What Is Strategy Management Commerce Essay


Strategy management can be described as the identification of the purpose of the company and the plans and actions to achieve that purpose (Richard 2009, p.5). In my opinion, Strategy is like a person have his life planning and very clear about how to make his dream come ture effectively and efficiently.

Mintzberg (1987,p.66) states that ' Managers are craftsman and strategy is their clay ' . He mentioned managers could not make decisions before they are very sure about the company future and future environment is changeable and unpredictable, also strategy management should not be a part of managers' responsibility except under special circumstance and he suggested managers should allow strategy and capabilities to evolve by their experience as well as pay more attention to the operating efficiency of the company.

However, Ansoff (1991, pp. 449-461) challenging Mintzberg (1987,p.66) in his article ' Critique of Henry Mintzberg;s The Design School ' :

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This cryptic statement begs all kinds of questions: whose environment is being discussed; what kind of influence does the force exert on organizations; what impact does it have on strategy behaviour, etc? This slight of the environment is unfortunate. If Henry had taken the minimum trouble to peruse the cover page of Business Week for the past 4-5 years, he would have easily found answers to most of above questions(Ansoff 1991, p.455).

In nowadays, different type of the organization have different kind of environment, base on the different environment and market company will have their different strategy, thus environment influence strategy and becoming more and more unpredictable and turbulent for a lot of business. And there are two classes of organizations here, one of them is the company is very enjoy the placid existence and other one is the company is experiencing the turbulent. When turbulence is low, it might be possible confidently to predict the future. For example, movie companies like Warner Brothers and using their data for the customers to meet the film customers' demand with these international economic data. But when turbulence is high, these changeable elements effect the company involve many items. For example, new concept, new game, new software are all launch on the Internet at the same time, if the turbulence is high, the predictable outcome of development is impossible.

Part 2:

Sometimes making decision play the most important role in strategy management. But How to make a decision? How to make a right decision?

When you make a decision you will thinking first, seeing first or doing first? If the managers can practice these three models the decisions they made must be improved.

(Mintzberg and Westley 2001, p.5).

There is no company can do without any one of these three approach"thinking first","seeing first" and "doing first". Because in order to program must thinking through science and science keep company straight; in order to imagine must seeing first, the art could provide vision keep company interested; in order to craft must doing first, and craft produces energy to keep going.

Every approach you doing base on the different situations, such as "thinking first", it works best when the issues are all clear, statistic is reliable and thought was discipline applied.


We can not very sure is this decision right or wrong, because there are so many elements influence the future decision, the only thing that we can do is make the right decision at the right time, right place and right situation.

Strategy management is helping managers to mange and plan their company to achieve their future purpose and goals is like workers' spade, students' pencil and doctors' stethoscope. We can not extremely evaluate Mintzberg's point about the strategy management, because strategy is not a simple process and easily come out, is involve the whole company's great effort.

Topic 2:

' Ethical capability...can be an important source of sustainable advantage ' (Buller and McEvoy,1999, p.326).

Current research shown that management should treat the business ethics to an strategy and as a advantage in competition, because business ethics not only means the "right" things to do also the profitable things to do . Just like human being, the ethical capability can provide the right direction and attitude when the people makeing decisions, we all learned this capability when we are the little kids, what things that we are not allowed to do and what things that we are supports to do, it is the basic foundation for us even for the company, how does the company developing sustainable, business ethics is a critical factor.

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Moreover, ' all these qualities are mere reflections of a more fundamental characteristic: a new conception of corporate strategy that we call " capabilities-based competition" ( Stalk, Evans and Schulman 1992, p.57).

Companies compete normally is focus on new product market, response customer feedback, service skills, promotion and so on, but all these factors are reflect the capabilities as a fundamental role between the companies competition. For example, Starbucks, GAP, Marriort Hotel that they are all very popular around our daily life, also they are all in the 110 World's Most Ethical Companies, because they have leading ethics compared with other companies. These companies base on the capabilities to be most ethical companies in the world, their business career and brand image are deeply impressed customers.

Recently, many companies are bankrupt because of the Global Financial Crisis, how to exist in these business depression period? ' Transform the business model for success ' (Connoly 2009, p.31). Some companies reshaped their market and changed structure as a competitive strategy in order to suit customers' change and the whole business model. Most of the corporate will check themselves immediately, is our business model and strategy management fit to the future trend? Are we doing the right decision and right change to survive ? At the same time, they are also realize that capabilities are the best strategy and advantage in this competition. In the long term, companies with capabilities or business ethics could stable development than the others.

For example, the Body Shop International plc, As we know, there are 2,400 stores in 61countries and it's famous for "no product tested on animals" in the world. They believe that business have responsibility to protect environment.Now their annual sales are 697 million pounds, one of the world's established brand and establish good reputation.

On the contrary, companies doing business without business ethics and ethical capabilities, only pay attention to profit and money, these kind of companies could not have a long term business life. The Sarbanes-Oxley Act is a good example of the unethical behaviour. This company dishonesty and increased transactional costs and now they are required to hand in more fine and documents under the strict control. They are losing the trust of the customers and public.


Business ethics playing a very important role in the company, it is the foundation and it is the sustainable advantage in competition. Also it can be the strategy because it is the capability and like subgrade in the building. On the opposite side, if the company have unethical behaviour, business will drop down in one day and lose their reputation, they will pay the price for their dishonesty business.