In this assignment, you will decide on strategic management plans, a company\'s
ID: 466338 • Letter: I
Question
In this assignment, you will decide on strategic management plans, a company's strategic competitiveness, and the best model for above-average returns.
In current market conditions, companies need to gain and then maintain a competitive edge over their competitors. They do this by employing a compelling and dynamic strategic management process to create a strategy that helps them achieve their goals before one of their competitors does.
Discuss the following questions in relation to strategic management:
Discuss the following questions in relation to strategic competitiveness:
Such companies also measure performance in terms of the degree and the speed of growth.
Discuss the following questions in relation to above-average returns:
Applying your understanding of strategic management, answer the following questions:
Explanation / Answer
Strategic management is systematically planning the process of analysing, coordination and implementation of decisions in order to fulfil sustainable advantages that are competitive. There are external and internal factors of strategic management. This includes the functions of management, transformations in structure, competition, socio-economic factors, technology and law.
Transformation in structure- This includes mergers acquisition and expansion in markets internationally for the need of strategic realignment. It is necessary to make important strategic management changes in capital, management, ownership and market structures.
Functions of management- This includes the change introduced with the composition of the board of directors.
Competition- The need for reviews of strategies is triggered by the rising competition for competitive advantage. This includes SWOT analysis to change the prevalent strategies.
Socio-Cultural factors- This includes the cultural and social features of the target market which trigger the changes in strategic management.
Laws- The alterations in laws like an environment of health care laws, tax etc generates changes in strategic management. The incorporation of new laws is necessary for adjustment of these strategies.
Technology- There is also changes to strategic management with availability or absence of adequate technological capabilities.
The competitive landscape of the twenty-first century gives scope for competitiveness to flourish with encouragement to scientific advancement and an establishment of research with funding schemes. There is the adoption of specific strategies for the development of business. There are also challenges of economic turmoil and unrest with terrorist attacks that changed the course of world landscape sociologically, culturally and economically. There are challenges to strategic leadership in various sectors of the economy in the speicifc financial services industry. There is also a challenge to create ethical human and social capital by utilising the resources wisely. There are volatile environments which challenge the existing strategic leadership.
There is the requirement for a new mindset; the traditional mindset is not helpful as it only focuses a lot on resource allocations. There is also the requirement to pay attention to disruptive changes in the business models.