Strategic Management For Organisations Free Essay

Porter and ansoff

Developing strategic management for an organization is an important porter and off strategy.  For porter strategy it entails following a certain single strategy in creating a defendable position whereas for ansoff, it entails looking for an opportunity within an external environment then follow strategies to trail it. As a corporate growth strategy ansoff that focuses on the existing and potential new products of the firm as well as the markets (Generic Strategies Ansoff’s matrix 19, Slide 6). By taking into consideration methods of growing through available and new products as well as in current and new markets, the following product-market combinations which include; market penetration entailing achieving growth using available products within their present market segment, market development involving seeking development through focusing in new markets, product development which involves developing new products focusing on the existing market, diversification which entails growth through diversification into new businesses (Generic Strategies Ansoff’s matrix 19, Slide 7). Porter’s strategies focus on the relative position of the firm within the industry determining if the profitability of the firm is above or either below average in the industry, three generic strategies are applied here which include, cost leadership which is corresponding to no frills experiences, differentiation which is corresponding to luxury providers and focus which emphasize on narrowing choices in a competitive scope (Generic Strategies Ansoff’s matrix 19, Slide 1).

Implementing strategy

To achieve a successful implementation of a strategy, the managers needs to have the capacity of developing an organizational climate that is suitable for change and change need to be perceived as an opportunity instead of a threat. Implementing a strategy entail changes in some certain functions within the organization. Some challenges are likely to occur such as resistance to change by staff members which is a big threat to achieving a successful strategy implementation (Implementing Strategy 19, Slide 4). To ensure an effective strategy implementation, change has to be managed through education and communication to all staff members within the organization about the changes that are being made. Every detail and information has to be given to them so as to avoid misunderstanding and conflicts. Every staff has to be involve in the implementation process through active participation in it. Managers have to take an active role of manipulating other staff members to get on board and embrace the changes that are being implemented in the new strategies being brought in. This shall entail, persuasion, coercion, granting obligation and inducement (Implementing Strategy 19, Slide 15). Additionally, negotiations needs to be undertaken among all the involved parties including stakeholders, employees and even the customers. Therefore, the implementation of the strategy will be deemed successful in the above aspects are taken into consideration.

Diversification

This is a strategic alternative of implementing changes to an organization in order to ensure growth and prosperity of the organization although these strategies are not popular at the moment as they tend to be harder in managing diverse businesses (Generic Strategies Ansoff’s matrix 19, Slide 16). This strategy entails introducing different products to the market and manage various products in the same industry. Diversification strategy can be important in creating more opportunities to the organization promising more profitability rather than the expansion or increment in the existing product or market (Generic Strategies Ansoff’s matrix 19, Slide 17). It is important in enabling the organization to an alternative to achieve its success and objectives which the existing products or market failed to achieve. However, the diversification strategy has to be defined carefully and vividly as it has to stay within the wide sequester of the industry. Its vertical integration into the organization can either be backwards or forward. The main significance of this strategy is that it spreads the risks enabling the organization from over reliance on a certain market or product (Generic Strategies Ansoff’s matrix 19, Slide 18). Additionally, it grants the organization an opportunity to exploit the under-utilized resources and as well get the opportunity of escaping from the declining industry (Generic Strategies Ansoff’s matrix 19, Slide 21). It helps the organization to overcome challenges attributed to the competitiveness of in a highly competitive industry.

Acquisitions

This is a strategic management strategy that entails purchasing most or all share of another organization by a certain organization so as to take control over the market and industry (Methods of Development of Evaluation 19, Slide 9).  This strategy play a significant role especially in the economy of a developing and developed countries across the world. This strategy enables the organization to gain a competitive advantage in the industry over the others in the industry as it may remain undisturbed. It as well enable the organization to acquire knowledge about the industry since it buys shares from other organizations therefore they get the opportunity to get information about other competing organizations within the industry which helps them to learn their weaknesses so that they can eventually gain a competitive advantage over them (Methods of Development of Evaluation 19, Slide 11). Additionally, the acquisition industry enables the organization to overcome barriers that prevent it from entering its target industry. However, acquisition strategy has been reported to be mostly unfavorable in terms of profitability but on the other hand it enables the organization to get into the market quickly, grow fast and avoid take over. This strategy is generally significance in gaining dominance in the industry and leading the industry since it focusses in suppressing its competitors by buying their shares.

Stakeholder

Stakeholders play a critical role in an organization. Actually, stakeholders are individuals or groups depending on the organization in fulfilling their personal objectives and as well the organization is depending on them too (Mission, Objectives, Stakeholders 19, slide 26). For any organizational objectives to be successful, stakeholders have to be involved in every process of the organization such as strategy and change implementations. Stakeholders’ involvement and participation in organization’s activities and functions helps in shaping the organization’s plans, decisions, as well as facilitating changes within the organization (Mission, Objectives, Stakeholders 19, Slide 28). For instance involving stakeholders such as the surrounding community members living near the organizations enables the company to determine the needs of the society as well as the impacts such as environmental impacts caused by the organization that is impacting them so that the organization can effectively address those issues (Mission, Objectives, Stakeholders 19, Slide 30). Nonetheless, Proper and adequate involvement of stakeholders in strategy implementation enables the organization to overcome chaos, disputes and misunderstanding since they will be educated, trained and well informed about the changes that are to be accrued in the that is to be strategy implemented. Therefore stakeholders will be well-informed and play a critical role in the strategy implementation more effectively this resulting in more achievement in the strategic plans implementation.