Standard Linear Approach to Strategic Management
Discuss About The Customer Relationship Management Capability?
The consistent strategic reconfiguration is a crucial trend in the modern changing business world, this necessity and theory urges an introduction of relevant alternatives in the strategic management involved in the various organizations, supporting the marketing plans and the long-term sustainability of the infrastructure. However, change is never considered to be fully proofed in any research, especially with the changing trends involved in the marketing procedures. Strategic management is a formulation, which when implemented utilizing the correct techniques helps in achieving the set objectives for the particular business. This involves a descriptive model introducing the initiatives from the higher-level management (Laudon et al. 2012). The management plans involves the consideration of different aspects inclusive of availabilities of resources, networking and surely an elaborate research to assess the market conditions and potential customer-demands. The aspect of strategic management Accounting (SMA) supports the necessity to merge objectives with the information relative to the accounting to benefit the productivity of the organization (Barney 2012). The results thus proves that strategic management channelizes the energy and the resources in the correct path to obtain sustainability of a profound foundation. This report introduces the various possible approaches towards alternative methodologies in strategic management. Alongside, providing few mitigations for the existing limitations are suggestive.
Discussion: strategic management is a measure to access the business in a proper method ensuring growth in profitability. This is an artistic and simultaneously a scientific way to enable an organization to achieve its targets (Brodie and Mylopoulos 2012). The procedures involved are reconfigured on an annual or quarterly criterion. Certain strategic models are implemented to provide the guide to achieve efficiency in performances. Based on the literature reviews, categorized processes are strategized to meet the requirements. Among many one proposed approach is the linear approach towards strategic management (Hitt et al. 2012).
This strategy focuses on the procedures involved in the planning or strategizing the objectives for the business solely optimized on the present competencies and provides descriptive methodologies that would prove to beneficial for the development of the organization and the ways to achieve the goals (Hill et al. 2014). The prime stages involved in the approach involves managing the profit figurative and ensuring a standard service level. The aspect to visualize and set values following the stakeholder engagement with the organization is a crucial step. The value-based business requires a constant revision of the methodologies and information involved in the process of progress. To run a successful business infrastructure the environmental research and analysis is an important step towards securing the profit and the brand position. In other words, a SWOT analysis, determining the strengths, weakness, opportunities and the threats present surrounding the planning and strategizing for the business orientations (Wang and Feng 2012). The prime and an initial step in this type of approach is properly defining the goals and objectives the organization or Company aims for, which is best explained and briefed utilizing business models, that is subjected to provide a transparent view towards methodologies to be implemented to acquire sustainability. This step in the strategic management also ensures the consideration of the available sources for the manufacturing processes and the known competencies of the organization for the correct implementation of procedures. Another important aspect is the integrated yearly planning (Lee and Saen 2012). This approach also prioritizes the prospects of marketing, financial and human resource management, alongside the operational management. All these interlink and complement each other as important segments, the designs and improvisation ensures the same. An example to this kind of approach is presented by considering the segment supporting the marketing strategies, which must focus on the preparations involving revenue targets-details and the potential and existing demands from the customer base. Employees in an organization deserve a proper training and briefing regarding the general objectives to know their responsibilities towards the company. This steps is potential to introduce the opportunity to maximize the profit-levels (Rothaermel 2015).
Shortcomings Involved In Approaches
This section while dealing with the profit and performance details for the organization is ultimately capable of determining the exact execution process followed by the organization. Financial management is also considered to optimize the profit and provides an update version relative to strategic planning and the decisions. Operational management subjected to productivity determines the proper supply chain and delivery procedures to maximize the efficiency of an organization, which in turn would help in securing a better employee management and customer relationships.
There are various advantageous measures ensuring strategic management that is easily visible but involving certain limitations or shortcomings as well. Strategic management primarily enforced planning towards a long-term goal towards profitability by leveraged potentials, maximized opportunities and thus availability of competitive advantage is achieved. Alongside the effectiveness, there are few failures and complexities, which are difficult to manage or handle. This is a complex and simultaneously a time-consuming process.
An elaboration in brief on the various limitations is enlisted in this section of the report, especially surrounding the implementation process connected to this model (Rothaermel 2015). Strategic management comprises of the assessments directed to the analysis of the different external and internal environments that prove to be critical at times. Control management is another issue that needs a consistent overview. These factors are to a great extent interconnected, any change or downfall in regards to one of these is capable enough to adversely affect the entire infrastructure, posing a threat to leadership and integrity of the Company. In this fast era of change, this is a hectic and time-consuming process as most of it is invested in systematic planning, approaches to communicate and the researches involved to ensure a rise in market position and profitability, that can impede the day-to-day activities weakening the productivity level (Barney 2012). Implementation difficulties are another major issue to focus on before setting expectations of profitability. A persistent employee engagement with the senior-level management system is an extreme necessity. The selection of a correct leader ensuring a skillful strategized plan including innovative measures enduring the risk management is an essentiality towards a sustainable system. The management should have the foresight to anticipate any future risks to develop the risk management plan appropriately.
Variant approaches relative to strategic management with constant revision and reconfigurations are established to build a profound structure. Stakeholder approach towards strategic management in a business is introduced in this part of the report. This idea is formulated to each one who holds a prime expertise in the business world. Upon the implementation of this model, it potentially integrates the stakeholders, employees, the customer base and the other potential partners by connecting their prime interests. This approach imposes a priority on the active type of system focusing on the business relationships and promotions (Asif et al. 2013). This approach consists of distinctive features. Firstly, a single strategic framework is offered in this approach, which provides support in management of the changes with respect to the environment relevant to the business criteria exempting the requirement of reconfiguration inclusive of roles and codes, regularly. This approach deals in management rather than in the planning procedures presenting a direct guideline to excel utilizing the methodologies and contrasting to the former, it helps in determining the benefits. The approach focuses on the sustainability of the organization. This approach is capable of balancing and integrating multiple targets. Stakeholder concept in all possible ways looks forward for the establishment of the relationships that would prove to be beneficial in the long-term process. This ensures a value-based infrastructure that integrates the political, economical and moral judgments. This is a descriptive methodology, which needs to examine the facts and literature to suggest directions for the betterment. This influential technique enforces creation rather than adaptation. This approach leads to a strategic decision-making. This method provides a business-satisfaction to multiple stakeholders rather than being biased with single perspectives.
Stakeholder Approach towards Strategic Management
Developments relative to this approach has introduced the normative theories in the business to ensure a long-term investment surrounding fore-sighted objectives and relativities. This approach towards a corporate and organizational management theory is stabilized by comparing with the traditional aspects that concentrates on pleasing the stakeholders unlike the modern approach to rather benefit them. Social performance and responsibility is important in this approach.
Next in the alternatives, the dynamic capabilities in the strategic management with the objective to provide a support coherent to the function of integrating existing concepts, the researched descriptive knowledge and perceptions of facilities (Teece 2012). This approach assumes that organizations have underlying potential to acquire and sustain the competencies required to achieve the competition advantages in market utilizing the adaptation towards the dynamic capabilities to synchronize with the rapid environmental changes.
Segregation applied to the term, ‘dynamic’, explains the potential of reconfiguration of business processes to acquire compatibility with the varying market and environmental conditions. While, ‘capabilities’, measures the dimensions of strategic management providing betterment in business in the rapid changing economy. This approach is a reflection towards the capability of any organization to innovate and adapt with the transformation in the society demands and resource availability. This framework comprises multiple segments relative to variant processes, positions and path dependencies. Briefing about the first segment, it is appropriate to mention that it describes the methodologies relevant to the patterns, routines and information necessary for a task. Second segment focuses on recent endowments such as technology and external relationships. The path dependencies elaborate on the possible available alternatives in the strategic management for the sustainability. This approach integrates the resources in the market. An organization should be honed towards the customer demands, which is specific and cannot be replicated. This approach potentially should adapt the advantages to resolve the existing complexities (Teece 2012).
n example of the dynamic capabilities witnessed in the real-time business would focus on Apple Company that has the correct learning of evolution and the capable execution, compatible with the changing society demands. Apple is a unique association, which in the recent history has displayed its expertise in the technologically strong items, even not being a leader in this field. This level of talent showcase is valued and appreciated by its customer-base.
The idea of sustainability is another dimension in the strategic management, which is a crucial aspect to maintain a persistent development in the business arena on the global platform. This approach often proves to be abstract in concept of measurements of benefits. A stable financial background of an organization is a direct consequence of a maintained sustainability in an organization (Peteraf et al. 2013). This as a result, provides in the growth of profitability. For a vivid understanding, firstly consider, Cost Savings- referring to a well constructed system inclusive of all possible environmental protection witnessed with a low-level consumption of resources and thus, offering low operations-cost (Govindan et al. 2013). This is not a sole dependent to technologies but is also derived from human interactions, employees and the potential customer-base (Ashby et al. 2012). An example to this would be the increment in sales- correct way towards the sustainability highlights a increased growth and productivity simultaneously a developed customer service with a positive and satisfactory response from the same. This helps in the achievement of loyalty from the consumers and therefore, the organization ceases the opportunities to excel in sustained practices.
Analyzing the various processes and alternative approaches introduced in the strategic management, pre-briefed in the report, it will be a appropriate to conclude that these prove to be beneficial. However, with the need for regular clarification and examination of various measures and prospective, included in the processes deriving the viability of the approaches and the procedures involved, the described benefits, implementation challenges and the limitations present in the methods.
Firstly, briefing on the stakeholders approach it is indeed correct to mention that the model was initially assumed to be comprising of certain flaws, the reason not only surrounding the uncertainty and unpredictability but simultaneously the lack of single-decision making methodology (Balzarova and Castka 2012). Based on the literature reviews it is stated vulnerable compared to the non-shareholder constituencies. This highlights the fact that the shareholders do not posses any right or power to initiate any organizational changes, legally. Researches and analysis recommends the utilization of positive reinforcing cycles that might help in foundation of stronger and corporate stakeholder-based relations (Helfat and Peteraf 2015). The aspect of viability is persistent with implication challenges revolving the area of future researches inclusive of a critical issue of separation theory, which is witnessed to be established more like an ethical rather than a business theory. Secondly, this approach needs to be more generalized with the theory improvisation.
Next in concern to dynamic capabilities there is criticism, existing in operational management involved in the same. Algorithmic procedures seem to be lacking to express the translation of the environmental factors into potential in-sighting models. Other limitation to this approach is around the path dependency and the persistent dynamics in the system. Utilization of the current paradigms in the model, there is an essentiality to develop a competence-model, which would be potential to sustain growth relative to the variant changes in the business world.
Finally the sustainable approach, it is an important context of concern for any organization holding stakes in the global business infrastructure subjected to changes in society and market risks (Eskerod and Huemann 2013). Any literature review or research based on real-time efforts would recommend the senior-level management to maintain and develop measures towards sustainability of resources and productivity inclusive of the innovative procedures to meet up with the customer demands. Such approaches should be developed more strategically rather than on moral or operational ground is suggested to relate the senior-level management with the prevailing issues. This in turn would be effective in maintaining short-term and long-term goals.
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain management and sustainability literature. Supply Chain Management: An International Journal, 17(5), pp.497-516.
Asif, M., Searcy, C., Zutshi, A. and Fisscher, O.A., 2013. An integrated management systems approach to corporate social responsibility. Journal of cleaner production, 56, pp.7-17.
Balzarova, M.A. and Castka, P., 2012. Stakeholders’ influence and contribution to social standards development: The case of multiple stakeholder approach to ISO 26000 development. Journal of Business Ethics, 111(2), pp.265-279.
Barney, J.B., 2012. Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of supply chain management, 48(2), pp.3-6.
Brodie, M.L. and Mylopoulos, J. eds., 2012. On knowledge base management systems: integrating artificial intelligence and database technologies. Springer Science & Business Media.
Eskerod, P. and Huemann, M., 2013. Sustainable development and project stakeholder management: what standards say. International Journal of Managing Projects in Business, 6(1), pp.36-50.
Govindan, K., Khodaverdi, R. and Jafarian, A., 2013. A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, pp.345-354.
Helfat, C.E. and Peteraf, M.A., 2015. Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), pp.831-850.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
Laudon, K.C., Laudon, J.P., Brabston, M.E., Chaney, M., Hawkins, L. and Gaskin, S., 2012. Management Information Systems: Managing the Digital Firm, Seventh Canadian Edition (7th. Pearson.
Lee, K.H. and Saen, R.F., 2012. Measuring corporate sustainability management: A data envelopment analysis approach. International Journal of Production Economics, 140(1), pp.219-226.
Markard, J., Raven, R. and Truffer, B., 2012. Sustainability transitions: An emerging field of research and its prospects. Research policy, 41(6), pp.955-967.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Peteraf, M., Di Stefano, G. and Verona, G., 2013. The elephant in the room of dynamic capabilities: Bringing two diverging conversations together. Strategic management journal, 34(12), pp.1389-1410.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Teece, D.J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of Management Studies, 49(8), pp.1395-1401.
Wang, Y. and Feng, H., 2012. Customer relationship management capabilities: Measurement, antecedents and consequences. Management Decision, 50(1), pp.115-129.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Customer Relationship Management Capability: An Overview Of Strategic Management Essay.. Retrieved from https://myassignmenthelp.com/free-samples/customer-relationship-management-capability.
"Customer Relationship Management Capability: An Overview Of Strategic Management Essay.." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/customer-relationship-management-capability.
My Assignment Help (2018) Customer Relationship Management Capability: An Overview Of Strategic Management Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/customer-relationship-management-capability
[Accessed 24 February 2024].
My Assignment Help. 'Customer Relationship Management Capability: An Overview Of Strategic Management Essay.' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/customer-relationship-management-capability> accessed 24 February 2024.
My Assignment Help. Customer Relationship Management Capability: An Overview Of Strategic Management Essay. [Internet]. My Assignment Help. 2018 [cited 24 February 2024]. Available from: https://myassignmenthelp.com/free-samples/customer-relationship-management-capability.