Operations managementIntroductionThe success of any business relates to the way strategies are formulated and executed. Strategies can be rational and deliberate, or can be those that are creative and emergent. Many companies stay with the first option, as they are time-tested and least risky. However with the changing global business scenario, this may not be very effective in distinguishing between the successful and the also ran. Globalization has made an impact in the way conglomerates attend to their business globally. Competition has never been so intense and consumers that much more demanding.
This leads one to question the ideal strategy process to overcome this problem. Many companies are spending huge sum of money in their R& D and deriving benefits from it. Innovation is the name of the game. It’s true that not all innovations work well with the masses, but then again, one need to identify the root problem and then make adjustments to see that their targeted audience is covered through any creative or emergent technology. Telecommunication, transportation, banking, construction, and the list goes on and on have made tremendous progress over the last decade, and continues to do so. Executive SummaryIn the context of this discussion, globalization plays an important role in the way a company strategize its policies to sustain their business presence.
Globalization has opened up numerous possible avenues for large and mid-sized companies to promote their products and services abroad. This directly enhances their market value and contributes to their economic might. In such cases, the time-tested strategy of rational and deliberate policies remains, and their products receive further boost through unknown territorial clientele. The governments of the once reclusive economies of Asia; China and India opened their skies to transfer of technology and co-production.
Many of the heavy-machinery manufacturers and automotive industries were able to benefit immensely through co-productions and tie-ups. Government subsidies, cheap labor, qualified personnel and abundant raw material supplies generated huge volumes of profits and that too by retaining their strategy of being rational and deliberate. However, with time comes monotony and weariness. The strategy process has to be reassessed and changes brought about. Changes are perennial and so too are strategic processes.
Literature ReviewThe strategy process is quite intriguing, yet exhilarating. Every company has its share of researchers who respond to the strategy process challenge by identifying certain traits that can either bring moments of exhilaration or disillusion. Disillusion comes from the often grotesque outcome of their effort leading to an outcome that is far from impressive. A lot of empirical research goes into the strategy process; large, often heroic and distinctive, collection of data is required to explore the possibility of linking strategy process and decision-makings, and finally to performance. The potentially revealing and insightful information comes at a cost, a cost that can nip the career perspective of the researcher, if it crashes.
However, the outcome, though comprehensive, can be complex, messy, and notoriously fragile. Nonetheless, a significant part of the research is characterized by controversial normative orientation; strategic change or protecting and extending existing strategies. As Chakravarthy and Doz (1992) suggests, strategy process research is based on how managers can influence the quality of their organisation’s strategic position through the use of appropriate processes and administrative systems. Such outcomes remain highly influential (if successful) until they are outdated, out fashioned, or shown to be hazardous.