Strategic Management

Topics: Strategy, Strategic management, SWOT analysis Pages: 8 (2737 words) Published: April 23, 2013

In today’s world there are many organizations and since there are many organizations it is obvious that there will be a lot of competition in the market. In order to compete with the competitors or rivals an organization develops a strategy to stay or survive in the market. Strategy is very important for an organization, it helps an organization to plan their strategy to attract more customers or for the publicity. This essay is all about the strategy or the plan that an organizations develops in order to spread their products.

This essay will concentrate in the meaning & definition of strategy and the key factors of strategy. Then the essay will shift its focus to what is the strategy of Honda, how does Honda formulate its strategy by analyzing environment of Honda i.e. internal and external. This essay will also explain strategic management and its three main elements.

Main body
According to Weigl (2007) “strategy definition corresponds with the classical interpretation. It implies some sort of “intended strategies” that can be general or specific and which and which have two essential characteristics: first, they are developed consciously and purposefully; secondly, they are made in advance of the actions to which they apply” (Weigl, 2007: 18). To achieve a strategy an organization must give importance to some of the key factors of strategy: direction, scope, long-term, advantage to organization, environment, resources & competences and stakeholder expectations. Organizations goals and strategy depends on how organization is designed. It is the direction that helps any organization to get well designed and managed. It is the job of top managements to make sure that the organization is well directed to achieve their goals by designing the organization for suppose changing environment (Daft, 2010: 58). Honda’s direction is to create a sense of joy when dealing with Honda. This direction of Honda gives the organization a track to pursue their strategies with (Honda, 2010). Scope is another vital element of strategy, for suppose can an organization focus in more areas of activity rather than one? The reason why scope is considered as vital part of strategy is because there is a worry of people (top managements, owners) that are handling or managing a firm conceives the firm’s boundaries. And these boundaries might also include some vital decisions like geographical cover age or product range (Johnson, 2008: 7). Honda’s scope includes their main line products which are automobiles, motorcycles and power tools. This gives Honda a sense of internal surroundings with which their managers work with and their owners plan with (Honda, 2010). It is important for an organization to have long term strategy rather than short term, as it is mentioned by Leontief in 1978 that it is important for an organization to begin their decision making with long term strategy rather than short term; he gave importance to long term strategy because it is the only strategy that can be believed as serious (Leontief, 1978: 205). This strategy will be an advantage and enable an organization to compete with other organizations. Another important factor of strategy is environment; this may need a lot of changes in the organization in the future. Strategy is also helpful for an organization in terms of building resources and competences. Recourses and competences give an organization competitive advantage. For example large companies will concentrate on strategies with large brands and small companies may alter the rules in its market in order to suit their own abilities. After all these key factors the main aim of strategy is to satisfy stakeholders. Strategies can be affected by the environments and also by the expectations and values of stakeholders; however an organization needs to build a good relationship with its stakeholders and satisfy them because without them the organization is nothing (Johnson, 2008: 7)....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategic Management Essay
  • Essay about Toyota Strategic Management
  • Strategic Management Paper
  • Strategic Management and Strategic Competitiveness Essay
  • Essay about Strategic Management Assignment Unilever and Blizzard
  • Strategic Management Essay
  • Essay on Strategic Management
  • Essay about Strategic Management

Become a StudyMode Member

Sign Up - It's Free