Critical Evalution of Strategic Management in Familiar Organisation
The strategic management encompasses the evaluation of strategies, their creation and the eventual implementation. The strategies allows for the determination of the business future and welfare. Nevertheless, the organization has to evaluate the processes encountered in the implementation of the strategies. Therefore this exercise will focus on the critical analysis of the management of the strategy process that is encountered in the strategy management activity. The process evaluation entails the determination of the validity in each constituent of the process.
The achievement of the validity encompasses a comprehensive evaluation of the management process in the organization. The research identified the Nike Company for the evaluation of the strategic management processes (Alkhafaji, 2003). The process targeted the development in the company’s strategic management and the enhancement of the company’s overall benefit. This exercise intends to criticize every process involved in the strategic management to obtain merits as well as drawbacks associated with every procedure. The ascertained sides of the processes are fundamental in reation of efficient management strategies. The vision statement is intended to spell out the means by which the organization proposes to achieve its main goal in the long run. Bebsides vision statement, Nike Company enshrined mission statement into its operations and this has given the right direction to take in terms of manufacturing, marketing, and distributing sports ware. The Nike Company has to necessitate the enhancement of the strategic process analysis to improve on the degree of the favor of their activities in the market (Cooper & Schindler, 2001).
Need essay sample on "Critical Evalution of Strategic Management in Familiar Organisation" ? We will write a custom essay sample specifically for you for only $12.90/page
Nike’s mission statement aims at enabling the firm to create consumer products, services and communications, customer service and decoration system strategies, processes and tools that will create competitive advantage thereby offering high quality products that are superior to other firms’ products. Attaining this mission would affect different stakeholders, which is a key aspect to strategic management within organizations. Through the mission statement, Nike Company aims at giving customers superior experience whilst creating an opportunity amongst them for profit growth using the products.
In addition, the firm will directly use bottlers as an opportunity for growing profits in voluminous form thereby using the same in expansion and growth. Sports wares such as jerseys and boots are also used as trademarks in achieving this mission statement and this is a strategic plan on its own. The interpretation of the vision should be deemed before final implementation of the determined strategies. The company’s success lies on the effective examination and the evaluation of the processes incorporated in the strategic management exercise and the eventual implementation of each strategy.
The stages involved in the strategic management include planning, implementation and monitoring. The planning procedure demands puttying in place a general outline of the guidelines to be followed to attain every stated objective (Byars, 2000). The success or the failures in the strategies are determined by the planning procedure since it establishes accurate implementation and concise observations. The strategies implementation procedure emphasizes on the precision with which the outlined plans are performed with references to the targeted objectives.
The accurate monitoring process provides the overall results, the strengths and the points of weaknesses that require adjustments. The monitoring process also entails the proposals and provisions for the best practices to be implemented for the realization of success in the management. The Nike as an organization will rely on the findings of the strategic process analysis to implement the best strategic management practices. The planning process that is included in the in the management strategies involves the steps that prompts critical analysis individually.
The first procedure in the planning process is the analytical determination of the gap. The gap analysis will provide the information for the Nike Company to highlight the areas that require modification such as the revenue sector, marketing, share or the employee departments. The alterations that may be required in the revenue section may demand the policies to improve on the benefits accruing from the imposition of the additional units of production (Hill & Jones, 2008).
The Nike company marketing system should be viewed to realize the gains or the losses attributed to by the market forces and the manner of curbing the detrimental market determinants. The analysis of Nike company shares can be analyzed to establish the comparison and the significant variations from other companies’ shares to identify the shares value. The shares values can signify the status of the company’s shares and value. Lower value of an organization’s shares in the stock market is crucial as it enables the company to adjust in its managerial practices with intentions of improving the value.
The analysis of company’s employees focuses on the employees’ discouragements or motivations which are biased towards achieving the organizational objectives with reference to the outlined strategies. The second planning stage focuses on the analysis of the mission statement. The statement prompts the knowledge on the basically describes operations which the company has to involve in for the realization of the management objectives. The mission focuses on the distinction of the organization from other companies by emphasizing on the company’s unique aspects.
Analyzing the mission statement prompts the questions on the place, time and the reason for the statement implementation. The evaluation of time challenges the organization to determine the period after which it intends to achieve the vision. The time factor therefore provides whether the desired goal is to be obtained in short or the long run of the business operation. Company through international strategies formulation has developed plan in order to assist achieving vision and mission (Deresky, 2009). This is through establishment of goals and plan congruent with firm’s vision and mission.
The Nike Company’s managers developed, refined, and reached a consensus on various issues that each unit with the broader company should achieve. Overall management has also developed tactics as well as policies for achieving established strategies related to the international business operation. This has been attained through strategic moves that include organization’s design, control systems and processes, as well as human resource. The question on place is meant for the analysis of where to start and the extent of operation for the meeting of the mission statement demands.
The organization will know how to moderate its strategies implementation in the management to ensure the right direction towards achieving its overall goal. The following stages of planning in the strategic management that needs examination in the strategic process are SWOT analysis and the formulation of the vision statement. The investigation of SWOT analysis intends to highlight on various factors such as strengths. The strengths refer to the components of the management strategy test exhibits advantages which can prompt better achievements in the company (Hill & Jones, 2007).
The company’s strengths acts as strategic management tools that enable the firm to define various objectives to be meet in congruent with them. Some of the strengths enjoyed by Nike Company include strong and reliable distribution network, strong brands, and low operational costs. Strong and reliable distribution network achieved through its numerous retail outlets and distributors has made it develop a strategic aim of profitability, expansion, and growth. Strong band has enabled the company to find strategies of maintaining such high customer loyalty.
This has led to use of high quality materials as well as up to date technology in manufacturing sports gear. Moreover, the firm has developed proper strategic plan of efficiently providing customized services. Nike’s low cost in production has enhanced the firm in forming better strategies for maximizing profits whilst minimizing production costs. The threats in the analysis pose doubts accruing from the company’s competitors. The Nike Company experiences threats and stiff competition from other companies dealing on the same products such as the Puma and the Addidas companies.
The companies exhibit significant threats since they also implement strategies of equal effect. Threats posed by external environment to Nike such as imports, tax and regulatory sector and low in rural demand have significantly influenced the strategic management of the firm. Many people prefer imported beverages rather than those from within their countries and this has influenced Nike into developing promotional strategies in order to attract local consumers to consume their products from their home bottlers.
Since the demand in developing countries faces many problems, Nike has developed a strategy of providing customized services at higher costs in order to counteract such low demand from the rural areas. Through critical evaluation of strengths, weaknesses, opportunities, and threats from internal environment as well as other analyses, Nike Company has been implementing its strategies in line with different domestic markets. Nike Company developed control framework for overall management control in order to attract more customers whilst retaining the already loyal through customer satisfaction from high quality goods.
The opportunities should be incorporated in the strategies to maximize on the merit inclusions. Thus, the analysis of the strategic processes requires prompting a distinction in the marketing competition. An absolute vetting of the SWOT analysis can result into the appropriate formation of the vision statement that should be followed in the implementation of organizational activities (Cecile, Weiss, Brevis & Cant, 2009). Adequate understanding of course action development and analysis in Nike Company exposes to be critical for scrutiny.
This process leads to the right way to be followed by the organization since diverse plans are generated. Nevertheless, the vetting of the planning process in the course perspectives is vital since the determination of every plans implication has a manifestation is a necessity to the company. Evaluation of this process entails a suggestion that more than two plans should be identifies for further analysis (Schmeisser, Clausen, Popp & Ennman, 2011). After the compilation of the plans, the next criterion prompts the analysis of each stated plan.
The merits and disadvantages of each plan in the strategy require comparison of the strengths and the perceived weaknesses to outline the appropriate procedure. Analyzing this process generates the overall plan outline since the course of action evaluates the summary of the planning g process. The comparisons made can be utilized in the formation of more compatible strategies that facilitate efficient strategic implementation. The scrutiny of the planning process allows for the answers of determining the plans’ suitability and the ability to execute the company’s mission.
The determination of the plans feasibility and the involved dangers acceptability satisfies the process evaluation. The plan can be more appropriate if simpler and distinctly flexible. The plans flexibility ensures equality in the strategic management practice (Sculp, 2001). After obtaining the most considerable plan, the execution process follows. The plan execution in the organization’s strategic plan demands suitability and relevancy of the plan to the vision. Nike Company is focused at providing satisfactory services to their customers.
The questions to be answered in the execution process targets the possibility, efficiency, convenience, suitability and the affordability of the process. Analyzing the possibility of execution process regards the practicality of the plan. The organization will determine whether the suggested plan can be performed (Chang, 2006). The plans are meant to boost the performance of companies, the verification of the plans possibilities is critical in determining an organizations success. The plan’s suitability is vital in regards to the nature of the products, on which the company operates.
Nike Company deals with the production of sport wares and its management strategies should coincide with the sporting calendar. The company should anticipate best returns during the world’s sporting seasons. Thus, the plans set for execution can be considerable at particular seasons. The execution process incorporates exercising the plan contents. The determination of the plans exercise affordability holds significance in the strategies implementation (Amason, 2010). Nike Company is considered a success since it has put in place mechanisms to avail the resources for its intended strategies.
The process convenience should focus on the strategies ability to manifest improvements against the existing methods without facilitating difficulties. The execution process’s efficiency should be analyzed and identified by more efficient features to be incorporated in management. In order for strategic management process to be complete, the already analyzed and formulated by the firm should be put in action. Nike Company has been able to put into action the above formulated strategies in order to achieve business objectives, aims and goals.
This has enhanced the attainment of market leader in soft drink industry. Nike Company identified its strengths, weaknesses, opportunities, and threats from which it was able to come up with effective strategies that has made it the contemporary market leader. A viable implementation process in the strategic management requires inclining all the management activities towards the realization of the company’s mission (Breuer, 2010). The human capital plays a key role in the management in the company since all activities involved in the company’s management should appreciate human efforts.
Therefore, the implementation can be explored to ensure that it embraces the human resource (Betz, 2002). The last procedure in strategic management entails the monitoring of the strategies effects. The process requires criticality since it is meant for evaluation purposes. The process should consider the business mission statement and the vision. The observations made in this stage should target the determination of whether to improve the management or avail proposals that foster advancements in the managerial system. Conclusion
Not all management strategies foster improvement in organizational management, but all strategies formulated and implemented in organizations are meant to trigger constructive changes. However, this conclusion can only be achieved after a critical evaluation of all processes involved in strategic management. Therefore, analyzing all processes involved in the strategic management are vital since the appraisal postulates both superior and worse faces of the strategies. The critical view of the processes can yield better strategies which can be implemented to realize excellence in the organizational managements (Hitt, Duanne & Hoskisson, 2011).
Alkhafaji, A. (2003). Strategic management: Formulation, implementation, and control in a dynamic environment. New York, NY: Routledge Publishers. Amason, A. (2010). Strategic Management: From Theory to Practice. New York, NY: Routledge Publishers. Betz F (2002). Executive Strategy: Strategic Management and Information Technology. New York: John Wiley and Sons Breuer M (2010). Socio-Cognitive Dynamics in Strategic Processes. New York: BoD – Books on Demand, Byars, L. (2000). Strategic management: planning and implementation: Concepts and cases. New York, NY: Herper & Row Cecile N, Weiss H, Rossou D Brevis T & Cant M (2009). Business Management: A Contemporary .Chicago: Juta and Company Ltd Chang J (2006). Business process management systems: strategy and implementation. New York: Auerbach Publications Cooper, R. & Schindler, S. (2001). International Business Research Method (7th Ed). New York, NY: McGraw-Hill Irwin Culp C (2001).
The risk management process: business strategy and tactics. New York: John Wiley and Sons Deresky H (2009). International management: managing across borders and cultures . New York: Pearson Prentice Hall Hill C & Jones G (2007). Strategic management: an integrated. West Port: Cengage Learning Hill, C, & Jones, G. (2008). Strategic management: An integrated approach. Boston, MA: Houghton Company Hitt, M., Duane R. & Hoskisson, R. (2011). Strategic Management: Competitiveness & Globalization, Concepts. Mason, OH: South Western Cengage. Ireland R, Hoskisson R & Hitt M (2008). Understanding Business Strategy: Concepts and Cases. West Port: Cengage Learning Schmeisser W, Clausen L, Popp R & Ennemann C (2011). Controlling and Berlin Balanced Scorecard Approach. Bayern: Oldenbourg Wissenschaftsverlag