Theoretical Concepts Of Strategic Management †MyAssignmenthelp.com

Question: Discuss about the Theoretical Concepts Of Strategic Management. Answer: Strategic management is a planning process where an organization, firm or company comes up and implements objectives, goals following specific set strategies. As the organization develops the process continues but can change depending on the set goals and objectives as per that business period. Both developed and developing organizations enhance this process to ensure that they are in line with other business trends in the market like globalization. There are various theoretical concepts that enhance the process of strategic management. Two of these concepts include Strategic theory and resource-based theory. Strategic theory. This is a theoretic concept that illustrates the importance of laying strategies in an organization to enhance its production, distribution and consumption activities. To enhance this, the concept is explained in five stages of successful strategic management in an organization. These stages include goal setting, analysis of organization information, strategy formation, strategy implementation and evaluation and control. Impact of strategic stages is crucial as they enhance the level of development of an organization. Woolworth Company made a huge loss of 1.8 dollars in the year 2015 as a result of poor planning (Knox Knox, 2015). The company is one of the most established food outlets globally, it has experienced various challenges resulting to struggling of branding system and even crossing some of its local outlets. In the same way, though Coles has better selling strategies than that of Woolworth, its experiencing related challenges as its feeling the level of competition and also issues on strategy development. Aldi, on the other hand, has a well-developed strategy and it's becoming a market hero. Resource-based theory. This is a theoretical concept stating that organizational resources are limited in mobility and not similar. The main aim of starting a business or rather an organization is to exploit the available resources and they can be translated into a strategic value to benefit the organization. As elaborated in the case study, the ability of any company to acquire adequate and relevant resources increases its chances to have a better marketing value. Example, if food store cannot provide food products to its customers, it has no value to be called a food store (Wojciechowska, 2016). Critically reflect on the business practices enhanced in the case study and give recommendations that would enhance either sustainability or strategic management of Woolworths and Coles Company. Discussion Strategy development and implementation. Woolworth Company has a problem in planning its activities, the level of planning is poor as the company is making losses and also losing it to Coles Company which was at the same level back then. The company made losses and lost branding of products due to poor planning. Cole, in the same way, adopted the same strategies that reduced its ability to develop (Kaiser Ringlstetter, 2011). Another business practice is marketing mix activities. The two companies, Woolworth and Cole have adopted the samemarketing mix practices of price deflation and cost reduction. This is reckless as the companies should enhance positive marketing mix activities to ensuring customers price satisfaction. They should not just lower prices but also ensure the products they are giving to consumers are of high value to satisfy their needs. This enhances positive customers satisfaction thus remaining loyal to their service providers (Couto, Plansky Caglar, 2017). Recommendations to enhance strategic Management Woolworth and Cole should adopt the strategic theory of management to enhance their management activities. Should enhance positive marketing mix activities to enhance customers price satisfaction. Should enhance positive means to increase their economies of scale to ensure they remain competitive in their market. Woolworth Company should focus on establishing relevant local outlets to prevent increased cases of making losses other than profits. Should put down relevant measures of enhancing customer loyalty as well as means of implementing them. References Couto, V., Plansky, J., Caglar, D. (2017). Fit for growth: A guide to strategic cost cutting, restructuring, and renewal. Kaiser, S., Ringlstetter, M. J. (2011). Strategic management of professional service firms: Theory and practice. Heidelberg: Springer-Verlag Berlin Heidelberg. Knox, M., Knox, M. (2015). Supermarket monsters: The price of Coles and Woolworths' dominance. Collingwood: Schwartz Publishing Pty, Limited. Wojciechowska, M. (2016). Intangible organizational resources: Analysis of resource-based theory and the measurement of library effectiveness.