Mgt501 Management Theory And Practice Assessment Answers

Academic and professional communication skills:

You must follow an essay structure that is at a minimum an introduction; a main body that outlines the argument, analyses the material you have researched and assesses this according to the guidelines above; and a conclusion.Your writing style must follow professional literacy: Citations and a final reference list that follows the APA 6 guidelines accurately; the quality of writing and presentation: accurate mechanics (spelling, grammar, punctuation etc.); use respectful language to discuss all people; avoid emotive language; employ inclusive, non-sexist language. Use a minimum of ten (10) citations/references.

Answer:

Strategic management is something that fosters growth in the organizational performance and on those who make strategies for their works. Strategic management varies from one organization to another, which depends on several surrounding factors such as external environment of the concerned business. However, making a plan to strategise the operation has often attracted some form of criticism for its productiveness. Mintzberg is one of those who believe that rational thinking on making the strategic planning is of no use, which is also clear from some of the practical examples such as of Honda (Grant, 2016). The main purpose of the essay is to analyze the practicality of the different kinds of management theories that exist across the globe. This assignment tries to understand the strategic management in a descriptive way to understand the bottom-line of the concept. It is often believed that strategic management needs to be well planned before the operation (Alvesson & Willmott, 2012). However, someone like Mintzberg feel this a absurd thing to make strategies before the planning. According to Mintzberg, some strategies are necessary before the implementation of the business; however, the vital strategies are needed to be in accordance of the situation in demand. This is also beneficial in managing the operation as per the requirement (Grant, 2016). This assignment tries to understand the strategic management concept with the help of strategic management planning at the Walmart. Walmart is the world’s largest companies in terms of overall revenues.

Several kinds of strategies do exist in the organizational practices of which three strategies are widely used across the organization. These three strategies are such as business strategy, transformational strategy and operational strategy. The first kind of strategies is the business strategy, which different organization use before going to the market. This is somewhere related to the marketing of the product or the services. Organizations do changes their strategies at different time of their operations. This is because of the act that these organizations come up with some new product or services to be in the competition in the market. The launching of a new product requires a proper study of the market analysis as it is affected by several reasons. Some of the reasons that affect the strategies are market demand for the targeted product, favourable situation for the product such as in case of an Ice-cream related product and others (Callan & Thomas, 2013). On a same note, operational strategy is very much related to the business strategy, which governs the implementation of the plan behind the entrance of the new product or service in the market. It is about answering to many questions related to the success of the product such as questions on product capabilities, technologies required and process needed. This is indeed a bigger strategy, which needs to be taken care of with utmost attention and perfection. The third and the last kind of strategy is the transformational strategy, which encourages an organization for switching to some other form of strategy related to the business operation (Chang, 2016).

The different kinds of strategies look feasible to some extent in the organizational practices; however, it has also some criticism from experts. It has attracted some debates on the topic of concern. According to Mintzberg, this is foolish to believe on the established strategies for the organizational operation. He further validates his point from the example of Honda, which successfully entered into the US motorcycle market in the early 1960s. The Boston Consulting Group did praise the sheer efforts of Honda to enter into the US motorcycle market. However, the Honda manager did reveal that there was no such planning, which could facilitate and ensure the entrance of the Company into the US motorcycle market. The example simply supports the fact that instant planning is the key to success in the growing competitor in the market. Today in the era o globalization, the integration of different companies in the market has raised the bars for strategy making. The globalization ahs brought different organizations of different companies to the same market. This has something raised the bar of competition in the market. This indeed can sufficiently prove that sticking to the traditional format of strategy making is not advisable to be competitive in the present market (Grant, 2016).

Globalization has brought revolution; however, it has also attracted numerous criticisms. This is an undeniable fact that organizations are bound to be flexible with the changing demand of the market. The theory of transformational strategy has some relevance to the present style of business strategies in its meaning. However, it is not exactly matching up to the requirement of modern style of strategy making, which involves more the instant planning rather the traditional planning. The main problem with the traditional planning is the loose control of it in the coming age of competition (Easterby-Smith, Thorpe, & Jackson, 2012). The traditional form of planning is done by measuring the expected competition in the market based on the analysis done on the current market. However, it has no prediction for the future challenges in the market, which indeed is a problem with the traditional form of making strategies. For example, Nokia had no suture strategies in the market of Smartphones. This indeed has given place to Samsung to enter into the market and capitalise the dominion in the Smartphone industry. Samsung indeed responded to the changing demand of customers with innovative technologies in its series of Smartphones. On contrary to this, Nokia remained static with its traditional form of strategies, which could not prove its worth in the market and failed miserably in front of Samsung. Samsung on the other hand responded to the rising demand and proved its dominion in the market of Smartphones. The example proves clearly that instant planning of strategies is more effective than the traditional form of planning (Foss & Knudsen, 2013).

The existence of three form of strategy management is well in practice but their sustenance is only because of their traditional values, which help in creating a wider planning of the business operation. The strategies are effective for making a good planning; however, it is not effective in making a robust answer to the created urgency in the market. Globalization is all changing and defining the term competition and strategy making. Globalization has made this necessary to be effective in response to the instant requirement of strategy making. Globalization has enhanced the market competition by integrating companies of different origin and places into the same market (Goetsch & Davis, 2014). For example, in India, several companies are in competition in the same market. In the food industry, there are several competitors such as McDonalds, KFC and different Restaurant chains. Due to this kind of competition, costumers have differentiated towards different food centre of their choices. It is not that the presence of McDonalds and KFC has shut the doors for all other food centres in India (Griffin, 2013). They are also flourishing with their line of offerings. They are responding to the competition with different kinds of their own strategies such as sticking to the traditional form of cooking. This has helped these organizations in maintaining their strong competitive advantage in the market. The traditional and modern food centres have responded to the created urgency and performed accordingly. This is one of such examples, which explains that strategy making needs to be flexible. In the mentioned example, the different kinds of food centres in India have enhanced their production quality. Indeed, the shifting of their strategies from the traditional style of food making to the on demand style of food making has helped them in maintaining a healthy market competition in their own genre (Harrison & John, 2013).

The mentioned theories of the management are less competitive in the modern era of market. This is for because of the globalization, which has compelled the organizations for thinking in some different ways. Globalization has proved the three strategy management theories wrong because of their irresponsive nature to the urgent requirement of the market. The traditional form of strategy making is good to have some plan development; however, it is not advisable to rely entirely on the traditional form of strategy making. Traditional theories of strategy making are good for the designing of business operations; however, it is not good for producing responsive action against the urgent demands (Hill, Jones, & Schilling, 2014). Globalization has compelled in going for quick remedial actions that is well against the three established form of strategies. The three forms of strategies are related to the different level of operation, which is basically a pre planning before hitting the market. However, the three mentioned theories did not reveal any clues on the urgent requirement. It did not speak about any exceptions of the mentioned theories. This does not mean that these theories have no useful contribution in the present organization. However, the contribution has certain limitations in the form of urgent requirement and market change (Hitt, Ireland, & Hoskisson, 2012). Strategic management theories speak well on the foundation of strategies in the organization. It speaks about the way that where the organization should move. However, it loses its grip when some urgency is there in the market as that was in the case of switching of Honda in the US motorcycle market. According to Mintzberg, the best way to make strategies look effective in the market is to add this to the adaptability nature with the market requirement. Strategy making is all about collaborating thoughts with the action (Hubbard, Rice, & Galvin, 2014). The action is then needed to be implemented to bring the maximum profitability to the organization. Mintzberg argued that this is typically the combination of strategy designs with the market demand. Mintzberg did focus on the adaptability nature with the market requirement. This is something that dictates the success to the organizational practices. In addition to this, the designed strategies are needed to take advice of all the important members of the organization to seek for approval on the changing demand of the market. It does so to have the best advices for the situational planning, which is nothing but the combination of traditional form of strategy making and the adaptation with the market demand (Lasserre, 2012).

Mintzberg further stated that all the companies, which is known to Mintzberg are well using the advised form of strategy making in the modern era of globalization. They all have combined the traditional or established strategies with the emergence of the market. These are some of the concepts, which are adding dimensions to the concept behind the strategy making. Strategy making can well be defined in the modernised form as a collection of pre-established thoughts governing the business and corporate level strategies and the emergence or adaptation to the changing demand of the market. The concept is validating the points of different strategy making theories but not in its original form rather in the modernised form. The explanation of the definition of the modernised form off strategy making can well be defined by citing the examples of Walmart strategies for its business operation (Morschett, Schramm-Klein, & Zentes, 2015).

Walmart is the largest companies in the world in terms of revenues. The Company represents a good picture of strategy making, which combines the traditional form of strategic management theory with the emergence or adaptation with the changing demand of the market. The business level strategies of Walmart are the reflection of masterpiece, which the Company has achieved thorough established form of value chain driven by the inception of technology and the innovation. Walmart has mastered the complexity of supply chain management, which has produced challenges to many of big companies (Myers, 2013). Their low cost retailing, which has inspired the global business is a gift if their mastering on the process of supply chain. They manage all the operations of supply chain at their own. They have approximately around 19 wholly owned centres for distribution. They have their own logistic operations, which also include the transportation and own private satellite system. The advancement of technology and innovation in the supply chain management have made this possible for the Walmart to be cost effective in the world of retailing. The business level strategies of Walmart have validated the point that traditional form of strategy making can be productive in the modern era of globalization if it is collaborated to the adaptation to the current style of market (Peng, 2013).

The operational level strategies of Walmart do also represent an example of adaptation to the latest culture of business operation. They have understood the importance of adaptability with the current nature of market competition. This is something, which has encouraged them for thinking global while their operation has been on the line of traditional beliefs. The diversity in their store infrastructure to suit and attract the demand of different customers has catapulted an enormous amount of their popularity in the market (Rothaermel, 2015). They have different kinds of strategies for their different kinds of store formats. It operates in several form of stores such as departmental store and department store. The size of discount store is comparatively lesser than the departmental stores. This shows the adaptability and responsiveness nature of Walmart with respect to the current demand of market (Short et al., 2013). Some of the responses of the Walmart to the situational demand have catapulted an enormous success to the Company in both the domestic and the international market. Some of the important and notable characteristics of Walmart that fetched them huge success in the market are such as low-cost production of the products, responsive nature to the increasing competition and an intense growth both in the domestic and the international. The Company has proved its worth by combining its organizational values to the market demand, which is to become adaptive to the market urgencies and the demand. The adaptive nature of their business operation has also validated the point that traditional form of making strategies can produce wonder if it is combined to the instant form of strategy making (Simons, 2013).

The combining strategy of Walmart has brought digitalization into the Company. After realizing the growing craze for e commerce and online mode of shopping, they put them into the online type of business to be competitive in the changing dimension of market. The initiation of online facility for the customers was in a response to the created urgency because of online mode of shopping. Customers can now easily move on to the Walmart website and browse for their product related queries. This is time-effective as the customers would not anymore require being at the market place all the time. They can browse their favourite items and products. This has enhanced the shopping experience with the Walmart. This also validates the point that traditional theories for strategy management can bring effective results if it is combined to the emergence situations in the market (Slack, 2015).

The analysis of different strategies of Walmart has put lights on the facts that the three chosen strategy management theories are less effective. It also proves that Mintzberg was right in his beliefs. The globalization age has made the traditional form of strategy making les effective. Companies now require something, which is robust in nature and responsive in practice. The inclusion of Honda into the US motorcycle market is just the explanation of the facts that old system of strategy making is needs to be revolutionized. This can be achieved by bringing some modification into the strategy making process (Watson, 2013). The strategy making process is divided in three important sectors such as Business level strategies, operational level strategies and transformational level strategies. The three important kinds of strategy making process do well need some make up with the integration of adaptability or emergence. The three mentioned theories for strategy making is well found in the business practice of Walmart. However, Walmart has given these strategies a completely new dimensions and natures. Moreover, these changes have proved their worth for the Walmart. Walmart is the largest companies in the world in terms of revenues. The revenues figures do well speak about the dominance, which Walmart has created into the market (Verbeke, 2013).

The facts of strategy management theories can well be understood with the help of its application into some organizations. Mintzberg has found these theories irrelevant to the current nature of market competition and the business strategies of different organizations. However, the established theories cannot be outclassed from the list of effective strategies. However, the example of Walmart has proved the point of Mintzberg true that strategic management theories are effective only when they are applied to an organization by keeping its dimension open for the market adaptability also. The example of Walmart has proved this clearly that reliance on different established form of strategy management theories is not less than any risk. Moreover, organization needs to be mobile in nature to bring the flexibility in its operation with relevant to the changing market (Ward, 2012).

Strategy management is governed by certain rules and working principles, which drives for the execution of the strategies into the organizational practices. However, some of the examples have lessened the importance of three important theories of strategy management such as business level strategies, operational level strategies and transformational level strategies. This is because of the fact that globalization has brought rapid changes in the mode of operation of business. Now, survival in the market does not only depend on the powerful set up plan bit it also need supports from the advanced version of business strategies. The advanced version of business strategies has changed the way of thinking of different organizations. Organizations are now more susceptive towards their advancement in the field of technology and innovation. It includes advancement in the supply chain management, which is the core feature of a business operation. Walmart has brought revolution into its supply chain management by adding more technological advancement and innovative ideas. Walmart is one of such examples, which has proved its worth in the modern era of business process. The conclusion of the discussion on the strategy management theories are well in support of the fact that these strategies are needed to be integrated with the adaptability and emergence nature to the market demand. Moreover, this can help the strategy management theories in becoming effective also in the modern era of business market.

References

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