Strategic management is the methods that help the organizations to manage their resources in an appropriate way so that they can achieve their goals or objectives. strategic management includes few steps like setting of the objectives, analysis of internal organization, evaluation of strategies and assuring that the management implement these strategies across the institution (Xi et al. 2015). For the present world, management strategies have become business buzzwords. Top executives in the top international companies have started to ponder the strategic missions and objectives, the managers rough out market strategies, operational chiefs find strategies from research and development to raw materials sourcing as well as distributor relations. The strategic management includes identification of the methods how the companies stack up in compared to their competitors (Ghezzi, Cortimiglia and Frank 2015). It also involves the appropriate recognition of the available opportunities and threats faced by the organizations which either come from the competitors or the organizations within.
In most of the organizations, there are several levels of management. Strategic management is the most important because it approaches all the segment of a firm. It aids the corporations with guidance to corporate values, culture, goals and missions. The positioning approach of strategic management helps the corporation to understand its position in the market and the ways through which it will get proper exposure (Debicki, Van de Graaff Randolph and Sobczak 2017). The approach involves the branding plan based on business data. The dynamic approach helps the companies to translate the strategic ambitions of the leadership into required specific actions so that it can overcome the strategic execution failures. The learning approach focusses on the learning from the complex and unpredictable nature of the environment of the organizations.
The positioning approach is a plan which distinguishes an organization from a sea of similar competing organizations in a way that designs the corporation to be more attractive to the potential consumers in compared to its competitors. The chief elements of the positioning approach are first it differentiates the firm itself from others and secondly it appeals to the potential group of buyers (Debicki, Van de Graaff Randolph and Sobczak 2017).
in order to differentiate the firms from others, they follow some specific ideology that marketing belief that their people as well as process are the best. Professorial services corporations are build around their employees because their success largely depends on the talents and qualities of their employees. Every companies demand that their own processes are the best and offers best exposure (Ghezzi, Cortimiglia and Frank 2015). The firms often claim to be100% committed to do exceptional works in order to create differentiation but many of their competitors also claim the same which increases competition. However, the claims of excellent services and best products often becomes cliché as all the firms claim the same therefore the business complete depends on the appreciation of the clients.
- the positioning approach aids the firms to hire exceptional people for differentiating the firm in the market (Marvel, Davis and Sproul 2016). It allows to realise the underperforming departments so that they can be easily checked and strengthened.
- In positioning strategies, the superior process allows for flawless communication, task completion before deadline and mistakes are checked and sorted before the clients check them.
- It builds reputation and provides competitive advantage as the firms feel encouragement to provide best and excellent works every time (Hammond, Pearson and Holt 2016).
- Customer service is the chief approach of the companies which builds great relationship with the customers’. This is why the operational teams become more responsive, good listeners, dynamic and proactive.
- Through this approach the entire firm becomes market oriented. They find out the demands of the clients and customers to differentiating them from their competitors.
- It helps the firms to cope up with the constantly changing markets, its new developments, new scopes for competitive advantages to suit the customers changing expectations (Bettis et al. 2016).
- It makes the firm potent enough to win the attention as well as attractions of the customers by the means of suitable advertisements. They reach more consumers and clients and earn their loyalty.
- Making the firm different from the others the management always try to communicate with the clients as well as different kinds of customers do that they can add more and varied features to their products or services (Daspit et al. 2017).
- Product positioning is one of the important aspect of positioning approach where the consumers are allowed to consider product’s advantages before purchasing it. Therefore, product positioning has proved superiority of offers by the company over its competitors. It may also help consumers in choosing the right product.
- positioning approach is difficult as the fact that even if the firms appreciate the employees’ talents, they do not get appreciation from the stakeholders.
- The complex services are difficult to process as the firms has to choose different service providers. The less qualified clients ask for seeing their process as well as the indicators.
- The firms often fail to maintain what they claim due to losing tenacity and dedication (Daspit et al. 2017).
- Exemplary services are quite hard to prove therefore building better customer relationships becomes challenge.
- Strong positioning needs to be built on self-evident attributes or else service remains only as a word but most of the firms do not possess credible supporting evidences.
There are various problems in positioning approach. financial of all, the corporations lose reliability for differentiating themselves by focussing on their stakeholders (Hammond, Pearson and Holt 2016). The client often stops believing such assurance. Secondly, the companies themselves announce that their people are the best but lose when they do not get the same appreciation from their customers or the clients (O’Neill 2016). In positioning approach, the firms are to show their references and testimonials but even the meddling firms have few satisfied customers.
The dynamic capability strategy analyses the firm’s sources and devices of wealth creation by capturing the firm’s operation in the rapid and technologically changing environment. the competitive advantages of the firms have been seen to be resting in its distinctive processes such as its coordination, designed by the asset positions of the firm and adopted evolution paths. The method and reason of gaining the competitive advantage largely depends on the market demands, imitability and replicability of the firms (Hill, Jones and Schilling 2014). The necessity of path dependencies gets simplified when conditions of growing returns exists. The dynamic strategies involve identification of new opportunities and embracing them by strengthening internal organizational and technological aspects of the firm.
Dynamic approach aids the organizations to discover the opportunities and organise them efficiently and effectively in the organization so that they can be embraced fundamentally to private wealth creation (Pearson, Bergiel and Barnett 2014). Strategizing help the companies engaged in the business conduct in order to keep the competitors off balance, increases costs of the rivals and excludes fresh entrants (Hill, Jones and Schilling 2014). Dynamics speak to mastery, process as well as speed through which the firms adapt their resources for responding to the changes in marketplace and to the constant emerging opportunities. These include excellent technical methodologies, intellectual property or Patents, business process knowledge and speed, the eminence of customer or business relationships, strength of culture and values of the organizations and the strength of their resources such as human, assets and economy (Kramar 2014).
- The chief benefits of being dynamic evolves round gaining competitive advantages over the rivals (Pearson, Bergiel and Barnett 2014).
- It allows the companies to incorporate innovations so that they can respond to specific situations or environment of the market for instance the appropriate time to rent the market.
- The dynamic strategies allow the firms to introduce swift alterations in the arena of technology so that they can gain more advantages and upgrade fast with changing market.
- It creates scopes for prospective competition where the market ascertains the dynamic nature which eventually prove to be vital for sustained competitive advantages (Rosemann and vom Brocke 2015).
- Dynamic capabilities strategy reflects the’ strategic ambitions of the leaders into particular actions, clearly designing the activities for enabling the administrations to adapt to the changing conditions as well as investing in exertions.
- It encourages the corporations to embed newer and upgraded skills and organizational behaviours.
- This methodology enables the management teams to establish and sustain a vibrant and engaging information system strategies to confidently assure to handle complex as well as nuanced strategies efficiently (Kramar 2014).
- Dynamic capabilities allow the firms check and correct the weak sections of the organizations. New information is gathered by identifying problems which require rapid course corrections or the leading indicators signalling that some changes in direction is needed.
- It increases the contextual awareness of the leaders by imploring diverse perspectives. They leverage the scenario-planning as well as environment-scanning apparatuses to anticipate the changes (Mahto and Khanin 2015).
- The dynamic capabilities approach helps the individuals develop newer competencies as well as results to gain the sustained performance improvements.
- This strategy can help to address the organizational resistance which often torpedoes the implementation efforts (Simsek et al. 2015).
- dynamic approach of strategic management adopts different mixture of moderate activities in initial stages of implementation by highlighting the ones which set the stages for managerial learning.
- Dynamic capability approach produces concrete deliverables as well as value in the initial stages, increase learning, alignments and enthusiasm (Bettis et al. 2016).
- dynamic approach for strategy implementation, the companies can possibly upsurge the odds of efficiently translating, adapting as well as sustaining innovative strategies.
Enhancing dynamic capabilities in a firm is the toughest aspect of setting and implementing strategies. It often becomes difficult for the companies to adapt, integrate or build new changes in the firms (Mahto and Khanin 2015). Reconfiguring internal as well as external competences for addressing the rapidly changing market environments pose to be threat for the small and medium corporations as they have limited resources to react sufficiently and judiciously to the external changes (Short et al. 2016).
- Building institutional capabilities necessitates significant efforts from evidently defining current as well as desired capabilities for designing the integrated systems of assets including activities which build and sustain them (Rosemann and vom Brocke 2015).
- As mentioned before the adaptation procedure needs complete or partial changes in the technical systems to grow and sustain it but not all the organizations can be able to bring such changes in limited time (Bergh et al. 2016). Therefore, without proper and adequate structure it will initiate a negative effect on the firm.
Learning focussed approach:
Learning focus approach of strategic management focuses on the origin of the strategies emerging from learning process. This process involves the experiences from which the people of an operations learns to gain knowledge and face the similar situations in future (Tarakci, Ates and Wooldridge 2015). It captures the experiences both individual as well as collective build common patterns for paving way to learning (Moura-Leite, Padgett and Galán 2014). The organizational learning approach helps the companies to know all the tricks of the trade therefore beneficial for gaining more competitive advantages.
Learning approach strengthens to companies in such a way that they become able to approach the organizational processes. The strategy of organizational learning is the most important of all as a minute change in the organization can be effective to bring disaster. Therefore, learning all internal and external elements is essential for the management teams (Bergmann and Stephan 2013). This approach views the organizational change both from psychological as well as relational perspectives. The leaders of the firms can be able to approach the organizational processes and eventually the attain the organizational changes from the standpoint of three main communities such as academics, consultants and the actors involved in the operation of an organization (Georgakakis and Ruigrok 2017).
- Learning approach helps the organizations to gain knowledge as well as insight through the evolved theories, methodologies and the models in the field of organizational development and learning.
- The organizational learning makes the organizations capable to integrate, relate, compare finally critically evaluate the acquired knowledge and skills (Moura-Leite, Padgett and Galán 2014).
- This approach aims to change the people of an organization including their shared thought as well as actions. These are often moulded and embedded by the demands of the institutions.
- As learning process is essential to recognise the requirements of the clients and the stakeholders, it increases the resources of the organizations according to the demands.
- This is the primary stage through which the constant changes can be recorded and thus involves facilitation of learning. By supporting as well as increasing individual knowledge, embedding them into teams through discussion, experiences sharing, dialogues and more particularly through observation (Moura-Leite, Padgett and Galán 2014).
Despite the fact that the learning approach of strategic management is not very difficult to implemented for the heads of the organizations but the studies reveal that the learning approach plays a very trivial role in formation of the organizational strategies in reality (Bergh et al. 2016).
- Learning focussed approach has imitations in formulating effective strategies as they delinked the management firm operations.
- The organizations have a great variety of people therefore, applying learning approach do not have proper reach to all the employees.
- small actions or decisions which are often born out of chance over time become key drivers of the change in strategic directions of the firm.
Therefore, it can be concluded that this paper discusses three of the most important approaches used for developing the business strategy in the organizations. It indicates that strategy management tactics in diverse organizations has been developed through various strategic approaches. These approaches are normally different from one another in terms of their scopes, complexity and strategic focus. In addition, the report also reveals that every approach has their own sets of limitations.
The importance of these three approaches to the organizations depend on the methods of utilization in business strategy. These strategic approaches refer to the specific arenas which the particular strategy aims to target. All of these approaches have difficulties in implication in the organization but also have numerous benefits which mainly help the organizations to gain the competitive advantages. according to the researchers in their field, the organizations need to first identify their own strategic focus then extend the scopes before attempting to adopt them. The most important fact is that the organizations stand an improved chance of expressing their own operative business strategy through developing their own abilities for sizing up and realise the sense of business activities. The companies are becoming more conscious of the incessant changes taking place in their corporate environment. More importantly, for the organizations increasing their capabilities, they need to primarily develop proper competencies then seek innovative strategic directions as well as identify strategic initiatives. The organizations will be able to identify and develop the most suitable approaches to formulate as well as implement more operative business strategies with the help of competencies, strategic directions supported by initiatives.
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