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

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 of strategic management does not work any longer. Every 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 within. Modern organizations are challenged constantly by a combination of technology changes, ***** changes, log*****tic challenges, customer **********s and human resource challenges. Companies, ***** identifying their ***** 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 ***** strategies and stayed dominant for extended periods of time in the market.

An organization has to be able to look at the entire picture. External ***** *****ternal factors affect an *****. These determine a strategy, which has to work equally well under all conditions. Wal-Mart identified *****d chose to use ***** strategy ***** competing on the price of a product. Wal-Mart and Kmart were two leading retail stores in the US that chose this management ***** (Aust, 2002) In order to achieve ***** object however, ***** two companies chose drastically different methods ***** implementation; Wal-Mart spent considerable time and effort in identifying the variables ***** affected their return on investment. They made major changes in the way they did ********** ***** changed their logistic and warehousing systems; they also invested extensively in new technology and information systems. These were internal changes. They were implemented throughout the organization. Wal-Mart *****n evaluated the external ***** that affected 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 identified. Wal-Mart proposed low profit margins on the goods sold; *****y generated revenue by ensuring ***** they turned over inventory at a f*****ster rate than any of their competitors. Currently Wal-Mart's strategy is for profit ***** revenue generation is a model that none of the competitors in the retail market ***** match.

K-mart, on ***** other hand, implemented traditional ********** of management and distribution. They 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 company. K-mart did not ***** at the entire


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