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 and its environment. Chandler's work ***** identified the importance ***** strategy management in an organization and the 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 ***** ***** strategy is the enterpr*****e's resources to market demand. (Chandler, *****)

In the journal article "What is strategy?" the primary author, Porter, states that ***** current environment in which organizations operate are very dynamic. And positioning, ***** was once the 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 that needs ***** be solved from with*****. Modern *****s are challenged constantly by a combination of technology changes, market changes, log*****tic challenges, customer demands and human resource challenges. Companies, by identifying ***** ***** 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 org*****ization. These determine a str*****tegy, which has to work equally well under all conditions. Wal-Mart identified and chose to use the strategy ***** competing on the price of a product. Wal-Mart and Kmart were two leading retail stores in ***** US that ***** this management ***** (Aust, 2002) In order to achieve ***** 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 *****y did business; they changed their logistic 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 ***** 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) ***** *****. ***** proposed low profit margins on the goods sold; ***** generated ***** by ensuring ***** *****y turned over inventory at a f*****ster 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 hand, ***** traditi*****al ********** ***** management and distribution. They did not invest in ***** the ***** variables for the organization. In addition, managing overhead costs and human ***** expenditure became an increasingly difficult task ***** the comp*****. K-mart ***** not ***** at ***** entire


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