STRATEGIC MANAGEMENT Name: Institution: Instructor: Course: Date: Strategic Management Critic of management models Porter’s Five Forces model is designed with a focus on factors that built up the competitive advantage of a firm within the market (Afuah, 2003)…
Why is it this so? It is clear that the globalization of markets has led to a paradigm shift in how organizations-and especially multinationals-conduct their business operations. The deregulation of national and regional markets has led to eradication of bottlenecks to cross border trade leading to increased competition for the vast and diverse, global markets. Porter’s competitive model was build based on the prevailing economic conditions of the eighties. It assumed the classical perfect market conditions of intense competition and a relatively stable market structure that is subject to cyclical developments. Therefore, by design, this model loses significance in the modern global market. Modern global business is characterized by dynamic markets where industries have complex and multiple relations and product groups (Have, 2003). The upsurge of internet technology and e-business platforms has meant that the effectiveness of the model is in providing a still image of the industry. This is as opposed to providing holistic projections of future trends and developments that can be ably translate into strategy for the particular market segment. The model assumes the idea of competition based on a need for profitability and market survival only loses relevance in modern markets. It wrongly approaches some of the five factors i.e. suppliers and customers as a threat to the organization that needs to be addressed. Modern economics postulate that business strategies should be focused in incorporating, as opposed to reacting to these particular factors (Miles, 2011). The Boston Consulting Group (BCG) matrix was developed with a focus on the efficient allocation of resources within business enterprises. It adopts an evaluative criteria based on two prime factors i.e. market share and market growth has been widely used as a tool for portfolio planning, marketing and business strategy development. The basic principle in risk management is in diversification of assets through portfolio investments. The BCG model provides a useful pictorial comparison of the firm and its products versus the leading competitor and its products in the same market. The model, therefore, becomes a critical tool for implementing a firm’s short to medium-term profitability and growth objectives by providing forecast solutions of the market as it is now and as expected in the near future. In the short-run, the model is capable of providing strategies that are designed to provide quick-fix solutions to a firm. The disposal and optimization of loss making assets or ventures can be easily identified using this model. On the down side, the model, the model’s application is often limited to a scope of a year. The model lacks the ability to provide a long-term picture of the market conditions and thus strategy development towards achieving the firm’s overall long-term goals becomes very challenging. The BCG assumes a direct relationship between market shares, seems irrelevant in the current global market. There are small businesses in the small market segments especially within the information technology segment that have surpassed even the largest multinational corporations in profitability (Kaplan & Norton, 2000). The model also places an inaccurate reliance in market growth as a dominant factor in determine the attractiveness of a market segment. There are other factors such as aggregate market risk and regulation that equally influence ...
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This means that strategic management brings together the mission, objectives, and vision of a firm and develops policies and plans then allocates resolves to allocate resources to the set plans and policies in order to ensure their implementation (Wheelen & Hunger, 2011).
Strategic Management Name: Institution: Strategic Management The success of any organization regardless of its affiliation depends on how it conducts its strategic management. This allows an organization to analyze all the key initiatives that the top management of the company undertakes on behalf of its key stakeholders.
The purpose of strategic management is to create new and different opportunities for the organisations to sustain in its usually competitive environment. In brief, the notion of strategic management is fundamentally described as the procedure of devising along with executing effective strategies with the intention of supporting an organisation to attain its expected business targets (Nag et al., 2007).
Crisis management plan must be prepared keeping into consideration the overall safety of the strategic planning process. The aim of the strategic management in such needful situations is to enhance the organizational capacity in responding to the crisis and make strategic plans to effectively overcome from the identified obstacles (European Interagency Security Forum, “Crisis Management of Critical Incidents”).
Main products of the company are printers, personal computers, network management software, high end servers etc. Company is operating its business globally in several areas like printing, computing, digital imaging. Beside this, the company is also providing software and services.
Strategic management in the public sector is a complex process since there are multiple stakeholders with varying needs and limited resources available. There are various approaches to strategic management in the public sector.
In an article published in the Wall Street Journal on 7 May, 2009 and titled Arbitron, Looking To Make Strategic Investments, Takes Page From Cisco, Ty McMahan wrote about the recent decision that had recently been taken
r changing surroundings, managers need to constantly analyse and decide on the actions that would increase the efficiency of a firm’s operations and enable it to survive the competition. This is where strategic management play a vital role in the organisation’s survival. The