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 of strategy management in an ***** and ***** various ways organizations like Sears, General Motors, *****uPont ***** Standard Oil strategize and planned their operations in the 1920's. Ch*****ler postulated that a firm's structure is (***** time) determined by ***** strategy; and the common denominator of structure ***** 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 organizations operate are very dynamic. And positioning, ***** was once the core of strategic ***** 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 that needs ***** be solved from within. Modern organizations are challenged constantly by a combination of technology changes, market changes, logistic challenges, customer demands and human resource challenges. Companies, by identifying ***** core competencies ***** 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 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 *****ternal factors affect an organization. These determine a str*****tegy, which has to ***** equally well under all conditions. Wal-Mart identified ***** chose to use ***** strategy ***** 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 of implementation; Wal-Mart spent consider***** time ***** effort in ***** ***** variables that affected ***** return on investment. They made major changes in the way *****y did *****; they changed their logistic and warehousing systems; they also invested extensively in new ***** and information systems. These were internal *****. 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 evaluated. Potential bottlenecks and constrains (which the organizational, on the whole, would experience) were *****. Wal-Mart proposed low profit margins on the goods sold; they generated ***** by ensuring that they 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 ***** none of the competitors in the ret*****il market can match.

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


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