MGT604 Strategic Management-Contemporary Analysis Assessment Answer

Introduction

The company, Xpose, need to establish their ability to manage both present and future possibilities. Companies must compete in such a context that is both complex and demanding due to a variety of factors, including globalisation, technological advancement, the quick spread of new innovations, and the creation and exploitation of information. The organisations must alter the way they operate in light of the new surroundings. They must pursue novel forms of contest and uncover fresh avenues of competitive advantage. This necessitates having a thorough knowledge of the dynamics of the competing as well as its nature (Papulová, 2017). The use of strategic resources that include of data, knowledge, original thought, as well as innovation is replacing the current capital-based strategic resources. Expertise and information are essential components of production. Continuous and ongoing technology can give businesses a competitive edge, as well as the management knowledge and abilities are at the core of the innovation process (Dyer et al., 2016). This essay will go over how to recognize three (3) distinct strategic influences that collectively have an effect on a the Xpose’ results by keeping an eye on news and various online source materials. These contemporary concerns had to do with creating and preserving a lasting competitive advantage.

Technological Forces in Strategic Management

In response to the availability or absence of sufficient technological process, the company could alter its strategies. The purchase of financial capital, including such automated equipment and cutting-edge equipment, may force your company to boost production rates and modify supply chain operations. Strategic management changes are influenced by information technology developments as well. For instance, the increasing importance of e-commerce may force the company to adopt digital distribution techniques instead of brick-and-mortar marketing channels (Glueck, 2016).

Aim

The purpose of this study is to understand and provide action on news as well as online opinion source materials to find three (3) distinct strategic impacts that together have an effect on the outcome of the institution. It also aims to discuss how well the practise of strategy classifies such strategic influences, recognise the implications for an organization, and choose a strategic path of action to deal with these situations.

Discussion

Managers of the firm should be able to foresee, acknowledge, as well as deal with changes in both the internal as well as external environment so that it can prosper and expand. Since evolution is inevitable, management teams should actively participate in a procedure that spots change and adjusts operations to best capitalise on it. Corporate strategy is that procedure. Instances of variables that are transformational leaders and must be taken into account during the strategic planning procedure are shown in the following chart. The following is an elaboration of these variables (Glueck, 2016).

Internal and External Environment

There are internal as well as external environments for every business. The internal factors of a business or firm is closely related to its human resources and the way that employees carry out their duties in line with its mission. Planning and oversight procedures can control and alter the internal conditions to some extent. On the contrary side, the outside environment is uncontrollable. A business employees have no authority over its rivals in the market, modifications to the law, or general economic circumstances. A business or organization's managers do, nevertheless, have some degree of control over how the business responds to changes in its outside environment (David, 2016).

The idea of Core Competencies was created by authors C. K. Prahald as well as G. Hamel in one ‘s essay "The Core Competence of the Company" back in 1990. (key competencies). Via group learning as well as the co - ordination of abilities and capabilities which underlie the manufacturing operation of businesses, they have created the notion. They contend that this information exists and core capabilities are the primary source of advantage and enable organisations to produce goods and services of a higher calibre. Recognizing the foundational competencies of the company is the first step in identifying key competencies. Analysing the functional departments, or the value network, could be the initial step. Realizing that important functionality do not automatically make something urgent in the short to medium term is necessary (David, 2016). Just those abilities that comply with the following requirements are considered key competencies:

- Valuable: By seizing new possibilities or thwarting threats, they help to provide customers with additional value. - Uncommon: They have few, if any, rivals.

- Difficult to replicate: Even though potential opportunities or their particular donation to the capacity cannot be readily identified, they are challenging to recreate.

- Non-substitutable: There isn't a resource or capability that can finish the job and give customers the very same significance (Tapera, 2016).

Simple terms, if a company has skills that can be utilized to add value for its customers, skills that other companies lack, skills that are challenging to duplicate, and skills that cannot be replaced, then that company likely possesses key competencies that will support its sustained competitive advantage. The practise of rash cost-cutting, which has long been pervasive in many Slovakian businesses, frequently jeopardises the chance and capacity to develop core competencies. Additionally, too much decentralisation and business administration at the level of the company's units makes things more complicated because, in order to build ability to compete, lines of business occasionally rely too heavily on one another and because knowledge is segmented within the organisation and complicated to incorporate for the purposes of innovation and transformation. Core Competence shifts perspective on strategic planning, focusing first on company knowledge. Even though internal capability resulting from a wish to succeed is the only steady assurance in a continually changing world, it is preferable to identify the cause of the country ’s economic growth inside the organization to accomplish long-term success. Finding something around which of that kind success can be built is crucial, and building (Tapera, 2016).

Utilizing the idea of core competence to create a long-term competitive advantage

Comparative advantage is the foundation of corporate strategy. Strategy generally is related to long-term success. It is focused on long-term investment income rather than immediate financial gain. Therefore, businesses need strategy to guarantee that resources are distributed as effectively as possible. Whenever it involves crucial decisions regarding the allocation of resources, this is especially crucial. Real competitive edge implies that businesses are better able than one ‘s rivals to meet customer requirements. Whenever and wherever real value is generated for clients, it is attained. If a business is to succeed, it must add value (). Companies should refrain from assuming that their current method of operation is the best. They are unable to remain content with the current state of affairs for very long. All of the understanding is absolutely worthless without the willingness to experiment with something new, as well as the knowledge we currently have will collapsing (). The primary goal of strategic management is to extend the usefulness of competitor strategies and rival benefits. The application of analytical techniques ought to improve the sustainability of developed and carried out strategies. In addition to a companies' market role be maintained or improved, but also its economic productivity as well as the return on the investments made in its strategies for gaining a competitive advantage. One such advantage is one that permits long-term (permanent) possession or strengthening of the market position of the company. It is known as a source of competitive advantage. It is not regarded as a guarantee of long-term competitive advantages. This represents the preliminary step, which even the organisation can continuously and adaptably expand and enhance thanks to its inherent abilities. This allows the company to maintain a "safe distance" from the opposition. We are back to talking about the capabilities and the business's resources. The sustained competitive advantage is attained, in accordance with the resource-based perspective of the firm, by continually developing both the resources and competencies of an established business and those of a new one in today's rapidly shifting market situation. In terms of the current economy, an organization's primary sources are intangible assets. 

In recent times, numerous studies in a variety of scientific fields, including management, have focused heavily on the topic of intellectual capital. There are numerous definitions as well as citations to intellectual capital in the organizational literature. Many of these are severely restricted to one area of organisational activity and do not define it as a whole, resulting in a level of disconnection for the entire organisation (Ong, 2015). The right conceptual model for trying to present characteristics and possibilities to business associates as well as other stakeholders is brought by intangible resources, which is defined as any understanding cabriolet into worth (Ong, 2015). The idea of intangible resources offers a thorough understanding of all the regions that are crucial to the organisation. It enables organisations to keep an eye on the interactions between the different actions and encourages expert management of all crucial organisational resources. It demonstrates how the system connects to various components and emphasises how crucial it is to contact intangibles methodically. This implies that the advancement of a scheme as a whole can be stimulated by the temporary focus on a particular component and its growth. Then, leadership of intangible resources focuses on a thorough evaluation of the organization's business strategy for identifying the elements of intangible resources, its stringent standard measure via so-called intangible value metrics, monitoring and review of advancements and modifications to its different pieces, gauging the critical variables affecting the business section, and making plans to make sure the required capacities and resources for developing competitive advantage over time (Leskaj 2017).

Economic conditions: The country's current economic situation is going to have impact on residents' spending habits. The demand for non-essential services and merchandise will decline as interest rates climb and/or the unemployment rate rises. For instance, when individuals are struggling financially, they will probably have spent much less on leisure activities, vacations, new cars, and luxuries. Both international and domestic economic circumstances coexist, and whenever there is a worldwide financial crisis, as there was in 2007, the surrounding world can change dramatically.

Market (challenge): One aspect of the external economic environment that is continually shifting is the level of competitive marketplace. Contenders not only come and then go, as well as alter their pricing, product offerings, and marketing tactics. Business executives must be aware of what contenders are doing because these changes frequently go unnoticed.

Technology: Over the past 50 years, technological progress has been incredibly fast. As a result, pressure from the surrounding environment is constantly placed on the company or organisation. Business owners run the risk of losing market share if they don't adapt to technological progress quickly enough. Technology change has an impact on product layout, but it also has an impact on how services are delivered (Guthrie et al., 2014).

Conclusion and recommendation

Strategic decisions should be well established because they are the foundation of continued existence in a cutthroat corporate environment. An appropriate appraisal plan is necessary for the successful implementation of a strategic plan. Institutions should focus on hiring competent and enthusiastic employees who will be encouraged to greater levels in the management power structure predicated on their accomplishments in order to execute strategies effectively. The orientation of their organisations must be clear to both the leaders of those organisations and every employee. This will promote the establishment of a high-performance management system. On the opposite side, greater financial independence will result in greater flexibility and capability for strategy implementation. While executing a strategy, it should be both productive and effective. Techniques should be imaginative and innovative.

Continuously observing and affecting the supply chain is essential to achieving a long-term competitive advantage. Competitive advantage is provided by a business that not only outperforms its rivals but also produces the right value for the customer. In actuality, all organisations possess a set of capabilities and abilities that make them capable of competing. After all, in a setting of competition, they are necessary for their own survival. For instance, organisations need to understand the design and production of engines as well as chassis in strategies to succeed in the automotive sector. Irrespective of their other resources, businesses would not be able to compete in this market without this understanding. The difference between fundamental abilities as well as core competencies must be made. Basic skills include those that are taken for granted and don't provide a strategic advantage.

References

David, F.R.(2016). Strategic management concepts and cases. Upper Saddle River, New Jersey: Prentice.

Dyer, J.H., Godfrey,P., Jensen,R & Bryce, D. (2016). Strategic management: Concepts and tools for creating real world strategy. Hoboken, NJ: John Wiley & Sons.

Glueck, W. (2016). Business policy and strategy (3rd Ed). USA: McGaw Hill Publishing.

Guthrie, J., Petty, R., Yongvanich, K. (2014). Using content analysis as a research method to inquire into intellectual capital reporting, Journal of Intellectual Capital, Vol. 5, No. 2, pp. 282-93.

Leskaj E. (2017). The challenges faced by the strategic management of public organizations. Administratie si Management Public; (29):151-161.

Ong C. (2015). 5 Benefits of Strategic Planning. Envisi. Retrieved from https://www.envisio.com/blog/benefitsof-strategic-planning

Papulová, Z. (2017). Importance of managerial skills and knowledge in management for small entrepreneurs. E-Leader.

Tapera J. (2016). The importance of strategic management to business organizations. International Journal of Social science Management. Retrieved from https://www.researchgate.net/publication/301801352

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