Introduction
Strategic management is a key pillar in any business because it defines the direction a business takes in a given environment with consideration of several conditions that can range from economic to political. David (2006 5) defines strategic management as “the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective”.
Purpose of strategic Management
The main purpose is fundamentally the integration of the core aspects of marketing, accounting/finance, information technology, management, research & development, operations and production in order to achieve in entirety the organization’s success.
Some of the key elements of strategic management include clarity of company objectives and goals, definition of core business, company orientation, mission, policies, strengths and weaknesses, threats, opportunities, planning, scheduling, sustainability and competitive advantage. All these make a combination that works comprehensively through integration to move the business from one point to another; where the next point is defined by success on a background of the set goals and objectives (Craig & Sadler 2003).
In the absence of strategic management, the organization faces a collection of threatening risks which can result in dire consequences that are often difficult for the organization. (Rainey 2009) points out that the implications for this kind of absence can be fatal especially considering the fact that the business environment has grown to become more interdependent and competitive
Strategic objectives
Organization
The organization picked as an example is Thunderhead, a respected corporate brand in England. Its core business is provision of enterprise solutions specifically for document automation and multichannel communication (Thunderhead 2009).
The reason for choosing this organization is because of its proven demonstration of a strong culture of strategic management throughout its business model since its inception in 2001. This is admirable in business especially when the environment is a competitive one like information technology.
As a display of excellence, the company has managed to scoop several quality international awards as a result of demonstrating firm principles and elements of strategic management. These awards include the Deloitte technology first 50, the Sunday Tech Track 100 and the financial sector technology award. In addition, the company’s founder and CEO, Mr. Glen Manchester has won the Growing Business award and the Earnst and Young Entrepreneur of the year award.
Internal environment
The strategic objectives of Thundrhead can be classified into internal and external both of which present an intertwined environment interlinking these two spheres of the organization. The overall objective of this organization is to achieve the best standards in transforming the way businesses communicate through enhancement of personal interactions and delivery of every communication over a channel that is most preferred by he customer.
The internal objective of Thunderhead is based on its culture that is constructed on the basis of their strategic management. The culture is designed on four pillars of innovation, leadership, growth, communication, and customer satisfaction. Clearly, Thunderhead has managed to implement its balanced scorecard and this has enabled it to align all its business activities to the vision and strategies of then business that were set out at its start in 2001.
External environment
Buhler (1994) observes that external environments enable a business to grasp the big picture where integration is the foundation. Its external environment has been strengthened over the years through a strong product tradition and quality which have seen the company acquire many clients.
These clients span across many industries throughout the globe from manufacturing to banking. The ability to deliver its products and services across the world is a definite indication of how the company has managed to sustain a congruent external environment. Besides, the organization is vocal in social corporate responsibility through its business systems which provide sustainable solutions.
A comment of appreciation by Paul Galaspie, the Chief Information Officer at Origen Financial, one of Thunderhead’s clients reads, “Thundehead has enabled Origen to streamline the entire process dramatically, supporting the launch of new products and services that will drive the next stage of Origen’s growth”. Mark the word ‘growth’ which is crucial in any organization considering that every organization will aspire to grow to the greatest heights.
SWOT analysis and balanced scorecard
In terms of SWOT analysis, the strengths of Thunderhead lie in the fact that technology is getting more and more appreciated with almost all companies across the world whatever the type of industry. The company therefore has high chances of maintaining the standards as a leader in its field of practice.
The weaknesses could be the stiff competition from other equally well doing companies from other developed countries like US. Opportunities are abound for the organization especially in the growing economies like Africa and countries like china and India where technology is growing fast. Just like in any other business, execution is the key element and it must be performed well(Hrebiniak 2008).The threats can be understood from the point of view of the swift changes that take place in the platform of technology.
Business strategy and corporate strategy
Business strategy is crucial for a business, ensuring every unit is practically aligned with the overall corporate strategy (L.E.K Consulting 2010). The organization has maintained a sound track record through performance based business strategies. In the strategy, the customer is put at the heart of every action.
The products developed are high end and they continue to undergo constant improvement through consumer needs analysis. The corporate strategy combines both branding the company as a respectable and credible organization determined to provide the best services to corporate clients in the spectrum of client base. By enhancing social corporate responsibility, a fine image is practically portrayed in society and as well as before potential clients while maintaining the existing ones.
Conclusion
In conclusion, strategic management is critical for every organization hoping to shape its business to a highly corporate level. Through sustainable business and corporate strategies, organizations are able to effectively use strategic management to achieve their goals. The example is a demonstration of the power of strategic management.
References
Buhler, P., 1994. Strategic management: a process for supervisor’s organizationwide. Web.
David, R. (2006), Strategic management: concepts and cases. Beijing, Tsinghua University Press.
Hrebiniak, L .2008, Making Strategy Work: Overcoming the obstacles to effective Execution, Ivey Business Journal. Web.
L.E.K Consulting (2010) Business Unit Strategy. L.E.K Consulting journal. Web.
Rainey, D. (2009), Enterprise-Wide Strategic Management. Achieving Sustainable Success through Leadership, Strategies, and Value Creation. New York, Rensselaer Polytechnic Institute.
Sadler, P. (2003), Strategic management: concepts and cases. MBA master class series. London, Kogan Page Publishers.
Thunderhead (2010) Overall organizational overview. Web.