The Value Of Management Strategy Essay

988 words - 4 pages

‘’A company’s strategy is managements game plan for growing the business, stacking out a market position, attracting and pleasing customers, competing successfully, conducting operations and achieving targeted objectives’’ (Thompson, Strickland & Gamble 2008). Porter (1996) states strategy as choosing different set of activities to deliver a unique mix of value. Markides (1999) states strategy as a position a company takes to answer certain questions about the organization. Strategy can be viewed as a way to which the organization achieve its competitive advantage. Competitive advantage is the way in which the organization meet consumer needs better than their rivals. Strategy is used in decision making in which managers monitor the ever changing external environment, in which an effective strategy would allow the organization to use resources and capabilities to exploit opportunities and limit threats (Ireland & Hitt 1999). Strategy therefore can be defined in a number of ways. Strategies are devised to achieve certain goals. A company may seek a strategy to identify who are the customers, which services to offer and how they can operate efficiently.
Strategy entails an organization matches its resources and capabilities to the external environment to achieve competitive advantage (Lado & Wilson 1994). Organizations set goals to achieve. The organization will therefore analyse the problems which the firm face, and then formulate a strategy and implement it to achieve competitive advantage.
Strategic making process therefore:
1. Set a corporate vision, mission and values and the organisation goals and objectives.
2. Analyse the external environment
3. Analyse the organization internal environment
4. Select strategies that help the organisation on strengths and correct weakness
5. Implement strategy

A mission statement describes what a company does: who is being satisfied and what are the customer needs
Vision
The vision of a company articulates, often in bold terms, what the company would like to achieve
Values
The values of a company state how managers and employees should conduct themselves in business. Organizational culture: set of values and norms
Major goals
The measurable desired future state that an organization attempts to realize.
The organization would like to identify opportunities and threats operating in the environment that will affect the organization achieve its competitive advantage. The external analysis will assess competitive structure of industry, competitive position of the company and competitiveness and position of major rivals.
The country environment in which the company competes. The wider socio-economic and macro-environment that may affect the company and its industry
• Social
• Legal
• Technological
• Government
• International

Brings out the strengths and weakness of the organization. Strengths result in superior performance and the weakness to inferior performance. The internal analysis will assess quality...

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