Strategic Management – The biggest challenge and the biggest virtue as well in today’s world is globalization. The ease of globalizing has been a great virtue when it comes to ease of doing business. Globalization has extended the paradigms of business realms and has resulted in a much broader market. In the past, it was not that easy to travel from city to city, left alone country-to-country or continent to continent. Now it takes only 22 hours to travel from China to America where it used to take 5-6 months in the past. In the same manner, brands have also developed to take international coverage and it has increased the approach of organizations.
In the meantime, it has also developed competition. This is the biggest problem from which the strategic managers suffer from the most. Nowadays due to many well-known brands, it is difficult to develop a strategic plan that will keep the organization on par with its competitors.
Strategic Management
When developing a strategic plan, many core points are kept in mind as a priority and one of them is a fine workforce that is capable enough to perform a task and achieve objective efficiently, that is the second biggest challenge in strategy development and management.
It is relatively difficult to develop a powerful and capable workforce when it is a shortage of such capable employees. Even more, it is much more difficult for a small organization to develop such employees when applying a strategic management plan. The usage of internet media and other technologies can also become a hurdle.
Evolution in Technology
Evolution in technology occurs every day and for small organizations, it is challenging to keep up with this innovation.
Many industries, for the moment, use robots to develop their machinery parts which are then rechecked with the help of many relative engineers, but now, as innovation is taking place, #D printers are taking the place of those robots, and different software is taking the place of those engineers, to optimize the output of their product and quality.
These sorts of measures must be taken if an organization aims for a successful diversification through strategic planning.
Diversification in an organization is a sign that the organization’s intentions are to expand and not to be stagnating in nature. Diversification is another method to provide growth to the organization, but it is the most difficult attempt.
The strategic management is one of the major sections of diversification and as hard as it is to develop this plan, it is as difficult to deploy this plan in an effective manner.
Samsung is presented as the prime example of this scenario. How they innovated and evolved over time, the methods they utilized to develop strategies that would increase their organization’s capital, innovation, creativity, and strategy brought them the growth that they expected.
If we desire same expansion with similar success rate, our strategic management plan also needs to be developed around these notified criteria.
Our company is of a smaller scale than Samsung; however, its globalization and product diversification strategies can be studied and implemented for similar simulation of success and increasing the company’s penetration in the market of technology through its innovation and effective market research.
