Strategic Management Case Solution
Strategy is sorted, as a plan of actions set in place for the achievement of a long-term objective. In today’s dynamic and competitive environment, and due to the growth in the complexity of industries or organization operating in the market. A sound strategy formulation and implementation can be the critical success factor that the organization needs to apply and gain an edge over their competitors, while ensuring their long-term survival in the market. The strategy is set in place by the top level management for the betterment of the entire organization.By setting viable action plans to achieve the long-term objective of the organization, by incorporating appropriate strategies(Athapaththu, 2016). Mostly a strategy is formulated in phases after analyzing the internal and external factors acting upon an organization.While identifying the relevant risks or threats faced by that organization, and making appropriate contingency plans and incorporating them in their strategic formulation process. Which would allow the organization in the process of formulation, to get an appropriate strategy that would benefit the organization in the long-term in the achievement of its strategic objectives(Huiru, 2011). The use of strategies to succeed can be assessed historically from Alexander the Great and Napoleon, who were regarded as renounced strategists being able to vast land and empires through their effective strategic formulation and implementation.
Under the essay question proposed, illustrated the extent of commitment of a firm to its strategy formulated and implemented in the organization.If the organization implement changes in its strategies. It can be evaluated that although Strategy is an integral part for the success of an organization in the market but a strategy with the ability to adjust with the changes in the environment, is an even more appropriate one to use for the betterment of an organization in the volatile and constantly changing environment. Under the Flexible Risk oriented marketing strategy, an appropriate marketing strategy is formulated after analyzing the current market information(Anderson, 2005). Which could better tell the marketing strategistsabout the systematics risk and the uncertainty of prices, while enabling them to make appropriate contingency plans to mitigate the adverse effects of these risk and uncertainties.
The market is extremely volatile and has the ability to change rapidly, adversely affecting various industries operating in them. Many factors could be held responsible or accountable for its volatility such as internal/external forces, customers/investors, market attitudes and natural disasters. The investor’s attitudes in the market constantly changes as well, where Good news regarding the market intrigues the investors and compel them to invest heavily in the market(Lewis, 2002). On the other hand bad news regarding the market, compel the investors to divest from the market. However, it can be evaluated that these attitude of the investors further increases the volatility of the market.As the investors hears bad news and decides to divest from the market. Therefore, According to the IVEY BUSSINESS JOURNAL Jim Hatch, it can be determined that, strategic flexible could be the key for the growth of an organization in a volatile market.Which would enable the firm or organization to formulate relevant strategies with the capability to match with the changing environment to mitigate the adverse effects of the systematic risks and relevant other threats faced by the organization in the market. However, it can be assessed that the extent of the flexibility of strategy formulated depends on the extent of volatility present in the market. Where highly volatile markets would require a highly flexible strategy whereas, a low volatile market would require less flexible strategy. It is because the strategy would not need to change as much in a low volatility then compared to highly volatile markets.(jim Hatch, 2001)
The changing environment could expose an organization to the threats or risks of the competitive market, and also reduce its profitability or in worst case compromise the organizations ability to ensure its going concern in the market. Hence, the organization constantly needs to evaluate the changes occurring in the market, and determined the impact of these changes on the organization or its operating(porter, 2002). This analysis of the environmental changes and their impacts could enable the management of an organization to develop effective contingency plans to mitigate the adverse effects of the changes taking place, and on a timely basis improve or change their existing strategies to realign its business goals with its strategic objectives.This would lead the organization to effectively perform its operation in the highly competitive and volatile market...................................................
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