We shall try to apply theoretical knowledge to the case study research. This theoretical knowledge will become the basis for fulfilling the main purpose of the present case study.
Glaxo is a health company with strong foundation into science. It is occupied with production of medicine for World health Organization's three priority diseases - HIV/AIDS, tuberculosis and malaria. The strategic management of the company consists of four steps - draw, see, think and plan.
Reuters is known to be news service organization. It is necessary to mention that the company was established in 1851 by Paul Julius Reuter. Nowadays Reuters provides reports to newspapers from the whole world. But news provides only less than 10% of Reuter's income. It concentrates on providing financial markets with necessary and essential information about new products and their trading. Their activities involve currency rates, share price and other market data. (Kay 1995)
Strategic management is "the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans". (Strategic management techniques) It is known that strategic management is the highest level of managerial process. ...
Strategic management is also concerned as combination of formulation and implementation of company's strategy. But there must be strong correlation between purpose and the chosen strategy. There are several steps of strategy formulation:
Analysis of the current situation: external and internal analysis
Setting of objectives and determining of missions: long-term view, the role of the organization in the society, financial strategy
Working out a strategic plan: ways of objectives' achievement.
All these three steps give the answer to the following questions: where is now the organization What does organization want These questions are the part of strategic planning. (Kay 1996)
There are also several steps of strategy implementation. This process involves:
Determining chain of commands and their efficiency
Appointing responsible people for tasks performance
Managing the process: comparing best practices, observing results, evaluating effectiveness and efficiency, process of controlling. (Canals 2000)
These two processes are on-going and ever-lasting. It is a common knowledge that strategic management is really dynamic and it requires permanent reformation and improvement. It also includes patterns of complex actions and reactions, which are planned or unplanned. The strategy may be of several types: interactive, dynamic, planned, emergent. For example, Andy Grove admits that there are "critical points at which a strategy must take a new direction in order to be in step with a changing business environment". (Damours, 1992) And these critical points are inflection points. (Canals 2000)
External and internal factors of Glaxo and Reuters' strategic management
There are two main approaches to strategic management. These