GB520: Strategic Human Resource Management
Prof. Susan Pettine
By: Anthony Melendez
What is Strategic Management, and why is it critical to the success of an organization in meeting its goals and mission?
What is Strategic Management?
Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization (Mello, 2011). In General Sun Tzu’s words, “The general who wins a battle makes many calculations in his temple ere the battle is fought.” When translating it to today’s Strategic Management’s words, it means: “Those companies and individuals who win in the business world make much calculation, planning and deliberations on their strategy and plans. Basically, those who plan less have lower chance of success, much less those who don’t plan anything at all.” (Soo, 2011). Strategic Planning increases the chance that the future of the organization will have the upper hand by being in the right place at the right time.
Strategic Management collects all activities and processes utilized by an organization in order to align resources and actions with mission, vision and strategy throughout the organization (Mello, 2011). When used correctly, strategic management activities change the idea into performance and enable the plan to evolve and grow as necessities and other circumstances change.
The Great Apple!
In researching Apple’s success, we can find countless reports appreciating this fact. According to Denning in his Forbes’ article, in 2009, when retail sales declined around 2%, Apple’s retail sales rose roughly 7%. In 2010, Apple’s retail sales, excluding online, jumped 70% to $11.7 billion, or about 15% of its revenues of $76.3 billion, compared to the overall retail industry’s sales growth of 4.5%. In the Jobs’ era (1997 to 2011)
References: 1. Yoffie,D; Slind, M (2008) Apple Inc. [Case Study]. Boston: Harvard Business Publishing 2. Mello, J. (2002). Strategic Human Resource Management. Australia: South-Western College Pub. 3. Denning, S. (2011,). Apple 's Retail Success Is More Than Magic - Forbes. Information for the World 's Business Leaders - Forbes.com. Retrieved August 9th, 2014 from http://www.forbes.com/sites/stevedenning/2011/06/17/apples-retail-stores-more-than-magic/ 4. Dilger, D. E. (2011). Steve Jobs resignation letter mocks idea that board had no succession plan. AppleInsider | News and rumors since 1997. Retrieved August 9th, 2014 from http://appleinsider.com/articles/11/08/24/steve_jobs_resignation_letter_mocks_idea_that_board_had_no_succession_plan 5. Fisher, A. (2011, January 19). Apple 's not alone in succession plan woes - Fortune Management. Fortune Management & Career Blog. Retrieved August 10th, from http://management.fortune.cnn.com/2011/01/19/who-will-be-your-companys-next-ceo/ 6. Job-less: Steve Jobs 's Succession Plan Should Be a Top Priority for Apple. (2009). Knowledge@Wharton. Retrieved on August 10th, 2014 http://knowledge.wharton.upenn.edu/articlepdf/2134.pdf?CFID=85665243&CFTOKEN=98737440&jsessionid=a83085b1c14d36bb2995663bb2c445a666a5 7. Soo, R. (2011). Strategic Management & The Art of War By Sun Tzu | Ricky 's Online Business Blog [Web log post]. Retrieved August 10th, 2014 http://www.rickysoo.com/2011/04/23/strategic-management-the-art-of-war-by-sun-tzu/ 8. The Basics of Strategic Planning and Strategic Management. (n.d.). Balanced Scorecard Institute. Retrieved August 10th, 2014, from http://www.balancedscorecard.org/BSCResources/StrategicPlanningBasics/tabid/459/Default.aspx 9. Apple Needs a Succession Plan -- Fast. (2009, January 8). Retrieved August 12, 2014. From, http://www.thestreet.com/story/10456816/1/apple-needs-a-succession-plan--fast.html