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 ***** relationship between the organization and its environment. Chandler's work ***** identified the importance ***** strategy management in an ***** and ***** various ways organizations like Sears, General Motors, *****uPont ***** Standard 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 of ***** ***** strategy is the enterprise's resources to market demand. (Chandler, 1962)

In the journal article "What is strategy?" the primary author, Porter, states that the current environment in which ***** operate are very dynamic. And positioning, ***** was once ***** core ***** 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 to be solved from with*****. Modern ********** are challenged constantly by a combination of technology changes, market changes, log*****tic challenges, customer *****s and human resource challenges. Companies, ***** identifying ***** core competencies and cultivating these options to generate revenue for the organization, can maintain their ***** 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 to be able to look at the entire picture. External and *****ternal factors affect an org*****ization. These determine a str*****tegy, which has to work equally well under all conditions. Wal-Mart identified ***** 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 ***** (Aust, 2002) In order to achieve this object however, the two companies chose drastically different methods of implementation; Wal-Mart spent considerable time ***** effort in identifying 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 technology and information systems. ***** ***** internal changes. They were implemented throughout the organization. Wal-Mart then evaluated the external factors that ***** 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) were identified. Wal-Mart proposed low profit margins on ***** goods sold; they generated revenue by ensuring that they turned over inventory at a f*****ster rate than any of their competitors. Currently *****'s st*****gy is for profit and revenue generation is a model ***** none of the competitors in the ret*****il ***** ***** match.

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


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