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 introduced the concepts of strategy. Strategic management deals with ***** relationship between the organization ***** its environment. Chandler's work first identified the importance ***** strategy management in an ***** *****d the various ways organizations like Sears, General Motors, DuPont and Standard Oil strategize and planned their operations in the 1920's. Chandler 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 demand. (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 of strategic management does not work any longer. E***** organization has a unique and individual business structure in the market place. As a consequence the structure resembles a puzzle th*****t needs ***** be solved from with*****. Modern *****s are challenged constantly by a combination of technology changes, ***** changes, logistic challenges, customer *****s and human resource challenges. Companies, ***** identifying ***** ***** 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 ***** 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 strategy, which has to ***** equally well under all conditions. Wal-Mart identified ***** chose ***** use the strategy of competing on the price of a product. Wal-Mart *****d Kmart were two leading retail stores in the US that chose this management strategy (Aust, 2002) In order to achieve this object however, ***** two companies chose drastically different methods of implementation; Wal-Mart spent consider***** time and effort in ***** the variables ***** affected their return on investment. They made major changes in the way ********** did *****; they changed their logistic and warehousing systems; they also invested extensively in new ***** and ********** systems. These ***** internal changes. They were implemented throughout the organization. Wal-Mart *****n evaluated the external ***** that ***** its organizational profit margins. The company formed partnerships with certain suppliers. Supply chains for critical elements were evaluated. Potential bottlenecks and constrains (which the organizational, on the whole, would experience) ***** *****. Wal-Mart proposed low ***** margins on the goods sold; ***** generated revenue by ensuring that *****y turned over inventory at a f*****ster 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 ***** can match.

K-mart, on ***** other hand, implemented 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 comp*****. K-mart ***** not ***** at ***** entire


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