According to Barney and Hesterly (2008), strategic planning has been described as a meticulous effort to make major resolutions and actions that redefine and lead an organization on what it does and how it does taking consideration on the dynamic nature of the environment. An effective Strategic management is as a results of delicate acts of the environment within and without in a view to achieving the strategic goals of the organization.
Taking the case of Nokia company which was a very powerful company in the 1990’s went down completely due to ineffective strategic management. They were the leading mobile phone manufacturing company in the world. They focused on capturing the emerging markets in the word but fail to take not of other environmental dynamics. The dynamics were changing from the use of the phones for voice calls to development of multifunctional smartphones for voice, data and media exchange. The competitors identified the opportunity and capitalized on it.
Nokia being the leading mobile phone manufacturer at the time the management assumed that they are the one setting standards and the small companies follow. The failure of Nokia illustrate how strategic management can be so volatile; a decision that propelled a company to its highs can be the one pulling it down if time and circumstance are not right.
An organization can have a good strategic plan in place but whoever steers the plan to action can have a significant influence on the effectiveness of the strategy. For instance the case of 3M which had been experiencing diminishing new product revenue until the board brought in George Buckley as the new CEO. Buckley turned round the company’s revenue of new products and the company.
In general leadership plays a key role in the management of the strategic plan of the organization and any changes in leadership may adverse or favorably impact on the performance of the organization.
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Barney, J. B., & Hesterly, W. S. (2008). Strategic management and competitive advantage: concepts. Pearson/Prentice Hall.