Approaches to Strategy and Strategic Management Plan

Introduction

Determining the strategic management framework for the appropriate managerial levels within an organization is a vital step in meeting its needs and ensuring that it is run appropriately. Given the strict hierarchy within and across the specified levels, the company must function as a single mechanism, yet each of the levels should have a unique framework that would help in meeting the key requirements within it (Qehaja, Kutllovci, & Pula, 2017). Therefore, the appropriate tools at the organizational, process-related, and managerial levels should be implemented accordingly.

For the organizational level, the strategic management framework could be based on the approaches such as the resource-based view of the organization and the Porter technique to improve decision-making (Qehaja et al., 2017). In turn, the resource-based view helps to allocate the existing resources most effectively. On the process-related level, the management frameworks that could be deployed include the Value Chain Analysis and Porter’s Value System Analysis approaches to view a company as a single system (Qehaja et al., 2017). Finally, the managerial level will require the use of core competencies as the main criteria and the application of the financial analysis to allocate key resources (Qehaja et al., 2017).

It is also important to understand the limitations of the prescriptive and emergent approaches to strategy. To the credit of the prescriptive approach, it helps to create an elaborate plan for strategic management. In addition, the prescriptive approach helps to define the links between key organizational processes and determine their influence on the outcome. However, the prescriptive approach with its rational focus may omit the environment-specific factors that may behave unpredictably.

Furthermore, the prescriptive approach does not offer the flexibility needed to cope with emergent challenges. In turn, the emergent approach lacks cohesion and does not allow establishing the connection between the core areas of strategic management. Nevertheless, the emergent approach helps to respond to changes in the target environment swiftly and provides a lot of flexibility for maneuvering in the economic setting.

5-Year Strategy for Al Beer

  • Vision. Al-Beer envisions the future in which it provides its employees with the most comfortable environment for them to explore their professional opportunities and improve their skills, delivering the best services possible and addressing current public health issues.
  • Mission. Creating a comfortable environment in which nurses could provide their best services and meet patients’ needs accordingly should be seen as the main mission of Al Beer at present since the organization lacks competent staff.
  • Objectives. The hospital will have to improve its organizational environment, traduce the idea of interdisciplinary cooperation, promote nurse education, offer training options, and redesign the current framework for communication between nurses.
  • Outcomes. It is believed that the suggested alterations in Al Beer’s performance will allow improving the rates of recovery, reduce the length of the hospital stay, and address the problems of nurse shortage and workplace burnout among staff members.
  • KPI. The key criteria for achieving the set objectives include the management of the set goals, the number of conflicts in the interdisciplinary nursing setting, the rate of medical errors, the efficacy of collaboration, and the length of hospital stay in patients.

5-Year Strategy for Nokia

  • Vision. The current vision of the organization should be framed as the focus on improving its performance and bringing innovative cages into the context of the IT world. Given the lack of demand for the phones, Nokia will require rebranding, which will be an essential part of its objectives.
  • Mission. The main mission of Nokia is to create innovative tools that make communication easier and connect people worldwide. While the company’s mission has not changed over the past decade, it is still topical and quite viable in the target market.
  • Objectives. While the organization needs to revisit its approach toward managing operations in its entirety, the change in the current approach toward managing expenses should be been as the essential step. Namely, the company will have to address the redundancy observed in its workplace environment and dismiss several employees so that the costs taken for the production could align with the revenues that the organization receives. In addition, rebranding will have to be carried out to attract the attention f new audiences.
  • Outcomes. Am increase in sales combined with a drop in expenses are believed to be the desirable outcomes of the change proposed in the Nokia organizational setting.
  • KPI. The main performance indicators that Nokia will have to meet to prove its success include the ability to retain customers, the changes in the employee dismissal rate, and the extent of innovation that the organization brings into the IT market.

IKEA strategy

When considering the type and quality of resources that IKEA uses in the UAE environment, one should admit that, while the bulk of its strategy is quite profound, minor details could use adjustment. Currently, IKEA can boast around 15 major types of resources that it uses across its supply chain. These include the company’s employees, the local food supply, IKEA’s distribution network, its patents, research, and development department, financial assets, and cost structure. In addition, among IKEA’s resources, one should mention the company’s market reputation, its competitive advantage and position, product quality, market strategy, customer service, communication, and workplace environment. While the human resources at IKEA are not rare, the staff members are very knowledgeable and professional.

Currently, the cost structure represents the weakest link in IKEA’s VRIO framework. Therefore, the strategy for managing expenses and prices needs to be amended. Specifically, the organization may need to adjust its logistics and especially the transportation process. The changes to the logistics framework can be achieved by pulling the sources of supplies for the products closer to the company and, thus, reducing the threats of transportation damage, as well as the associated costs.

In turn, patents and market reputation represent the strongest aspects of the company’s performance in the UAE. Therefore, they need to be incorporated into the platform for revisiting the company’s current brand image in the UAE. The shift in cost management and the current ratio of expenses versus profits are expected to change positively after IKEA reconsiders its resource allocation. A greater amount of financial assets should be used to boost R&D performance. Simultaneously, the cost structure will have to be redefined to make the company’s revenues rise.

Reference List

Peng, M. W. (2016) Global business. Boston, MA: Cengage Learning.

Qehaja, A.B., Kutllovci, E. & Pula, J.S. (2017) ‘Strategic Management Tools and Techniques Usage: A Qualitative Review,’ Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(2), pp. 585-600.

Appendix A: IKEA VRIO

Resource Valuable? Rare? Costly to imitate? Capable of being exploited? Evaluation:

Competitive implications

(the extent to which the resource gives a long-term competitive advantage)

Staff members Yes No Yes Yes The employees at IKEA are very knowledgeable.
Local food Yes No Yes Yes Local food resources are nutritious and valuable.
Distribution network Yes Yes Yes Yes IKEA’s distribution network is unique, time-tested, and has an elaborate infrastructure.
Patents Yes Yes Yes Yes The company has several important patented products.
R&D No No Yes Yes The R&D resource is Ikea’s weakest spot that needs to be updated; otherwise, it will reduce the firm’s competitive advantage.
Financial assets Yes No Yes Yes IKEA’s financial assets are stable.
Cost structure No No No No The current cost structure is quite flawed, leading to the company’s financial losses.
Market Reputation Yes Yes Yes Yes The company has an impeccable market reputation.
Competitive position Yes Yes Yes Yes IKEA’s competitive position is strong and self-sufficient.
Competitive advantage Yes Yes Yes Yes IKEA’s competitive advantage is unique and well-developed.
Quality Yes Yes Yes Yes IKEA’s product quality has been known for decades.
Market strategy Yes No No Yes The current approach could use a better segmentation technique.
Customer service Yes No No Yes Communication with customers sis very efficient at IKEA.
Communication No No No Yes The communication framework might not be rare, yet it allows managing data effectively.
Work environment Yes Yes Yes Yes Healthy and safe workplace environment

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