How Does Strategic Management Typically Evolve In A Corporat ✓ Solved

How does strategic management typically evolve in a corporation?

Strategic management is a fundamental aspect of organizational success, emphasizing the formulation, implementation, and evaluation of strategies to achieve long-term objectives. Its evolution within a corporation begins typically with the recognition of the need for strategic direction, driven by internal assessments or external environmental changes. Initially, organizations undertake a strategic analysis phase, where they evaluate their internal strengths and weaknesses alongside external opportunities and threats—commonly framed as a SWOT analysis (Hitt, Ireland, & Hoskisson, 2020). This phase informs the development of strategic goals aligned with the company’s vision and mission, laying the foundation for strategic planning.

As companies mature, strategizing transitions from informal, ad hoc processes to more formalized routines. This evolution is marked by the adoption of strategic planning frameworks, often involving senior leadership, to guide decision-making systematically. During this phase, organizations might incorporate tools such as BCG matrices or Porter’s Five Forces to analyze competitive positioning, informing the strategic choices (Ghemawat, 2017). The integration of strategic management into organizational culture and processes signifies an essential transition from reactive to proactive management, emphasizing long-term sustainability.

Over time, feedback loops and performance metrics become integral to the strategic management process, enabling continuous improvement and adaptation. Organizations establish mechanisms such as strategic control systems and balanced scorecards, fostering an environment geared toward flexibility and responsiveness to environmental shifts (Kaplan & Norton, 1996). The evolution may also involve decentralization, empowering middle and lower management to contribute to strategy formulation and execution, thus enhancing agility.

Furthermore, the evolution of strategic management has been significantly influenced by technological advancements and globalization. These factors accelerate the need for dynamic capabilities, requiring corporations to continuously reassess their strategies to remain competitive (Teece, Peteraf, & Leih, 2016). For instance, multinational corporations like Toyota have evolved their strategic approach from primarily manufacturing-based to include innovation in hybrid and electric vehicles, reflecting an adaptation to environmental concerns and market demands.

Strategic management evolution is thus a dynamic, ongoing process within corporations, characterized by increasing formalization, integration into organizational culture, and adaptation to external changes. It reflects a shift from simple planning to complex, integrative strategic thinking that encompasses diverse stakeholders and external environmental factors, ensuring long-term organizational viability (Whittington, 2019).

References

• Ghemawat, P. (2017). Redefining global strategy: Crossing borders in a converging world. Harvard Business Review Press.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Cengage Learning.
• Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Harvard Business Press.
• Teece, D. J., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, challenge, and opportunity. California Management Review, 58(4), 13-36.
• Whittington, R. (2019). What is strategy — and does it matter?. Routledge.