Strategic Management in Decision Making
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Strategic Management
Making decisions that provide direction for institutions involves several considerations and, therefore, the top leadership of an organization has to come up with initiatives considering the capacity of that organization. The viability of a business is driven by its internal operations and external factors, and, therefore, strategic management has to take into consideration both the internal and external factors that relate to the organization (Gamble, Strickland, & Thompson, 2014). Every group would like to outshine other players within its industry and markets and to be realizing that there must be attributed peculiar to the group that would make it outshine. An organization has to roll its resources it directly controls and operations to place it at the top.
Different groups have their objectives and goals, and strategic management is the vehicle enabling an organization to meet its purpose. The principal purpose of strategic management to an organization is achieving competitive advantage, and, therefore, the first step would always understand the strategic position of a company (Hitt, Hoskisson, & Ireland, 2012). Organizations’ management makes choices that focus on the current state and future and the strategies managed on tasks of the institution. The focus of a business when formulating plans has to cover both its internal aspects and the external factors so that resources would be allocated to position the institution competitively and aid it in achieving its goals.
Strategic management begins with an organization from where it is while focusing on where it needs to be. Energies and resources will then be concentrated to take the group to the desired position through the determined procedures in the preparation for the future possibilities and to maintain competitiveness (Hitt, Hoskisson, & Ireland, 2012). Proper knowledge of the organizational capabilities and the competitive environment is critical in informing strategic direction for effectiveness. Even though the strategic management is not about prediction, the predictable and unfeasible contingencies are planned for as part of the strategic process. Strategic management is applicable to any organization since every business faces competition.
The process is usually continuous, and organizations can set periods within which to achieve the set goals and design a work plan that will assist in monitoring progress against the indicated tasks. The strategic teams as well as its competitors and goals to be at the top against every potential competitor review the business together with the industry it operates (Gamble, Strickland, & Thompson, 2014). An organization would continue to re-evaluate its strategic objectives during the strategic period to ascertain that they were met as projected and identify any adjustments needed. The approach gives workers a broader perspective of the organization they engage in thus focusing their jobs to fit into the organization's objectives.
Starbucks is a company dealing in coffee shops striving to offer products that meets its market needs, sampling quality coffee all over the world with some coffee shops in international markets. The company offers variety of products to meet the different market demands with a blend of menu and packaging to meet the increasing customers demand. Their business focus on human connections, upholding the culture and community involvement while diversifying on everything they do (Hitt, Hoskisson, & Ireland, 2012). The corporation embraces diversity and higher motivation for its employees to encourage best services to its customers. The continuous employee training is one of the ways that the institution meets standards in service delivery.
The increasing saturation and the rivalry in the market have facilitated the company to think of the best strategies to compete with the other companies that also diversify their offer. Even as the company remains the largest shareholder in its industry, the increasing rises in costs of raw products, and the rising of smaller outlets are threats that need managing.
Strategic management can assist the company in responding to its current issues with a focus on creating higher level competitiveness and stand any future changes in the business environment. The company can develop ways to deal with its tall management order and curb the increasing rate of staff turnover. The market saturation and high-level pricing needs balancing if the company is to maintain its customers and achieve continuous growth and sales (Gamble, Strickland, & Thompson, 2014). It can undertake a periodic change of menu including more products strategically while adjusting its sales with the coffee beans price.
With the expansion of the emerging economies and extended suppliers, the company can develop plans to maintain performance even as it advances its offering (Hitt, Hoskisson, &Ireland, 2012). Starbucks can continue expanding and creating partnerships to increase sales and raise financial performance and profit. Its strategies have to respond to the increasing shift in consumer preference, the intense rivalry between the competitors and the shifting price of the coffee beans required for the products. There are changes in local trends, and the local cafes offer affordable high-quality products subjected to copyright infringement with copied menus.
The company global strategy and means of expansion with a related diversification have allowed it to enter markets, relate and compete well, selling its products while posing complimentary goods (Gamble, Strickland, & Thompson, 2014). The effective global strategy has boosted international expansion with the flexible matrix leadership encouraging its progress and development. Starbucks continue to engage differentiation strategy to serve its vast market with high-quality products that enable acceptance of its higher pricing (Gamble, Strickland, & Thompson, 2014). It considers the different customer groups, needs, and the company ability, to differentiate from other competing firms with quality of its products granting it an edge over its competitors, satisfying the market needs by offering variety of products.