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 ***** its environment. Chandler's work first identified the importance ***** strategy management in an ***** *****d ***** various ways organizations like Sears, General Motors, *****uPont and St*****ard Oil strategize and planned their operations in the 1920's. Ch*****ler postulated that a firm's structure is (***** time) determined by its strategy; and the common denominator of structure and strategy is the enterpr*****e's resources to market dem*****. (Chandler, 1962)

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

An organization has ***** be able to look at the entire picture. External and internal factors affect an *****. These determine a str*****tegy, which has to ***** equally well under all conditions. Wal-Mart identified and chose ***** use the 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 consider***** time ***** effort in ***** ***** variables ***** affected their return on investment. They made major changes in the way *****y did business; they 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 then evaluated the external ***** that affected its organizational profit margins. The company formed partnerships with certain suppliers. Supply chains for critical elements were *****. Potential bottlenecks and constrains (which the organizational, on the whole, would experience) were identified. ***** proposed low profit margins on ***** goods sold; they generated ***** by ensuring ***** they turned over inventory at a faster 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 ***** ***** match.

K-mart, on ***** other hand, ***** traditional *****ms ***** management and distribution. ***** did not invest in identifying the ***** variables for the organization. In addition, managing overhead costs and human ***** expenditure became an increasingly difficult task ***** the comp*****. K-mart did not look at ***** entire


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