Essays on Strategy Organization and Management in the World Case Study

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The paper "Strategy Organization and Management in the World" Isi a wonderful example of a Management Case Study. Organizations change and organizations compete for the same resources, competencies, and customers. These are the cruel realities of management that cannot be neglected. This also means that the notion of strategy and strategic management cannot be neglected as an integral part of what managers do. The strategy is about affecting the overall activities of an organization in ways to make the organization a winner. The strategy is about survival in fierce competition. Achieving strategic competitiveness and earning above-average returns is one of the strategic management challenges.

It is very difficult to be achieved even if the firm is very big and it is even harder for those companies that are on a small scale. Eventually, the profits are usually hard to find or gain. The rigors of change and also competition catch are another challenge (de Brentani 1991 p 33). According to Business Review Weekly's annual list of the Top 1000 companies, more than 30% of the companies drop off in each decade. This shows that more and more companies will a very hard challenge for the firm to implement its strategic management.

Profit is one of the aims or goals for most of the firm or company. However, in strategic management, strong and consistent profit is not the main priority or concern. A strong and well-thought-out strategy was the top concern. This was followed by maximizing consumer satisfaction and loyalty, business leadership and product or service quality. And it is very hard to achieve actually because each consumer is different from one another in terms of the satisfaction towards a certain product or service quality.

So, this could be one of the challenges of strategic management Case Study: From about 1910 to 1930, industry leaders directed the large expansion of the automobile market, By the 1930s, battles for community leadership and bargaining power revolved around the principal supplier to the auto industry: labor. In the late 1920s, around 500,000 people worked in the Detroit area car factories. Working conditions were dangerous; one auto body plant was known as "the slaughterhouse. " But by the mid-1930s, the United Auto Workers Union had formed.

In 1937, the UAW achieved a landmark victory when GM recognized the union as an official representative of its employees. Labour-management struggles continued into the 1970s. Presently the industry is driven by the effects of the macroeconomy. The effects of the different economic indicators detailed in this paper ultimately forced the transformation of the domestic automobile industry into what we know today. Current trends Trends in the automotive industry include the style of the vehicle as well as the pattern in sales. The automotive company must have the capabilities to keep up with fashion, meaning goods and services the economy is vesting for.

For example, were there more vans sold previous or sports cars. The industry has to supply the product that is in demand (Clark 1991 p10). Some of the key factors to success that have been identified are: Control of Costs Controlling costs has become an essential requirement for auto component manufacturers, from the point of view of different perspectives. On the one hand, cost-cutting becomes essential if the company is to maintain profitability, even as OEMs have started demanding a price reduction of 5 - 10 % every year on components.

Failure to control costs would thus lead to an erosion of margins and hence profitability. Often, this cost-cutting can take place in collaboration with the OEM's themselves, by identifying areas of wasteful expenditure and possessing the scope for improvement, as Maruti has been actively doing with its suppliers (Wheelen, 2000 p 7).

References

Case study: Smart Car an Automobile Revolution, retrieved from coursework on August 27, 2007

Clark, K.B., Fujimoto, T. (1991), Product Development Performance: Strategy, Organization and Management in the World Auto Industry, Harvard Business School Press, Boston, MA p 10

De Brentani, U. (1991), "Success factors in developing new business services", European Journal of Marketing, Vol. 25 No.2, pp.33-59

Grant, R. M. 2004. Contemporary Strategic Analysis. Blackwell Publishing, London. P 18

Wheelen, T.L. & Hunger, J.D. 2000; Strategic Management. Upper Saddle River, N.J. U.S.A: Prentice Hall p 7

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