Implication Of Dynamic Environment For Organization Strategy Commerce Essay

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The strategic management of enterprise is a dynamic process in which the enterprise determines its mission, sets the goal according to the external environment and internal management elements, ensures the implementation of the goal and realizes the mission of the enterprise (Dorling, 2009). Strategic management concerns the establishment and plan of the strategy; and it is a continuous management according to the change of the external environment and internal condition. This essay will firstly have some description about the implication of dynamic environment for organization strategy. Following this, it will give some explanation of strategic mission and the relationship between it and strategic planning. Finally, it will introduce some strategic planning tools.

Implication of dynamic environment for organization strategy

Strategy has great significance for the development and survival of the enterprise, so the change of strategy in dynamic environment is also a crucial problem, especially in the situation where the business environment becomes more dynamic and complicated. Dynamic environment refers to the consistency of a series of environment such as macro-economic environment, industrial environment, enterprise internal environment, political environment and social environment is changing all the time (Martin, 2011). In recent years, the competition between enterprises is fiercer and fiercer. The industry and environment of the enterprise is changing in the complicated and dynamic process. So the development of enterprise is actually the dynamic process. In this situation, the goal of establishing and implementing the strategy is to achieve the consistency of internal condition and external environment. The dynamic environment promotes the change of enterprise strategy whose core lies in environment change and organizational adjustment. In addition, not only the strategy should be improved, the manager and all the staffs should learn how to adopt the dynamic environment. In all, the dynamics and complexity of the environment and the uncertainty of future elements will make the establishment and management of the strategy become more difficult.

Mission analysis

The mission is also important in the operation and management of the enterprise. The mission refers to the role and responsibility of enterprise in social and economic development and it is the positioning of the survival purpose of the enterprise (Bamford&West, 2011). Enterprise mission establishes a basic guiding ideology, principle, direction and business philosophy for enterprise. Not a specific strategic target, it explains the business field and ideas of the enterprise, which can provide basis for the setting of goal and establishment of strategy. It also summarizes the values of customers, shareholders and employees. Strategic planning is a process of establishing the long-term goal of the enterprise and putting it to practice (Charles W.L.&Gareth R, 2010). The mission is the source of strategic planning. If there isn't correct mission, though the strategic planning is implemented effectively, the existence of the enterprise is itself a mistake. Whether the mission is accurate or innovative will affect the plan of competitive strategy and other strategic elements. So the strategic planning should base on the mission, which is also important for the success of the enterprise.

Brief introduction of strategic planning tool

Strategic planning tools are indispensable for analyzing the business situation and establishing the strategy. There are several tools provided for the strategic planning, including Porter's five forces model, Portfolio planning tool and BCG matrix approach and so on. Porter's five forces model is used for analyzing the competition and making proper competitive planning. The forces include suppler bargaining power, buyer bargaining power, potential new entrants, threat of substitute product, and the rivalries and they determine five sources of competition. Different combination of the five forces can affect the final interests of the enterprise. Portfolio planning tool can provide reasonable asset allocation plan for the enterprise. It can also help managers to make good use of organizational resources in the fierce competition, which is benefit to reduce the risk and cost. It is useful for the multiple operation of the enterprise. One of the most popular ways to make strategic planning is BCG matrix. Every strategic business unit is signed in a two-dimensional matrix chart to show which SBU can provide high potential returns and which is the funnel of organizational resources. The essence of BCG is to realize the balance of enterprise's cash flow through the combination optimization of the business. BCG matrix is simple and clear; it can evaluate interests of enterprise business field through two objective standards including market growth and enterprise's market share. Product portfolio can also be arranged appropriately under the limited resources through the matrix analysis.

Conclusion

In all, strategic management can be defined as an art and science which concern how to establish, implement and evaluate enterprise strategy to ensure the realization of the goal. Environmental analysis is the key link and element in the management. Successful strategy is the strategy that adapts to the environment. Correct establishment of the mission, goal and strategy is also important for the success of enterprise. Of course, proper strategy planning tool should also be used by the enterprise.

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.