Corporate Social Responsibility and Strategic Management Essay Example

things right while CSR-driven innovation is doing the right things (Louche, Idowu& Leal, 2010).

Strategic management is the process of identifying a business’ specific goals, designing strategies to achieve these goals and the process of implementing these strategies. This shows that for a company to realize its goals, it must have the most effective strategy put in place.

The main goal of a business is to outdo their competitors by producing the best products and offering the best services to their customers. The most important strategy for any company in the current environment that rapidly changes include the abilities of becoming more competitive in terms of value creation and also being innovative.

Innovation strategy is widely considered to be essential to the success of businesses due to its ability to stimulate different firms’ growth as well as offering a competitive advantage in environments where scale economies do not exists. A company needs to invest in innovation to avoid the risks of having its products getting marginalized more technologically advanced competitors (Wong, 2014).

Strategic management is a wide process that requires an innovative input. According to Davenport, Leibold&Voelpel (2006), the process of strategic planning involves four stages. In the first stage the innovators make assumptions about the new ideas’ future and success. The second stage involves developing the strategy which is a creative way of providing means of goal achievement.

The third step is to implement the plan and includes testing the validity of important assumptions. Lastly, the innovators will use the test results to decide on whether to implement the plan through significant investment. All this strategic planning stages show that innovation is directly correlated to the strategic management.