Process of strategic management: A critical evaluation
Strategic management is one of the most important aspects of management of a financial organization. Proper strategic management tactics are vital for success for any entity in the market. Indeed, observations and research of market trends and conditions have clearly indicated that most of the successful companies employ proper tactics related to strategic management. Its impact affects all levels of the organizational hierarchy, including managers. The ways in which the aforementioned management tactics affect managerial practices have been discussed and explained. The company chosen for review in this regard is Apple Inc. One of the top multinational organizations in the world, its tactics and strategies are always under constant scrutiny. Herein, this study is about strategic management and its impact on workings of managers, and the overall financial entities.
Concepts of Strategic Management:
Management of strategies details the overall process through which a financial entity develops and eventually implements plans that contain and properly define main objectives and desired goals. These plans are formulated in ways that ensure that they have the highest possible chance of success. This overall process is clearly a continuous one.
Despite being a continuous process, it is constantly subjected to changes depending on the economy and the overall situation of the market. This process is extremely vital to allow companies to adapt to changes, especially in recent times. The advent of globalization has increased chances of drastic changes, with changes being much more frequent now compared to previous years.
As stated by Armstrong & Taylor (2014) analysis and Formation of strategies are among the most important concepts pertaining to processes of this nature. Eventually analyzing main strengths and weaknesses in the workings of a company is a very crucial concept. Companies such as Apple pay special attention to these aspects of management, as they dedicate personnel to conduct internal, as well as external, analysis of organizational factors. Main methods of analyzing strengths and weaknesses include SWOT analysis (Strength, Weakness, Opportunity, and Threats). Teams are asked to send their reports with a SWOT analysis of the organizational workings and overall performances.
Eden & Ackermann (2013) state that another important aspect where companies need to pay attention is the factors that influence their workplace. These factors can be internal and external. A great advantage of conducting SWOT analysis is that it gives a clear picture of the overall performance of a company. Details regarding internal and external strengths and weaknesses are given in these kinds of analyses, making it easier to formulate strategies based on them. Tactics formulated based on an accurate analysis have a great chance of success, as they incorporate main company strengths and consider organizational weaknesses properly.
Strategy formation, as its name suggests, is the process of development of plans that include specific actions designed to lead a financial firm to success. It makes use of information gleaned from analyses, to increase its overall chances of success. Overall process includes using analytical information, prioritizing relevant situations and making decisions accordingly. One of the most important aspects of this process is competitor analysis.
According to Goetsch & Davis (2014) main aim of competitive analysis is to gain a competitive advantage. Attaining this state above its peers is the main objective of every financial entity. Companies such as the one chosen for review in this study dedicate specific departments whose main aims are to analyze all aspects of working with their competitors. Important points that are included in this study include access to resources, average quality of working personnel and workplace quality. Gaining access to new and relevant technological tools is also a good example of an entity gaining a competitive advantage.
Studies and definitions by Michael Porter indicated two proper ways through which any company can achieve a proper degree of competitive advantage. These two ways are differentiation advantage and cost advantage. Advantage sin competition can also be gained by competing in the price department. The chosen company allocates its prices according to a thorough study of current marketing trends and studies about competitor price allocations. It also has a clear advantage in terms of gaining a differentiation advantage. Most of the products that it offers are of a vastly superior quality to most of its peers in the market.
In addition to the aforementioned points, its brand image has also made it possible to draw in customers who are yet to associate themselves with its products. Advantages in competition are also maintained by targeting customers and maintaining a loyal customer base once acquiring them. Catering to the needs, desires, and requirements of general customers is a point where all successful financial entities score very highly. The reviewed financial organization has maintained its clear-cut advantage over most of its rivals, and its success is partially dependent on its ability to stay ahead of its rivals in several aspects.
Grant (2016) mentions that Strategy implementation and monitoring is a concept that is vital to its overall management. Meeting organizational goals and setting plans are possible only once proper tactics have achieved relevant success in the market. Measuring profitability of an industry and checking the level of organizational competition can be done using Porter’s Five Forces analysis. It also helps in final business strategy development.
This analytical tool provides details of five main forces that determine intensity of competition. Forces that affect working of a firm include bargaining power of suppliers and buyers, threats posed by substitutes and new entrants in that market, as well as overall industry rivalry. The reviewed organization has always formulated and implemented strategies in manners befitting a great firm. Thus, successful firms need to adhere to certain theoretical concepts and implement them successfully to their strategy formulation and overall performance.
According to Hill, Jones & Schilling (2014) an overall process of management of strategies has an extremely profound impact on organizational working. Those working in superior positions, such as managers, eventually formulate most of these tactics. Success of these tactics reflects well on their performance evaluation. Similarly, their failures tend to reflect poorly on their evaluations. Most often, losses incurred due to poor strategic management are blamed directly on the ones who formulated it.
Teams and leaders come together to come up with a suitable plan that potentially brings success to the employing bodies. Gathering relevant data from analysts and research sources and incorporating them into a new plan is the role assigned to personnel of superior positions such as team leaders and managers. Apple has a flexible hierarchy, where anyone from people of lower rungs to bosses can submit their ideas. It is up to managers to decide which is best for a particular situation. Their decision-making process eventually decides the quality of tactics tat are about to be implemented.
Hubbard, Rice & Galvin (2014) have stated that strategy implementation is a concept that ranks among the topmost priority to managers. They have to collaborate with their juniors and seniors, as this offers the greatest scope for flexibility. With these attributes, chances of success of implemented methods are increased manifold. Roles and responsibilities of this nature are a part of a manager’s job. It has to be noted, however, that overburdening them can result in a potentially drastic decline in their performances.
According to Morden (2016) proper management directly translates to good results, which results in an increase in motivation levels of employees and officers. Increasing their motivation reflects well on a manager, as managers of Apple have found out. It has specially announced increments and benefits for managers who provide efficient results. This, in turn, provides motivation for those at managerial positions to perform better in their future responsibilities. Those at managerial positions at Apple benefitted from good results brought about by good strategic tactics tremendously. Thus, good tactics can influence managerial performance in a positive manner.
Similarly, bad performances due to improper implementation of poorly constructed managing methods negatively affect managers. Their performances may dip in future situations, partly due to an excessive amount of mental burden that is brought about by these ordeals. It is extremely important that personnel allocated crucial responsibilities such as leading a team properly monitor their tactics. These methods of monitoring have to be efficient, as proper monitoring can provide relevant analytical data.
Rice & Galvin (2014) agree that people allocated managerial tasks have to be unafraid of performing correct evaluation of implemented methods. They have to be unafraid of risks, as risks are often necessary for efficient tactic formulation. In cases where their incorporated tactics prove to be insufficient, they have to make sure that they do not shy away from resultant responsibilities. They have to be brave enough to accept where they went wrong, as failure to do so will potentially blacklist them in their seniors’ eyes. It is crucial that they understand main concepts that are part of strategic management.
Summarizing main aspects of a strategy and determining whether it actually has a chance of succeeding is one of their main tasks. Implementing the aforementioned concepts is among their main responsibilities as well. Their performances are affected by how well they manage to succeed in this task. Leaders and managers of Apple are evaluated based on how well they manage to implement these basics into their work. Thus, correct tactics have deep effects on managerial performances.
The Apple has been offering the best and most innovative products in the manufacturing of mobile phones, computers, macbooks, ipod, ipad etc. however, initially the Apple was criticized and reviewed due to its high price which cannot be afforded by every section of the people and has been criticized for focusing on the higher class people. With time, Apple has been catering towards producing gadgets that can be affordable to every section of the people. The prices parallels between the medium and high price status that attracts the mass market (Durand, Grant & Madsen, 2017). However, the high price of Apple is often overlooked due to its product quality, providing the best versions, features, looks of its products that appeal the global mass. The paper produces a critical analysis and reflection on the strategic management that focuses on the understanding of the management and control process and help the business team that include the employees, workers, individuals in identifying strategic plan that will foster business growth of Apple.
In meeting the global demands it is important to constantly assess the management process of Apple by the team leader and allot a team in examining the aspects of strategic management. As per the study, it is important for the global Apple Company in conducting activities to ensure the attainment of objectives in relation to the strategizing of management. The Apple company has been implementing certain operational practices such as narrowing down issues and risks posed by the competitors through constantly updating its devices, computers, electronics, while developing the policies of work force and performance in meeting the constant changes posed by the global factors as well as internal factors (Akhtar et al. 2016).
The human resource management and the management department are important in determining the increase of profit and annual output that can be derived through improved performance. Therefore, Apple has been recruiting people from different regions, culture and background that help in equality and collaborative work structure as they are trained by the human resource manager during a given period of time. Critical analysis are assessed by the management department how seeks not only the opinions of the employees but involves stakeholders in directing towards these objectives in the context of basic values and effective results. Apple is well known for its product modification and therefore the teams, constantly looks forward in evaluating the customer’s feedback and reviews that help them in modifying and fulfilling the requirements (Rush etal. 2014). This is done through the effective and thoughtful planning of analysis the ongoing processes. The paper presents a critical reflection in relation to the effective management process that helps in attaining the company goals.
Apple has been assigning several groups that will assess, evaluate, and implement as the global company needs constant support of the whole management team under the acceptance of the key personnel in marinating the strategy. there are typical features in relation to Apple’s management style that involve assessment of profit sharing, training and development strategy, division of departmental responsibility, per day reflection and record of reports, record evaluation and amendments, product quality assessment, employee performance and work force. In fulfilling the requirement of customers the Apple has established core strategies through open conversations utilizing network sourcing and social sites that help in connecting the global people.
Apple has been known for its customer orientation and customer services who tries to meet the needs, preferences, interest of its buyers that is considered as a strategic planning in appealing more buyers and managing healthy relations between the company and the customers enhancing the productivity (Alizadeh et al. 2016). The critical reflection of the study of strategic management help in projecting the ways Apple motivates it workers and ensure healthy well being and have strategic planning in providing them offers, incentives, bonus, holiday packages after analyzing the performance of the individuals. The company has been shared profits among employees by establishing several offer opportunities towards driving the workers toward maintaining the company’s objectives, vision and mission.
From the above study, after the strategic analysis and evaluation of the research proposal it can be recommended that Apple need to manage its productivity under the guidance of professionals who will help in assessing the area of focus that will help in determining the performance, skills, advancement, risks, threats, competition, institutional growth, infrastructural development, planning and management, security and profit, finance and funds. The recommendations can be granted as initiatives towards the empowerment of the company and give them strategic opinion in improving the work structure and process. The professionals need to be recruited in various departments in achieving the goals of every section of the department that will enhance the overall growth and development of the well known company and help in building its dynamic productivity across the globe. The company needs to seek and constantly record the information in regards to the competitive review, price rates, budget, resource efficiency employee recruitment, implemented strategies, per day production, and maintain occupational safety and adhere to the security of the workers.
The most important recommendation is the anlyzation of risks posed due to the external and internal factors that negatively impacts and harm the policies and guidelines resulting in imbalance and occupational conflicts and conclusions. The company therefore needs to train its human resource department and the members involved in equally training the workers and ensure that the targeted goals are met within the given period of time. The employees need to be trained so that they can face and meet the challenges and changes with the advancement of technological elements, globalization and diverse and dispersed opinions of management. In enhancing the employee thoughts, performance the company need to arrange incremental benefits not often by increasing annual salary but also providing promotions, and bestow offer like incentives, holiday packages, medical acclaims and facilities, work hour reduction, addition of holidays, assurance of promotions etc.
The company need to analyze the operational performance through the assessment of individual strategies applied in the workforce and it is important for the management team in identifying the regular reports of the performance and determine the sequence, timing and scope of improvements that will be able to guide their motivation and dedication towards achieving the company’s goals. The workers are an essential part of the company as gadget modification need human supply and resource apply therefore constant assessment of the availability of resources is important. However, the whole process can never be possible without effective and efficient organizational planning, coordination and action steps in relation to the project proposals and work plans of the Apple Company.
Another major recommendation is the establishment of Technology Council that will ensure proper functioning and operations of technology and equipment required in marinating and modifying the gadgets. As for apple, technological advancement is essential and meeting the technological necessity in fulfilling the gadget development and supply need huge fund arrangements. In order to meet the necessary and significant equipments it is important strategize the operations and assure healthy relationship and communication among the shareholders and stakeholders who will help in the decision-making process and provide funds for meeting the technological requirements in relation to the productivity.
From the above study it is understood that the strategic management process is important in meeting the overall production and enhancing operational control system. Therefore it is important for the managers in utilizing skillful use of organizational control systems that involve output assessment of individual behavior, and employee controls, performance, crisis, risks, budget in meeting the management and organizational control. The strategic management depends much on the decision making process that identifies the solutions and requirement of the company’s productivity. The decision process involve several procedures that involve key personnel like leaders mangers, team management as well as the workers and the staff members who together contribute towards benefiting the company’s operations.
Leaders of Apple need to address the threats posed by the competitive world and analyze their unique features that will help in modifying their own products appealing every section of the people resulting in global expansion and company cooperation. Therefore strategic building and planning of management and production will help the company in expanding world wide and accordingly strategize the decision making process that will ensure health work force and performance. Successful planning will result in maintaining sustainable ecological, social, economical, and cultural structure and maintain technological and performance integrity.