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 ***** its environment. Chandler's work first identified the importance ***** strategy management in an ***** and ***** 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 (in time) determined by ***** str*****tegy; and the common denominator of ***** and strategy is the enterpr*****e's resources to market demand. (Chandler, *****)

In the journal article "What is strategy?" ***** primary author, Porter, states that the current environment in which ***** operate are very dynamic. And positioning, which was once ***** core of strategic management does not work any longer. Every 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 within. Modern organizations are challenged constantly by a combination of technology changes, ***** changes, logistic challenges, customer *****s and human resource challenges. Companies, ***** identifying ***** ***** competencies ***** cultivating these options to generate revenue for the organization, can maintain ********** 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 to be able to look at the entire picture. External and internal factors affect an *****. These determine a strategy, ***** has to work equally well under all conditions. Wal-Mart identified ***** chose ***** use the strategy of competing on the price of a product. Wal-Mart ********** Kmart were two leading retail stores in the US that chose this management ***** (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 they did business; ***** changed their ***** and warehousing systems; they also invested extensively in new ***** and information systems. These were internal changes. They were implemented throughout the organization. Wal-Mart then evaluated the external factors that ***** 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) ***** *****. Wal-Mart proposed low profit margins on the goods sold; ***** generated ***** by ensuring that they turned over inventory at a faster rate than any of their competitors. Currently *****'s strategy is for profit and revenue generation is a model ***** none of the competitors in the retail market can match.

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


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