Introduction to Strategic Management Essay Example | Topics and Well Written Essays - 2000 words

Introduction to Strategic Management - Essay Example The report discusses the different priorities that need to be balanced while working on an implementation plan. The report also discusses the feedback mechanisms and legal and ethical issues in setting up an overseas business. Every organization needs to have a unique identity. Obringer (2009) says that "clearer your overall business identity is, the more likely your business is to survive and thrive". The identity also needs to be nurtured and developed to present a consistent image of the business to the outside world. At the outset, this involves understanding the positioning and capability aspects of the organization. While positioning is concerned with external factors like customer needs, competitors, legislation, environment, etc, capability covers internal factors like technology, culture, processes, skills, etc. (Thompson, 1995). These two interrelated aspects help an organization to understand where it came from, where it is now, and where it wants to be in the near future. This requires understanding of segmentation of the customer by the firm's common capability, the firm's competitive stance, and its organizational classification. This will help Able Corporation narrow down on its broad posit ioning, i.e., technology leadership, low cost leader, etc.. The specific positioning can then be worked out based upon its product features and benefits. Once a specific positioning is decided for the organization, the company's identity needs to be communicated to its stakeholders, which includes customers, employees, and suppliers. This involves creating a company culture, creating a visible brand, and creating its vision and mission statements. A clear mission statement acts as an "invisible hand" that guides people in the organization so that they can work independently and yet collectively toward overall organization goals (Kotler & Armstrong, 1996). The statement should be market oriented; it should not be too narrow or too broad; its should be based on its competencies; and should be motivating. Missions are best when guided by a vision, an almost impossible dream. The mission statement should give a clear direction for the company for the next ten to twenty years. Such statements are typically developed after brainstorming. Able Corporation is a successful US manufacturing company located in Tennessee that builds machine tools for home use, and sells its products through large retail chains. It is currently trying to break into the global marketplace. Accordingly, its mission statement could be developed as "to be amongst the top ten home tool makers of the world in terms of reliability, technology, and safety as perceived by our shareholders and customers". Prioritizing Implementation Steps: Once the strategic objectives are defined, proper implementation is critically important. The processes of designing and carrying through the changes must be managed, monitored and controlled (Thompson, 1995). For proper implementation a few organization control systems like a hierarchical