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 ***** 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 St*****ard Oil strategize and planned their operations in the 1920's. Chandler postulated that a firm's structure is (in time) determ*****ed by its strategy; and the common denominator ***** ***** ***** strategy is the enterpr*****e's resources to market demand. (Chandler, 1962)

In the journal article "What is strategy?" ***** primary author, Porter, states that the current environment in which ***** operate are very dynamic. And positioning, ***** was once the core of strategic management 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 ***** be solved from with*****. Modern ********** are challenged constantly by a combination of technology changes, ***** changes, log*****tic challenges, customer *****s and human resource challenges. Companies, by identifying their core competencies ***** cultivating these options to generate revenue for the organization, can maintain their market position and prof*****. Organizations like Microsoft, Dupont, Wal-Mart and McDonald's have implemented ***** strategies and stayed dominant for extended periods of time in the market.

An organization has to be able to look at the entire picture. External ***** internal factors affect an *****. These determine a strategy, which has to work equally well under all conditions. Wal-Mart identified and chose to use the strategy ***** competing on the price of a product. Wal-Mart and Kmart were two leading retail stores in ***** US that chose this management strategy (Aust, 2002) In order to achieve this object however, the two companies chose drastically different methods ***** implementation; Wal-Mart spent consider***** time ***** effort in identifying the variables ***** affected their return on investment. They made major changes in the way they did business; ***** changed their logistic and warehousing systems; they also invested extensively in new technology and ********** systems. ***** ***** internal changes. They were implemented throughout the organization. Wal-Mart *****n evaluated the external factors that ***** its organizational *****it margins. The company formed partnerships ***** certain suppliers. Supply chains for critical elements were evaluated. Potential bottlenecks and constrains (***** the organizational, on the whole, would experience) were *****. ***** proposed low profit margins on the goods sold; ***** generated revenue by ensuring ***** they turned over inventory at a faster rate than any of their competitors. Currently Wal-Mart's ***** 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, implemented traditional forms of management and distribution. *****y did not invest in ***** the ***** ***** for the organization. In addition, managing overhead costs and human resource expenditure became an increasingly difficult task for the company. K-mart ***** not ***** at ***** entire


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