Strategic management in an organization

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Strategic management in an organization

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Abstract

According to Johnson, Scholes and Whittington, ‘Strategic Management includes the understanding the strategic position of an organization, strategic choices for the future and turning strategy into action' (Johnson, Scholes & Whittington, 2005, p.16).There are many models and senior executives have a lot of choices. However, it depends on their objectives and their expectations. On the one hand, to analyze the internal environment, companies can look for resource audits, the McKinsey 7S framework, portfolio analysis, the off grip, and strengths and weaknesses of a company can be found by this internal analysis. On the other hand, to evaluate the external environment of a company, several models can be also used such as Porter's five forces which will be explained in the second part of this paper, PESTEL model, the product life cycle…Each external model has its specificities and characteristics which allow to find opportunities and threats of the environment

Introduction
Usage of models in strategic management
The challenges facing senior executives
1. Formulating the strategy
2. Implementation of the strategy
3. Evaluation of the strategy
Influence of models on decision making
Analysis of Porter's five competitive forces
1. The weaknesses
2. The idea of the sixth force by Porter
The four models of industry evolution
Conclusion
Appendix
1. The four model of the industry evolution - Summary
References

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[...] In fact, the most important resource of an organization is its employees (David p.149) and in consequences, it is necessary not to neglect them. They must also determine annual objectives for each employee which must be SMART (Specific, Measurable, Achievable, Relevant and Time constrained) and it demands time. They must have the ability to prepare a budget. So, their capacities to manage people, time, and money must be very real and it is more difficult under pressure. Evaluation of the strategy Finally, the last step of the process is the evaluation of the strategy. [...]

[...] (1996) Strategic Management an analytical introduction. 3rd ed. Oxford : Blackwell Publishers Inc. Lynch, R. (2003) Corporate Strategy. 3rd ed. Harlow : Pearson Education Limited Lynch, R (2006) Corporate Strategy. 4th ed. Harlow : Pearson Education Limited McGahan, A. M (2000) Industries evolve', Business Strategy Review. Autumn pp.1, 16p [online]. Available from : Business Source Premier < http: host-live> [Accessed 26 October 2007]. Miller, A. & Dess, G.G (1993) ‘Assessing Porter's (1980) model in terms of generalizability, accuracy, and simplicity', Journal of Management Studies. [...]

[...] Conclusion To conclude, strategic management is an important concept in business which can give a competitive advantage to companies which use it. There are many models to analyze the internal and external environment of a company or an industry. After, it depends on the purpose of the tool because each tool has a particular function. However, all these models have common points which help senior executives in their analysis but also to contribute to the quality of their decision making. [...]

[...] In brief, Models in strategic management provide the means of thinking strategically about matters and concentrate their attention on important and fundamental points (Finlay p.19 introduction). They assist senior executives to formulate a strategy and thanks to these models, allow senior executives to adopt the best and the most adapted strategy according to the need of the company. So, thanks to these models, they help senior executives in their deflexion and in consequences, they take the most pertinent decision. Demonstration of my understanding of the challenges facing senior executives As we have seen before, the environment is very complex, changes a lot and it is very troubled. [...]

[...] This model is very structured, it gives a course of action and helps managers to understanding the industry and its attractiveness but also in identifying the sources of competition in an industry or sector (Johnson, Scholes & Whittington p.78). It helps also managers to ask the useful questions: Are there high barriers of entry in this industry? How is rivalry between competitors? Are buyers and suppliers in superiority position? Are there substitute's products which can be a threat for the industry? [...]

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