Strategy Investigation Report
Every organisation is mainly established with a goal, and it defines the purpose of its presence, and strategic management plays a significant role in pursuing the business goal. Strategic Management is considered as one of the essential activity at the time of achieving the desired goals of the company. Designing or planning of the strategy involves a significant amount of resource management and risks by the officials. This strategic management provides the way to counter the threats at the time achieving a substantial purpose by efficient handling of the available resources. The below assignment describes the traditional approaches of the strategic management and its limitations that force the companies in adopting the specialised business models besides this. Moreover, effects of the strategies in maintaining the business value propositions are also discussed in this writing.
Strategic management considered as a structured framework that helps the business leaders by giving a proper direction to make the wise decisions. Strategic management is an important concept, which allows the business leaders by evaluating the plans, objectives and business goals as per the situations of the company. Strategic management is one of the most useful aspects that provide the company with the practical decision making system by analysing the external and internal environment. Moreover, it also delivers the effectiveness and efficiency to the company by giving the necessary details of the requirements and deficiency of the company's operations. Furthermore, strategic management also helps in maintaining the basic framework of the corpora ........
Strategic management considered as a structured framework that helps the business leaders by giving a proper direction to make the wise decisions. Strategic management is an important concept, which allows the business leaders by evaluating the plans, objectives and business goals as per the situations of the company. Strategic management is one of the most useful aspects that provide the company with the practical decision making system by analysing the external and internal environment. Moreover, it also delivers the effectiveness and efficiency to the company by giving the necessary details of the requirements and deficiency of the company's operations. Furthermore, strategic management also helps in maintaining the basic framework of the corporate governancethat ensures the effective decision making and goal setting.It also helps in identifying and capitalising the core competencies, the things that an organisation can do best in maximising the profits. In the modern world, every company follows different approaches to strategic management to give their activities competitive advantages in the business market.
Figure 1: Traditional approach of Strategic Management
Among the other approaches, traditional approaches to strategic management considered as useful, practical and are adopted by the year-old organisations. Conventional strategic management approaches are works with the factors like positioning, analysis, strategic options and portfolio management. During the years the single companies became more complex, multinational, multi-product and global conglomerates, competition and global interdependencies are also increased day by day. The businesses needed to use more tools of sophisticated management, which are locally oriented and much smaller than their previous counterparts.The traditional approaches to the strategic management work mainly by mission and vision, external and internal analysis of the company. This approach helps the company in providing the suitability, feasibility and acceptability; this also ensures the evaluation of the strategic choices of the operational activities of the company. Furthermore, these traditional approaches based on three strategies like design, planning and positioning, which make it easy, approachable and suitable for every type of businesses.
Conventional methods of strategic management have some severe advantages while using in the operations of any company. Being easier in implement and designing at the dynamic times, this process gives the acceptance and credibility much quicker than the innovative approaches that provide a competitive advantage to the executives.Moreover, this approach offers the reasonable and desired results for some particular markets and industries easily if used skillfully. Furthermore, it works like a wonder for the companies, which are not,affected the changes drastically, it also in saving the organisation from virtual demolition. The SWOT model and the analysis process used in the traditional approach helps in providing the compiling, structuring and analysing information to the companies. Every business getsaffected by the extensive amount of information, data, tacit and explicit knowledge at the time of interpreting the situations, this tool helps in filtering and making sensing of the data overloaded. Despite these advantages, the traditional approaches have some limitations that provoke the use of business models in the organisations. As organisations are evolving day by day more précised, specified and skilful tools are needed by the organisations to cope up the ever-changing, dynamicand unpredictable scenarios of the market.
Figure 2: Relation between business model and strategy
The traditional approaches and used tools cannot cope up the changing nature of the business environment, and this leads to the lagging results. After the effects of increasing uncertainty, the leaders or the strategists are tempted in shrinking their focuses thus their focus shifted to the near future and internal analysis. Strategies used in the traditional approaches are based explicitly on the present scenarios that make it problematic for the particular use in future. In modern days, the business world is full of uncertainties and dynamic situations that give strong competitions in every organisation; these viable scenarios also forced the organisation to adopt one particular strategy that can be fit in future. Sometimes, the traditional approaches that based on company's predetermined objectives; vision and mission are so flexible that it cannot stand the changing business environment.The conventional method of the strategic management is prescriptive and straightforward thus they cannot provide an accurate picture of the real issues those are faced by the organisation. There are numerous new theories, which preferred the descriptive management approaches because they can easily understand the situations that a company is going through.Sometimes, the traditional method is also unable to predict the future accurately as the predicting of future is not an easy undertaking thus harms the proper planning of the operations. As this approach deals with various steps and formulation, it is expensive among the other tools, so sometimes companies could not able this approach. Strategic management is used by the organisations to get a long-term advantage, but in case of the traditional method, it is unable to provide the future security as it is resistant to change. Moreover, this approach has the flexibility issue as it cannot use every possible and available resource present in the company. In the current time of the rapid changes in the business, the market makes the access limited for the organisation, which used the traditional approach of the strategic management due to its various limitations. Organizations tend to adopt the business model that helps the companies in providing stability, simplicity, capital intensity, industry maturity, coupled and tight operations and powerful and useful external control. Global industrial market forces the agile companies in fragmentation of the market, which gives the greater flexibility in adapting the situations by using the year-old approaches, the companies cannot do the same. Moreover, this approach has the deficit of empowering of the knowledge workers to involve more in the decision making and planning system.
Every company has to step the new and unknown territory in everyday business and roadmaps like formulating approaches helps them to execute the trade properly without any hassle. Every new formation has to set priorities, outline the growth plan, determine the road map and plan the investment decisions to mark a situation in the business market. Besides the other activities, the strategic planning presence of in the company’s operation workmostefficiently in making the adverse journey easier. Development of the business model is one of the most fundamental approaches that accompany adopt to structure the entire processes for executing the business. Business models help companies in understanding the value of the products, services, technology and business in the market. There are various strategic approaches, which aid in the proper development of the plan or business model for the successful activities of the company by identifying the resources, customer base, their choices, products and services and knowledge of financing.
Figure 3: Strategy in business model
Strategies help in making this business model and understanding the value of the business in the market more efficiently by following some easy steps. The company should work on some tools or measures that will help in enhancing the ability to achieve the goals. Companies must need to review the current situations as well as past performances to understand the process what worked well, what not, available opportunities and what would have been better for activity. Moreover, an overlook of the macro external environment factors like politics, economy, and laws also helps in understanding the strengths and weaknesses of the company. Development of some vision and mission statement clears the expected future direction of the business, its aim from medium to the extended period.Moreover, it also describes the organisation's values and purposes, objectives and the processes by which the entire goal can be achieved. Identification of the strategic objectives and tactical plans are the other main strategies that complement the development of the business model by highlighting the priorities, budget requirements and resource allocations. Lastly, the performance management makes the work easier by hard work and planning of continually reviewing of the actions and objectives plans that helps in making sure of the company’s situation in the actual track of the development. Evaluating, managing and creation of a strategy also assist a company in gathering relevant information, planning, prioritising the activities for achieving the strategic vision.The above-discussed procedures are helpful in making the business plan and understanding of the value of the product, services and business in the market.
The value proposition is the communicated, acknowledged and delivered the promise of value that considered the actual importance of the products, services in the business market. It is also the given, acquired and experienced the amount that is believed by the customers about the company's services. Creation of the sustainable value proposition is one of the most significant parts of the business strategy, and it is based on the differentiated value of the services that satisfied the customers. Value proposition applies on the entire organisation, customer accounts, services and products of the total company and development of the value proposition of any company based on the analysis of the costs, benefits and review of the company. Different strategic approaches help in identifying the measurable, demonstrable statement, which benefits the customers by buying the specific product and services.
Figure 4: Value Proposition Strategy
The value proposition is considered as the composition of the company’s value that is delivered to the customer of the company for satisfying their needs. The value proposition of the company provided to the customers by the marketing of products and services. However, a proper, understandableand clarity in the brand value or name helped in making the company more famous and acknowledged in the business market. Different strategic approaches in the company help in maintaining a proper value of the services and products and provide a useful and evaluated way to execute the desired goals. Creation of the new, better and more cost was efficiently formed by the practical strategies, and the significant execution of the entire processes help the company successful in making the mark in the business market.The approach makes the technologies more innovative and understanding by the members of the company who can easily communicate the related values of the organisation. Despite different issues, theses above strategies can help in maintaining the value proposition of the company and its products effectively.
Every organisation has some goals while initiating its first operations in the market and that individual goals drive the organisation towards the betterment in future. Strategic management is one of those tools that help the companies by making the journey smooth and time-saving by executing proper analysis, assessment and utmost possible use of the available resources. It can be said that the strategic planning helps the organisations in driving the focus on the internal environment by settling of challenges and motivating the employees. It also can be concluded from the above writing that, besides the motivation, this planning also taken care of the external environment, handle the threats and adverse situations and turns them into practical opportunities. The above assessment describes both the advantages and disadvantages of the applications of the traditional approach that accompany may face. Only management has the final responsibility to apply these strategic tools on the betterment of the value proposition in the market while minimising the inherent limitations.