Bu 690 7a Unit 7assignmentdocxby Choua Vangsubmission Date 02 Mar 2 ✓ Solved
BU 690-7A Unit 7 Assignment.docx by Choua Vang Submission date: 02-Mar-:15PM (UTC-0600) Submission ID: File name: BU_690-7A_Unit_7_Assignment.docx (273.36K) Word count: 2020 Character count: % SIMILARITY INDEX 52% INTERNET SOURCES 0% PUBLICATIONS 38% STUDENT PAPERS 1 34% 2 25% 3 1% 4 <1% Exclude quotes Off Exclude bibliography On Exclude matches Off BU 690-7A Unit 7 Assignment.docx ORIGINALITY REPORT PRIMARY SOURCES Internet Source Submitted to Herzing University Student Paper Submitted to Colorado Technical University Online Student Paper Internet Source
Paper for above instructions
Introduction
Strategic management is an imperative component for the sustenance and growth of businesses in today’s globalized market. Companies are no longer confined to domestic borders; thus, their strategies must not only account for local market dynamics but also for international competition and opportunities. This assignment delves into the intricacies of strategic management and its application in global business practices.
The Importance of Strategic Management
Strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's top management on behalf of owners, largely based on the consideration of resources and an assessment of the internal and external environments in which the organization competes. It is critical for aligning resources with opportunities to maximize the outcome.
Without a strategic framework, organizations may struggle to respond effectively to changing market conditions or competitive threats (Hitt, Ireland, & Hoskisson, 2016). A sound strategic management process allows firms to anticipate shifts in consumer preferences, technological advancements, and competitive pressures, thereby enabling proactive adjustments rather than reactive measures (Barney & Hesterly, 2015).
Components of Strategic Management
1. Environmental Scanning
Environmental scanning is the process of collecting, analyzing, and interpreting data about the external environment that could impact an organization’s performance. It includes analyzing political, economic, social, technological, environmental, and legal (PESTEL) factors. For instance, the COVID-19 pandemic significantly altered global supply chains, which required businesses to reassess their operational strategies (Garrido-Moreno, Palacios-Manzano & Vázquez-López, 2020).
2. SWOT Analysis
A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a tool that helps organizations identify internal and external factors that could impact their performance. It allows companies to capitalize on their strengths and opportunities while addressing their weaknesses and threats (Kotler & Keller, 2016).
For example, a tech company with strong research and development capabilities can leverage them to innovate new products, but it must also address potential cybersecurity threats (Tidd & Bessant, 2018).
3. Formulating Strategies
Once the environment has been analyzed, the next step is to formulate strategies that align with the organization’s strengths and external opportunities. This involves deciding on a competitive positioning strategy: cost leadership, differentiation, or focus (Porter, 1985). Each strategy requires a distinct approach to resource allocation and market engagement.
4. Implementing Strategies
Implementation involves putting formulated strategies into action. This phase is often where many organizations fail due to lack of alignment among different departments, inadequate resources, or ineffective organizational culture (Kaplan & Norton, 2008). Proper leadership and communication are essential to ensure that all employees understand and are committed to the strategy.
5. Evaluating and Controlling
The final component is the ongoing evaluation and control of the strategic plan to ensure objectives are being met. This includes setting performance indicators and conducting regular reviews (Mintzberg, Ahlstrand, & Lampel, 2009). Adjustments may be necessary to respond to unforeseen circumstances.
Strategic Management in Global Business Context
Global businesses face distinct challenges and opportunities that necessitate a nuanced approach to strategic management. Companies operating internationally must account for diverse regulatory environments, cultural nuances, and market dynamics.
Cultural Considerations
Understanding and navigating cultural differences is fundamental to successful international outposts. For example, research indicates that companies with localized strategies that respect and integrate cultural identities outperform those applying a homogeneous approach (Hofstede, 1980). An example is McDonald’s, which adapts its menu in different cultures to cater to local tastes while maintaining its brand identity.
Regulatory and Political Challenges
Companies must also remain vigilant regarding political and economic stability in countries where they operate. Regulatory frameworks can vary widely, affecting issues such as tariffs, labor laws, and taxation (Douglass & Rubel, 2020). The recent trade disputes between the US and China serve as a salient reminder of how external political influences can impact business strategies.
Technology and Globalization
The rapid pace of technological change has created both opportunities and challenges for global businesses. With technological advancement, companies can leverage e-commerce and digital marketing to reach a broader audience. However, they must also contend with cybersecurity threats and the need for continuous innovation (D’Aveni, 1994).
Case Study: Amazon's Global Strategy
Amazon serves as an exemplary case regarding strategic management in a global context. The company utilizes a multi-faceted strategy characterized by technology innovation, effective supply chain management, and customer-centric policies.
Amazon’s investment in logistics has allowed it to shorten delivery times significantly, which is a crucial competitive advantage in the retail space (Stone, 2013). Furthermore, its use of data analytics to understand customer preferences has enabled personalized marketing strategies, enhancing customer engagement.
On the flip side, Amazon faces scrutiny regarding its workforce treatment and competitive practices, necessitating a balanced approach to future strategies. These factors illustrate the importance of evaluating both internal and external environments continuously (McAteer, 2019).
Conclusion
In conclusion, strategic management represents a vital area that organizations must focus on to succeed in today’s volatile global marketplace. By conducting thorough environmental analysis, leveraging internal strengths, and adopting a flexible approach to implementation and control, businesses can position themselves for enduring success. The case of Amazon highlights the complexities and multifaceted nature of strategic management, reinforcing that an effective strategy must adapt to an evolving global landscape.
References
1. Barney, J. B., & Hesterly, W. S. (2015). Strategic Management and Competitive Advantage: Concepts and Cases. Pearson.
2. D’Aveni, R. A. (1994). Hypercompetition: Managing the Dynamics of Strategic Maneuvering. The Free Press.
3. Douglass, F. H., & Rubel, A. (2020). The Importance of Regulatory Compliance in Global Business. Journal of Business Ethics, 162(4), 873–891.
4. Garrido-Moreno, A., Palacios-Manzano, M., & Vázquez-López, S. (2020). The Impact of COVID-19 Pandemic on Business Development: Managing Behaviors and Resources. Business Horizons, 63(6), 835-845.
5. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic Management: Competitiveness and Globalization. Cengage Learning.
6. Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. SAGE Publications.
7. Kaplan, R. S., & Norton, D. P. (2008). The Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business Review Press.
8. Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
9. McAteer, J. (2019). Amazon: The Company That Shook the World. Forbes.
10. Mintzberg, H., Ahlstrand, B., & Lampel, J. (2009). Strategy Safari: A Guided Tour through the Wilds of Strategic Management. Financial Times Prentice Hall.
In summary, effective strategic management is crucial for businesses operating in an increasingly complex global environment. Organizations must embrace flexibility, adaptation, and continuous evaluation to thrive.