Innovative thinking can be applied to the strategic planning of an organization to create new opportunities and boost market performance. Strategic Innovation is the creation of growth strategies, new product categories, services, or business models that change the market and generate significant new value for consumers, customers, and the organization. Strategic Innovation takes the road less traveled – it challenges an organization to look beyond its established business boundaries and to create possibilities in an open-minded and creative environment. It has been seen that focusing on the short-term aspects typically yields short-term results, however, firms seeking to make significant breakthroughs identify both, big and innovative ideas. Strategic Innovation calls for a holistic approach that operates on multiple levels. First, it blends non-traditional and traditional approaches to business strategy, deploying the practices of “Industry Foresight”, “Consumer/Customer Insight” and “Strategic Alignment” as a foundation, and supplementing them with more conventional approaches and Continue reading
Strategic Management Concepts
Behavioural Issues in Strategy Implementation
It is vital to bear in mind that organizational change is not an intellectual process concerned with the design of ever-more-complex and elegant organization structures. It is to do with the human side of enterprise and is essentially about changing people’s attitudes, feelings and – above all else – their behavior. The behavioral of the employees affect the success of the organization. Strategic implementation requires support, discipline, motivation and hard work from all manager and employees. Influence Tactics: The organizational leaders have to successfully implement the strategies and achieve the objectives. Therefore the leader has to change the behavior of superiors, peers or subordinates. For this they must develop and communicate the vision of the future and motivate organizational members to move into that direction. Power: it is the potential ability to influence the behavior of others. Leaders often use their power to influence others and implement strategy. Formal authority Continue reading
Strategic Business Decisions on Research and Development (R&D)
Industrial research can have one of two fundamental orientations. First orientation is the scientific research, which is concerned with generating new concepts that may or may not have product applications. The second orientation is the commercial development – which can take several forms, but is essentially product, as opposed to concept, oriented. Thus commercial development is a more pragmatic and market-centered form of R&D effort than scientific research. Research and Development strategy has four primary elements: R&D goals, extent of integration of the R&D function, amount of market coupling desired, and size of the budget. 1. Research and Development Goals Goals are needed to specify the purpose of R&D is used as part of product or market development or market-penetration business-level strategies, the firm’s desired competitive position can largely determine the amount and type of R&D needed. More specifically R&D can have one of four basic purposes that normally would Continue reading
Platform Leadership – Meaning and Examples
Platform Leadership is a new concept in strategic management, introduced by Annabelle Gower and Michael Cusumano in their book , “Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation,” HBS Press, 2002. Platform leadership enables companies to exert influence over the direction of innovation that is taking place in their industry, thus extending their weight over the network of firms and customers involved with the industry. In the initial phase of many industries, the early movers tend to develop most of the components necessary to make the products. But later, specialized firms typically emerge to develop different components. Along with components, evolve platforms, which consist of various components made by different companies. Some companies become platform leaders. They ensure the integrity of the platform by working closely with other firms to create initial applications and then new generations of complementary products. “Becoming a platform leader is like winning the Continue reading
Difference Between Strategic Planning and Management Control
Briefly, here are some ways in which the strategic planning process differs from the management control process. A strategic plan usually relates to some part of the organization lather than to the totality; the concept of a master planner who constantly helps all part of the organization at some coordinated optimum is a nice concept an unrealistic one. Strategic planning is essentially irregular problems, opportunities, and bright ideas do not arise according to some- set timetable; rather, they are dealt with whenever they happen to be; perceived. The appropriate analytical techniques depend on the nature of the problem being analyzed, and no over all approach (such as a mathematical model) has been developed that is of much help in analyzing all types of strategic, problems emphasis on a systematic approach is quite likely to stifle the essential element of creativity. In strategic planning, management, works, now on one problem, then Continue reading
Organisation Structure – Meaning and Types
An organisation structure is a set of planned relationships between groups of related functions and between physical factors and personnel required for the performance of the functions. The organisation structure is generally shown on the organisation chart. It shows authority and responsibility between various positions in the enterprises by showing who reports to whom. Organisation structure lays down the pattern of communication and coordination in the enterprises. Though organisation structure is very important, it is not an end in itself. According to Peter F. Drucker, “Organisation is not an end itself, but a means to end of business performances and business results. Organisation structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organisation structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence.” Process of Organizing Organisation Continue reading