Reading the first four chapters in the book Concepts in Strategic Management and Business Policy by Thomas L. Wheelen, where many important issues are discussed, it comes to my mind that strategic management is an essential part of any business process. First of all, the book dwells upon the importance of strategic management as an essential part of company functioning.
Defining strategic management as “a set of managerial decisions and actions that determines the long-run performance of a corporation” (Wheelen, 2010, p. 5), it is possible to stress the following issues which I consider as the most crucial in this reading, (1) assistance of strategic management in environment protection, (2) help of strategic management in mission creation, (3) support strategic management spreads on the social responsibilities the corporation should have, and (4) great role of strategic management in encouraging ethical behavior.
These four issues discussed in the book are the most important, as for me, as each of these aspects touches not only business aspects but social issues as well. Ecological situation is complicated in the modern world and the assistance of the strategic management in this issue is helpful for the whole mankind.
Company mission is the way how the company is going to meet social requirements and correlate those to the company purposes. Social responsibility of the company guarantees meeting the norms established by the government and supported by the society. Finally, the ethical behavior is essential in the modern world and the role of strategic management in this problem remains important.
Taking any international organization, it is possible to see the implementation of the mentioned issues there. For example, Coca Cola is an international leader in producing beverages. According to Coca Cola FESMA Sustainability Report (2011), the company supports environment in renewing the amount of water the company uses for producing its beverages and deals with water cleaning procedures.
Moreover, recycling and replenishing water supplies are the main aspects in company strategic management. Coca Cola supports reforestation and protection of biodiversity programs.
The mission of the Coca Cola Company is announced in almost each advertising campaign, which is to make the world fresher by means of making people happier; the company is interested in helping people make a difference. Social responsibility and ethical behavior are the core aspects of human resource management in Coca Cola as such corporation cannot function without these issues.
Dealing with strategic management, the examples and issues discussed above are the results of the strategic decision making which is an inevitable part of any management process.
Strategic decisions “deal with the long-run future of an entire organization and have three characteristics” (Wheelen, 2010, p. 25) such as rareness due to unusual and complicated processes which result in making such a decision, consequential nature which is reflected in the commitment of many people at different levels, and directive task which is reflected in future actions and plans of the company.
Therefore, it should be stated that all the actions directed at implementing strategic management and reflected in decisions making are supported by a number of issues which are really important in the modern business world.
Each big company cannot function without strategic management and strategic decision making, therefore, these companies are unable to deal without the issues mentioned above, such as environment protection, mission creation, social responsibilities, and ethical behavior.
Coca Cola FESMA sustainability report. (2011). Retrieved from http://www.signi.com.mx/KOF/IS2011/english/acerca.html
Wheelen, T. L. (2012). Concepts in Strategic Management and Business Policy. Oxford: Prentice Hall Inc.