The company’s strategy usually emphasizes providing value-added services to the customers that enable the company to achieve high sustainability in the competitive marketplace as well as help them lower their cost factors.
It is imperative to know that the objective which is previously mentioned in the proposal is not matched with the current research theme. Therefore, some objectives have been amended to support the research theme. Once, the goal was “To identify the impact of Strategic management on the marketing strategy of the company along with some examples.” Now, the new objective is “to identify the impact of strategic management on organizational performance,” which is designed to meet the research objective.
The main reason behind the changes is that it is not supporting the objective and the data related to the research objective are not available on the internet or in the book. Therefore, some amendments to the objective have been made to understand the topic better.
Strategic management is the process in which the organizational administration teams supervise the activities of the employees towards the attainment of objectives and execution plans. The firm that does not practice strategic management practices in the organization is the one that always faces severe issues regarding costly mistakes, and decision-making also becomes conservative. Also, it is a mixture of evaluation, implementation, and strategy formulation. Strategic management philosophies branch is likely from the contingency strategy, a systems perspective, and IT strategies.
Some of the theories that support the company’s performance Involve competition-based theory, profit maximization theory, contingency theory, and research-based theory.
The competition-based and profit-maximizing theory
The competition bases and profit maximization theory depended on the idea that industries made to increase their organization profitability for a long-term period and to establish a justifiable competitive edge over their rivals in the outside market environment. The outlook of the industrial organization is the foundation of this concept as it cites the firms outside the marketplace setting as the serious issue for conquering and supporting viable benefits, or simply, the traditional industrial organization outlooks provided strategic management with a methodical concept for measuring rivalry inside the industry.
The resource-based theory is an imperative measure through that the firm comprehends that the foundation of organization feasible benefits deceits in the interior possessions, as divergent to their standing in the outside situation. That is, rather than simply analyzing situational choices and challenges in carrying out the industry, the viable benefits of the organizations are entirely dependent on the exclusive capabilities and resources that a company retains. Considering this approach, the firm forecast that some kinds of funds controlled and owned by firms have the perspective and potential to produce viable benefits and, ultimately, more extensive organizational performance.
The purpose of contingency theory is to ensure that the firms have no one or solitary finest strategies and conducts to control the organizational practices. Organizations ought to establish an administration approach depending on the condition and situation in which they are performing their business activities. The majority of the multinational companies have experienced some strategies or theories that involve contingency strategy, RBV strategies, and particularly viable benefits would be highlighting the theoretical basis imposed and principal basis of the variable and their confirming association that being considered. This is the environment that discloses whole firms to the extraordinary price of undertaking industry in rapports of interior control creation and excessive level of venality. This will emphasize the inside features of the organization, which are based on systems, resources, and capabilities; that have been utilized to achieve a competitive organizational edge over the market. However, it also confirms the acceptance of resource-based variables as the key study principle.
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