Strategic Management

Main Themes of the Article

The article by Chen et al. (2009) addresses the discipline of strategic management. It brings to the fore different considerations that contribute to the development of the strategic management. It examines how corporate and business planning can create value for every stakeholder. Moreover, it focuses on the features of strategic management and the external forces that influence the companies’ agendas.

Challenges the Article is Responding to

The authors aim to dispel the misconceptions regarding the strategic management. They try to interpret the definition of strategic management that leads to the widespread confusion in the business settings. They highlight that it cannot correspond only to the operational effectiveness, strategic planning, or theory. The discussion centres on the operational challenges that the managers may face and the circumstances that influence their strategies. Besides, strategic management should not be confused with other functional areas within an organization, such as marketing, finance, accounting, human resources, and operations. Lastly, they reveal what problems the managers encounter when gathering data and setting goals in order to create long-lasting value for all stakeholders.

The Answers Provided

Initially, the authors provide the definition of strategy in order to explain strategic management. They assert that strategy is a process of preparing and implementing a detailed plan for the development. Thus, strategic management involves the analysis of current situation and future objectives and the achievement of operational effectiveness in an organization. Moreover, strategic management encompasses both the constraints and considerations that emerge from the inside and outside impacts on the organization. Indeed, they clarify that the managers should not just give attention to the features and objectives that distinguish an organization from the others. On the contrary, it is crucial that they also evenly distribute the firm’s resources and balance its capabilities towards the attainment of the goals (Chen et al., 2009). The authors also provide the external forces that influence a business strategy, including economic, technological, and competitive factors. More specifically, they consist of the multinational distribution of supply chains and labor pools, global reach of firms, their international impact, and interest of the stakeholders (Chen et al., 2009). According to the authors, the purpose of planning is also to consider the activities and capabilities of competitors. In order to provide a better understanding of strategic management, the authors specify that it is an integrative exercise. Particularly, it consolidates the underlying values of the functional areas of accounting, finance, operations, marketing, as well as human resources. According to this fact, the business managers do not encounter isolated challenges. Instead, they have to resolve complicated and cross-disciplinary problems as well as take into account both major and minor considerations (Chen et al., 2009). The authors add that strategic management is a complicated process because it also creates the value for various stakeholders, including investors, suppliers, customers, employees, and communities. As a result, the managers should design a clear strategy that proves the values of the company for everyone involved in its development. Otherwise, if a limited number of people pursue the strategic objective, the plan will not have any meaningful direction (Chen et al., 2009). Lastly, the authors advise the managers to make difficult choices only after carefully and systematically evaluating the advantages and disadvantages of the important aspects of the strategic management plan.

How the Answers Address Strategic Leadership Explored in the Course

The above answers complement what was explored in the course about strategic leadership. Obviously, most organizations experience difficulties in designing and fulfilling the strategic management plans. After having read the article, one understands that these difficulties could result from the poor vision of the concept. Moreover, Beatty (2010) states that it becomes even harder to facilitate strategic management during tough financial times as managers are unable to organize their resources. Chen et al. (2009) also highlight this problem mentioning that it is not enough for managers to distinguish the objectives from those of the others. Management of the organization’s resources and capacities is highly important if the company wants to reach its unique goals. Due to the course, it became clear that the organization leaders are often subjected to intense pressure to achieve immediate wins. It is also a problem discussed in the article as its authors indicate that a strategist has to think clearly and make a sound judgment on how he or she can create long-lasting value for all stakeholders.

How I will Integrate the Learning in My Role as a Leader and Manager

The knowledge I have obtained will be instrumental in developing my roles as a leader and manager. Strategic management is critical in the contemporary business world. It is extremely important that young leaders understand what the concept does and does not entail. To my mind, it is crucial to learn more about the importance of properly managing the resources of the organization so that they facilitate the achievement of the set objectives. Unfortunately, hard times hinder the development of many organizations nowadays. Personally, I do not wish to run an organization that will not be able to survive during difficult periods. Thus, I need to know how to create the elaborate strategic management plan. While evaluating the aspects involved in strategic management, I will also apply gained knowledge to ensure that every stakeholder is satisfied. Many organizational leaders feel compelled to only maximize shareholder value while overlooking the interest of all other stakeholders. I do not want to be such a leader.

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