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Processes of change in organizations and their management - Essay Example

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Processes of change in organizations and their management

Glueck (1988) defines strategy as a "unified, comprehensive and integrated plan, relating the strategic advantages of the firm to the challenges of the environment. It is designed to ensure that the basic objectives of the enterprise are achieved."
Johnson & Scholes (1993) effectively summarized all the features of strategy as "the direction and scope of the organization over the long term: ideally which matches its resources to its changing environment and in particular its markets, customers, or clients so as to meet stakeholder expectations."
The above definitions point out that strategy is a plan that ties all the parts of the enterprise together, covers all major aspects of the enterprise and all parts of the plan are compatible with each other and fit together well.
Wheelen & Hunger (2003) describe strategic management as "that set of managerial decisions and actions that determine the long run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation and evaluation and control."
Strategic management is defined by Chandler (1971) as "the determination of basic long term goals and objectives of an enterprise and adoption of course of action and allocation of resources necessary to carry out these goals."
3. The evolution of strategic management is shown in the following figure:

Figure1- Evolution of strategic management

Mintzberg (1998) has located 10 'schools' of strategy research which have developed from the emergence of strategic management as a field of study during the 1960s. The ten schools are as follows:
1. The design school - Strategic management is a process of attaining a fit between the internal capabilities and external possibilities of an organisation.
2. The planning school - This school supports the virtues of formal strategic planning and arms itself with SWOT analysis and checklists.
3. The positioning school - The thoughts were heavily influenced by the ideas of Michael Porter and emphasize that strategy depends on the positioning of the firm in the market and within its industry.
4. The entrepreneurial school- The central role played by the leader is stressed upon in this school of thought.
5. The cognitive school- This school looks inwards into the minds of strategists.
6. The learning school- The school upholds that strategies emerge as people come to ...Show more

Summary

The buzzword of today's business environment is dynamics or processes of change in organizations and their management. In order to create competitive advantage in a changing environment, organizations have to focus on building core competence and transferring them between various business units…
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