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Introduction to Strategic Management and Leadership

TABLE OF CONTENTS:
1.

Introduction to Strategic Management and

Leadership05
1.2 Personal development as strategic manager and relation of Achievement of organizations Objectives..05 1.3 Strategic Development Plan to Address Short, Medium and Long Term Needs07 1.4 Strategic Leadership and Relationship between Past, Present and Future Skills and Management..09 1.5 Factors Affecting Development Plan for the Attainment of the Objectives of an Organizations09

2.3 Strategic Leadership and Relationship between Past, Present and Future

Skills and Management.10


2.4 Strategic Manager, Traits and Information Available for Decision Making in

a Globalized Environment11 2.6 Strategic Management in Suzuki Motors, Core Issues, Data and Strategies: A Brief Look.12
3.1

Models and Methods to Adjust a Course of Action for Organizational

Improvement.13

3.2

Strategic Manager, Traits and Information Available for Decision

Making in a Globalized Environment.16

3.3 Models and Methods to Adjust a Course of Action for Organizational Improvement...16 Conclusion.17 Refrences.18

1.Introduction to Strategic Management and Leadership

During 1980, strategic management and leadership emerged and popularized as a concept which incorporated strategic formulation in a wider rage, implication of such strategies, and evaluation thereof. Since then the concept of strategic management and leader pioneered as an integral to the failure or success of a firm or corporation. This is seen specifically in cases after the technological evolution and its dynamics which are so rapid that those monitoring, interpretations, analysis, and accuracy of the data required special strategic and leadership skill which are less required in earlier times. This concept expands not only to the operations of profiting organizations but also nonprofit associations working at any level. The primary reason is that every organization needs human resources, intellectual, financial, equipments and other to realize their objectives. It is understood that all organizations or firms whatever their purpose may be are created for some particular object or class of objects. To achieve these objects they collect information to prepare for strategic and effective programs and actions. However, various objectives of various organizations come in contrast with each other and these interactions create new situations. Finlay (2000) states that there must be a body in each organization which could handle these complex issues and such group must have special training. In this regard, strategic managements principles provides for systemic collection of data, organized analysis and strategic actions to keep the firms performance at optimum and therefore achieve objectives (Harrison, 1998). 1.2 Personal Development as Strategic Manager and Relation of Achievement of Organizations Objectives. Warren Bennis states that leaders are people who do the right things and managers are people who do things right. Leaders are interested in direction, vision, goals, objectives, intention, purpose and effectiveness-the right things. Managers are interested in efficiency, the how-to, the day to day, the short run of doing things right (quoted in Bennis and Townsend, 1995:6). However, Armstrong (1990:165) defined in terms of getting things done through people. He suggests that when there is an objective to be achieved, or a task to be carried out, and one more than one person is needed to do it. All managers thus are leaders by this definition in the sense that they can only perform what they need to perform with the active support of their team.

Therefore, leadership can also be stated as the quality through which a person can inspire and encourage masses to act in a team and achieve the pre determined objectives. Here leadership becomes essential for the primary reasons people need to be directed to a particular direction and keep motivated. Strategic management is multifarious and different from other areas of management sciences and one of most pertinent area for leaders and managers to know in order to evaluate the impact and relationship of a personal development plan and attainment of the objectives of organization. Thompson & Strickland (1996) state that the discipline of strategic management provides: (1) Direction and guidance in the matters and policy making of environment, especially in determination of what organization is trying to do and what is to achieve at different levels. (2) Phenomenon to keep strategic managers to abreast with the process of change, dynamism, threats to the process of developments, and new opportunities.
(3)

Enable mangers by providing them with understanding and rationale in a systematic way so that they could meet the financial targets within the allocated budgets, for instance, in the area of procurements or maintaining human resources.

(4) In the times of need to create uniform policies with active consultations with the relevant stakeholders and experts. (5) Creation of a pro-active management mechanism and if necessitated to counteract as reactive and defensive. For strategic management and competitiveness, strategic managers and leaders are required to create certain value based strategies and vision of their organization. In this content a strategy means an integrated and coordinated set of commitments and actions designed to exploit the core competencies and gain a competitive advantage (Hitt, Ireland, Hoskisson, 2009:4). The organizations are supposed to choose their

strategies among competing and differing alternatives as set of pathway to their decision making policy. This factor leads a firm to competitive advantage to implement a strategy which the strategic leaders find confident to act upon and achieve the desired goals in the todays global economy in which there are no bounds to the people, goods, services, skills. 1.3 Strategic Development Plan to Address Short, Medium and Long Term Needs Followings are some of characteristics/traits/qualities and fundamental ingredients which todays strategic leaders are supposed to have or acquire in order to give superior performance. Loyaltyeffective and power strategic managers always demonstrate an unequivocal loyalty with visions through their communication and performance. Day to Day Knowledgeeffective and efficient leaders are always in pursuit to keep themselves abreast with the day to day functional knowledge both inside and outside the organization. They acquire the information from multiple sources in an organized manner. Judicious use of DiscretionStrategic leaders always make use of their discretionary powers in a unique manner which fits to the needs of day to day situations. They use the tactics in a skillful manner and pursue to get agreement of their ideas instead of implementing such idea forcefully upon others. Wider Outlook and PerspectiveStrategic leaders and managers dont only reply on the specialty in a narrow sense rather they try to get exposure of variety of things. Motivation and ZealStrategic managers always depict a zeal and motivation for hard work that is usually beyond the money matters. They are generally inclined to attain their goals with utmost determination and energy. Compassion with SubordinatesStrategic leaders always try to listen and understand the feelings and views of their subordinate staff and try to make decisions after a due process of deliberation.

Self ControlOne of the most essential ingredient of successful strategic management is self control and invariable potential to attract and distract and distributes moods and desires that is they realize and think before their actions.

Social NetworkingThe modern day business organizations and their managers requires superior level of social networking and creating a friendly environment both inside and outside the firm.

Self awarenessStrategic managers always have sufficient ability to listen and appreciate their own emotional balance and moods including its impact on the co-workers.

Readiness to delegate and authorizeStrategic leaders are proficient and skillful at delegation of management and powers. They have adequate information of the facts of their organization. In this way, they organize work, pace and their motivation intact.

ArticulacyIt is one of the most essential ingredient of the strategic leadership. It enables strategic leaders to communicate their vision, which is actually the visions of organization to other members of the organization.

Consistency and ReliabilityStrategic managers believe in the vision of their firm and work hard with consistency to make it basics of the culture of their organization.

It can therefore be concluded keeping in view the above mentioned elements of a successful strategic managers/leaders as the person who can create their own unique visions, communicate their visions and translate their actions in the light of such vision until the accomplishment of their objectives, any manager or leader can create a viable plan for personal development to address short, medium and long term issues.

1.4

Factors Affecting Development Plan for the Attainment of the Objectives of an Organizations

Corporate managers and entrepreneurs around the world find exceptional ranks and intensities of market disorder and vitality. Today, globalization, and freedom of the markets, of the ex- East-bloc transitioning economies, especially China and Hong Kong, and the growing assortment of the workforce, the increasing boundlessness of accredited to Internet are only a number of of the factors inspiring swift change and achievement of objectives of the firm. Such changes and developments order responses of individual organizations and businesses but this lay siege to quite a lot of quires of managers: for instance, do we need to respond, when should we respond, and what should be the nature of our response? Whilst managers and entrepreneurs have approach up against a state of affairs and alike problems in the what went before, there is mounting accord that the swiftness of change has revitalized: managers and entrepreneurs often have not as much of time to act in answer to change (Scribner, S. (n.d.)). 1.5 Strategic Leadership and Relationship between Past, Present and Future Skills and Management Strategic leadership is a concept which can be explained by keeping in view the potential of a manager to elucidate his vision strategic i.e. with reasonable accuracy in relation to objectives of firm and the ways to achieve it. Further, it also entail the motivation and persuasion by the managers to get their vision assimilated at other levels of the firm. Therefore, strategic leadership can be referred to as managers potential to utilize managerial strategy in the management of assets of the firm in an efficient way and management of firms employee in most effective way. Strategic leadership requires influencing the members of firm to effectuate organizational change according to the plans which provide for firms structure, resource allocation, and strategic vision in an express way to their work force. In such situations, strategic manager can even be in an environment which is ambiguous, especially in case of critical and novel issues influencing the internal and external set up of organizations. It is to be noted that the basic objective of strategic leadership is to enhance productively at firm level with a pre defined, however, flexible strategy. Also, the area of strategic

leadership aims to create an environment at firm where managers could foresee the needs of organization and employees in the context of their job descriptions. In this context, strategic leaders are suppose to encourage their manpower to come up with unique and novel ideas as well and in response strategic leaders are always ready to make use of innovations by using a proper system of rewards and incentive. This increases quality and productivity of the employees to perform in much better way. This is also known as functional leadership and strategic management requires perceptions, inventiveness, proper planning in order to assist the employees to realize firms goals and objective and available resources. Today, most of the worlds economies are passing through a process of constant change at every level of their system and institutions. Some of the most pertinent issues include inflation of high level, shortage of foreign reserves, optimum utilization of capacity, and raise in poverty level. Therefore, a huge proportion of firms and organization across the globe are also being affected by these problems whether directly or indirectly. These challenges and the consequent developments are one of the biggest sources of anxiety in these firms and organization. Leadership with transformational qualities has arisen out with massive followers with their own awareness of issues of organizations which is creating new vision of organizational directions and structures. Therefore, to cope up and even facilitate these organizational changes and dimensions, strategic management and transformational leadership have emerged as key tools of appropriating the assets and objectives of modern day organizations.
3.3

Strategic Manager, Traits and Information Available for Decision

Making in a Globalized Environment Modern day business relations have been revolutionized by the principles of strategic management which provide some of the basic as well as advanced principles of effective and strategic leadership and provide through detailed analysis the implications of such processes. It views leadership as one of the key area of strategic competence, one of the valuable source of competitive advantage, stability and sustained of visions

of the organization, and commitment to attain such objectives. Following are the models are of strategic management and leadership:
3.4

Strategic Management in Suzuki Motors, Core Issues, Data and

Strategies: A Brief Look Suzuki Motors is facing serious issues and challenges as to its products. It is proposed that the policies of strategic management can fit to this Japanese based company to come out of the troubles. In the past decade, especially 1990s onward, Suzuki Motor has been performing well. Its leadership has been following the concept of Total Quality Management (TQM) as a fundamental of the philosophy of their organization. This has resulted into Business Excellence, not only to Suzuki motors but also to other automobile companies. The premier standard of the quality and fitness of the products of an organization awarded through Deming Prize. The strategic management of such automobile companies including Suzuki Motor, more often is focused on the following factors: (I) Growth and Sustainability

While keeping in view the satisfaction of stakeholders, this principle provides for some of most cherished principles of strategic management. This principle is aimed to cater the needs and satisfaction of business allies, staff, customer, and society overall. (II) Creative Strategies

Creative strategies by the strategic leaders and manager enable the organization to invent method and processes which imply maximum value for the relevant stakeholder, primarily the customer. When catering for the customers need at priority, it enables the commencement of such process which help in efficient resource allocation. By adopting the strategic methods and applying, Suzuki Motors can come out of the trouble some situations.

3.5 Models and Methods to Adjust a Course of Action for Organizational Improvement Leadership and Clarity of Strategy: It has been stated overwhelmingly commented by the world leading quality management institutes include the European Foundation for Quality Management that the behavior of an organizations leader should create clarity and unity of purpose within the organization, and an environment in which the organization and its people can excel (EFQM, 1999). Tannenbaum and Schmidt Model: Tannenbaum and Schmidts Authoritarian / Democratic Leadership Model to determine leadership qualities of a strategic manager provide for continuum keeping in line with the leadership attitude which may fluctuate and vary from time to time, primarily as a response to the day to day dynamics. In this scheme, there are two ends i.e. higher and lower end. At higher end, boss-entered management and leadership is found with prescription, control, power and authority, whereas at the other end there is low power distanced with subordinate level of management and leadership, particularly in big multicultural organizations. Followings are some other layers of transactional leadership and strategic management. These are the approaches known as operation centric, task centric, result centric, performance centric versus resources oriented and operation oriented. Transactional Approach of Leadership: This transactional approach has many layers which at the core suggest that strategic leaders must behave relevant to the given situation which in other words implies the followings: Apply the mechanism of strategic planning and analysis to understand and diagnose the demand or nature of the given situation. Apply the processes of formulation of strategy, decision making and strategic options to exploit, manage and to employ or deal with the situation faced by the organization. Evaluate and analysis the likely or probable response of the intended group of the organization by applying strategic options and decisions by the leadership.

Under the true competence of such groups and organize the take performance and their levels in the process of implementation of the strategy.

Point out and evaluate the relevant degree of persons, group of person, and key personnel of the organization and their commitment to perform the takes allocated to them.

Employ the blend or combination of various skills of leadership that are likely to bring about the contrasting elements or matching elements to accomplish successfully the objective in its own situational context (Modern, 2007: 341)

Effectiveness and efficiency of the leadership mandates the leader to be able to take on and carry his style and idea to day to day dynamism of the modern day business organization and business culture, conditions and surrounding situation. Further, strategic leader must have enough skills to make choices and decisions within the given circumstances and times and contingencies altogether. 3.1 Core Marketing Concepts Relevant to the Role of Strategic Manager Followings are some of the models of strategic management to direct the marketing strategy of organization on the road to successes.

PESTLE ANALYSIS: Pestle analysis employs multiple techniques catering for

the factors including but not limited to environmental, political, legal, institutional, social, and other technical issues in the prevailing market system. Both at firm level and market level, this method equips the analyst to systematically draw the trend of contemporary market and the relevant industry.

PORTERS 5 FORCE MODEL: This model is unique in the sense it aim to

identify the degree of relevant competitive forces in market and industry. This model provides an in depth mechanism to allocate substitutes, identify relatively new competitors, anxiety at the end of supplier and demand of the consumer. Technically, Peters 5 Force Model enables the corporate and strategic managers to understand and develop strategies to address the aforementioned factors.

VALUE CHAIN: This is the mechanism which aims to provide for the techniques

which could assemble the factors relevant for the purposes of fabrication of the product, selling of the product and analyzing what is profit margin. (McNamara, 2008). Thus, this process enables the researcher and analyst to indentify much of rudiments so as to reduce the cost and cope with the competitors tactfully.

BRANDING: The concept of branding suggests the customers version of

product. In other words, branding and its relevant system of information provide knowledge of the perception of customer. Strategic manager must see in depth as to how the customers of his brand and the relevant brand look at the project. In the light of such information, firms need to develop their branding strategies.

CULTURE: The firms culture also plays a vital role in strategic organization of

the firm. The researchers could collect and analyze the data from peoples interaction, especially as to their country of origin etc. This is necessary for almost every multinational firm. Information as to cultural values is always necessary so that work forces trend can be recognized and in the light of such trends, suggestions can be advanced. However, it must be noted that such cultural analysis should not focus on belief system and should not bump into them.

DISTRIBUTION CHANNELS: The models of sound distribution channels always

suggest the presence of interlink from purchase of raw material, manufacturing of the product and selling to the end consumer. Strategic managers need to learn such distribution channels in depth so as to comprehend from where to purchase the raw material, manufacture goods, and distribute them to customers at their demands.

CONSUMER BEHAVIOUR (ADOPTION MODEL): This model provides a

decision making strategy for the corporate and strategic manager. This is also one of the basic element of transactional and strategic leader. It involves collection,

assessment, utilization, and placement of the manufactured goods. These factors involves an optimum level of decision making, especially in the context of following questions:

(i) How organizations make decisions to use of what they buy? (ii) When, why, where, and how they purchase it? and (iii)How often they make use of it.

STP CONCEPT: This models entails selection, targeting and positing of the idea

as to market where the organization intends to sell its product. Second, to whom it intends to sale its products? Thirdly, how and to what extent they want to sell a product.

4PS: It is one of basic and tested method of modern day marketing. The concept

of 4Ps provide for production, pricing, placing and promotion which enables the market leaders and strategic managers to plan what should be the product itself, what should be its price, and where should the organization place to sell and attract customers.

The above mentioned testing is also important when strategic manager, their subordinates and come up with innovative marketing strategies. These models help the strategic leader to analyze the probability of success of the new processes intended to be employed by the firm. It is to be noted that there is always fair degree of miscalculation in under these models. In such situations, strategic managers are always required to be vigilant enough to check the outcome at periodic level both in the short rum and long run. This check mechanism helps the managers to balance any miscalculations and ultimately provide for cures and adjustments, most probably in improved forms. In conclusion, this is only the way that strategic managers could develop enduring strategies. 3.2 Methods to be used to Identify and Agree an Increase in Staffing Level

Main issues affecting the strategic plans of modern day organizations and firms are numerous. For instance, for a firm or corporation dealing in manufacturing of automobiles as to their basic to advanced designs, technology, cost of manufacturing, the advertisement and marketing and selling the automobiles. Moreover, there are so many factors that have arisen out of the policy making of modern economic regimes around the globe and market specifications. Some of main reasons includes economic, political, societal, cultural, environmental, and day to day changing environment. It is seen that the emerging corporate world, particularly the industrial sector, unlike past are opening to new changes constantly and one of the most effective method to cope with the situations is the tool of strategic management, a sub-discipline strategic management of organizations. Modern day, organizations can utilize these techniques for multiple purposes which include brining on agreement with the staff, improving on competence, and innovation, and making the staff to understand tactical operations of the firm. 3.3 Methods or Processes to Assess, Evaluate, the Performance of Others and to Support Performance improvement Strategic management provides comparatively developing and flexible set of systems to access, evaluate and appreciate the performance of other members of the organization to continue with the vision of the company. In most of the cases there are trend in common to analyze the performance of the staff and other officials of the company. However, certain units of the organization may be found to sick to be rehabilitated. In this context, many of the organizations and firms are converting themselves to knowledge oriented enterprises, aimed to apply the techniques of strategic management. Recent studies in performance and strategic management indicate that the optimum level of performance is not achieved only in the cases where there is clash in vision or goal of the organization and its ability to achieve it. The organizations must realistically frame their targets. The level of performance of the workman and the output of the company hard to fix and evaluate in the globalized market, so firm are advised to focus on every aspect of their performance leveler which include vision, strategy, and

overall culture of the firm. Further, the organization need to set their strategic directions through the control of hierarchy and operation. Conclusion The discipline of strategic management has evolved has one the most critical element of management and the consequent survival and management of the modern day organizations. Studies suggest that from most successful organization to medium sized thriving organizations, the framework of strategic management is playing a very vital role, especially in pulling to one particular direction which is usually pre defined however the achievement of the objective entails a very dynamic system i.e. a system which could cater for each day changes. In this way, the most vital things which include financial resources and human resources are pulled and employed effectively and efficiently to achieve the firms objectives. Therefore, the frameworks of strategic management are occupying every corner of firm management where it need to set up organizational directions in each day changing needs. In this process, at every point of challenge, management is constantly scanning and responding to the challenges as is required in most effective manner possible. It also raises the importance of vision and systemic and periodic checks and balances for every potential peril and the issues which could hamper the achievement of the objectives of the firm. One of the most important key factor in this purview is also the availability of leadership with transformational qualities at higher level of management of the firm or the organization with most efficient sources of information and data management.

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