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 the relationship between ***** organization and its environment. Chandler's work first identified the importance of strategy management in an ***** and the various ways organizations like Sears, General Motors, *****uPont and St*****ard 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 ***** ***** 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 ***** current environment in which ***** operate are very dynamic. And positioning, which was once the core of strategic ***** does not work any longer. E***** organization has a unique ********** individual business structure in the market place. As a consequence the structure resembles a puzzle th*****t needs to be solved from within. Modern organizations are challenged constantly by a combination of technology changes, market changes, logistic challenges, cus*****mer *****ands and human resource challenges. Companies, ***** identifying ***** core competencies ***** cultivating these options to generate revenue for the organization, can maintain ********** ***** 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 *****ternal factors affect an *****. These determine a strategy, ***** has to work equally well under all conditions. Wal-Mart identified and chose ***** use ***** strategy of competing on the price of a product. Wal-Mart and Kmart were two leading retail stores in the US that ***** this management strategy (Aust, 2002) In order to achieve this object however, ***** 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 ***** and warehousing systems; they also invested extensively in new technology and information systems. These were internal *****. They were implemented throughout the organization. Wal-Mart *****n evaluated the external factors 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) ***** identified. ***** proposed low profit margins on the goods sold; ***** generated revenue by ensuring that they turned over inventory at a faster rate than any of their competitors. Currently Wal-Mart's strategy is for profit and revenue generation is a model th*****t none of the competitors in the retail ***** can match.

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


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