How to Write a Summary of an Article? Strategic Management and Production Differentiation Efforts Government policies can have a significant impact on the average profitability of firm s in an Industry.
Definition[ edit ] Strategic management processes and activities Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on Strategic management and production differentiation efforts of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.
Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy.
Strategic planning may also refer to control mechanisms used to implement the strategy once it is determined. In other words, strategic planning happens around the strategic thinking or strategy making activity.
While described sequentially below, in practice the two processes are iterative and each provides input for the other. Formulation ends with a series of goals or objectives and measures for the organization to pursue. Environmental analysis includes the: What is the organization's business?
Who is the target customer for the organization's products and services? Where are the customers and how do they buy? What is considered "value" to the customer? Which businesses, products and services should be included or excluded from the portfolio of offerings?
What is the geographic scope of the business? What differentiates the company from its competitors in the eyes of customers and other stakeholders? Which skills and capabilities should be developed within the firm? What are the important opportunities and risks for the organization?
How can the firm grow, through both its base business and new business? How can the firm generate more value for investors?
Implementation results in how the organization's resources are structured such as by product or service or geographyleadership arrangements, communication, incentives, and monitoring mechanisms to track progress towards objectives, among others. Bruce Henderson  InHenry Mintzberg described the many different definitions and perspectives on strategy reflected in both academic research and in practice.
Because of this, he could not point to one process that could be called strategic planning. Instead Mintzberg concludes that there are five types of strategies: Strategy as plan — a directed course of action to achieve an intended set of goals; similar to the strategic planning concept; Strategy as pattern — a consistent pattern of past behavior, with a strategy realized over time rather than planned or intended.
Where the realized pattern was different from the intent, he referred to the strategy as emergent; Strategy as position — locating brands, products, or companies within the market, based on the conceptual framework of consumers or other stakeholders; a strategy determined primarily by factors outside the firm; Strategy as ploy — a specific maneuver intended to outwit a competitor; and Strategy as perspective — executing strategy based on a "theory of the business" or natural extension of the mindset or ideological perspective of the organization.
The first group is normative. It consists of the schools of informal design and conception, the formal planning, and analytical positioning. The second group, consisting of six schools, is more concerned with how strategic management is actually done, rather than prescribing optimal plans or positions.
Prior tothe term "strategy" was primarily used regarding war and politics, not business. He addressed fundamental strategic questions in a book The Practice of Management writing: He recommended eight areas where objectives should be set, such as market standing, innovation, productivity, physical and financial resources, worker performance and attitude, profitability, manager performance and development, and public responsibility.
Andrews in into what we now call SWOT analysisin which the strengths and weaknesses of the firm are assessed in light of the opportunities and threats in the business environment.
Interactions between functions were typically handled by managers who relayed information back and forth between departments.
Chandler stressed the importance of taking a long term perspective when looking to the future. In his ground breaking work Strategy and Structure, Chandler showed that a long-term coordinated strategy was necessary to give a company structure, direction and focus. He says it concisely, " structure follows strategy.cost management strongly relies on strategic cost analysis, which refers to the creation of information basis for identifying superior strategies for the enterprise cost differentiation, which will further enable the achievement of sustainable competitive advantage.
Strategic management involves the related concepts of strategic planning and strategic thinking. Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy.
are an organization's controllable activities that are preformed especially well or poorly, they arise in the management, marketing, finance/accounting, production/operations, research and development, and management information systems activities of a business.
Keywords Operations management, Operations strategy, Research, International business Abstract In an intensely competitive global marketplace reshaped by the opening of new markets, the study of international operations strategy (IOS) is becoming increasingly important.
ing to offer unique and/or unusual products and services (i.e., a differentiation strategy). Porter views these two alternatives as mutually exclusive because differentiation efforts tend to erode a low-cost structure by raising production, promotional, and other expenses.
The Journal of International Management Studies, Volume 9 Number 2, August, Strategic Differentiation Management: A Transnational Study of Costco Fang-Mei Tai, National Penghu University of Science and Technology, Taiwan.