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 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 (in time) determined by its str*****tegy; 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?" the primary author, Porter, states that ***** 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 ********** individual business structure in the market place. As a consequence the structure resembles a puzzle that needs ***** be solved from with*****. Modern ********** are challenged constantly by a combination of technology changes, market changes, log*****tic challenges, customer *****s 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 ***** 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 and *****ternal factors affect an *****. These determine a strategy, which has to ***** equally well under all conditions. Wal-Mart identified ***** chose to use the strategy of competing on the price of a product. Wal-Mart and Kmart were two leading retail stores in the US ***** ***** this management strategy (Aust, 2002) In order to achieve this object however, the two companies chose drastically different methods of implementation; Wal-Mart spent considerable time ***** effort in identifying the variables that affected ***** return on investment. They made major changes in the way they did business; ***** changed their logistic and warehousing systems; they also invested extensively in new ***** and information systems. ***** were internal changes. They were implemented throughout the organization. Wal-Mart then evaluated the external ***** that ***** its organizational profit margins. The company formed partnerships ***** certain suppliers. Supply chains for critical elements were *****. Potential bottlenecks and constrains (***** the organizational, on the whole, would experience) were identified. Wal-Mart proposed low profit margins on the goods sold; they generated ***** by ensuring ***** they turned over inventory at a faster rate than any of their competitors. Currently Wal-Mart's st*****gy is for profit and revenue generation is a model that none of the competitors in the retail market can match.

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


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