Strategic ManagementIntroductionStrategic management is a continuous process that examines and manages the operational and work processes of an organization and the industry within which the organization operates, analyzes the external competitive forces, set objectives, and plans to help the industry and the organization to satisfy all the existing and prospective customers as discussed by Verardo (1997). In addition, it reassesses each set plan and goal periodically to establish its implementation and analyzes if the plans and goals set have attained the anticipated results or it requires reforming, discarding, or replacement with a new plan and goal to effectively and efficiently, adapt to changing market and business environments, emerging technological solutions and new competitors in the market as stated by Dess et al.
(2009). This is essential in countering rapidly changing social, political, environmental, and legal, financial and economic forces. According to Allio (2005), in contemporary highly turbulent business ecologies, budget-centered and forecast-oriented planning techniques are inadequate for large modern firms to survive and succeed in enhancing their competitive edge and achieving their missions, goals and visions. Strategic management therefore, initiates strategic planning vital in lucidly defining goals and objectives and analyzing the internal and external environments to develop, implements, evaluate strategic plans and make alterations and amendments wherever and whenever necessary in order to remain relevant (Alexander, 1985).
Strategic management for contemporary firms is not an option since; it can be utilized to establish the mission, vision, values and ideals, objectives and purposes, roles and responsibilities of each member of the labor force and defining and establishing timelines. This report seeks to explicitly compare and contrast the formulation and implementation approaches to strategizing from economic perspectives and behaviorist perspectives used in a modern writing software firm in a young, dynamic and complex industry and a yoghurt company in a mature, stable, simple and traditional industry respectively.
Formulation and implementation of strategy approaches to strategizing from Economy used in a young, dynamic and complex industry]Strategic management becomes successful with competent strategic planning. The process of strategic planning entails defining the mission and objectives of the firm inclusive of the unchanging ideals and goals of the firm and setting both short and long term that helps in guiding the efforts to pursue future opportunities (Olsen, 2006).
Using the vision, the management is able to establish measurable financial goals such as sales targets and increase in return on investments and strategic goals such as the business position, reputation and market share (Grant, 2005). In addition, carrying out an environmental scan that analyses the internal environment of the firm that involve assessing the strengths, weaknesses, opportunities and threats of the firm. Moreover, assessment of the firm’s industry and analysis of the external environment that involves assessing political, economical, social, technological, environmental and legal factors influencing the firm (Alkhafaji, 2003).
After environmental scanning, the next step in strategic planning is strategy formulation that entails developing a plan that correspond the strengths of the firm to its opportunities and ameliorating the identified weaknesses and mitigating external threats. Finally, there is strategy implementation that entails implementing the most suitable strategic plan by effectively allocating available organizational resources to achieve anticipated results (Heracleous, 2000).