists to evaluate the applied concepts, tools and techniques of strategic management. Evaluating the relationship between strategic objective and operational planning for successful strategic implementations are determined and identified in the study. The study aims for understanding CEMEX determination on CSFs of the industry along with RBV of the firm and its contribution to developing their current strategic positions in the marketplace.
2. CEMEX understand the CSFs of the industry
Concepts of strategic management
Strategic management refers to the methods that are based on the effective process of management along with principles for identifying the objective and mission of the business. As cited by Ansoff et al. (2019), strategic management assists the businesses in assuring the objectives while identifying opportunities which are existing in the marketplace and develops logical realistic processes for achieving the company’s objectives. Multiple concepts assist the business in growth and achieving a competitive edge in the marketplace. Strategic management involves a decision-making process that determines the essential aspects which help the business for long-range success. The strategic management process conducts a series of business decisions that can lead the company to accomplish business goals.
Tools and Techniques of strategic management
Strategic management techniques assist CEMEX’s planning and design project implementation for successful globalisation while developing procedures and processes which helped the organization achieve their goals and objectives. Techniques assist the company in evaluating their projects for identifying and determining their progress and potential barriers. As narrated by Sullivan et al. (2018), strategic management which is used by CEMEX is based on the program evaluation strategic management technique which assists managers in analysing certain projects from the initial stage to the ending stage. It helps CEMEX to determine activities that are required for completing a particular project with the deadline. The tool which CEMEX used as a tool for their strategic management is break-even analysis which assists CEMEX to determine the number of products that can be sold break even with increasing profits.
CEMEX focuses on the strategic factor type for their understanding of Critical Success Factors (CSF) and establishes decisions for their strategic management. The company follows multiple steps to identifying and developing its CSF which includes establishing the company’s strategic goals and missions. As stated by Dzwigol (2020), the determination of business activities that are important for CEMEX to accomplish their goals is included. Evaluation of potential CSF for the company is conducted along with identification of new strategic objectives which can assist in achieving CSF. Identifying and establishing monitoring and measuring tools for measuring CSF along with effective communication for the responsible delivery are determined by CEMEX.
3. RBV of the CEMEX and it contributes to the development of its current strategic position
The resource-based view (RBV) is referred to as a strategic tool which CEMEX uses for developing their strategic position in the global market. This tool assists the company in identifying and exploiting resources that are available to create a sustainable competitive advantage for the company in the long run. RBV framework assesses CEMEX for identifying the potential resources which help in enhancing their competitive advantage for the company aligning with strategies. As narrated by Gunina et al. (2020), the framework is broadly categorised into two sectors based on the resources available in nature such as tangible and intangible. Available resources must be in immobile and heterogeneous form for the consideration of VRIO attributes which make the resources as VRIO resources. The VRIO resources help and assist in achieving a competitive advantage in the marketplace for CEMEX (Burgelman et al. 2018).
Evaluation and analysis of the relationship between strategic objectives and operational planning
Strategic objectives refer to the organisation objectives and identifying the potential approaches for accomplishing identified objectives. Operation planning defined as the comprehensive way for every sector for using resources in an optimum manner for accomplishing organisational goals. As stated by Ibrahim and El Shennawy (2018), the relationship between strategic objectives and operational planning’s are crucial for the organisation to achieve competitive advantage and growth and the relationship is established for the effective outcome related to multiple areas in an organisation such as budgeting, allocation of resources, performance management and assessments. Budget for projects consists of strategic objectives along with operation planning where estimations of budget are based on revenues and it is assisted with more accurate figures for establishing successful strategic planning.
Strategic objectives and operational planning are used for performance management where the operational plans offer a base for the performing requirement and needs of management. As narrated by Collins (2021), these performance management figures are established and implemented with the assistance of strategic objectives in an organisation. Resource allocation is established based on the strategic objectives and operational planning’s where the determination of job roles and duties for effective usage of resources are identified with planning’s. Outlining resource allocation for achieving goals of the plans which are set by the organisations are based on strategic objectives (Wijethilake, 2017).
4. Competitive environment of CEMEX
Impacts on strategic formulation and strategic decision-making process
There is a strong connection between organisational culture and strategic management in which strategies formulation. Strategies formulation are based on the beliefs, values and principles which drives the organizational culture along with strategies. As cited by Fernández et al. (2019), strategies and their formulation are planned for setting the focus and directions with a formal environment and detailed plans for the employees to determine the company’s goals and objectives. The organisational culture assists the organisations to achieve their goals while encompassing the company’s beliefs and values.
5. Conclusion
The study concludes that the organisation’s objectives and strategies play crucial roles for CEMEX to achieve a competitive edge and growth. Assessment of the impacts by organisation culture, politics, stakeholder’s influence, social responsibility and ethical issues on strategic formulation and strategic decision-making process are determined and considered in this study. Strategic tools, techniques and concepts for management are essential for CEMEX to determine and identify the appropriate tools and techniques for accomplishing their objectives. CEMEX holds a strong understanding of CSF and RBV for enhancing their globalisation and establishing effective strategic management decisions along an effective decision-making process.
References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019. Epistemological Underpinnings and Original Concepts of Strategic Management. In Implanting Strategic Management (pp. 3-15). Palgrave Macmillan, Cham. https://link.springer.com/chapter/10.1007/978-3-319-99599-1_1
Burgelman, R.A., Floyd, S.W., Laamanen, T., Mantere, S., Vaara, E. and Whittington, R., 2018. Strategy processes and practices: Dialogues and intersections. Strategic management journal, 39(3), pp.531-558. https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2741
Collins, C.J., 2021. Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, 32(2), pp.331-358. https://www.tandfonline.com/doi/abs/10.1080/09585192.2019.1711442
Dzwigol, H., 2020. Methodological and empirical platform of triangulation in strategic management. Academy of Strategic Management Journal, 19(4), pp.1-8. https://search.proquest.com/openview/3fcfdabe3dc8cf95b9ccc37e75613f7d/1?pq-origsite=gscholar&cbl=38745
El Shennawy, M.E. and Ibrahim, A.H., 2018, Exploration Situation of Strategic Management Tools and Techniques in the Context of the Egyptian Construction Industry. environment, 3, p.6. https://www.academia.edu/download/64740478/exploration_situation_of_strategic_management_IJERTV9IS090499.pdf
Gunina, I.A., Kablashova, I.V. and Voronin, S.I., 2020, August. Development of Strategic Management Tools and Techniques of Enterprise Competitiveness in the Context of Digitalization. In Russian Conference on Digital Economy and Knowledge Management (RuDEcK 2020) (pp. 229-233). Atlantis Press. https://www.atlantis-press.com/article/125942630.pdf
Suárez-Eiroa, B., Fernández, E., Méndez-Martínez, G. and Soto-Oñate, D., 2019. Operational principles of circular economy for sustainable development: Linking theory and practice. Journal of cleaner production, 214, pp.952-961. https://www.sciencedirect.com/science/article/pii/S0959652618340009
Sullivan, K., Thomas, S. and Rosano, M., 2018. Using industrial ecology and strategic management concepts to pursue the Sustainable Development Goals. journal of cleaner production, 174, pp.237-246. https://www.sciencedirect.com/science/article/pii/S0959652617325106
Wijethilake, C., 2017. Proactive sustainability strategy and corporate sustainability performance: The mediating effect of sustainability control systems. Journal of environmental management, 196, pp.569-582. https://www.sciencedirect.com/science/article/pii/S0301479717302724
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