STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE
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With the increasing competition in the marketplace, it had become important for businesses to have effective strategies which can help them in being effective in the marketplace and leading the firm towards success and development. In general terms business strategy is being referred to as a long-term plan which creates a vision and goal for the company and by following the business strategy the company moves towards success (Al Mamun, and Hasan, 2017). In this present report, the researcher explains the different concepts related to strategic management for international businesses. For explaining the different concepts the report will focus on the case of Vista, which is a multinational company based in Coventry. In this research report the researcher will explain the process of strategy formulation in business management, the role of the internal and external business environment, stages of strategic decision making in business management, the impact of cross-culture on the decision making, and what are the different challenges faced by the businesses while forming the strategies for the businesses.
EXPLAIN THE PROCESS OF STRATEGY FORMULATION IN BUSINESS MANAGEMENT
Managing the business is not an easy task as the management of the company needs to manage a lot of things and different departments as well. For effective business management, it is important for the firm to have well-defined strategies which can help them in managing the company in an appropriate manner and leading it towards success and development (Leon, 2017). An appropriate plan of action is referred to as the strategy and the strategy formulation is being referred to as an important task for the businesses. It is important for the businesses to focus on the appropriate process of strategy formulation which includes different stages and these stages are explained below such as:
- Setting objectives for the company: the most important part of the strategic formation is developing the long-term objectives for the organization which can help them in developing an effective business strategy for the organization.
- Evaluating the business environment: when the objectives are being developed then it is important for the businesses to conduct effective business analyzing which includes both internal and external business environment analysis. If the company focuses on analyzing the business environment and then developing the strategy then it would help them in being competitive in the market by developing effective strategies.
- Setting quantitative targets: for achieving the organizational objectives it is important for the organization to focus on setting the quantitative targets which can help them in moving towards the objectives of the company in an effective manner (Satyro, et. al. 2017).
- Aiming in context with the departmental plans: in this stage, the businesses focus on analyzing or evaluating the effectiveness of all the different department which is important for bringing change in them by focusing on better strategic planning which can help them in delivering high-quality work to the organization and leading it towards success.
- Performance analysis: analyzing the performance of the organization is an important task for all businesses which can help them in identifying the gap between their desired performance and received performance. This analysis is important as it helps the businesses in critically evaluating the business performance and focusing on understanding that what future changes are required in the business strategy.
- Choice of strategy: in this stage, the organization focuses on choosing an appropriate course of action which is based on the above analysis and the business analysis, and then the effective strategy is being formulated for the organization for leading it towards their goals.
ANALYSING THE INTERNAL AND EXTERNAL ENVIRONMENT AS A PART OF STRATEGIC FORMULATION PROCESS IN BUSINESS
When the business is operating in a particular business environment then there are different factors of the internal and external business environment that are having a significant impact on the success or failure of the organization. While developing the business strategy it is important for the businesses to focus on analyzing the internal and external environment and on the basis of it only the strategies need to be formed and because of this reason, only business analysis is an important part of the strategic formulation (Cavallo, et. al. 2020). Organizations need to focus on using different effective tools for analyzing the internal and external business environment which can provide them better knowledge related to the business environment in which they are operating.
SWOT analysis is an effective tool that can help businesses for analyzing the internal business environment as this model helps the companies in evaluating their strengths, weaknesses, opportunities, and thread which can help the businesses in developing effective strategies. On the other hand for analyzing the external business environment the businesses need to focus on using the PESTLE analysis which is an effective model and is widely used by businesses for analyzing that how the different factors of the external business environment are affecting the business strategies. This model helps the company in analyzing the impact on social, economic, political, technological, legal, and environmental factors on the business. It can be said that analyzing the impact of the internal and external business environment is important as it helps the businesses in developing more effective strategies which can help the business to grow and can lead it towards success (Nwachukwu, et. al. 2018).
EVALUATE THE IMPACT OF STRATEGY FORMULATION IN BUSINESS MANAGEMENT
Formulation of the strategies is a major issue for all the business as the success and failure of the company are based on the effectiveness of the strategy formulation of the company. Managing the different departments is not an easy task as one needs to have better knowledge related to the work done by the different department and on the basis of it, the management should focus on strategic planning which can help them in managing all the departments and the entire organization in an effective manner (Köseoglu, et. al. 2020). The strategies formulated by the organization are having a significant impact on the business management as it helps the businesses in planning all the different business operations and developing effective teams and departments which can perform the business operations effectively.
The better strategic formulation is having a positive impact on the behavior of the employees as the employees are having clear goals and quantitative targets which motivates them to deliver high-quality service in the organization. Along with this strategic formulation helps the top management of the company to evaluate the business performance and effectiveness of their business strategies. On the basis of this evaluation future changes can be made in the business strategies which can help them in managing the firm in an effective manner. Also, this performance analysis can help the management in analyzing the performance of the employees and departments which is can help them in making changes in their management practices so that they can lead the firm towards success (Musandiwa, 2019). If the management of the company focuses on the organizational structure of the company while formulating the strategies then it would help them in aligning the strategies well with the structure which would help them in managing the firm in an effective and systematic manner which would have a positive impact on the organizational performance.
EXPLAIN THE STAGES INVOLVED IN STRATEGIC DECISION MAKING IN BUSINESS MANAGEMENT
In an organization, the management needs to make several decisions related to the different issues which are important for the organization and are having a significant impact on the business performance as well. The strategic decision which is being taken in the organization needs to be very effective as they are being considered for a longer period of time and it is important for the firm to have followed an appropriate process while making strategic decisions (Reymen, et. al. 2017). The important stages involved in the strategic decision-making process are explained below such as:
- Identify the problem: the first step of making a decision is to identify the problem for which the solution is required and then the decision needs to be defined in an effective manner.
- Gather information: when the problem is being identified that it is important for the organization or the management to focus on collecting all the relevant information related to the problem. The information should be collected from all the stakeholders and important data and facts should be collected.
- Identify the alternatives: when the issue is being identified and all the relevant information had also collected then it is important for the managers or the leaders to focus on identifying all the alternatives or the options which are available for them which can help them in solving this issue or problem in an effective manner.
- Choosing the best alternative: in this stage of the decision-making process, the managers or the leaders focus on selecting the most relevant alternative option from all the alternatives so that they can address the issue effectively (Abubakar, et. al. 2019).
- Taking action: when the decision is being made and the best alternative is being selected then it is time to act on the decision and take effective action for solving the issue. This is an important step because the decision made by the company needs to be implemented in an effective manner so that the issues can be solved for which the decision is being made.
- Review the decision: after making a decision it is important to review the decision so that it can be identified that the taken decision is solving the issue effectively or not and had met the goal or not.
ANALYZE THE ROLE OF ETHICS IN THE STRATEGIC DECISION-MAKING PROCESS IN BUSINESS MANAGEMENT
Ethics are having a significant role to play in the organization all the employees working in the organization need to focus on working in an ethical manner while doing any of the tasks within the organization. When the decisions are being made in the organization it is important for the manager or the entire management to focus on making ethical decisions without focusing on any bias while making the decisions (Turk, and Avcilar, 2018). While making any of the strategic decisions for the organization it is important for the managers or the employees of the company to make an ethical decision. The decision which is being taken in a fair manner, which demonstrates trust and respect and had taken with the feeling of responsibility is being considered as an ethical decision (Judge, and Talaulicar, 2017).
All the employees of the company need to be aware of the ethical consideration and the company should have better rules and regulations related to the ethical consideration so that all the employees of the company would work in an ethical manner. If the businesses would promote ethical behavior through all the processes then it will also help them in making an ethical decision (Voegel, and Voegel, 2017). When the leaders are making strategic decisions for the company then they need to act in an ethical manner and should opt for the best alternative or the solution which is best or appropriate for the betterment of the company and can lead the firm towards development.
EVALUATE THE IMPACT OF STRATEGIC DECISION MAKING ON BUSINESS MANAGEMENT
All the decision which are being made in the organization are crucial for the company as they are having a significant impact on the firm and directly or indirectly they are affecting the overall success of the company. Strategic decision-making is considered to be an important part of business management as these decisions are having a long-term impact on the firm. The management should focus on taking an effective strategic decision and choosing the best option among all the alternatives which can help the leader and the managers in solving the issue in an effective manner. If the organization is good at making better strategic decisions then it would help them in managing all the different departments in an effective manner. Along with this if the company is developing better strategic decisions then it would help them in being more competitive and it is also important for the health and survival of the company.
While operating the business importance is being given to the business strategies and strategic decision because deciding a particular direction or the path which is being followed by the organization for achieving success is important (Lembinen, 2018). The strategic decision needs to be effective as they provide a direction to the organization to work towards development and achieving the goals so it can be said that the companies need to make effective strategic decisions and then should work according to it only.
INFLUENCE OF CROSS-CULTURE IN THE STRATEGIC DECISION MAKING IN THE BUSINESSES
The employees of the company are having a major role to play in the decision-making process of the company. In the present business world, the employees who belong to different socio-economic and cultural backgrounds are working together and as a result of it, decision making also involves the views of different peoples belonging to different cultures. When the businesses are operating at the international level that it helps the company is having more diverse workforce belonging to different culture and culture plays a major role on the individual and also affect their views on the different topics (Grott, et. al. 2019). It can be said that individuals belonging to different cultures are having different decision-making styles which affect their decisions.
The management faces a lot of issues when the employees belonging to different cultural backgrounds are being asked to make a decision and the major reason behind this is that the decision which is effective in one culture can be ineffective in another. When the employees are working in a cross-culture than the major issues faced is communication issue due to language gap and because of this the businesses also face issues in decision making. It can be said that if the organization is having cultural diversity that they should focus on involving all the employees in the decision-making (Ahmad, et. al. 2019). Peoples with different mindsets can help the businesses in making an effective decision so the businesses should focus on considering the cross-cultural workforce as an advantage for them in taking better decisions.
EXAMINE THE CHALLENGES THAT MAY OCCUR IN STRATEGY FORMULATION IN BUSINESS MANAGEMENT
When the organization is developing the strategy for the businesses than it is important for the businesses to focus on all the different factors in an effective manner because there are different factors which can create great issue and challenges for the company during the strategy formulation. While developing the research it is important for the businesses to have better information related to the company and should have analyzed the external and internal business environment in an effective manner than only they would be able to develop better strategies. Lack of proper information is one of the important issue or the challenge for the management while forming the business strategies. Along with this information sharing in the organization needs to be effective for which better communication is required. Lack of proper communication among all the departments can create a lot of issues for the organization. If the different departments are not sharing all the information in an effective manner that it will create issues in the strategy formation (Schmitt, et. al. 2018). If the company is not having effective communication among their employees then it would have a negative impact on the employee relationships which would create an issue for them at the time of strategy formation.
Availability of resources is an important factor that is having a significant impact on strategic formation. If all the important resources are available for the organization and the management is making better use of them then it would help them in developing better strategies and implementing them in an effective manner. Lack of effective training is also a major issue that can create a challenge in better strategy formation. When the employees are working in the organization then it is important for them to receive better training for developing their skills and knowledge and if the employees of the company are not having better skills and knowledge related to the strategy formation then they would face a great challenge while developing the effective strategies which can lead the firm towards success and development.
EVALUATE THE DIFFERENT METHODS USED TO OVERCOME OBSTACLES DURING STRATEGY FORMULATION IN BUSINESS MANAGEMENT
While developing the strategies the companies come across different situations and issues which create obstacles for them in their strategy formation and it is important for the businesses to solve these issues in an effective manner. For solving the issues it is important for the organization to focus on developing better teamwork among all the different departments which can help them in better strategy formation and will help them in ensuring better cooperation, collaboration, and better information sharing among all the different departments. If the issues of lack of information sharing are solved then it would help the businesses in developing better strategies after considering all the information related to the different business operations.
While developing the business strategies it is important for the businesses to focus on making all the important resources available so on the basis of it they can develop effective strategies and can make use of them in an effective manner (MAINA, and NJERI, 2020). All the important resources needed to identify and made available in advance so that at the time of implementation of the strategies no issues would be faced related to the lack of resources. For solving the issue of lack of training the company should focus on offering better training to the employees and all the top-level executives also so they can develop the skills and knowledge of the entire workforce according to the shifting market trends and technological advancement then it would help them in developing effective strategies for the company which can help the company in increasing their productivity and profitability and can lead the firm towards success. Along with this while developing the strategies the businesses needs to focus on planning all the things in advance which would help them in analyzing that what are the different challenges and issues that might be faced by the businesses during this strategic formulation so that they can work in such a manner that they can limit the chances of issues that might affect the strategic formulation.
Strategies play a major role in the success of the company and it is important for businesses to have effective strategies which can help the business to follow the direction which can lead the firm towards success and development. The above-mentioned report had represented the impact of business strategies on the businesses and how the strategies are being formed in the organization. The report had mentioned that how the different factors of the internal and external business environment affect the business strategies. According to this research, the businesses need to focus on following the different steps of the strategic formulation in an effective manner which can help them in developing effective strategies. The report had also mentioned that it is important for the businesses to focus on solving all the obstacles faced in the strategic formation in an effective manner then only they will be able to implement the strategies effectively.
The report had also provided better knowledge related to effective strategic decision making and the importance of making a strategic decision in the organization which can help them in solving the issues in an effective manner and will also help them in better business management. Along with this, the report had also mentioned that businesses need to focus on managing the cross-cultural workforce in an effective manner as they are also having a significant impact on the decision-making process. From the above-mentioned report, it can be said that it is important for the businesses to focus on better strategic decision making and effective strategy formation which can help the business in being competitive in the present business world and will lead the firm towards success and development.
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