Strategic Management Essay Example

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Strategic Management 3


Strategic Management


The concept underlying strategic management has been used extensively in the contemporary business scene to offer managers and employees the opportunity of experiencing organizational change and better performance. Although most of the organizations have accommodated the idea, it is likely that they have failed in one or two levels that include the implementation stage, analysis, or formulation of strategic practices. Strategic management is the analysis, formulation, and implementation of various objectives that the organization would wish to achieve through the top management. It often considers the importance of constraints that exist within the business that includes the availability of resources, the internal and external environment as well as aggregate factors that contribute to its success. Employing different activities that foster a competitive environment and meets the objectives of the business regarding operational performance involves a series of strategic planning that is carried out by the management of the organization. The application and interpretation of the three levels of strategy mainly in the Australian business market often separate the successful managers from the unsuccessful managers. Therefore, as a manager, I believe that the analysis stage forms the most crucial level of consideration if any organization is to meet the long-term objectives.


The formulation stage forms the second aspect of strategic management and revolves around establishing the differences between the group and other businesses in the competitive environment. Although it involves making a series of decisions that require the competitive structure of the firm, it is likely that the strategic decisions will be drawn from the analysis stage. The dynamic business society has created a wave of insecurity as well as ambiguity regarding the cost, entrepreneurship, international competition, and acquisition of other companies through mergers and purchase (Teece, Pisano and Shuen, 1997). For instance, Apple Australia works with international organizations such as WHO to ensure that climate change does not expand beyond the current scenario. Similarly, Coca-Cola guarantees that they collaborate with the community to provide economic development. Therefore, it is equally important to consider the operations that are carried out in the formulation stage since they will determine the outcomes during the implementation stage. One of the distinct characteristics that separate successful managers from unsuccessful managers are the failure to understand how the organization will compete.

Managers have the opportunity to achieve better and desirable performance through the balance of metrics within the supply chain of the organization. Evidently, the implementation stage of strategic management forms a significant aspect of the business since it ensures that the concept of organizational design is considered. The corporate design is based primarily on the structure, culture, and control mechanisms that have been put in place to monitor the behavior and attitudes of the employees. In this case, strategic managers have the opportunity to structure the organization to mimic the culture of a company in the technology supply chain (Thompson and Strickland, 2001). For instance, Apple Inc. in Australia has built an organization chart that revolves around hierarchical and adaptable systems. Such a structure can foster strategic planning notably through the distribution of resources based on the product or service or geography. Similarly, some managers fail, and others succeed because if their ability to incorporate corporate governance and ethical business operations. For instance, Apple fosters environmental responsibility and environmental sustainability while organizations such as Coca-Cola in Australia use false and misleading marketing, therefore, a breach of ethical standards.

The analysis stage is the most critical level of strategy that I would apply. Strategic management has to be approached from an open perspective. In this case, managers are required to display a sense of understanding to the notion of strategy if they are to succeed in meeting the objectives of the business. The interpretation of a plan may take a different approach based on the level of the supply chain that the firm is involved. For instance, while some managers identify with strategy as a course of action that is set to achieve various objectives, some managers may identify with the concept as the process if locating organizations in the competitive environment based on the conceptual framework displayed by the consumers and other players in the environment. For instance, Apple Australia concentrates on changing its business patterns to focus on customer-facing challenges (Apple Australia, 2017). Other managers may identify strategy as a maneuver to overcome the effects of consumers that may imply altering the quality of products or manipulating the costs. Therefore, as a strategic manager, I would blend the different interpretations of strategy to come up with a precise and comprehensive understanding that would help in actualizing the objectives.

After understanding the concept of strategy, the analysis step also involves reflecting on the strategic leadership aspect that most managers are required to display. This issue is important to the process considering the effect that leaders pose particularly to the workforce. It entails the ability to influence other people to make decisions that improve the prospects of the organization and maintain positive financial equity. Any strategic leader is required to display various management skills that apply in the formulation of strategic plans and ventures (Hunger and Wheelen, 2003). For instance, Apple Australia maintains a candid reputation in its processes through its ability to collect information from an extensive network of people and institutions globally. Apple Australia discovered that competitors such as Dell and Microsoft were unable to meet the needs of the consumers since their processes involved various suppliers making the supply chain undeterminable. Strategic leadership is important since it establishes a gap in the supply chain and ensures that organizations do not experience any differences in their innovation and identification stages.

Accommodating the desirable strategic leadership is not enough to counteract the effects created by competitors in a dynamic business scene. The goal of any strategic venture is to analyze the competitive market and ensure that the outcomes capture the most fundamental aspects of the industry. Therefore, the analysis stage prompts an evaluation of the management process to capture the strategy of the business. It is a critical interval since managers are required to choose from a set of strategies that will ensure a smooth transition to the formulation and implementation stages and ultimately better performance (Teece, Pisano and Shuen, 1997). For instance, Apple Inc. Australia uses the strategic management process to acquire and approach innovative ventures considering the high-profit margin that is generated by consumers from the higher-class social levels. Managers can find the ongoing characteristic of the management process, therefore, create links between activities carried out. Failing to analyze the strategic management process will result in fallacies and approach to issues limited by the lack of extensive information.

As part of the strategy management process, the analysis of the sector structure is a major component of any strategic plan. The external environment will be customized in such a way that the uniqueness of each organization represents a rigid strategic process considering the nature of each business structure. The analysis stage involves an evaluation of the industry structure using the Porter Five Forces Model (Freeman, 2010). It identifies the factors that prove relevant in deriving the structure and environment of any industry. For instance, Apple Australia concentrates of a low-cost strategy for its products based on the economies of scale, lean production, capabilities, supply chain, constrained rates, and overhead regulation, and minimization of costs. It is important since it reflects on methods which managers may invest in to acquire a sustainable competitive advantage regarding differentiation and costs.

Various industries are propelled by competitive forces that require each organization to display particular characteristics. Such components are obtained through an analysis of the five factors that shape the realization of profits. The effects include the threat of new entrants, bargaining power of suppliers and consumers, the threat of substitutes and scope of rivalry that exists among industry competitors. Considering that competitors take all the necessary measures to ensure they maximize their profits, strategic managers need to remain in the lead of any developments and gaps in the industry. Apple Inc. Australia, for instance, considers the implications of competitors such as Microsoft, therefore employ environmental scanning to track the behavior of the market (Apple Australia, 2017). The scanning process monitors the profits of established businesses, the quality of differentiated products among suppliers, position jockeying, and the structure of the competitive industry. It provides a rationale for the formulation of a different strategic plan that will deliver better results and achieve competitive performance.

As an essential part of the scanning process, analysis of the external environment is also used to classify strategic groups that exist in the supply chain. It is possible to acquire a better and deeper understanding of the organizations that have same characteristics to develop mitigating strategies that will counteract their effect (Ketchen Jr, and Shook, 1996). For instance, Apple Inc. Australia can counter the effect of Microsoft, AT&T, and IBM through its scanning process that delivers system feedbacks to recommend any quality control adjustments in the manufacture, sales, and distribution of their iPhones. Such analysis assists in identifying strategic issues that exist in the operations of the business through questioning the possibility of an organization moving from one strategic group to the next while maintaining the costs and maximizing profits.

Strategic management also takes into account an analysis of the integral factors that constitute the internal environment. It provides the opportunity to gauge the capabilities and competencies of the business to meet the requirements of the market in terms of quality, satisfaction, value, and constant delivery. For instance, Apple Inc. Australia values the importance of the employees as a relevant resource since they work towards meeting the objectives of the company. Value chain resources therefore ensure that appropriate decisions are made and recommends distribution of resources based on the level of need. In line with the resource allocation and management, analysis involves the identification of core competencies and capabilities of the organization (Pearce, Robinson and Subramanian, 1997). Analysis highlights the skills and coordination abilities displayed by the workforce and enables value measurement to the consumers. A strategic resource-based view is an illustrative aspect of a strategic organization with unique capabilities and abilities geared towards a successful value chain.

The unique abilities are able to deliver a competitive advantage for the business through offering a different perspective of access to resources, beneficial geographic locations and access to new technology. An analysis of the external environment will deliver some sort of leverage for the business against the competitors, therefore implying rapid realization of success and positive performance. For instance, although Apple Inc. Australia sells products at relatively higher prices compared to its Microsoft competitors, it is likely that the company has acquired competitive advantage through its brand loyalty that is propelled by the quality of its electronics (Apple Australia, 2017). Such information will be important during strategic management since it compares the results with the performance of the organization. In this case, it is likely that operational performance will be realized significantly at the corporate level through accelerating the efficiency of the different departments and encouraging innovation. However, the relationship between strategy and performance is determined by the business model employed. The models foster rational and planned decision making processes while ensuring that the workforce understands the importance of strategic management.


Strategic management is an important aspect of any business operation. Managers often display different skills and competencies while approaching strategic management considering the supply chain of the organizations. It is important to ponder the effect that is created by the three levels of strategy since it shapes the success or failure of the business. Exclusive concentration on a single component may affect the ability of the firm to maximize on the entire strategy rendering the venture unsuccessful. The analysis, formulation, and implementation stages are all integral parts of the success of a strategy. However, I firmly believe that the analysis level forms the epitome of success for any manager. It creates a basis for the structuring of variables and metrics ensuring that effective and reliable recommendations are made for the success of any project.


Apple Australia. (2017). Apple. [Online] Available at: [Accessed 8 Jun. 2017].

Freeman, R.E., 2010. Strategic management: A stakeholder approach. New York: Cambridge University Press.

Hunger, J.D. and Wheelen, T.L., 2003. Essentials of strategic management. New Jersey: Prentice Hall.

Ketchen Jr, D.J. and Shook, C.L., 1996. The application of cluster analysis in strategic management research: an analysis and critique. Strategic management journal, pp.441-458.

Pearce, J.A., Robinson, R.B. and Subramanian, R., 1997. Strategic management: Formulation, implementation, and control. Chicago, Illinois: Irwin.

Teece, D.J., Pisano, G. and Shuen, A., 1997. Dynamic capabilities and strategic management. Strategic management journal, pp.509-533.

Thompson, A.A. and Strickland, A.J., 2001. Strategic management: Concepts and cases. McGraw-Hill/Irvin.