1. I do not completely agree with the comment of student 1 that strategic management is all about how an organization performs compared to its competitors. Strategic management is not all about beating the competition, it is also about meeting the goals that the organization has set for itself (Thompson and Martin, 2010). For example one of the plants of the company is not working properly because the machinery is faulty. The strategy of the company could be to get the machinery repaired in next six months. The success of the strategic management is whether the engineers and workers of the organization can set the machinery right in six months. The target is not to beat a competitor but to improve the condition of the machinery.
I agree with the comments of student 1 that employees in the private sector who perform well tend to have more promotions. The private sector companies give more incentives to their employees. They want better work from their employees and find new ways to motivate them. The spirit of competition is more in the private sector. This also means that if an employee underperforms, then the individual is asked to leave the organization. The private companies have low tolerance limits. They want to build up teams that can outperform the employees of other companies. But I disagree with the comment that public sector employees do not have work pressures. They also have to perform well because they are also paid good salaries and perform important work (Salge and Vera, 2012). The tax payers money does not come for free. There are pressures on the government to perform well through their departments or the government would also be voted out of power in future. There is fair degree of accountability in the government departments.
I agree with the comment of student 2 that strategic management is relevant to all the three sectors, namely, public, private and the third sector. Even charities get donations after lot of hard work. If they have proper strategies to implement their programs, only then people give them money (Göçmen, 2013). People are becoming more aware than ever of how the charitable organizations work. I agree that strategies are usually made to do large scale work and for that the consent of the senior or middle management of a company is crucial because they have all the powers to take vital decisions.
2. I agree with Student 1 that technologies are being adopted with speed. The enterprises want to improve their working. They are applying latest technologies to old areas like people management, supplier management and accounting. There are organizations which have adopted communication platforms meant specifically for them where their employees can exchange messages instantly and also keep track of the messages that are being shared by other employees. The latest issues being discussed are automatically communicated to employees. This has helped in areas like project management. Then there is cloud accounting which is catching up (Smallbusiness.chron.com, 2017).
But a new technology might not be adopted by many because technologies are costly, people might not be educated enough to adopt new technology products or they do not want to pay for costlier products. The tastes and preferences of consumers also play a role in adopting a new technology.
I do not agree with the comment of Student 1 that companies forget about environmental controls. They just ignore them to avoid costs and make use of a business opportunity (Gopalakrishnan et al., 2012). They know they are causing harm to the environment through their actions but they desperately want to make money without incurring any additional costs. Many companies have to be forced to make provisions for environmental costs.
I agree with the comment of Student 1 that for a company, timing of marketing a new product is crucial. Developing any new product involves research and development costs. Any company would market a new product only if it feels that it can increase its sales by bringing the new product to the market (Zimmerman and Blythe, 2013). If the customers of a company start buying the products of another company then the former is tempted to make some changes in its product offering. If a new brilliant product idea strikes the company might adopt it and later market it. This is how a brand evolves. The image of a product and the company is formed in the minds of the consumers.
I agree with the comment of Student 1 that management of social environment in a company is important. This is so because it is people who run organizations and do work. If the relations among them are not good work will not be done properly. As people interact, ideas emerge and leaders are formed (Muondo and Perkins, 2013). Strategic direction is given through social groups in an organization.
Göçmen, I. (2013) ‘The role of faith-based organizations in social welfare systems: A comparison of France, Germany, Sweden, and the United Kingdom’, Nonprofit and Voluntary Sector Quarterly, 42(3), pp.495-516. Available at: https://journals.sagepub.com/doi/abs/10.1177/0899764013482046
Gopalakrishnan, K., Yusuf, Y., Musa, A., Abubakar, T. and Ambursa, H. (2012) ‘Sustainable supply chain management: a case study of British Aerospace (BAe) Systems’, International Journal of Production Economics, 140(1), pp.193-203. Available at: https://www.sciencedirect.com/science/article/pii/S0925527312000047
Muondo, R. and Perkins, S. (2013) Organizational Behaviour: people, process, work and human resource management. UK: Kogan Page.
Salge, T. and Vera, A. (2012) ‘Benefiting from public sector innovation: the moderating role of customer and learning orientation’, Public Administration Review, 72(4), pp.550-559. Available at: https://onlinelibrary.wiley.com/doi/10.1111/j.1540-6210.2012.02529.x/full
Smallbusiness.chron.com (2017) What is cloud accounting? Available at: https://smallbusiness.chron.com/cloud-accounting-33995.html (Accessed: 13 April 2017)
Thompson, J. and Martin, F. (2010) Strategic management: awareness and change. 6th edn. UK: South Western Cengage Learning.
Zimmerman, A. and Blythe, J. (2013) Business to business marketing management: a global perspective. 2nd edn. UK: Routledge Taylor and Francis group.