Page 11 Share Suggested Citation: Strategic Planning and Management in Transit Agencies. The National Academies Press.
Pamela McClinton Running head: Many business managers do not fully understand the goals behind strategic management or why it should be implemented in their organizational environment. A thorough understanding of the purpose of strategic management can help organizations gain a competitive edge within their industry, but not without the analysis of various strategic management analysis tools that have been designed to aid in the strategic management process and promote organizational growth.
This review also provides a synthesis of these tools to show organizational leaders the differences when comparing one tool to another which facilitates the determination of the best tool to fit organizational need.
A Review of Literature The global marketplace has changed dramatically over the past century. The rise of the Industrial Age brought nationalization as businesses began to expand from being situated in one city or state to positioning themselves across state lines and into various parts of the country.
The Information Age thrust businesses even further, taking expansion across continents and establishing a full-fledged global marketplace. With a global outlook, businesses experienced growth on a massive scale with divisions of their organizations thousands of miles apart.
Not only did organizations desire to thrive, but in order to continue their growth, managers needed to maintain a competitive edge in the marketplace. The evolution of the global business organization was fostered by business managers constantly in pursuit of management techniques that would propel their organizations farther.
Managers have found that sustaining competitive edge yields greater revenue, organizational growth, and industry leadership over their contenders. But staying competitive in the marketplace did not prove to be an easy undertaking.
Thus, managers from organizations around the world devised systems that have become known universally as strategic management. Strategic management offers an organization a multitude of benefits, and many researchers have theorized the goals of strategic management in their literature.
Furthermore, an examination of the most common strategic management tools aids the awareness of how these instruments, when applied within a business organization, lead to competitive advantage, growth, and greater business revenue. Strategic Management Since the inception of business itself, management, or the administration of responsibilities that govern an entity, has existed.
Through the coordination of activities to get the necessary work accomplished that produces a product or delivers a service, management has experienced challenge. These challenges have ranged from employee supervision, to customer satisfaction, to business growth.
When the founder of strategic management, Alfred Chandler began investigating organizational growth, his interest was drawn largely due to the intense crises endured by businesses such as Du Pont, General Motors, and Sears Roebuck.
Chandler deliberated the challenges noticing that when Sears Roebuck was forced to choose survival or downfall, the business made tactical steps to move its mail order business to chain stores situated mostly in urban areas.
The concept of strategy in business was fashioned and a few years later, Chandler released his book Strategy and Structurewhich is still considered a significant historical work in the world of business.
In this work, Chandler theorizes the unprecedented value of implementing an organizational strategy before carrying out the structural procedures of day-to-day business.
This new idea proposed that when management employed strategies for long-term growth, they reduced overwork at the top and opened up the capability to move into new product markets and even shift into new geographic areas. Strategic management can be a broad concept that may overwhelm administrators when trying to apply it to an organization.
These tools are also useful for evaluating weaknesses, competitor strengths, environmental and societal demands that could jeopardize organizational growth. The application of one tool over another relies heavily on the goals of the tool and the objectives of the organization.
Porter, a Harvard graduate and professor, produced the five-forces model in his book Competitive Advantage:More specifically they describe a concept of â strategic agenda management.â Strategic agenda management basically involves the â col- lective management of a strategic agenda, which changes as an organizationâ s problems and opportunities change.â The authors state that â effective strategic agenda management requires intensive.
Management Tools and Techniques Usage:Acta Universitatis Agriculturae a Qualitative Review. et Silviculturae Mendelianae Brunensis, 65(2): – This paper is one of the few studies to review the empirical literature on strategic management. Strategic Management Analysis Tools – A Review of the Literature The global marketplace has changed dramatically over the past century.
The rise of the Industrial Age brought nationalization as businesses began to expand from being situated in one city or state to positioning themselves across state lines and into various parts of the country.
The Information Age thrust businesses even. – A review of the management and psychological literature is undertaken, with particular focus on factors affecting strategic decision making. Findings – The literature review reveals that managerial cognition as well as individual and corporate values can have an impact on strategic decision making.
Strategic Management Tools and Techniques and Organizational Performance: Findings from the Czech Republic Afonina Anna Abstract The purpose of this study is to investigate the current level of strategic management tools and were drown from the intensive literature review.
Regarding this, the research area was clarified. 1 Strategic Management Tools and Techniques and Organizational Performance: Findings from the Czech Republic Afonina Anna Abstract The purpose of this study is to investigate the current level of strategic management tools and.