The role of Strategic Management in an Organization


The role of Strategic Management in an Organization

Introduction

         Every organization find a way to grow and improve day to day manufacturing operation to make tangible return on investment; In order to achieve this goal strategic management has to be implemented .’’Strategic management is about taking action today to achieve benefits in the future”(2000.p12) .

Steve Jobs made a drastic changes to improve the production and sales of Apple Inc products using strategic management effectively to benefit his company,Jobs move the company from state of distress to a greater height that is challenging to other competitor in the market.

Major Issues surrounding the organization or individuals Involved with the organization

              Jobs had a vision to develop user friendly computer to market that made him to launched Apple 2 in April  1978.Jobs left Apple 1985 and the company has new CEO sculley from 1985-1993.Scully tried to elevate the company to a corporate ladder by introducing development  of PC using unique chips,disk drives and monitors with aim of competing with IBM as rival. The era of splinder and Amelio from 1993-1997 was a failure because of bad decision ”Meanwhile,Splinder killed the plan to put the Mac OS on Intel chips”(Yoffie & Slind,2008.p1).Amelio on the other hand trying to introduce Internet access devices without doing real research on how acceptable the product to the market.Apple Inc. lost $1.6 billion under the leadership of Amelio. In August 1997,Steve Jobs take over the job and rescue the company.

Furthermore, I think one of the problems facing the company is issues of managing human resources to really identify the right person   to play a leadership role”HR is a strategic asset because it can play a critical role in both strategy implementation and management systems.Namely,the ability to execute strategy well is a source of competitive advantage,and “people” are the lynchpin of effective strategy    execution”(Becker,B.E,Huselid,M.A & Ulrich ,D.2001,p4).



The alternate ways to address the issues identified

Steve Jobs took the following actions to solve the problem facing the company

·         Jobs allowed Microsoft to invest $150 million to develop Microsoft office that will be compatible with Mac operating system and that actually boost the market value of Apple computer in the market.

·         I think it is a bad idea for Splinder not to allow Mac OS on intel chips.In this case Splinder need to brainstorm with other top management before making that decision”That is, organizational practices need to be structured by managers at multiple levels to produce resources that allow flexibility and adaptation to dynamic organizational and environmental conditions”(Zaccaro,S.J & George,M.U.2001,p174).Basically l believed every organization need to be flexible to changes for the growth of the company.

·         Jobs increased spending on research and development because that is the only way to understand what your customer wants.It another way to improve existing products.

·         Jobs launched website to sell Apple products to consumers for the first time in November 1997 and that really a good idea to make the products readily available to consumers.



Recommendation

One of the major problem l observed in this case analysis is that the previous CEO failed to diversified in their business transaction; l think they should diversified in their production and sales of their products.

The management should also invest more on advertisement of the company products that is one of the mistakes the previous company executive made.

Managing company employees in a well organized and respectful way is a yardstick to get best out of your employees ”Using KPIs,HR can demonstrate organizational success as well as gain support for initiatives related to employee engagement. Research studies offer evidence that employee engagement is the key to organizational success.”(Mello, J. A. 2011.p33).I wholeheartedly believes that if company seriously invested on their employees they will work hard to make the company more profitable.

                                                  





References

Mello, J.A. (2011). Strategic Human Resource Management.Mason,Ohio: South-Western Cengage Learning

Yoffie,D.B & Slind,M.(2008).Apple Inc.,2008.Harvard Business School.Retrieved from: http://cb.hbsp.harvard.edu/cb/product/708480-PDF-ENG

Zaccaro,S.J & George,M.U.(2001).Strategic decision-making models of executive leadership: Conceptual review and evaluation. Retrieved from:http://web.ebscohost.com.lib.kaplan.edu/ehost

Strategic Management Process. Content,& Implementation. (2000).(pp.12-20).Retrieved from:http://web.ebscohost.com.ezproxy.wales.ac.uk




















Comments

  1. AlbertSmith27 August 2012 at 05:42

    Strategic management plays very important role in business organizations. It will impact on your business success. You can make various strategies for your business by effective strategic management.

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    ReplyDelete

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