Five external industry forces affecting an organization. Porter in to understand how five key competitive forces are affecting an industry.
There are several academic models that are framed for assisting the firms for analysing the marketing condition and situation both at the micro and at the macro level. The essay analyses the importance of academic models for managers in terms of facing challenges and making decisions. There are drastic changes in the lifestyles and habits of people in all around the world, as seen 50 years ago.
People and businesses are highly influenced by the rapid changes in the technologies. So, strategic management represents that creative part of management that results into the creative thinking.
Strategic management is associated with the aims and directions of the organizations which they adopt in order to face the competition.
Strategic management takes into account the choice, analysis and implementation of the elements which are termed as the strategic models. There are several varieties of models associated with the strategic management which aids the managers in facing challenges and taking decisions Kossowski Managers at the top level are mostly faced with several challenges, and this challenge can be the success of some new item or product, the utilization or implementation of new technology or decision related to the adoption of new materials or aspects related to the growth of new products and services.
Each firm can have different objectives, this can be to generate increased profits or develop market share and so on. In order to attain these different objectives the managers needs to take several vital decisions which are mostly influenced by the models adopted at the strategic management level Narayan In this era of internationalization organizations and companies and their managers are faced with the more and more complex challenges like international competition, new emerging markets, technological improvements, economic and political changes and so on.
For the purpose of facing such problems and challenges the managers and organizations need to use the models related to strategic management and gather potential information which aids them in effective decision making.
Models are also commonly used because the strategic management decisions needs to be highly successful otherwise they may lead to failures and losses and may also affect the organizations in terms of their reputations and long term profitability Harding, Harding and Long Strategic management models can be said to be as the mode of the strategic management.
As per the strategic models several steps needs to be taken in order to attain the organizational objectives, and different models are adopted by different organizations as per their convenience and usability.
So it can be said that the strategic models are commonly used in the strategic management in order to take appropriate decisions which will make the organization to attain its goals Orcullo Deal with the challenges There are several factors that can help to explain how the models in the strategic management help the managers in facing challenges.
There are several goals of the models and each model has a different goal to provide specific information to the managers when used in some specific business condition.
The factors have been explained below: The main goal of the strategic models is to provide framework to the business which helps in improving the performance of the business. Models are commonly used in the strategic management because they help the managers by providing several important information and data external and internal which helps them to analyze and think more strategically and face challenges in an effective and efficient manner.
Looking at the external point of view the organizations can use the PESTEL framework model, as this helps the organization in analyzing the external environmental factors associated with the organization and its environment Davenport, Leibold and Voelpel Strategic management models can be used to predict the future of the industry and the corporate environment the firm is working in and can help the senior managers to take important decisions related to the strategic management.
The models can tell the present position of the firm in the industrial market so as to decide which direction it has to take in future, thus facing the challenges presented by the changing flexible and dyna,ic market of the firm Henry Improving decision-making Strategic management models help the managers to understand the practical realities that are present behind the decision-making of the organizations.
The models are required for answering the question related to strategy, such as what type of products the firm should make, what are the potentially attractive markets that are suitable for the firm to enter, what operations are required to be outsourced and how the competition should be dealt with.
Managers have to make critical and crucial decisions regarding the formulation of the strategy and its execution. Henry With the help of use of these models, the decision making of the firm can be improved. For instance, SWOT is a useful strategic management model that can be used for understanding as well as decision making for all types of situations encountered in business.
It can be used for decision making related to the method of sales distribution, opportunities for making an acquisition, decisions related to change of suppliers, outsourcing decision for the service, resource or activity, and analysis of any investment opportunity, taking decisions regarding availability of strategic options such as entering the new market or launching the new product Karagiannopoulos et al The decision making is improved as the evaluation of the position of the company can be done in terms of its range of products and services.
Models, such as BCG matrix facilitates the manager to think about the products and services of his company and take decisions related to which investment opportunity to look upon, which product or service should be kept and which should let go.
The responsibility of the manager is to search the opportunities that could provide best returns to the company and the company could best allocate its resources so as to maximize the profit in future Roy As the strategic management process has become more and more complex as well as costly.
To ease the purpose of mangers in strategic decision making, models of strategic management are used. All the models are distinct but are related to each other.
Use of these models improves decision making of the managers and helps them take crucial strategic decisions for the organizations Ahlstrom and Bruton It is a model for developing an understanding of where the power lies in the business situation.
The model is useful for business managers as it helps in understanding the current competitive position of the company and also the strength of the desired position which the company is considering to move into.
When business managers have a clear understanding of where the power lies, they can take the advantage of the situation of strength, can well improve the situation of weakness and avoid taking wrong decisions or steps Griffin The five forces analysis model has five important forces which determine and analyses the competitive power in the business industry and the environment the company is working in.
The five forces are as follows:Explain how your recommended course of action is consistent with Research in Motion’s resources, organizational capabilities, and management preferences.
Essay Strategic Management and Competitive Forces. ARTICLE REVIEW FORM NAME: Alison Benton DATE: 1/27/ ARTICLE TITLE: The Five Competitive Forces That Shape Strategy STATE THE MAIN IDEA (CONTRIBUTION) OF THIS ARTICLE TO THE FIELD OF STRATEGIC MANAGEMENT: Michael E. Porter writes about five forces that help strategic management .
With the application of strategic management the CEO Ethan Williams has decision choices between alternative courses of action in order to establish TATI’s competitive .
INDUSTRY AND COMPETITIVE ANALYSIS© Adapted from Thompson, , “Analysis is the critical starting point of strategic thinking.”.
The Five Competitive Forces That Shape Strategy STATE THE MAIN IDEA (CONTRIBUTION) OF THIS ARTICLE TO THE FIELD OF STRATEGIC MANAGEMENT: Michael E. Porter writes about five forces that help strategic management better understand the idea of industry competition.
Strategic management is associated with the aims and directions of the organizations which they adopt in order to face the competition. Strategic management takes into account the choice, analysis and implementation of the elements which are termed as the strategic models.