Running head: STRATEGIC MANAGEMENT 0

STRATEGIC MANAGEMENT
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Introduction

The modern business world has been characterized by innovations and competitions. To

withstand the competitions, there is a need to establish an efficient system of communication

since its usually a backbone for any organization or business. The managers have the duty of

ensuring things are done correctly. Leadership in a company brings a vision and implementation.

However, the same company can only run efficiently through proper communication. An

excellent management requires skills like communication, planning, and delegation. Given that

todays economy has increasingly changed, creativity amongst employees is a very vital

requirement for a business or organization to succeed. Realizing this would, therefore, require an

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elimination of bad leadership and management. A demonstration of good communication and

management motivates employees. Hence, they are enabled to generate new skills and ideas.

Communication refers to the process of transferring information, through a good channel,

from one person to another. Communication consists of two types; verbal and non-verbal

communication. Communication, therefore, may be the most important word in management as

it aids in managing changes in an organization. Managing change is very vital to any business.

Employees must always be made aware of the changes occurring through proper tools of

communication. This can be done through letters and meetings on the duration of that change.

Communication techniques if properly employed, the significance of change would be

quickly passed. Communication is vital in marketing as consumers can get reliable information

through the appropriate channel. Managers and marketers can develop effective forms of

communication in conveying information to the media and later passed on to consumers. In

financial and accounting, communication aids in ensuring efficient budget allocation and

spendings.Accountants and finance can provide analysis of how money was spent and the best

way to use funds so as to realize the success of any organization (David & David, 2011).

Given the complexity of work in businesses, a manager can never be able to carry out all

tasks assigned. A delegation of authority becomes a need. Through it, authority and power are
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divided, that is, it is distributed downwards to the other subordinates. When another person is

entrusted with doing part of the job, a business can be expanded as responsibilities become

spread amongst employees.

The delegation of authority contributes to effective strategic management because it eases

the burden on managers by dividing the workloads, thereby enabling them to concentrate on the

other higher tasks. It also allows for a motivation of the employees. Tasks can also be carried out

very fast and efficiently hence time saving. Development of management is enabled too by

division of authority. It provides a ground for training and gives opportunities for growing and

learning to employees. Executives are also made, reserved and put to use when there is a need

(David & David, 2011).

Strategists are obliged to make decisions for the benefit of an organization. Decision

making, on the other hand, relies on data and information. To strategists, it is the gathered

information that makes up data. Without the information provided by data, strategist cannot plan

and produce services that would meet peoples needs.stategists process data and again turn them

into information useful for management.

Operation managers are often not directly involved in strategic formulation activities as

their roles are limited to the domain of product management, supply chain management, and

resource utilization. Their involvement would only mean slowed decision making and operation
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processes. For that reason, the delegation of authority is situated. It can become an office

weakness as office processes will be slowed down (David & David, 2011).

The acquisition of another firm to achieve desired objectives come with many

advantages;

It aids in reduction of costs of operations since the firms processes can be run on a broad

range within the same organization

It enables market expansion.

Reduces tax liability

Allow faster production of product and services

Leads to an increase in revenues.

Enables increase in skills required for innovations thereby making an impact on the firm.

Pursuing too many strategies at once is very time-consuming. Strategic management is a

complex process that sees managers spending a lot of time in carrying out operations. If

employed all at once, their implementations can also prove to challenge. They may also lack
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proper planning as they would be excess as compared to the availability of resources (David &

David, 2011).

The first mover is that competitive advantage acquired by a company or business when it

manages to be the first in entering a given industry or market. The first mover has various

advantages; when a corporation is a first mover, it makes it possible for it to make an impression

that would be durable hence leading to constant recognition of its brands. Resources can be

easily controlled by a first mover and easily sustained in the event of switching brands (David &

David, 2011).

Outsourcing refers to an arrangement whereby one company enters into a contract with

another to provide services. An organization can opt to outsource information found necessary in

the management of the enterprise. Outsourcing in businesses takes many forms depending on the

needs of a firm. Companies can resort to outsourcing due to lack of labor in given processes

when there is an availability of cheap labor from another firm. Outsourcing makes a business be

run by a pool of expertise, and the critical tasks of an organization can be dealt with

appropriately. It reduces the costs of operations as well as making it easier to share risks due to

the involvement of more than one firm (David & David, 2011).
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Reference

David, F., & David, F. (2011). Strategic Management A Competitive Advantage Approach (15th

ed.).
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