… The size of the investment and the long and sometimes uncertain payback period frequently cause SMEs to postpone investing in e-business. Traditionally, the strategic plan covers more than one year. Admission will be granted only to students who secure a minimum of 60% marks in the admission test (admission policy of a university). Strategic management primarily deals with competitive strategy, although the functional strategy is not ignored. Since its e-business project had high strategic value, Caractéra acquired Neomédia, a company that was on the cutting edge of Web hosting and design. This strategic management master’s degree will help you build those skills. Strategic management is the process of decision making and planning which leads to the development of an effective strategy to help achieve organizational objectives. Their job is to track progress, spot problems and issues clearly, monitor the winds of market and customer change and initiate adjustments as needed. In this process, the strategists determine objectives and make strategic decisions. Being in a more convenient geographical location. Creation of a sense of ownership among managers for the decisions which systemically would be changing the organization. Markets and manufacturing are global, customers demanding, regulation is tough, there is an emphasis on customized production and the assembly line is on the wane. We should not confuse strategy with policy. Although the SMEs in this study had limited financial and human resources, they were still able to develop technological solutions that allowed them to reduce operating costs, increase capacity, diversify product and service offerings, increase exposure with clients and expand their market share. It can be regarded as the architecture of integrative decision making. The ultimate goal of any strategic decision is to create value. Since managers have to be involved in strategic management, they need to understand the concepts, issues, and processes related to strategic management. Management strategies are techniques that are used to direct and control an organization to achieve a set of goals. Strategic management is the management of an organization’s resources to achieve its goals and objectives. Consultant support can be sought on different aspects such as a quality program if needed. For example, the vision and technological know-how of managers at Auberge de La Fontaine, a small hotel in Montreal, and Colibri Tours, a travel agency, led these companies to develop a Web site. Communicating clearly and effectively is important. It incorporates industry conditions, competitive situations as well as the vision, mission, objectives, and strategy. Operational strategies specify the actions that are to be taken to attain objectives. A code of ethics heightens an organization’s reputation in society. Organizations use policies to provide uniform guidelines to all employees regarding certain issues/activities so that they can make decisions and take actions uniformly on those issues. The selection of an e-business strategy requires solid knowledge of how e-business can create economic value for the firm. The Model T manufactured by Ford Motor Company is different from today’s motor car but it was also made with a different perspective altogether – a perspective that placed the manufacturer at the center and not the customer! This has further enhanced competition. This model is usually adopted by businesses that have the internal skills to carry out the e-business project on their own. Two may, however, be essentially the same. At the same time, handling, marketing and printing costs declined, saving the journal an estimated $194,000. Delineates, yet links the operational with the strategic among process systems and managers of organizations. In order to succeed in this new frontier, businesses need to manage key components of technology, cloud-based communities, and omnichannel communications. On the other hand, functional strategy refers to a strategy that emphasizes a particular functional area of an organization. Organizations gradually take up the entire spectrum of the strategic management process. Business people deploy resources of various types to achieve objectives. Organizations exercise operational control as well as strategic control. Such a mindset requires that management time is apportioned to identifying key tasks, setting standards of performance and designing reward/motivation systems. Fairness in selling and marketing practices. Widely acknowledged as a world leader in business ethics and strategic management, R. Edward Freeman's foundational work continues to inspire scholars and … Thompson and Strickland have prepared a list of topics that organizations usually cover in codes of ethics: Organizations should develop procedures for enforcing ethical standards. Changes in business environments will require organizations to constantly assess their strategies for success. Kovacevic, N. Majluf, and G. Cortázar, “Strategic Impact of Information Technologies: A Review of the Literature and a Categorization of Methodologies” (Los Angeles: John E. Anderson Graduate School of Management, University of California - Los Angeles, Information Systems Working Paper No. Dunham and Pierce have defined strategic planning as the top management’s active and conscious effort to design a plan to place an organization within its external environment. Broad qualitative criteria can be the guidelines to develop quantitative criteria for evaluation. Implementation brings about changes in almost every aspect of the business. Some of the less profitable cultural products that RECF was unable to include in a printed catalogue are now offered on-line at lower cost. Some of the tools used in resource allocation are BCG matrix, GE Matrix, and Experience curve. For example, Toyota Motor Company of Japan is believed to have core competencies in the design and manufacturing of cars using just-in-time philosophy. It results in the articulation of the corporate strategy followed by competitive and functional strategy (what it is and outcomes).”. Even though the managers responsible for implementation may be different from those responsible for formulation in large diversified organizations, on­going consultation between the two to probe, discuss and decide the plan of action is important to lend the phase a push. Is the sale of cigarettes by a company ethical? The capacity within the organization to implement and follow through decisions. This is why the task of evaluating performance and initiating corrective adjustments is both the end and the beginning of the strategic management cycle. At the outset, these firms had only modest ambitions, and because their initial Web sites were usually technically straightforward, it was possible for them to do the work in-house. Strategic Management Courses. For SMEs located outside major urban centres, it is sometimes hard to find simple, economic solutions for distributing the products they sell on-line. E-Commerce & Strategic Management Chandra Shekhar Pandey Assistant Professor- SRCM 2. of knowledge on the strategic direction and management of the enterprise –the primary . Policies are general statements or understandings that guide managers’ thinking in decision making. Financial Benefits:It results into financial benefits to the organizations in the form of increased profit even in the face of environmental threats. The process is driven by key managers. 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