Strategic Management
Introduction
Thesis: Information technology enhances the outcome of strategic management practices in organizations.
Purpose
For this paper, the best practices in strategic management for innovative technologies will be identified. Specific corporate establishments from different parts of the world shall be used to highlight different kinds of practices in strategic management. Additionally, the relevant skills for general managers in the innovation process will also be examined.
Overview
Strategic management refers to the process of establishing mechanisms that would facilitate for the attainment of organizational goals (Hill, p. 7). Organizations would not achieve the expected results without using appropriate mechanisms for strategic management. In strategic management, general managers strive towards the development of mechanisms that balance the external and internal environments. In the field of management innovation, strategic management is one of the most fundamental aspects. This particularly applies to information technology (Ettlie, p. 18). Managers must identify the relevant platforms for information technology within their organizations. Through appropriate strategic management, companies are able to maximize on the various opportunities provided by strategic management.
Best-practice Companies in Information Technology
Some of the world’s most outstanding companies are characterized by exemplary practices for strategic management. Such companies have developed excellent mechanisms for information technology. Nestle is one of the most notable companies for best practices in information technology. Based in Switzerland, Nestle specializes in the production of high quality food products and beverages (Soni, p. 150).
Since its establishment, Nestle has become a market leader not only in Europe but also from a global perspective. Innovative technology has been a major pillar behind Nestlé’s sustained success over the years. On an annual basis, the company uses modern technology to develop unique products. This is an excellent practice for strategic management and has helped to boost Nestlé’s revenues. The company recently introduced a new brand of fortified milk in the market. Prior to the launch, Nestle conducted technologically-based research on the feasibility of this new brand. Apple Inc is another company notable for excellent strategic management practices that have been based on information technology. During the past five years, Apple has developed more than ten brands of personal digital assistant (PDA) devices. This has strongly enhanced Apple’s profitability. Furthermore, through this strategic management approach, Apple Inc has strengthened its market share (Hill, p. 106).
Strategic management practices based on information technology are also evident in Wal-Mart. As the world’s largest company, Wal-Mart has developed an excellent database management system. Through this system, Wal-Mart can easily monitor the performance in all its retail outlets. Additionally, the system has also facilitated for effective communications between the management and employees (Hitt, p. 99).
Similarities and Differences across Companies
The strategic management practices in Wal-Mart, Nestle and Apple are characterized by various similarities. Firstly, in all the three companies, the strategic management practices are aimed at enhancing organization’s productivity. In the modern day corporate world, it is very hard for companies to attain goals without integrating innovative technology. This is why companies like Wal-Mart, Nestle and Apple have developed strategic management practices that conform to modern technology. Another similarity pertains to the minimization of costs. These companies have established technological platforms that are geared towards minimizing the costs of production (Stamm, p. 148).
It is also critical to highlight that the company practices for strategic management are characterized by various differences. To start with, Nestlé’s innovative strategies are aimed at enhancing the company’s profitability. On the other hand, Apple’s innovative strategies are aimed at strengthening the company’s market share. The strategic management practices used by Wal-Mart are aimed at enhancing communications. Considering that these companies are in different industries, they have different corporate goals. This is why their practices in strategic management are different (Hitt, p. 37).
Best Practices
Strategic management for innovative technology may either enhance or undermine the overall performance in any given company. This is strongly dependent on the skills of general managers. Additionally, the specific policies within a company might also influence strategic management practices for innovative technology. Best practices for strategic management must be founded on an appropriate cost-benefit analysis. Such an analysis helps in the identification of specific gains that will be derived from strategic management practices (Tidd, p. 76).
Even though some strategies might be good on paper, the situation might be totally different during the implementation phase. This mostly occurs when the strategic management practices are characterized by huge implementation costs. Apart from cost-benefit analysis, best practices for strategic management must conform to the company’s goals, mission and vision. Such an approach helps in ensuring that everyone is heading towards the same direction.
Another important aspect of consideration while formulating the best practices for strategic management pertains to the change process. Information technology is one of the most effective strategies for change in any given organization. Companies must demonstrate their capacity to move with modern times. This cannot be achieved without using modern technological platforms for strategic management. This is why companies like Apple and Wal-Mart have developed strategic management practices that are based on modern technological platforms (Stamm, p. 161).
Implementing the Best Practice
The effectiveness of any strategic plan is not only determined by its formulation but also the implementation process. As the organization’s general manager, there are various steps that would characterize the implementation process for best practice. To start with, it is essential to outline strategic management goals for the organization. Essentially, it would be meaningless to establish any plan without specifying the desired outcome. Most general managers have the tendency to avoid the specification of goals. Such an approach results into poor implementation (Tidd, p. 82).
As a general manager, it would be important to note that implementation of best practices begin at the formulation phase. The roadmap for implementing strategic management practices should be specified during the formulation phase. Such a strategy helps in mitigating logistical problems. Resource allocation is also another important element for implementing strategic management practices. This helps in ensuring that tasks are prioritized appropriately. For instance, some tasks can only be accomplished at specific stages of implementation. The overall effectiveness of any implementation process is strongly associated with the effectiveness of resource allocation. This perspective would therefore be thoroughly considered while formulating and implementing strategic management practices. Organizing is also another crucial aspect of consideration during implementation of best practices (Hill, p. 25).
This pertains to the allocation of tasks and duties. Similarly, organizing would also ensure that all important stakeholders are identified. Identification of potential loopholes is another crucial aspect that must be considered while implementing strategic management practices. When potential loopholes have been identified, appropriate remedies would be formulated. Such an approach would help in maximizing the benefits of strategic management practices within organizations. Change management is another crucial aspect of consideration during the implementation phase. Essentially, modern day organizations must move with times. This involves using current communication technologies, developing strategic marketing plans and the like.
Change management would facilitate for these types of platforms. As the organization’s general manager, it would be important to appoint a technical team to facilitate for change management. Human resource management is also a crucial aspect during the implementation of best practices. Employees serve as important assets in any given organization. Consequently, they would be involved at different stages of the implementation process (Schilling, p. 89).
The input of employees is quite significant since they are in a better position to understand specific organizational problems or weaknesses. As the general manager, it is also important to use leadership styles that maximize the benefits of strategic management. For instance, transformational leadership style would be suited for the implementation process (Hitt, p. 120).
Conclusion
In the field of management innovation, strategic management is one of the most fundamental aspects. This particularly applies to information technology. Managers must identify the relevant platforms for information technology within their organizations. Nestle, Apple and Wal-Mart are examples of companies with best practices for integrating information technology in strategic management.
On its part, Wal-Mart has used information technology systems to enhance the quality of internal communications. During the past five years, Apple has developed more than ten brands of personal digital assistant (PDA) devices. This has strongly enhanced Apple’s profitability. Best practices for strategic management must be founded on an appropriate cost-benefit analysis. Such an analysis helps in the identification of specific gains that will be derived from strategic management practices. Even though some strategies might be good on paper, the situation might be totally different during the implementation phase.
References
Ettlie, J. E. (2006). Managing innovation, MO: Elsevier Saunders
Hill, C. W. & Jones, G. R. (2012). Strategic management theory: An integrated approach, OH: South-Western
Hitt, M. A. (2010). Strategic management, OH: South-Western
Schilling, M. A. (2010). Strategic Management of Technological Innovation, New York: McGraw Hill ISBN: 007338156
Soni, R. (2006). Innovation management: Knowledge and inspiration toolkit,New Delhi: Global India Publications
Stamm, B. V. (2008). Managing innovation: Design and creativity, Hoboken:John Wiley & Sons
Tidd, J. & Bessant, J. (2011). Managing innovation, Hoboken: John Wiley & Sons
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