Strategic Management

In today’s world, Strategic Management is becoming more intensified. Businesses can no longer depend on reducing prices and improving the quality of their products. (Mandych, Mykytas, Ustik, Zaika, & Zaika, 2021, pg.22). The world around us is becoming more internet-driven, and we are relying on how fast things are accomplished. Businesses have to respond faster with their decisions.   Management is becoming more challenged to produce results and conclusions rapidly.

Businesses that have a better approach tend to have the upper hand. Strategic Management must analyze the business’s external environments to seize all advantages that can help them determine their threats and opportunities. These strategies can make or break a business. This approach is where the business will determine the company’s visions and directions. The system will help determine the goals and objectives they will follow, allowing them to maintain that competitive edge. The process assessments involve planning, monitoring, and analysis. These processes are ongoing. Investigation analysis ensures that the business environment is supported by monitoring the strengths and weaknesses along with the objectives. The business must execute its strategies and control them by adjusting them when needed.    This is maintained by developing strategic strategies that align with the external environment’s opportunities and threats with their internal strengths and weaknesses. This analysis relates to Porter’s Five Forces Model by allowing the company to have the upper hand to increase their competitive advantages with successful thought-out strategies. This analysis relates to Porter’s Five Forces Model by enabling the company to have the upper hand to improve its competitive advantages with a successful thought-out plan.

In 1979, Porter transformed the field of strategies with the Five Forces Model (Ryall, 2013, pg.83). The relationship between Strategic Management and Porter’s Five Forces Model is that the model allows for aiding managers in evaluating threats that could hurt the business. This guidance will enable companies to plan and neutralize the problem before they occur (Rice,2022, pg.130). The model allows businesses to structure their organization that will enable them to protect their future returns and perform above standard returns. The model can provide businesses with some insight into profit-seeking opportunities, which they could potentially overlook if they failed to have a process before events happen. The surrounding environment is going to be vital in delivering results. Strategic planning is crucial before implantation. Strategies have been used for many things throughout history. The processes used can help determine how successful or unsuccessful the company is or becomes.

References

Mandych, O., Mykytas, A., Ustik, T., Zaika, S., & Zaika, O. (2021). The Development of Theoretical, Methodological, and Practical Recommendations of the Innovative Development Vectors of Business Process Reengineering and Strategic Management of Enterprises. Technology Audit & Production Reserves6(4), 21–25. https://doi.org/10.15587/2706-5448.2021.249830

Ryall, M. D. (2013). The New Dynamics of Competition. Harvard Business Review91(6), 80–87.

Rice, J. F. (2022). Adaptation OF PORTER’S FIVE FORCES MODEL TO RISK Management. Defense Acquisition Research Journal: A Publication of the Defense Acquisition University29(2), 126–139. https://doi.org/10.22594/dau.21-890.29.02

 

 

 

 

Paper#2 Jeff

Strategic management can be described as the continuous process of determining the mission and goals of an organization within the context of its external environment and its internal strengths and weaknesses (Parnell, 2014). Moreover, strategic management involves the formulation and implementation of strategies, while exerting strategic control in order to ensure that the firm’s strategies are successful in attaining its goals. More specifically, the strategic management process can be summarized in five steps. First, external analysis involves analyzing the opportunities and threats or constraints that exist in the company’s external environment.

Next, internal analysis involves analyzing an organization’s strengths and weaknesses in its internal environment (Parnell, 2014). Then, the third step of the strategic management process is strategy formulation. This step concerns the formulation of strategies that will build and sustain a competitive advantage by matching an organization’s strengths and weaknesses with the environment’s opportunities and threats. Strategy execution is the fourth step, which consists of the implementation of the strategies that have been developed.

Finally, the fifth step of the strategic management process is strategic control (Parnell, 2014). This step involves measuring the success of the strategy and making corrections if the strategy is not producing the desired outcomes. Strategic management has a correlation to Porter’s “five forces” model. More specifically, Michael Porter, a leading authority on industry analysis, proposed this systematic means of analyzing the potential profitability of companies depending on five basic competitive forces.

The five forces of Porter’s model consist of the intensity of rivalry among incumbent firms, the threat of new competitors entering the industry, the threat of substitute products or services, the bargaining power of buyers, and the bargaining power of suppliers (Parnell, 2014). Moreover, the purpose of developing a model of environmental threats is to aid managers in evaluating these threats so they can become more successful in creating strategies to neutralize them (Rice, 2022). The evaluation of threats is how Porter’s five forces relate to the strategic management process. While Porter focuses on external threats, it is the author of the assignment’s opinion that both internal and external threats are crucial to identify and address early on in order to ensure the success of an organization.

 

References

Parnell, J. A. (2014). Strategic management: Theory and practice (4th ed.). SAGE.

Rice, J. F. (2022). Adaptation of Porter’s five forces model to risk management. Defense Acquisition Research Journal: A Publication of the Defense Acquisition University, 29(2), 126–139. https://doi.org/10.22594/dau.21-890.29.02

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