LD7161 Strategic Management Assignment Sample 2023
Introduction
The crux of the essay is the development of the strategic management for the organization. The term strategic management has been referred to as, as the application of the series of strategies which is used for application of the proper grip on the management issues of the organization.
The essay has been focusing its directions on strategy formulation and implementation. It will carry a detailed analysis on strategic management theory and note its importance for a broader concept. The new mores of the essay is induced with the formalization of the case study analysis, on the private company as public company.
Strategy Formulation
The term strategy formulation has been referred to as the process of using abundant or available knowledge from the documents, which has been intended to direct the business. It has been equally used for development of the actionable step, to reach the goals, which the organization has been up for. Strategy formulation has been used for allocation of the resources, prioritization, alignment of the organization as well as creation of the validation of business (Cavallo, Sanasi, Ghezzi, and Rangone, 2020).
Strategy formulation has been requiring a series of steps, which are needed to be performed in a sequential order. One example of strategy formulation are, organizations need to pay attention to what the competition has been actually doing. Thus, organizations needed to make several kinds of adjustments according to the strategic plan, which is used for the nurturance of the process.
Steps of Strategy Formulation
Setting of the Objectives of Organization
Organizations should at first lay their focus, in setting up the long-term objectives of the organization. It is that strategy, which is actually used for the realization of the organizational objectives. Through the use of these objectives, organizations will be able to define and take some of the strategic decisions, for the development of the organization.
Evaluation of organizational environment
Organizations should evaluate both the general, economic, and industrial environment, which is used by the organizations to operate in the competitive markets. Through the usages of the evaluation, an organization would actually take note of the competitive successes of the markets, identification of the strengths and weaknesses of the organization’s own as well as identification of the competitor’s strengths as well as weaknesses, which is the main metaphor of their business (Yu, Li, and Xin, 2021)
The setting of the Quantitative Targets
In this step of the strategy formulation, the organization must practically fix the quantitative target values of the objectives of the organization. In this context, the target is to compare with both the short as well as long-term customers. It is used for the evaluation of the contribution which is used for making various zones of the products, for the operation of various operating departments.
Development of the Divisional Plans
Strategy formulation has been taken into the incorporation of the divisional plans. With the help of the divisional plans, each department of the organization has been choosing one category of the products within the organization that has been identified according to the strategic planning, which will be done for each of the subunits of the organization (Thileepan and Sivakumar, 2018). Organizations for these, have been undergoing a careful analysis of the macroeconomic trends of the business.
Analysis of Performance
Organizations through the help of the strategy formulation have been discovering and analyzing the gap which has been created between the planning and the desired performances.
The way of dealing with the analysis of the performance is through the development of the past performance, present condition as well as analyzing of the future conditions, which is done by the organizations.
Strategic Implementation
Strategy implementation has been referred to as the process of turning all the plans into the actions, which is used for reaching onto the desired outcomes. Organizations have been following various types of the strategy implementation. First is the strategy articulation.
The second is the strategy validation with the help of both internal as well as external validations. The third is strategy communication (Wu et al., 2019). Fourth is strategic monitoring. Fifth is, strategic engagement. Sixth, linking with the other tools. With the coupling of all these strategies, organizations ought to run well.
Organizations have been following several parameters of the strategic implementation:
First, development of strategic framework- Organizations should start with development of the simple framework, which has been introducing a strategic lexicon, that can be understood by everyone. For setting up the framework, organizations can even draw up one cascade model.
This Cascade model will include the visions, values, focus areas, objectives, KPIs as well as projects. There will be the initiation of the mission and the visions of the company too, which will guide the entire course of actions of the organizations. Thus, the framework setting is really important.
Second, Building of the Plan.- This is the second step of the strategy implementation. It will help the organization with the creation of a plan (Towbin et al., 2018). There has been a comprehensive guide on the development of the strategic plan. This comprehensive guide has been divided into 7 steps.
These 7 steps are, 1) crafting of the vision, which will help organizations to focus on their well-established missions. 2), deciding on the various values of the plan. 3) defining of the strategic focus areas of the organization. 4) implication of the pause steps. 5) Inclusion of a broader team is another way of development of the plan. 6) meeting the challenges of the plan. 7) Lastly, launching of the strategy, which is required by the organizations for strategic implementation.
There have been particularly 7 steps for the fulfillment of the strategic plan:
First, gathering of the leaders of the organization. The leaders are founders, CEO as well as direction so that they can agree with the visions of the organization. This program can be done with the help of setting up a formal workshop, where everyone can be engaged regularly.
Second, it is in the same workshop, which has been used for writing down the values, that have been held down by the organization. It has been crucial for the maintenance of the culture of the company by making some of the processes smoother in the future (Borozenets, 2020).
Third, strategic focus areas will be used again where the teams will be addressing the vision of the organization, for successful completion of the strategies required.
Fourth, the development and creation of the strategic objectives are the next parameters, which will be used for strategic implementation in the organization. These strategic objectives are used for bringing about both the positives as well as negatives in the organization.
Strategic Management Theory
Resource-Based Theory has been one of the most important strategic management theories, which is crucial for the organizations (Nason. and Wiklund, 2018). This resource-based theory has been used for criticism for the exhibition of circular reasoning, which shows that one of its fundamental elements, mainly value, can be accessed in terms of its particular context.
Resources in the organization have been leading to various kinds of competitive advantages. It has been defining the relevant competitive structures as well, that has been keeping an impact on the various valuable resources needed for the proper management of the organizations.
Application of the resource-based theory in the organizations:
- Choosing the strategically important unit of analysis as well as the direction in the organization. This decision has taken place only with the core discussion with the senior managers.
- Properly educate the employees and the staff with the various types of the resource based ideas. It will be done with the help of the slide presentation as well as discussion with the interviewees who have appeared (Treiblmaier, 2018).
- In the organization, it has been mandated, the development of the pictorial history of the past events, changes as well as development of the assumptions, which has been relevant to the various analyses in the organization.
There has been a need for development of the semi-structured interviews in which the picture has been assembled by the researchers and has been further checked for temporal as well as content accuracy as well as comprehensiveness (Jose and Ramakrishna, 2021). Through the help of these opinions as well as interviews, resources have been concerned with various values and beliefs within the company, for a far more broader context.
Figure 1: Resource-Based Theory Calculation
- Other ways of application of the resource-based theory in the organization are through the use of the history as well as creation of the resource category, that is used for the creation of the list of resources that has been used for the underpinning of the activities needed for identification and highlighting the units of analysis in the organization.
There have been approximately five kinds of the resource categories, which is needed for the organization. These categories are needed for assisting in resource identification, for the development of the theoretical and exclusive classification of resources, which is both tangible as well as intangible
| Resource Category | Description |
| Tangible Resources | It has been used for development of the proper infrastructure in the organizations. There has been an urgent need for various kinds of creatures such as development of equipment, plants, employees, exclusive licenses, geographic position, land debtors. Those, which are more or less needed for physical form. |
| Knowledge and Procedural Resources | This is used for inducing various sets of written as well as unwritten resources, in which the holders may not even know what they even possess. Organizations have been sufficiently mandating these resources for a far more simpler association and advantages (Gupta et al., 2018). |
| Cultural Resources and Values | This is one of the intangible resources, which has been greatly nurturing the attitudes of the founders as well as events. This situation has been used for the development of the values, beliefs as well as preferred behaviors of the organization in good terms. |
| Network Resources | It is used for development of the interest groups within the company. The networking in the companies has been enveloping personnel with suppliers, customers, as well as advisers as well. In these ways, networking has been really significant (Alexy et al., 2018). |
| Dynamic Capability
|
It has been used for development of valuable resources that are used for implementation of the various changes in the organization, both in the present as well as in the longer run.
|
Importance of Strategic Management
Strategic management has been referred to as the process of setting of the goals, procedures, and objectives for making an organization much more competitive. This strategic management has been used effectively for the deployment of staff, resources as well as achievement of several goals of the company.
This strategic management has included the strategic evaluation, analysis of the internal organization, and strategic execution which has been carried forward throughout the organization, in both short as well as longer periods, throughout the life (Sundiman, 2018).
Examples of this strategic management are, suppose a large company has been deciding to achieve a sufficiently more number of sales. In order to meet these goals, the company has been deciding to develop a strategy, communicate this strategy and thereby apply it to various units and departments of the organization in well-wrought terms (Adoli and Kilika, 2020).
With the help of the strategic management, the company will aim to achieve its targets, through the help of a single coordinated process, which is needed for the development of good strategic management processes and results.
There have been two types of theory that are popular among the organisations. Those are the profit-maximizing as well as competition based theory. The condition of both these theories are that, it will help in maximizing the long-term profits and development of the sustainable competitive advantages of the organization.
It has been equally used for the assessment of the competitive rivals which is required in the external marketplace. It has been even used for assessing greater competition within the industry perspective, for a longer period. In these ways, these theories are crucial.
The competition-based theory has been used for stating whether the business should be pursuing the policies that are used for the creation of higher quality of the goods that are intended for sale in the market (Watson and McGowan, 2019). The theory has been resting on the notion that the presence of cheap labor has been ubiquitous and the elements of the natural resources are necessary for the development of the good economy, both in the organization as well as for other counterparts as well.
The organization has been focusing on four types of competitive strategies, variously needed in the organization. Those are, cost leadership strategy as well as differentiation strategy as well. In these ways, both these theories are important as well as crucial.
Application of strategic management on case study
Private Company
Apply
As opined by Alexander (2020), the best strategic management principle which has been applied in IKEA, UK is the application of the cost leadership position. With the help of the strategic principles of the cost leadership position, IKEA will be able to provide the customers with a higher quality products with its associated components derived from developing of the contacts and the agreements with the suppliers and investors from almost all parts of the world, with the help of the utilization of the competitive advantages. IKEA has even thought to develop its strategic management principles on the development of the lower costs logistics, development of the retail outlets in the suburban areas (Strauss, 2020).
The ways by which the cost leadership strategy can be used and developed is by increasing the profits by reduction of the costs. IKEA has targeted the reduction of the price in numerous ways. The ways are, application of the substitution of the lower-cost materials for the development of the abundant furniture, which has been up for sales. Reduction of the wastes, which has been straight away coming from the industries. If these wastes can be reduced, then IKEA will be able to maintain good and higher sustainability in the present day (Doyran, 2020).
Thus cost leadership can even make IKEA so cautious, that it cannot even think about its latest changes needed to have a good balance of the cost leadership.
Benefits
Cost leadership strategic application has been useful for IKEA, concurrently. It will be guiding IKEA to increase the production of the company. This increase in the production of the business, has been done with the help of the scaling of the business which has been insulating against the competition.
The presence of the cost leaders has been used for the development of the negotiating power, flexibility as well as withstanding the competition more effectively, which the competitors require in huge measures. In these ways, IKEA has been feeling superior (Kharub, Mor, and Sharma, 2019).
The other benefit is that, with the help of the implementation of the strategic leadership, it has been increasing the impact of the cost leadership, with the use of the technology. This cost leadership strategy has been getting a scope for increment with the implication of the advanced technology (Gure. and Karugu, 2018).
This advanced technology has been helping the leaders of the KIEA, to become some of the cost leaders, for far greater usages. This technology has been used for streamlining of the processes needed for far more greater application as well as advantages.
There have been other ways through which the cost leadership strategy has been highly crucial, through increasing the sources of raw materials and by improving the efficiency as well. Thus, cost leadership has been variously important for IKEA.
Challenges
IKEA has been invariably facing a lot of challenges, while dealing with the cost leadership strategy. The first, is the development of the financial cuts. Due to the financial cust, there has been a sudden increase of the price, as well as sudden lowering of the price as well.
Thus, IKEA has been commending the proper sustenance of the cost leadership strategy, so that all the usages can be successively deployed. IKEA has been facing the product innovation problem as well. This is because, due to the imbalances in the financial cuts, IKEA cannot properly maintain the innovation, which is used for making the products in a sufficiently newer way.
Customer feedback is another challenge that can be seen in the management of the cost leadership strategy in IKEA. Customers, for the time being, are not happy with the production as well as delivery of the items, which they had been expecting from IKEA.
As a result of that, many of the customers have been running down with expectation crisis and lack of proper usages of the items being variously posed in the organization. IKEA has been moving with various substandard quality as well, which is currently hampering their business in much greater ways.
Public Company
Apply
The National Health Care Service of the UK has been applying the strategic management principles on the Training and Development. The ways by which it has been applied is through the development of the coaching as well as mentoring sessions. In these coaching and the mentoring sessions, the employees have been made to undergo training .
This training will help in making the junior fellow employees or the doctors in understand the various mores of the safety of the patients. The junior employees or the doctors will even understand in which ways the patients’ safety will be bound to increase with the up-gradation of the modern technologies in the hospitality services.
Training and development will even be applied in the NHS with the help of coming to terms as well as an agreement with the directors of the NHS (Armstrong. and Landers, 2018.). This kind of agreement has been done in the private conferences, where all the supervisors as well as employees, staff of the NHS will be present.
They will be the witness of the formation and the decisions, which has been variously required for the nurturance of the business of the NHS. Training and development principles will be applied through the nurturance of the supervisor and assistant manager in the NHS. Implementation of the NHS Graduate management training scheme, is another way, which will help in increasing the effectiveness of the NHS, in good terms.
Benefits
There have been ample benefits of the application of the training and development schemes in the NHS, as a part of the strategic management principles. With the application of these strategic management principles, there are advantages like, increasing the increased efficiency of the employees.
The rate of accuracy, with which the junior employees or the doctors have been carrying forward their operations in the NHS, has been doubled up with the help of the training and development schemes (Maity, 2019). It will equally be helpful in the development of the supervision as well, which is indeed crucial.
NHS is one of the public firms, has been learning to make a lesser amount of wastage in the organization. This training and development application, as strategic management principles, has been helping the company to save a lot of money, which is credibly easy.
There have been equal chances of the reduction of the turnover as well. With the help of the training and development schemes, there will be higher promotions, needed in the organizations, for a longer period (Noe and Kodwani, 2018).
Thus, these steps have been greatly reducing the turnover, for good return in the organization. Employees in the organization have been intended to gain a greater amount of knowledge and insights, for working in the organization, both in the present days as well as in the future. Thus, these benefits are above all crucial.
Challenges
While implementing the training and development schemes in the NHS, there have been various kinds of challenges, which have been upsetting the work in the NHS. There have been various indifferences of the opinions from the employees as well as supervisors.
These indifferences of opinions, have been acting as a barrier in the development of the proper actionable goal in the NHS. There have been other challenges too. What challenges are, development of the work resistances. The work resistances are, lack of proper trainers who can guide in the operation of the NHS along with that, a lack of work as well, which can heighten the situation (Rajamohan and Devi, 2019).
Ineffective training methods are the other challenges that are invariably used in the NHS. The application of ineffective training methods, has been acting as the barrier to the development of good working environments. There will be unsatisfied employees as well.
If the employees or the doctors of the NHS have been unsatisfied, then there are higher chances of inferior quality of work in patient checking, patient diagnosis, detection of diseases, distribution and providing of medicines, and so on. There are even higher chances of regular errors, sloppy work, and lower productivity as well (Wong, Rice. and Kolter, 2020).
Thus, it can be said that through the use of these training methods, there can be both positives in the organization. There have been equally a lot of issues with the time consumption as well.
Recommendation
“In order to sustain a competitive advantage and/or deliver value for money, both the private and public sectors must rigorously adhere to the traditionally accepted concepts, theories and elements of Strategic Management”
Process innovation performance
Strategy formulation is related to process innovation performance and the public sector and private sector can sustain the competitive advantages by implementing the innovation performance. Here the Process innovation can refer to the extent to which a company can improve or introduce organizational procedures (Bryson, and George, 2020).
Every organization must consider a key determinant of performance. Process innovation can be an effective recommendation as the implementation can be helpful for new improved production as well as or significantly delivery methods in any sector. By involving the significant changes in equipment, techniques, and software the elements of Strategic Management can rigorously adhere.
Product performance innovation
Product performance innovation can be recommended because the strategy formulation process is positively associated with this factor that helps in delivering the value for money business in the public and private sector. Here this will address the quality of services and the product that the company is offering to the customers and on the other hand, the features and value of the company will be justified.
Product performance innovation is the type of innovation that involves updates and line extensions as well as entirely new products that help to provide substantial value (Amertha, Asmara, and Djohar, 2021). The customers often make mistakes in Product Performance for the sum of innovation.
Here the product performance innovation can take different forms such as Customization, Simplification, Feature aggregation, Sustainability by reducing harmful elements and added functionality. In the end, both the public sectors and private sector will be able to rigorously adhere to the traditionally accepted concepts by implementing the Product performance innovation and sustaining a competitive advantage.
Marketing innovation performance
The process of strategy formulation is positively related to marketing innovation performance. The concept of marketing innovation can be recommended as this helps in implementing the new marketing method for both the public and private sector and this includes significant changes in small details like packaging or product design, pricing, promotion, and product placement.
On the other hand, this new method of marketing can be implemented for the existing products and the new products as well (Tawse, Patrick, and Vera, 2019). Also, this helps to adhere to theories as well as the elements of Strategic Management and in the end both sectors become able to deliver products and services that are value for money as well as sustain a competitive advantage in the challenging market.
Conclusion
The process of strategy formulation requires knowledge based on available resources to document the intended direction of a business. Also, Strategy formulation is the process that involves actionable steps for reaching the goals. Here the process is mainly used for validation of business goals, organization-wide alignment, prioritization as well as resource allocation.
There are also strategic management theories but these private and public sectors often face issues with the implication of theories and sustainability often gets hampered due to improper implications of strategic management.
Process innovation performance, Marketing innovation performance, and Product performance innovation can help deliver services that are valued for money. Also, both sectors can rigorously adhere to the traditionally accepted concepts, theories as well as elements of Strategic Management.
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