Essay - Strategic Management in 1962, Alfred D. Chandler, in His Book...

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Strategic Management

In 1962, Alfred D. Chandler, in his book "Strategy and Structure," first *****troduced the concepts of strategy. Strategic management deals with the relationship between the organization and its environment. Chandler's work ***** identified the importance of strategy management in an organization and the various ways organizations like Sears, General Motors, *****uPont and Standard Oil strategize and planned their operations in the 1920's. Chandler postulated that a firm's structure is (***** time) determined by ***** strategy; and the common denominator of structure ***** strategy is the enterprise's resources to market demand. (Chandler, *****)

In the journal article "What is strategy?" the primary author, Porter, states that ***** current environment in which ***** operate are very dynamic. And positioning, which was once the core ***** strategic ***** does not work any longer. E***** organization has a unique *****nd individual business structure in the market place. As a consequence the structure resembles a puzzle th*****t needs to be solved from with*****. Modern organizations are challenged constantly by a combination of technology changes, ***** changes, logistic challenges, cus*****mer *****s and human resource challenges. Companies, by identifying ***** core competencies and cultivating these options to generate revenue for the organization, can maintain their market position and profits. Organizations like Microsoft, Dupont, Wal-Mart and McDonald's have implemented these strategies and stayed dominant for extended periods of time in the market.

An organization has ***** be able to look at the entire picture. External ***** *****ternal factors affect an org*****ization. These determine a str*****tegy, ***** has to work equally well under all conditions. Wal-Mart identified and chose ***** use ***** strategy of competing on the price of a product. Wal-Mart and Kmart were two leading retail stores in ***** US that ***** this management strategy (Aust, 2002) In order to achieve this object however, the two companies chose drastically different methods ***** implementation; Wal-Mart spent considerable time ***** effort in identifying the variables that affected their return on investment. They made major changes in the way they did ********** ***** changed their logistic and warehousing systems; they also invested extensively in new technology and ********** systems. These ***** internal changes. They were implemented throughout the organization. Wal-Mart then evaluated the external ***** that affected its organizational profit margins. The company formed partnerships ***** certain suppliers. Supply chains for critical elements were evaluated. Potential bottlenecks and constrains (which the organizational, on the whole, would experience) ***** identified. Wal-Mart proposed low profit margins on ***** goods sold; they generated ***** by ensuring that they turned over inventory at a f*****ster rate than any of their competitors. Currently Wal-Mart's strategy is for profit ***** revenue generation is a model th*****t none of the competitors in the retail market can match.

K-mart, on the other hand, ***** traditional forms of management and distribution. ***** did not invest in identifying the critical ***** for the organization. In addition, managing overhead costs and human resource expenditure became an increasingly difficult task ***** the company. K-mart ***** not ***** at the entire


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