Importance Of Strategic Management Business Essay Example
Importance Of Strategic Management Business Essay Example

Importance Of Strategic Management Business Essay Example

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  • Pages: 13 (3414 words)
  • Published: September 28, 2017
  • Type: Research Paper
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Strategic planning involves determining an organization's future direction and how it will achieve its objectives. This process includes the entire organization and focuses on key functions such as separation, division, or other major goals. To better understand strategic planning, consider these tips: - Planning encompasses various steps or tricks that may have different names and categorizations among different individuals.- Strategic planning often utilizes specific terms with differing definitions for different people. Three popular organizational management strategies are Cadbury, ASDA, and Pepsi.Cadbury's strategy entails decisions and actions taken by the business to accomplish its goals.All businesses have goals and objectives that require organizing activities accordingly for achievement.Running a business necessitates present and future action planning.Thus, businesses adopt diverse strategies to meet their objectives.Similarly, Cadbury has implemented multiple strategies to achieve targets s


et by headquarters for their local store due to changes in external and internal environments prompting reassessment of previous strategies and design of new ones based on observed changes.ASDA is the second largest retailer in the UK after Tesco;they focus on satisfying customer needs through strategic management practices.ASDA has achieved success in various business and communication sectors, particularly in competitive markets like supermarket retailing.ASDA Finance, a subsidiary of the ASDA shop chain and part of the Wal Mart family of companies, was established in 2000. ASDA's mission is to provide long-term value and an exceptional retail experience, while their purpose is to offer goods and services for all individuals. Their core values include respect for individuals, excellence, and customer service.

ASDA has both internal and external stakeholders. Internal stakeholders consist of directors and colleagues within the company, while external stakeholder groups such as clients and stockholders

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have their own expectations from ASDA. Customers desire high-quality products at affordable prices along with positive interactions with the company. Stockholders are interested in both community impact and financial returns on their investment.

For seven years now, ASDA has implemented a community plan that encompasses various areas including people, health, education, community activities, and major events. Initiatives such as blood donation drives and fundraising efforts for breast cancer care actively promote employee involvement in the community.

ASDA takes pride in being the second largest retail company in the United Kingdom after Tesco's rank. They boast a large workforce of approximately 150,000 people, with 90,000 individuals working part-time and 60,000 working full-time.ASDA offers employees a 10% discount on most items, which was doubled in December 2005. However, this discount does not apply to alcoholic beverages and digital or electrical items during special "double discount" days. The reintroduction of the employee discount aimed to strengthen the relationship between employees and management at ASDA. In addition to their retail offerings, ASDA provides mobile services. They launched this service in April 2007. Over time, ASDA has expanded its online retail services to include various products such as amusement items, contact lenses, furniture, gifts, and mobile phones. Each year brings new product introductions from ASDA. In May 2004, they announced plans to increase their coverage from serving only 30% to reaching out to a total of 35% of the UK population through service expansion. In January 2007, ASDA launched as a competitor website against Tesco's successful Tesco direct platform. Additionally showcasing their commitment to supporting sports teams throughout history; previously sponsoring an English football squad in the past decade and currently

sponsoring a Rugby nine team.They have also shown support for Kiwi cricket activities for childrenASDA, a renowned retail supermarket, has unparalleled customer satisfaction and strategic management in the industry. The company's main goal is to provide excellent values and services to all customers. Additionally, ASDA sponsors various sports teams like rugby and cricket.

Strategic management plays a crucial role in shaping an organization's future. It involves defining goals, formulating policies and plans, and allocating resources for implementation. This top-level managerial activity requires innovative thinking from managers and employees alike and decentralizes management to improve efficiency while establishing regulations and promoting effective leadership.

In international strategic management, planners consider the products or services the company intends to offer, as well as how and where they will be sold. They also determine how to acquire necessary resources and anticipate ways in which the company can outperform competitors.

Pepsi Company highly values customer satisfaction as they believe it is vital for their success. Their focus lies in connecting with potential clients by offering quality products.Skilled worker engagement is crucial in ensuring industry and quality control by utilizing high-quality resources and staying updated on knowledge of quality control measures. They also implement efficient methods and incorporate newly developed strategies.

Factors Affecting The strategic Issues of Pepsi Company:

Various factors impact the strategic issues faced by Pepsi Company, including verbal communication, culture, political rules, economic conditions, governmental intervention, labor relations, market research, advertising, capital, financing, transportation systems, control measures, and labor relationships.

Strategic Alternatives of Pepsi Company:

Pepsi Company adopts a multi-domestic strategy whereby they produce their products separately in different countries. Each state produces distinct manufactured goods based on specific schemes influenced by their

internal and external situations.

Strategy Formulation:

Pepsi Company establishes its goals and strategic plan to achieve its mission objectives.

Strategy Execution:

Pepsi Company develops plans and policies to effectively implement their international strategies in order to accomplish their mission and goals.

SWOT Analysis Strengths:

- The company has a strong online presence.
- They offer a diverse range of products.
- Their operations are cost-effective.


- Export levels are limited.Setting up and operating economies of scale can present challenges. However, there are various opportunities that can be harnessed. Large domestic markets exist for tapping into, and there is potential for growth through exports. Additionally, the community has higher income levels.

On the other hand, there are menaces to consider. Impacts from taxes and restrictive zones can pose problems, and affordability is low in rural areas.

When conducting a PEST analysis of Pepsi Company, several factors come into play. Tax processes play a role in their operations, employment laws affect workforce management, environmental regulations impact business practices, and trade limitations and duties influence international trade opportunities.

Strategic planning is crucial for organizational growth and ensuring stakeholder understanding of goals and how they will be achieved. The latest legislation in the UK highlights the impact charitable organizations have.

A strategic plan serves as a roadmap with objectives and strategies that guide the organization's actions. It allows for regular assessment of performance and necessary adjustments. Without a plan, evaluation becomes subjective based on personal opinion.

The frequency and timing of creating a strategic plan depend on factors like uncertainty in the organization's environment, gathering new information, and resource allocation. Failure to regularly carry out this process may hinder an organization's ability to adapt to change. However, excessive planning can be

time-consuming.Many organizations, including Tear Fund, have implemented an annual planning process that looks ahead for three years. This process consists of three stages: determining direction based on purpose and mission, identifying challenges and objectives, translating this into concrete plans, executing those plans while monitoring progress. Communication is crucial throughout each stage to keep stakeholders informed and ensure success.






The Information Systems community has witnessed significant growth since 1984 when the Wiley Series in Information Systems was first published. We are proud to be a part of this field's growth and believe our book series plays a crucial role in advancing the subject intellectually. Our main objective is to publish scholarly works that represent the best research in this community while also providing materials that can assist both practitioners and advanced students in understanding various issues surrounding IS management.

In line with this goal, we are excited to present the third edition of Strategic Planning for Information Systems by John Ward and Joe Prepare as an excellent example. Previous editions have been highly successful, and we anticipate even greater success for this latest edition.The book incorporates new material on the latest developments in Information Systems, including e-business and e-commerce, knowledge management, customer relationship management, enterprise resource planning, and outsourcing. It specifically focuses on addressing strategic issues related to effectively utilizing information systems within organizations.

Ward and Peppard emphasize the importance of developing a strategy for effective information system use. This guidance is valuable for practitioners, students, and academics alike.

Since its second edition in 1996, information technology has become an integral part of both work and personal life. It is now

ubiquitous and facilitates connectivity that was unimaginable just ten years ago. The rapid evolution of technology has resulted in significant advancements in capabilities and business options.

The emergence of shortly after the second edition illustrates the internet's potential as a profitable business opportunity. Despite setbacks, we have only scratched the surface of its possibilities.

Interactive digital television (iDTV) brings the internet and new broadcast services directly to consumers' homes, showing promise as a tool for enhanced connectivity.Wireless technologies also offer organizations more opportunities as employees and clients can work or conduct business activities from any location.

In recent years, the language surrounding information systems and technology (IS/IT) has evolved.E-commerce and related concepts are widely used, even appearing in TV advertisements. While e-commerce can be seen as a rebranding of what was previously known as IS/IT, it introduces new dimensions in IT usage explored in this edition.

The introduction of new terms has led to an increased interest among senior management in IS/IT and its importance for their organization. The absence of a coherent strategy for investing in IS/IT can result in negative consequences, as stated in the foreword to the second edition. These consequences encompass missed business opportunities and falling behind advancements made by others in the field.

Moreover, if system and technology investments do not align with business objectives, they can impede business development. This is often caused by a lack of system integration and ineffective information direction, leading to duplicated efforts and inaccurate data for managing the business. Additionally, priorities frequently fail to align with business needs, resource levels are suboptimal, and project plans are frequently altered.

All these factors contribute to poor business performance, high costs, low

productivity in IS/IT, and low-quality solutions. The technology strategy becomes inconsistent and incompatible options are chosen, resulting in wasted funds on retroactively fitting things together.

Another problem arises from the lack of understanding and agreement between users,senior management,and IS/IT specialists;Conflicts, inappropriate solutions, and misallocation of resources can result from a lack of clarity in an organization's vision and mission. Vision statements and mission statements play a crucial role in guiding leaders towards defining the direction of their organization. These statements promote communication within teams and motivate them to work towards a desirable future vision. They also define the purpose and values of the organization, providing guidance on expected behaviors for employees and inspiring them to perform at their best.

A mission statement demonstrates the fundamental purpose and functions of an organization. It identifies the winning thought or unique selling proposition (USP) that sets one business apart from others. For example, an organization may have a mission statement focused on supplying fresh and healthy nutrients and merchandise to clients. The steps for success include offering low-cost awards and providing high-quality products that satisfy clients. Combining these winning thoughts with success factors ensures complete client satisfaction, making them essential for any organization.

According to Pearce (1982), a mission statement is an enduring statement of purpose that distinguishes one business from other similar firms. A good mission statement should include language that highlights the benefits and advantages offered to clients by competitors, setting one organization apart from others in its industry.

Overall, having a solid vision statement as well as a strong mission statement is crucial for organizations as they provide clear direction, inspire employees, differentiate businesses from competitors, highlight unique offerings

to clients, and ultimately contribute to overall success.The text emphasizes the importance of having a clear purpose and direction for a business, as it ensures its survival. It states that committing to a strong purpose is crucial for maintaining excellence within an organization. Effective mission statements serve various purposes such as communication, decision-making, selling, and resource allocation. On the other hand, vision statements inspire by describing desired outcomes and creating a mental image of goals. They represent the aims and long-term position that an organization strives to achieve. Vision and mission statements are essential in demonstrating the direction of organizations for successful leaders.

Additionally, the text introduces an updated strategic business plan for implementing a digitally-based recorded speaking book system within the National Library Service for the Blind and Physically Handicapped (NLS), operated by the Library of Congress (LC). The goal of this program is to provide fresh and affordable food products that are healthy and wholesome while emphasizing its overall objective. Regional libraries, local libraries, and the U.S Postal Service have relied on linear audio cassette book (RC) technology since the 1970s for books and 1990s for magazines. This collaboration has proven to be dependable and cost-effective in delivering resources nationwide.The National Library Service (NLS) is implementing digital audio technology as a more suitable alternative to RC and CBM elements due to advancements in technology. This transition will bring improvements for patrons, libraries providing direct service, and NLS. While RCs and CBMs will still be provided initially, they will eventually be replaced by digital speaking book (DTB) and digital speaking book machine (DTBM) technology. The transition is expected to begin in FY 2008 for frequenters

and take approximately four years to complete. The implementation plan can be found in this document.

The NLS has determined that the new digital system for audio reproduction will use Universal Serial Bus (USB) flash drive technology, which offers advantages such as improved sound quality for listeners. Flash memory has larger storage capacities, making it convenient for users to carry their books without needing multiple cartridges. Unlike tapes, flash memory does not require flipping sides or pressing a switch to access the other side. Additionally, flash memory cartridges can be reused multiple times without compromising audio quality and have a simple duplication process. Furthermore, flash memory is easily available and becoming more affordable, making it cost-effective for future operations.The introduction of new playback machines utilizing flash memory will enhance portability, making them smaller and lighter. This will also reduce the storage space required in library networks. Furthermore, these machines consume less power as they lack moving parts, resulting in longer battery life compared to traditional tape-based systems. Additionally, their reliability minimizes issues for users and reduces the need for repairs by library staff and contractors. Consequently, this leads to lower costs due to fewer complex fixes required and reduced storage needs for replacement parts.

Moreover, the durability of these machines ensures longer lifespans. By saving on maintenance and replacement part costs, these savings can be allocated towards other aspects of the plan. Overall, this new system not only enhances services for users but also proves cost-effective for web libraries and NLS (National Library Service). While book production and distribution costs may slightly increase compared to the current system, the savings from producing and repairing flash memory playback

machines outweigh this drawback.

NLS and network libraries can expect cost savings and efficiency improvements with reduced storage needs. To implement the new system successfully, NLS has requested additional support from LC.Once CBMs are replaced by DTBMs and a stock of reusable flash drives is accumulated, NLS's annual support of $53,904,510 for FY 2007 will be sufficient to sustain operations. Two support scenarios have been developed: Plan 1 involves receiving supplementary support to ensure all frequenters who want DTBMs will have them by FY 2012, requiring $76.4 million in supplementary support allocated over four years (FY 2008-FY 2011). Plan 2 does not involve any supplementary support and relies solely on current funding. The transition period would likely not experience deficits of CBMs, ensuring smooth operations during that time. However, under Plan 2 around 83,000 people who want DTBMs would still not have them until after FY 2017. Deficits of CBMs would occur in FY 2011 through FY 2012, making operations difficult in FY 2010 and FY 2012. The commercial fix of CBMs would be delayed until FY 2014 instead of FY 2011 as in Plan1. NLS is concerned about the prolonged transition described in Plan2 for two main reasons: firstly, there is a risk of insufficient CBM inventory if the cassette program needs to be extended during the transition phase; additionally, as cassette playback machine technology becomes obsolete obtaining repair parts for CBMs will become more challenging due to decreasing demand for products utilizing this technology worldwide causing companies to leave the industry leading to fiercer competition and declining profitability.The decrease in availability and increased costs of cassette tapes, shells, and replacement parts for duplicate equipment

are major concerns for buyers. The decline in machine repairs performed by volunteers is due to demographic changes and structural changes in the telecommunications industry. As a result, there will be a decrease in the number of CBM repairs that can be done by volunteers, leading to an increase in the need for commercial CBM repair services. However, maintaining dual systems comes with higher costs as it requires more resources such as labor, equipment, and supplies. Dealing with multiple types of media and playback machines also proves to be more demanding compared to dealing with just one or fewer types. Creating books in both RC and DTB formats will result in higher costs per unit and fees for setting up smaller quantities. This may have a negative impact on public relations as visitors may question the length of the transition process, especially those who already have high expectations for digital technology.NLS aims to address concerns by evaluating objectives through monitoring and evaluation, aiming to minimize negative feelings during the transition. Many strategic plans are often ignored, as indicated by subjects and related materials in this library. It is crucial to monitor and assess program progress to stay aligned with the organization's strategic direction. Active engagement and reflection are essential for adults to effectively learn from new information and experiences. Continuously monitoring plan implementation provides valuable insights into managing the organization efficiently. Plans should not be rigid regulations, but any deviations must be justified and updates made accordingly. The responsibility for overall program implementation, goal achievement, and monitoring should be clearly defined in strategic program documents. The board may require regular reports on progress towards goals

from the CEO, while middle managers provide progress reports on their assigned objectives to the CEO. When evaluating plan implementation, it is important to consider whether goals and objectives are being achieved. If they are, they should be acknowledged, rewarded, and communicated. However, if goals are not being achieved, several questions need addressingThe specified timelines for achieving the goals should be evaluated to determine if they can be met. If not, the reasons for the delays should be understood before considering changing the completion deadlines. Additionally, it is important to ensure that personnel have sufficient resources such as money, equipment, facilities, and training.

Once monitoring and evaluation activities have been conducted, the gathered information should be used to create a report on outcomes. This report should be shared with relevant stakeholders including board members, executives, and staff involved in planning and execution. The report should also include any recommended changes or priorities identified through the monitoring and evaluation process.

Utilizing the findings of monitoring and evaluation is crucial. After sharing the study with all relevant stakeholders, action should be taken on any recommended changes or priorities. This may involve modifying program goals or objectives, redirecting efforts towards existing goals, or making other necessary adjustments. It is important to carefully consider these changes before implementing them in order to understand why current efforts are not achieving desired goals.

Drawing lessons from previous monitoring and evaluation activities can enhance future planning by identifying areas for improvement and developing strategies for successThe report should include recommendations for improving future monitoring and evaluation efforts by identifying best practices, effective tools, and efficient methods for collecting and analyzing data. Lessons learned from current

activities should also be considered in order to enhance future efforts. The have beenwithout changing their contents.

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