Fostering Creativity and Innovation in Business - Literature review Example

Student number: Students Name: Date Submitted: Campus: Lecture time: Lecturer: Tutor: Tutorial Time: Strategic Management Word count: 2,430 Introduction A strategy is a comprehensive plan established by an organization to take it from where it is to where it wants to be. It aims at helping an organization to reach out to its maximum level of success. The process of developing a strategy is known as strategy formulation. A strategy according to Mintzberg’s can be viewed in 5 different ways. It can be viewed as a ploy, a plan, a pattern, as a perspective or as a perspective. Strategy as a plan attempts to describe ways of an organisation being successful. It is dependable on external influences, policies and opinions by the public. (Lusk et al., 2008). A good strategy needs to be more than just a plan. A strategy ought to have an advanced plan. Plans are created prior to the activities to which they relate. Strategy as a ploy means beating the competition. It is known as the problem-solving technique. It tries to manoeuvre to outdo a competitor Pattern in the form of a strategy are used to keep track of previous and current strategies. It keeps track of previous patterns of success that may be applied to a contemporary organisation to bring in success. These patterns are however modified to fit the current trends in the market. Similarly instead of using plans and ploys, an organisation may try to position itself in the market as a strategy for success. A perspective refers to a strategy in which the organisation views the world market in. It is a highly creative risk that aims at seizing opportunities. It also highlights the important effects on an organizational philosophy and mutual thinking can have on decision making within a company. Strategic management It involves the analysis, choices, as well as actions that an organization embarks on so that it can come up with, and sustain a competitive advantage in the industrial market. Strategic management is an important measure in any organisation that aims to excel. It is useful in the day to day operation of an organisation as it provides a sense of direction and outlines measurable goals. Changing technological trends, new market and new opportunities, guarantees that a company achieve their core values, enabling organization's stakeholders to build an organisation that is long lasting. According to David (1994) goals that are short-run, slashing of costs, and organisation shakeup will not encourage enthusiastic workers to build a successful organisation that will bear all trials It is used in evaluating progress and changing tactics when moving forward. It provides an approach to identifying an organization’s objectives, its evolving policies and plans and methods formulated into achieving and attain these objectives. Strategic management calls for the allocation of resources that are used in the formulation of implemented plans and policies. Mintzberg 2005; observed that the principle of strategic management is equivalenting an organization’s resource to new market opportunities. It includes looking for and classifying opportunities and threats in the market, both internally and externally. Finally, an act need be taken. Analysis and decisions are useless if not acted upon. These actions are included to implement strategic management plans.Several key concepts of strategic management hold to the success of contemporary organizations. The first applicable concepts are the organization's goal setting. Creation of an organisation’s goals is a strategic step to an organisation’s success. Creation of goals goes alongside the creation of a mission and vision statement as well as values and organizational objectives. This guides the organization in quest of tactical opportunities. Similarly, it is via setting a goal that organisations create important choices, for example, how to organizations objectives and increase generation of income. Organizations can compete with their goals and those of others in the industrial market. They are very important in strategic management and required at almost all the management levels of an organisation because they purpose to answer and point out parts touching the existence and victory of an organisation. Secondly, strategic management uses analysis strategy formation as a concept of success in organizations. Testing an organisation’s SWOT is key in strategic management. It is undertaken in two forms, external analysis and internal analysis. It is through these that the company forms specific goals and objectives that aim at turning failure to success. Strategy formation as a concept of strategic management contains developed exact activities that allow an organization to encounter its goals. It ensures that the information obtained from analyses of strategies is prioritized within an organization. Through this, an organization can formulate an effective strategic plan that in turn guarantees survival in the market. It also notifies the organisation of the varying desires of the customers and emergent technological and market drifts in the industry. It ensures that the actions and approaches of the organisation are covered and taken seriously within the organisation Strategy implementation, on the other hand, is putting the authentic policy into exercise to fulfill the goals of an organization. Basically, all staff of the organisation should take part in this activity. Gathering all offered and essential resources by creating programs, budgets, and strategies to reach the goals of finances and operation of the organisation. Implementation therefore tends to become easier and more effective. Therefore, the process of strategic implementation has a hand in putting the strategy into place and letting the staff and organizational units implement their measures of the strategic plan successfully. A last concept is checking on the strategy once implementation is done. Here, a company determines what to measure and how to measuring it. Then it compares the projected results with the definite ones. This ensures that a company can adapt to changing trends. New opportunities and threats are considered through monitoring. It is common to use trial and error to test new ideas, and checking on what works and what doesn’t. At times, a part of execution may not be as predicted, making modifications necessary. The plan should, therefore, be monitored accordingly to avoid cases of failure. Organizations that carry out community social responsibilities are also put up in the category of successful contemporary organizations. Social responsibility defines the relations amid a company and the community it exists in. There are 3 viewpoints of an organisation’s social responsibility. These perspectives are economic, public and social viewpoints. Each of these viewpoints denotes a pitch of promise to the community. The economic viewpoint states that the only social conscience of business is to exploit the profits to a maximum. Similarly, social viewpoint holds that those organizations should try to make positive contributions to society in a positive way. An organisation seeking to create a competitive advantage in the marketplace must ensure that their brands of products are not only specific, unique and of high quality but also valuable and market worth. This ensures that rivals cannot manipulate or substitute them. Any competitive advantage should be sustainable in the market to ensure effectiveness and success. Effectiveness in this context means performing similar actions better than competitors. A company with a good strategy ought to have well understood choices about its major accomplishments. Mutually unhelpful price rivalry, if formed as opposed to a long-term advantage when organisations try to copy from each other. . Hannan 1989 emphasized that the main notion of organizational apathy is the absence of knowledge regarding the main competitors of the organisation and detailed awareness of the state of affairs regarding the competition. Similarly, it is essential that specific care ought to be paid to contestant’s arrangements in small businesses. The amount in which firms are meant to recognize not only the strengths and weaknesses but also the pre-emptive and deliberate abilities of each present and probable competitors, also called competitor orientation of a firm. The lack of information on an organisation of its opponents leads it into troubles (Harris & Ogbonna, 2006). A business environment is critical to a company’s business organization and preparation process to understand the setting in which an organisation or small business functions. By the external setting, organisations and business oriented firms adapt market change. Ansoff 2006 placed the basis for the worth of strategic planning. Similarly, an organisation that is known for success has a warm feeling to its business environment. It takes time to know and cope with its business environment. Similarly it uses unity and individuality in building a characteristic, idealistic and purposeful community. As well, the organisation has high delegation enabling constant ability to shape long lasting relations. This company is referred to as a live company. Due to this, it can preserve itself. It has a special and dedicated focus on more on extreme knowledge rather than finance. It also views itself as having great potential to become even more successful. In 1980s, the tactical planning emphasis moved and began to broaden a range of techniques. This aimed at creating more business opportunities and raising those that had been neglected. For Strategic planning to succeed, there must be at most involvement with the external settings of the business. According to Ziemnowicz, 2003, this analysis and examination of the external environment enables an organisation to grow and succeed automatically. Similarly Kraus, Harms, & Schwarz, 2006 insist that in the modern day, companies use various skills to agree on the changes, and can confirm its victory and sustainability. Strategic planning contracts the cause that directs the procedure by which an organization adjusts to its external environment. The leaders of a business need cognizance and indulgent of the external functional setting of their businesses in order to bring into line their organizational planning methods and also as per to the external environment conditions. With this kind of environment, the market of an organisation can be firmly adjusted. Several enterprising methods have been documented by means of adaptive measures. Ansoff laid the basis of the usefulness of strategic planning. Therefore, strategic planning organisations in must be incorporated with enough comprehension and understanding of the external environments. This is because every organisation has a dynamic and unique external environment. This means that only indulging with the external environment examination and analysis can assist in raising the efficiency and productivity of organisation, as well as effective planning in smaller enterprises Exploiting the market has led to the force of globalization. This means that organisations are adopting global strategic management planning. Organisations like Facebook see the world in an extemporary way and apply the company’s incomes to the chances and threats that it offers. This has made most of this organisations develop a level of high global strategic planning and refers to the globalization of customer preferences and scale economies. Whittington’s Theories of strategy Whittington (2001) identified several perspectives about strategy. These include: classical perspective, evolutionary perspective, processual perspective Systemic perspective. To start with, the classical mode is the most influential mode. It takes an assumption that an organisations manager has a complete control over the complete assignment of resources. This includes both internal and external environmental resources. The evolutionary perspective, on the other hand, emphasizes the differences in behavior in various organisations while the processual perspective states that states that financial products depend on the relations between individuals and their environment. The systemic perspective also states that the other 3 perspectives are categorized by a slender world view. Conclusion Every successful organization bears a unique concept that allows the organisation and its stakeholders to remain unspoken in decision-making as well as take the organization's designs of operation. At times, a company’s ways of accomplishment is to come up with after thorough examination, analysis. In fact, there are times when important decisions arise randomly. This may be from occurrences by chance or even historical accidents motivated by the practices and traits of previous leaders. A company’s position in the industrial market and economic circumstances in its surrounding also affects its development. Changing technological times as well as, new market opportunities, leads to having these companies achieved their major values. This have encouraged the organization's stakeholders to build a lasting organisation. A strategy that is well-planned results to a positive organisation. Variety of reasons however may lead to failure of these organisations. To start with strategic plans ought to be planned accordingly and rumored out with a measurable objective, a vision and a mission statement. This should be followed accordingly to achieve organisations mandate. At the same time, if one does not get to understand an organization's culture, various reasons to failure may follow up. It is important we understand that every company has distinctive practices, policies, beliefs, and guidelines that act as a director it to the organisations wellbeing. Strategies should be laid out and should be considered to be in line with the culture of the organization. Thus they do not clash and lead to failure. There is also a requirement of first-hand investigation from a perspective of strategic planning. Exploring the basic modules of strategic planning in this kind of research in developing countries is also a major importance in ensuring that organisations lead the road to success. Until today, there is still no found first-hand study from a strategic planning perspective. If an organisation does not adequately implement its strategic planning methods, it may not succeed. This implementation makes sure that all plans are placed according to plans and everything runs well. Similarly, this guarantees noninterference of legal and ethical problems. References Barnett, R., Barnett, R., & Barnett, R. (2008). Managing business forms. Belconnen, A.C.T.: Robert Barnett and Associates. David, M. Sutton C.D. (2004). Management Research the Basics. London: SAGE Publications. Hayes, N. (1997). Successful team managemnt. London: International Thomson business press. John Wiley & Sons Ltd., West Sussex, England Titus, P.A. (2000). Marketing and the creative problem-solving process. Jour Kumar, D (2009) Fostering Creativity and Innovation in business Keynote Presentation at Walsh Fellowship Seminar Day, Royal Dublin Society, November 2012. Larsson, T. (2001). 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