Strategic Management in Today’s Complex World

Topics: Strategic management, Management, Organization Pages: 11 (3091 words) Published: February 27, 2013

Bilal Afsar



Bilal Afsar

With the development of economy, original pure rational strategic management could not adapt to the complex and ever-changing environment now. The world is changing and becoming more and more unpredictable with each passing day. A kind of irrational strategic management is emerging quietly. This passage introduces the development of irrational strategic management and its function in strategic management, and discusses the way of irrational factor playing an active role in strategic management.

Afsar B. - Strategic Management in today’s complex world


Business Intelligence Journal


Strategic management and its predicament
Strategic management is combination of science and arts which increases an organization’s chances of success as it involves detailed planning of each and every variable of the organization that can help in the achievement of goals and objectives. Dr. Jagdish Sheth, a respected authority on marketing and strategic planning, provides the following framework for understanding strategic management: continually asking the question, “Are we doing the right thing?” It entails attention to the “big picture” and the willingness to adapt to changing circumstances, and consists of the following three elements: formulation of the organization’s future mission in light of changing external factors such as regulation, competition, technology, and customers development of a competitive strategy to achieve the mission creation of an organizational structure which will deploy resources to successfully carry out its competitive strategy. Strategic management is adaptive and keeps an organization relevant. In these dynamic times it is more likely to succeed than the traditional approach of “if it ain’t broke, don’t fix it.”Rationality has a deeprooted tradition in enterprise management. From Adam Smith, economics saw people as rational animal. The appearance of the rational people influenced the subsequent management even more deeply. The strategic management has showed itself in the rational way from its forming. From the design and plan school in the 60s to the dominant position of location school in the 80s, until the rising of core school in the 90s, all emphasized the rational character of strategic management [1]. The thought of rational strategic management supposes the environment of the enterprise facing is

simple, small changes and expectant, so, the enterprise can be expectant for the market and the future. But today, the environment of the enterprise facing is not only complex, but also less and less expectant. If the enterprise emphasizes the rational way, it may concern with management efficiency and stylization of forming strategic management excessively, which will create a kind of inertia of strategic management. After the 1970s, the operation and management of Japanese enterprises shocked the United States. Compare with the management differences of the United States and Japanese, we can find that the United States frustrated in the competition of operation and management with Japanese, which showed the predicament of rationalism in modern enterprise management. strategic management entails allocating the right amount of resources to the different parts of your business so that those assigned to particular goals have what they need to meet their objectives. This ranges from providing your workers with the right supplies to enacting systems by which employees receive the necessary training, all work processes are tested, and all information and data generated is documented. To effectively manage your business strategically, every inch of your company must have its needs met in these ways, so all parts can work together as a seamless, highly functioning whole. A critical but often overlooked aspect of strategic management is the need for it to be both planned and unplanned....
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