Strategic Management Essay
Among many sources that include All business, Thompson & Strickland, Strategic Management: Concepts and Cases (9th edition) and others, the Quick MBA website explains strategic management with quick outline format that is easy to use as a reference, in addition to having a detailed explanation of what strategic management is (Quick MBA).
It starts out with the strategic planing process that discusses in detail what the mission statement should be, what kind of environmental scanning would avail a better advantage, how to formulate strategy and the preferred method of implementing and putting a check and balance on the strategies (All Business). The frame work used is what is recommended by Collins and Porras where subjects such as core values, core purpose, and visionary goals are explained separately.
Another key aspect of strategic management, its hierarchical levels that starts from the corporate level, and it should encompass each business unit so that all functional departments of a given firm would participate in implementing the strategy, whether it directly has to do with what they are doing or not. Important tools such as PEST and SWOT analysis are explained thoroughly showing that PEST, for example, could make the scanning of an environment of a
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The SWOT analysis examines the strength, weakness, opportunities, and threats that are prevalent to a given organization. Furthermore, the competitive advantage aspect of strategic management is present where using a diagram that will illustrate where the distinctive competency and positional advantages of a corporation are in order to find out how to create a superior value.
Rivalry, the kind of threat substitutes create, and what it means when the buyers have the power to make decision and when would suppliers have the power is explained, including the prevalent entry to barrier known as Portes’s five forces are clearly outlined and explained. Porters’s generic strategies that examine the cost of leadership, differentiation, and focus are also included and their ability to help the corporation to maneuver around the five forces has gotten the highlight.
The value chain concept is prevalent highlighting what Porter proposed where value-creating activities, whether they are primary or support activities, their precedence is in their availing competitive advantage to the corporation. There are times where vertical integration would be required and it has its benefits and drawbacks as far as influencing the decision making process is concerned. Horizontal integration is also part the explanation to show what its advantages are and if there are pitfalls when horizontal integration is sought.
Other aspects of strategic management included are Asnoff Matrix that enables companies the optimal growth strategy, BCC Growth-Share Matrix that enable to identify which business units are best source of income or other wise, which one should be kept and which one should go, GE/McKinsey Matrix that focuses on the portfolio and other factors that indicate how attractive the industry is and the strength of each business unit are all included and have fairly exhaustive explanations.
Other areas covered on the Quick MBA website concerning strategic management include core competency as explained by Prahalad and Hamel, what it means to decision making and other factors such as global strategic management that examines what kind of competitive advantage is in existence globally and what kind of strategies are fit to take advantage of what is available.
The applicable cost structure, the nature of service business in a global context, where the emerging economies are and where they are headed, the position of knowledge management globally, and applicable country management are all part of the explanation. Porter’s Diamond of National Advantage model is also part of the through covering. To cap it up all there a summary of comparison illustrating the four major models of foreign market entry methods elaborating what is needed in exporting, licensing, joint venture, and foreign direct investment.
Based on the coverage made on strategically management, the following section will examine how these factors had been applied at the three US car manufacturers in general, as each of them had come up with their own version of SUVs and especially Ford that came up with the most selling SUVs that were all suffering from rollover, causing a considerable number of death and injuries.