IntroductionStrategic management is an indispensable in the modern business world; in fact businesses cannot survive without proper strategic management in place. More so, companies looking to be competitive in their business niche need to ensure that effective and proper strategic management policies are put in place. The primary role of strategic management is to align the company’s resources with the best and appropriate approaches and goals in the future. This will ensure that companies respond in time to the challenges and set achievable goals through the creation of a framework that works towards the corporate goals and strategies.
There are a number of factors that affect corporate goals and strategies, these issues need to be addressed appropriately in order to ensure sustainability and achievement of strategic goals. This report seeks to cover issues affecting businesses with specific reference to the oil industry and specifically Crown Oil which carries its operations in the UK. Crown Oil UK was established 6 decades ago and it deals mainly with supplying of diesel fuel, heating oil’s, greases and lubricants throughout the United Kingdom (Crown Oil UK 2013).
The company has been particularly successful because of its strategies of fast oil deliver all over the United Kingdom. The company however faces competition from other established companies such as the British Petroleum (BP) among others. This report seeks to analyze critical issues facing the company such as compatibility between corporate strategies and management functionality, internal and external influences which directly impact on corporate objectives and strategies and the need for flexibility in strategic management and practical limits of quantifying strategy. Critical analysisNeed for compatibility between corporate strategic and functional management policiesWith increasing effects of globalization, companies now find it necessary to align its strategic goals with its functional management policies.
In essence, aligning both internal and external influencing factors play an important role in ensuring the survival of the company through the upheavals of the business environment. Globalization increases opportunities and threats at the same time. Given the vital role the oil and gas industry plays, ensuring its sustainability is essential for both the company and the country as a whole (Teece 2010). There is a close relationship between the corporate strategies and functional management policies.
Essentially corporate strategies is the main initiative taken by the top management of a company on behalf of the key stakeholders, this mainly involves management of the resources as well as assessment of internal and external environments that influences the company. It also entails company’s vision, mission and objectives coupled with the development of plans and policies (Amit, & Zott 2001, 493). With this consideration, functional management policies are developed in order to ensure that the mission, visions as well as the objectives of the company are achieved.
In this sense, it is recommended for Crown Oil UK to ensure that its management functionalities and policies are well aligned with the corporate goals in order to improve performance of the company and achieve both the short term and long term objectives.