How would companies use the Strategic Management Process to attain distinctive competitive advantage over their competitors?
Strategic management process is a process which companies use to plan for either short-term or long-term goals. It consists of three components – strategic analysis, strategic choice and strategic implementation. (Albert 2012, 1) It is also a tool which is used by management to make decisions for companies to have competitive advantage over their competitors. Strategic management is a continuous process which companies use to achieve more market shares to encounter all present and future competitions. (Management study guide 2012)
If use as business’s strategy, it will be a guide way for the company to influences their staff’s decisions, priorities and ways of working. It is believed that everyone in the company would like to work in a meaningful environment when they know why they are doing. Sometimes management may set their business’s strategy that they may have missed out unforeseen circumstances which require the contribution from their staffs’ commitment, engagement, productivity and creativity. Management needs to relate their strategy plan to their staffs to let them know the important of achieving their goals together is important. This will boost the self-confidence and increases self-awareness of their individual staffs towards company strategies. These are the two important qualities which require by company. (Jeremy 2009, 4) Strategy planning can also be used in everyone’s life as simple and as efficient as possible as anyone whom wishes to achieve their goals. (Richard 2009, 10)
Strategic analysis is the key component to be started before any strategy management process can be processed. During strategic analysis stage, the company needs to look into resources which they have. They need to concentrate on their resources which help the company to be focused on essential steps in order for them to achieve their strategic objectives. They should also look into conserving their resources by educating their staffs on the benefits of not wasting resources. This can cut down unnecessary costs incurred by wastage. Company must also have alternative plans on how they are going to recover resources. Recovery of resources may require a longer time and intensive resource commitment before they can expect any returns on it. In order for a company to achieve the best result, the company can give their staff training on how to identify products which they could reuse. With the help of increased self-awareness, the company will be able to recover resources more quickly and therefore they are able to increase their resource leverage faster. (Clive 1998, 96)
A company should be specific on their values, expectations and objectives so that they could relate it to their staff. After the company has decided on their objectives, they need to take measurement in order for them to realize whether it is achievable. If no, company will be able to make modification on their objectives to make it achievable. (Aaron 2012. 52) In order for a company to adapt to any changes in the market, the management needs to have their strategic analysis first before they can start any new strategic management process. SWOT and Porter’s competitive forces are commonly use as a tool by companies during their strategic analysis stage. SWOT is normally being combined with Porter’s competitive forces analysis to achieve the best results for the company.
SWOT analysis which helps companies realize their internal company’s strengths and weaknesses and at the same time it also helps them to analyze the external opportunities and threats in the environment. (Kevan 2009, 18-19) SWOT is a flexible analysis which can be used as individual or combined and all analysis depends on company requirement. For example a large international company which is well known for its brand name. This is their strength. They can concentrate...
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