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Strategic Management is the art and science of formulating, implementing and evaluating the strategies for a company to achieve its long-term goals and objectives.
Strategic management is an ongoing process that assesses the business in an organization.It helps to determine and estimate its competitors and to set goals and strategies to meet meet all existing and potential competitors.
Methodology of change:
Change management is a way of working at a higher level of proficiency for the project and team members. Change management should always be considered first or at the beginning of the project so as to ensure that change is acceptable, to set rules for change and to outline how these changes will be implemented.
If you wish to develop a change management process for your organization or project, think yourself to be a quaterback and your team to rely on how you implement and accept change. If you outline the change directives clearly, your team will pay attention to your quaterback decisions. The human element of change for your resources , team and people is the toughest part of change management.
By minimizing resistance to change and maximising employee acceptance , adapting to changed envronment becomes easy.The control guidelines should be made clear on the project goals including outcomes, project scope elements, budgets, teams and stakeholder needs.
Flow Chart It First
The steps of change management should be kept in mind while preparing the flow chart fr your organization. Some of the important points include
Team -How will the members of your team react to change ?
Awareness - Who and what will be affected by change?
Risk - Includes both situational risks and people risks and ideas on how to deal with them.
Readiness - Are your team members ready to handle change? Will they be able to understand the change request process
Plans -A Good change in management can include lots of plans like communication, road maps, training, and resistance. Identify these plans and create them.
Support - Give a chance for your team members to interact and give input to the higher ups by using good coaching skills.
Assess - Assess your project's progress regularly and set good measurable controls.
Resources - Use your team leaders to help you identify weak resources and gaps in performance.
Stakeholders - Never leave the stakeholders out of your change management process.Involve them in the process and flow per your controls.
A good change management policy, when formulated correctly with clear guidelines can be used for amultiple number of times. Change management is not just a theory but an application that can assure success for project managers. Firstly,identify the important elements of projects and create firm controls to ensure that your change management skills are actually working.
John P Kotter's 'eight steps to successful change'
Johm Kotter has developed an eight step helpful model for understading and managing change. Each stage describes a key principle identified by Kotter relating to people's response and approach to change, in which people see, feel and then change.
Increase urgency - Inspires people to take action, make objectives real and rellevant.
Build a powerful team- Get right people in right place with right emotional commitment at right mix of skills and levels.
Get the right vision: Form a team to establish a simple vision and strategy and focus on emotional and creative aspects to drive efficiency and service.
Communication for Buy-in- Involves as many people as possible and communicate the essentials to appeal and respond to people's needs
Empower action-emove the obstacles and encourage constructive feedback and support from leaders
Create short-term wins- Set aims for shorter periods and take manageable number of initiatives. Finish current stages before starting new ones
Build on the change-Encourage determination and persistance and highlight achievement and progress
Anchor the chnages in corporate culture- Streghten the value of successful change via recruitment, prootion and weave change into culture.
Business development driven change
Business development potentially includes a complete set of activities which are involved with the quality and development of the business or the organization. The basic requirement for business development is establishing the business development aims, and then formulating a business development strategy. The strategy comprises of some or all of the following methods of development.
new product development
new market development
business organization, shape, structure and processes development (eg, outsourcing, e-business, etc)
tools, equipment, plant, logistics and supply-chain development
people, management and communications (capabilities and training) development
strategic partnerships and distribution routes development
acquisitions and disposals
Generally, business development is partly scientific, and partly subjective because it is based on the feelings and wishes of the business owners or CEO. There are many ways to develop a method for the growth and improvement of business, and rarely is just one of these a single best solution. Thus,Business development is sometimes referred to as 'black art', ie., difficult to analyse, and difficult to apply a replicable process.
Function of Sales Department in organizational change
The change in an organization includes a variety of key roles which can be filled by various individuals or groups at different points of time during the process.One of the ways in which companies learn to cope with rapid changes is by increasing their abilities to learn and change.In the initial stages of learning, each employee is charged with identifying and solving problems.Thereby, the organization engages itself in continnuous experimentation,improving and increasing its capabailities.
The sales department provides managers and sales executives with the best techniques, tools for improving the effectiveness of the sales force.
A company cannot perform well with apoor organizzational design eventhough it has a great mission, great people, great leadership, etc.
The performance of an organization depends on the factors such as work flow, business processes, information sharing and incentives.All of these factors are important aspects of the organization's design and each has its own siginificance in the organization's success.
The process of organizational design provides a perfect definition of goals and responsibilities for each unit within the organization
Â Organizational Growth Cycles
An organization developmental theory is helps to examine the problems associated with growth in organizations and the effects of change among employees. In a broader sense, growing organizations pass through five relatively periods of evolution, each of which ends with a period of crisis and revolution.
An evolutionary period is characterized by the dominance of the style of the management in achieving growth, while
A revolutionary period is characterized by the most vital management problem that must be solved before growth continues.
Creativity / Leadership
As mentioned below, the first stage of organizational growth is called creativity. This stage is dominated by the founders of the organization, and the importance is laid on creating both a product and a market.
Usually the founders are technically or entrepreneurially oriented, and they disdain management activities.
But as the organization grows, management problems occur which cannot be handled through informal communication and dedication.
Direction / Autonomy
At this stage, the crisis of leadership occurs and the first revolutionary period begins.The key issue begins with "Who is going to lead the organization out of confusion and solve the management problems confronting the organization?" The solution is to locate and install a strong manager "who is acceptable to the founders and who can pull the organization together." This leads to the next evolutionary period-growth through direction.
During this phase the new manager and key staff take most of the responsibility for instituting direction. The lower level supervisors are treated as functional specialists rather than autonomous decision-making managers.
Delegation / Control
When an organization reaches the growth stage of delegation, it begins to develop a decentralized organization structure. Ultimately, the next crisis begins to evolve as the top managers in the sense that they are losing control over a highly diversified field operation
Often The crisis of control results in a return to centralization, which is now inappropriate and creates resentment and hostility among those who had been given freedom.
Coordination / Red Tape
A more effective solution tends to initiate the next evolutionary period-the coordination stage. This period is characterized by the use of formal systems for achieving greater coordination with top management as the "watch dog."
Yet most coordination systems eventually get carried away and result in the next revolutionary period-the crisis of red tape. This crisis most often occurs when "the organization has become too large and complex to be managed through formal programs and rigid systems."
If the crisis of red tape is to be overcome, the organization must move to the next evolutionary period-the phase of collaboration. While the coordination phase was managed through formal systems and procedures, the collaboration phase "emphasizes greater spontaneity in management action through teams and the skillful confrontation of interpersonal differences. Social control and self-discipline take over from formal control."
What is market segmentation?
It is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. Marketing campaigns are often designed and implemented based on this type of customer segmentation.
One of the main reasons for engaging in market segmentation is to help the company understand the needs of the customer base. Often the task of segregating consumers by specific criteria will help the company identify other applications for their products that may or may not have been self evident before. Uncovering these other ideas for use of goods and services may help the company target a larger audience in that same demographic classification and thus increase market share among a specific sub market base.
Market segmentation strategies can be developed over a wide range of characteristics found among consumers. One group within the market may be identified by gender, while another group may be composed of consumers within a given age group. Location is another common component in market segmentation, as is income level and education level. Generally, there will be at least a few established customers who fall into more than one category, but marketing strategists normally allow for this phenomenon
What is Product Development?
Product or service development is a smart place to use that cash in order to create future growth for the firm. Many companies reinvest part of their profits in developing new products, either completely new products or extensions or adaptations of existing ones. For some companies, such as pharmaceutical manufacturers, maintaining a robust new product pipeline is essential to long-term growth (and even basic stability) because their drug patents will eventually expire and they will face daunting competition from producers of generic and copycat drugs. Other companies such as toy and clothing producers face highly fickle and changing markets that demand a constant flow of new products. While all research and development into new products doesn't turn up major new product launches, in the long run new products often prove to be some of a company's most important assets.
It is a process in which the money is invested or it is ready for an investment in a venture which offers possibility of either profit or loss. Product could be latest in the market (or) a latest one in your organization (or) already used one.
Development of the product can be expertise in the procedure given below:
You should have evidence when you approach to an idea as it is useless to simply have an idea. Put on the paper everything which comes to your mind like your thoughts which represent your creation, like what exactly is it, functionality, the way it works, the way you want to launch it in the market and how well it gets a response from the audience.
It will become your prior step in order to protect it from others who may steal it. Pen you're your thoughts or ideas in a magazine and have a signature on it by a spectator. Now, this magazine becomes bible of yours all through the process of patenting. An inventor's magazine could be a notebook in which pages may be numbered in a row and those cannot be deleted or reinserted.
You should research your thought from an authorized and business standpoint. Before you file a patent, you should:
Complete Initial Patent Search: If you have not seen your creation it will not mean that it do not exist. Prior appointing a patent notary or an agent, finish up with basic investigation and be sure that your idea is not patented by anyone else. After that you should finish a previous investigation that is non-patent investigation. If you are encountered with any kind of plan related to your ideas then it may not be protected.
Market Research: Inventors will not be benefited from about more than 80% of the patents. Before investing the money and time in protecting your creation or invention you start with some groundwork of researching the market. Will customers actually buy this? Make sure about the product you invented is manufactured and spread is very cheap so it will make the retail price very reasonable for you but only, once there is a market. Cost of your product can be compared and evaluated by the similar products costs in the market. It helps you to overcome the competition in the current market.
Creating a Prototype
It is a representation of your creation which comes into a practice of everything which you have pen down in your inventor's magazine. When you present it to the prospective lenders it will displays the art of your creation. You should first create a prototype rather than filing a patent.
Filing a Patent
After working on all the unusual ideas of the design you should file a patent. Here, there are two major patents from which you should choose one: 1.Effective patent (it is for the latest technology and tools) 2.Intend patent design patent (it is for developing latest and non patent attractive designs). People may infringe the creation if it is much more valuable. You may get frustrated at the time when your patent is not strong enough . So always it is good to take some legal help in order to avoid some problems in the near future.
Because of few basic reasons most of the organizations reach towards failure. At one time every entrepreneur will ignore these small basic reasons while starting a business; ultimately ending up with a failure. You should learn these causes very intensely. Some of the severe causes for a failure of an organization:
Rather than market laying importance on the product: Recognize the market of your product rather than concentrating on product. It is waste if there are no buyers to buy your product -regardless you have a brilliant idea or a very good product; resulting in failure. Smart organizations recognize the market demand first then starts manufacturing the products consequently.
Giving more importance to the organizations image: Planning a very To plan a high profile of an organization will be of waste -like hiring a much more costliest working place , a logo which is fancy and having a website for the company will not work to achieve success. Instead the expenditure will be high because of the expensive work place, maintainance expenses- so you will be out of the production. Maintain the expenses very low at the time when it is just your start as it the golden rule for any business to achieve success.
Listed below are some common reasons for failure of a business:
Underestimating start-up costs (for operations &capital expenditure).
Misjudging the size or growth of the overall market.
Lack of relevant sectorial experience.
Inability to supply profitably to required price.
Under-investment in equipment etc.
Insufficient funds or access to top-up finance.
Overoptimistic estimates of market penetration &shares.
Insufficient functional breadth.
Problems with maintaining quality standards.
Excessive overheads (relative to scale of operations).
Wrong mix of funds (e.g. too much debt and gearing too high).
Delays in securing or developing distribution channels.
Unresolved differences of opinion.
Restricted range of offerings.
High operational costs and/or low productivity.
Over reliance on trade credit (receivables).
Underestimating the strength of competitors.
Lack of innovation (me-tooofferings).
Poor capacity utilization.
Mistaking profit for cash flow (see
Misreading customer requirements.
No formal or clear structures.
Problems sourcing supplies.
Inadequate physical distribution.
Overoptimistic projections or overtrading.
Lack of promotion &customer awareness.
Ineffective financial &managerial control systems.
Offerings out of line with customer needs.
Inappropriate business location.
Unable to withstand interest rate increases.
Inability to handle an economic slowdown.
It is a kind of strategic alliance in which many people accept to share the services, products and funds in a general profitable venture. These joint ventures can be a fastest way for very small scaled businesses like yours to acquire opportunities which you may miss out; this is going to happen only if you choose and implement it properly.
How to Get a Joint Venture Started
First set the goals and plan what ever should to be done in this venture.
After that you should consider the organizations that could show a good interest in your goal which is chased by you.
Both in practical and person see to the already existing business community which you also belong to.
Make use of the public associate links of yours.
Share your goals or ambitions by learning some websites or books.
Be open minded to encounter the questions from other hand and a joint venture idea may come in your mind at the time when you start speaking about it.
Make sure of whatever you pen down in the agreement. This should be done when you find few individuals to distribute this venture. I personally and very sturdily propose to hire an official and qualified professional to do it
Areas of Risk:
"Business risk" can be measured as the risk of a critical change in assumptions and targets that supports a company initiative. Strategic risk is similar thing at a diverse level: it involves many questions such as-should a company remain within the industry or under a complete different set of assumptions whether it should come within reach of its marketplace?
Business Risk - a trouble in two parts
From the view of a financial organization, the problem of business risk management cascade into two parts.
The most difficult of these is how a financial organization approaches its business risks, as clearly reverse in our Business Risk field. Particularly, as an official risk does it add up for a bank and its stakeholders to handle some business risks?
Rather depending on, "characteristics of risk" the answer lies in the "severe point of risk".If the serious capability of business or strategic risks increases, organizations find themselves under lots of pressure to clarify, how their approach to organizations risk "fits" with their management of few risks as- approval, merchandise and practical risks.
Another part of the problem is wide. Company should use any type of use risk as transport and finance tools to handle a business risks which stretch outside the conventional provision, market and approval risk organization markets? This is the most important questions because, if answer is yes, it will open many new risk management markets and expose some organization to new kinds of risk portfolios.
Minimizing Risk through Integrated Data Management:
If your organization spends millions on the maintenance of information in a separate database making use of it for some tasks which are defined and reusing it in a very few data warehouses . If you are thinking of implementing very huge and costliest data integration ventures; so prior to it you have to think something which is very big:
For Sustainability Development system management is accountable. Here, the internal reviewer should carry on with an evaluation of the efficiency and capability, which is like as follows:
Plan and Approach
Risk management preparation
Execution and procedure
Examining the action
Review on the management and continuous progression
Financial Risk: Money is like a fuel so make use of it very cleverly. Many bigger organizations eventually crash with the cash. Unlike large scale businesses, medium and small scale businesses will die. For example, Beta Corp. created their profit or loss and their balance sheet in order to attract the financers but only when they did not have enough cash. New systems and procedures were made to take some good decisions, increase in the competiveness, rise in the efforts to make sales, cost reduction, individual training, which further make better profit or loss. The ultimate out come was, required very less funds and they succeeded in attracting better quality, Financing to make organization steady, facilitating growth, thus it reduces financial failure and the risks involved in it.
Handling Risk in Organization
Sustainable Development is a process of change in which the utilization of funds, way of savings, course of technical development in order to meet individuals requirements and wants. It seeks to find the balance between economic, environmental, and social performance. Organizations following the Global Reporting Initiative's (GRI) reporting guidelines use specific performance indicators to identify reportable sustainability achievements and challenges.
Strategic management helps you to acknowledge the present business model and its drawbacks. Strategic management emphasizes on a strategic change and business transformation and the ways to avoid business failure .