Strategic Management & Business Analysis-Samples for Students

Question: Using an organisation that has been in the news in the past two years, apply and critically evaluate how each of the following theoretical concepts Influences Strategic Management Practices in that Organisation. Answer: Introduction: Toyota is one of the leading business organizations in the automobile industry. Toyota has been started its journey in 1937 in the industry. Soon it has secured the leading position in the industry by its innovative and unique practices. The organization has witnessed rapid growth since past few years, which reflects the innovative strategic management quality of the Toyota authority. Being one of the oldest and renowned business organizations, Toyota has put significant impact on the business world. It is not easy to maintain coordination with the different parts of world. Thus, the leaders play a crucial role to manage the organizational service (toyota-global.com, 2017). The following report has articulated on the Toyotas organizational management that influences the growth of the organization. Analysis: Strategic management plays crucial role in earning desired success for every business organization. In this competitive era, where every business organization is incorporating modern and effective techniques to stimulate the growth of the organization, strategic management is known as the primary success factor for the organization, as it is impossible to run any business organization without efficient management (Jenkins Williamson, 2015). Concept of Strategic Management: It has been argued that strategic management is mainly based on three key stages that help the business organization to earn success to some extent, such as- formulation of strategy, implementation of those strategy and strategy evaluation (Percy Elliott, 2016). Step One: Strategy formulation is the primary stage that plays important role in the growth of the organization. In this stage, organizational management, designs organizational strategies and policies after analysing various aspects of the organization. Step Two: The next stage is implementation of the strategy. In this stage, management and other members of the organization implement the designed strategy in the organizational structure. The organizational management must ensure that all the internal stakeholders of the organization are flexible enough to accept it. Otherwise, it will not be easy for the authority to implement the strategy. In order to influence the internal and external stakeholders to adopt the strategies, the management must provide a transparent idea about the objective of the leaders to incorporate these strategies (Ruff, 2015). Step Three: The last stage of strategic management is to evaluate the result of the strategies. This stage helps the management to avoid many future risks. By evaluating the result of the strategies, the leaders of the organization can understand whether the employees have accepted the strategy or not. At the same time, they will be able to monitor whether the strategy is working properly or not. They can identify the loopholes as well and rectify it. This will be beneficial for the organization to earn the long-term organizational goal. Michael Porter has enlightened three key aspects of strategic management that needs creating unique and innovative strategies, managing the quality of the product and adopt suitable strategies to fit in the market trend. This theory plays significant part in the growth of the business organization, as it helps the organization to shape their organizational structure according to the market trend. It helps the organization to carry out any new business venture in an appropriate manner (Smith, 2014). It has been claimed in reports that strategic management involves the evaluation of external and internal atmosphere of the business company (Rothaermel, 2015). While constructing the strategies of the organization, it is important for the business authority to analyse external and internal environment of the company as it puts significant impact on the performance of the business organization. The structure of the business environment has been transformed drastically in past few decades due to the arrival of several rival organization and globalization. The competitive environment of the market has been enhanced. Hence, in order to put a strong impact on the market, it is essential for the organizational leaders to understand the key features of the market and the requirement and preference of the clients. Otherwise, it may face various difficulties to survive in the competition. Implementation of Strategic Management in Toyota: Toyota management has followed all the path of the strategic management while designing their organizational structure. Toyota is mainly run by a team of experienced and skilled leaders who aim at embracing innovative techniques to provide quality and flawless service to the consumers. Their primary objective is to meet the expectation level of the target market. In order to achieve the target, they incorporate all kind of modern and innovative strategies that will be suitable for the organizational growth. There are some key aspects of the organizational structure of Toyota that can be described to provide a vivid idea about the strategic management of Toyota authority (Peppers Rogers, 2016): Toyota management always maintains healthy relation with all the suppliers, distributors and other participants of the supply chain. Being a world famous business organization, Toyota maintains a strong and transparent supply chain. It is one of the major success factors of the organization (Stead Stead, 2013). Toyota is known for carrying out innovative business venture. In 1970, Toyota has brought revolution in the automobile industry by starting the production of fuel-efficient small car. Recently it has started the manufacture of electric car, which is beneficial to get rid of air pollution and global warming (Morden, 2016). The organizational leaders of Toyota always maintain a healthy relation with the external and internal stakeholders. At the same time, they maintain culture and value within the organization. It has been evident in many incidents that organization has stood by the side of his employees and provided all kind of monetary and moral support to them, as they are aware of the fact that employees are the potential strengths of the business organization. The growth of the organization is mainly relied on the performance of the employees. Unique, teamwork and respect these are the basic features of the Toyota organization. These are the major weapons of the organization that plays major role in establishing bright future of the organization. Lean management is another result of innovative initiative of Toyota management. They always encourage their employees to actively participate in the organizational function and improve their performance quality. Toyota is operated and managed by the some basic principles that are considered as the strength of the organization, such as- management must be aware of long-term goal of the organization, every problems needs to be addressed and resolved immediately, innovative and trustworthy techniques needs to be embraced always, management needs to consider all the aspects of the organization while designing the organizational structure (Kaynak, Mockler Dologite, 2014). As per the discussion, it can be stated that the style of management of the Toyota authority is highly influenced by the previous mentioned theory and concepts. These concepts have led the authority to operate the organizational function in an appropriate manner. Recommendations: Although, the organizational infrastructure of Toyota has been constructed in a innovative and lucrative manner, there are some loopholes that can be harmful for the brand image of Toyota. To avoid these factors it can be recommended- The organizational management must be aware of their responsibilities and they must not blame their employees for any kind of loss. It is evident in many cases. It has been evident recently, Toyota has experienced various challenges due to the inefficient performance of the crisis management team. Leaders need to appoint some skilled employees who can support the growth of the organization by their effective performance. The organizational management must appoint some skilled engineers who can serve the organization by their experience and practices, as it is evident recently Toyota has faced massive crisis due to the poor product quality and manufacturing fault. Conclusion: Thus, it can conclude that Toyota has set a milestone for others by following all the aspects of effective strategic management. To avoid other loopholes in the organizational structure, it needs to appoint skilled staff members and shares organizational objective with them and motivates them to perform in an appropriate manner. Reference: Jenkins, W., Williamson, D. (2015).Strategic management and business analysis. Routledge. Kaynak, E., Mockler, R., Dologite, D. G. (2014).Multinational strategic management: an integrative entrepreneurial context-specific process. Routledge. Morden, T. (2016).Principles of strategic management. Routledge. Peppers, D., Rogers, M. (2016).Managing Customer Experience and Relationships: A Strategic Framework. John Wiley Sons. Percy, L., Elliott, R. H. (2016).Strategic advertising management. Oxford University Press. Rothaermel, F. T. (2015).Strategic management. McGraw-Hill Education. Ruff, F. (2015). The advanced role of corporate foresight in innovation and strategic managementReflections on practical experiences from the automotive industry.Technological Forecasting and Social Change,101, 37-48. Smith, W. K. (2014). Dynamic decision making: A model of senior leaders managing strategic paradoxes.Academy of Management Journal,57(6), 1592-1623. Stead, J. G., Stead, W. E. (2013).Sustainable strategic management. ME Sharpe. toyota-global.com. (2017).toyota-global.com. Retrieved 21 August 2017, from https://www.toyota-global.com