Strategic Management Essay
Strategic management is simply the systematic analysis of not only the customers but also the internal and external organizational environment so a to provide an enabling environment for the rethinking, re-evaluation and repositioning the current management process and practices so that they are in tandem with the current trends.
The internal environment is mainly made up of organization itself whereby the performance and efficiency of the managerial function contributes immensely to this internal environment. On the hand, the external environment is made up of the competitors in that the competitors’ comparative strengths and weaknesses are studied and analyzed in a bid to position the organization is the abyss of competitive advantage via best aligned corporate policies and strategic priorities.
It has been realized that the organizations that have continued to rule and reign in the market, especially in the United Arab Emirates, have been those that have always had fully informed and factual information of themselves as an organization, their customers and above all their competitors in the market. This paper seeks to identify a market leader in the gulf’s banking sector thereby identifying and analyzing the bank’s (Dubai Bank) strengths, weaknesses, and strategy in a bid to offer recommendations on the
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Background Information Besides the above construction of Strategic Management, the same concept of strategic management may be construed to refer to the art and science of developing evaluating and re-evaluating not only cross but also multi functional decisions that will enhance the performance of the organization in the market thereby endowing it with a competitive edge or advantage.
Competitive advantage in the market is the main objective of the process of strategic management. Just as one scholar, Haines, stated categorically, what we believe, think or know is inconsequential but what we do (Haines, 1995). In line with this statement, strategic planning requires action. It is important to note at this point in time the fact that the discipline of strategic planning has been around for some time having appeared for the first time in the 1970’s.
Then, the process of strategic planning simply meant that the strategic planners thought out strategic programs then sold them to the organization’s decision makers. However, this view of strategic planning has been surpassed by the rapidly evolving functionality thereby reducing the selling component to acting on what is envisioned. In other words, the same strategic planners have capacity to act because they constitute the top management team which maps the strategic future direction of the organization (Porter, 1980).
This new view of strategic planning is enshrined in the Goodstein, pfeiffers and Nolan’s definition of strategic planning as the process by which the top leading members of the organization anticipate the organization’s future thereby developing not only the procedures but also the operations necessary to realize the anticipated organizational future (Goodstein et al, 1992). Strategic management concept builds majorly from the definition of strategic planning in the foregoing paragraph.
However it is important to realize the fact that despite strategic planning being a prelude for strategic management, it is in itself insufficient if not followed along with the deployment, implementation, enforcement and evaluation of the strategic plan (resulting from strategic planning) while in action. This therefore makes strategic management a systematic approach meant to enable the identification and operationalizing necessary changes in the organizational performance as well as measuring the performance of the organization as it moves towards it vision.
In this view strategic management has been defined as the system that enacts a working link between strategic planning and decision making with the day-to-day practice of operational Management (Gluck et al, 1982). In light of this understanding of strategic management, an organization may be analyzed to identify its strengths, weaknesses and its strategies based on its vision and its performance in the market.
If the organization performs relatively well, then it means that the organization encases powerful strategies and therefore presumably it must be moving towards or acting at the apex of its vision. Dubai bank, One of the Banks in the Gulf or in the United Arab Emirates, performs relatively well in the market and in the light of the concept of strategic management in the foregoing paragraphs, its strengths, weaknesses and strategies can thus be identified and consequently recommendations on possible future direction of the bank submitted.