A Literature Review of Key Theories of How Strategy is Developed and Implemented, and the Relationship between Strategy, Innovation and Change

Abstract

Business and non-business success of an organization is based on several issues. Achievement of the goals and objectives that are set by an organization entirely depend on several factors, in the sense that failure to consider a single issue may contribute to failure or continuous decline in the performance of the respective organization. The management of a business organization is considered the fundamental organ within the organization that determines the chances of success or failure of the company. This is because it is responsible for controlling, decision-making, supervising, and monitoring of all the activities and practices within and outside the organization.

The management is responsible for effective establishment and implementation of operational strategies and decision strategies. This is evident in the obligation of managers to ensure that there is effective and efficient flow of information, goods, and services in an organization; this guarantees the shareholders, stakeholders, and the operation team of success. This paper investigates the theories that explain how a strategy is developed and how it is implemented. It will also evaluate and discuss the relationship between strategy, innovation, and change in a business and non-profit organization and make recommendations about how strategic processes within an organization can be improved. This study targets Wal-Mart Corporation for investigation and evaluation because it is a successful business that is experiencing significant challenges lately.

Abstractii

Introduction1

Literature Review2

Strategy2

Development of Strategy3

Strategy Implementation5

How Organizations ensure Strategies are Maintained6

Relationship between Strategy, Innovation and Change8

Critical Analysis of Strategic Internalization Process of Wal-Mart9

SWOT Analysis of Wal-Mart Corporation11

External Opportunities and Threats11

Internal Problems17

Contributions of Wal-Mart Employees towards Strategic Process21

Recommendations for Improvement of Strategic Processes with Wal-Mart24

Conclusion25

References27

A Literature Review of Key Theories of How Strategy is Developed and Implemented, and the Relationship between Strategy, Innovation and Change

Introduction

Various definitions express different understandings about the concepts of strategy processes and their implications for business and non-business organizations. The strategic processes are considered top level processes that organizations or institutions are exposed to in their line of operations. They may include tasks that require a high level of intellectual capacity and that have relatively wide effects in the structure and functioning of companies, organizations or firms. The nature, the structure, and the functioning of these strategic processes can be compared to those that the human brain performs, which mostly involve the intellectual capacities and abilities of these processes (Greiner, 1972). Various characteristics of the strategic processes can be observed within and outside the organization.

The strategic processes depend highly on the policies, strategies, and planning objectives that an organization integrates into operations to improve its performance. In understanding the strategic processes, this paper will consider the characteristics of the strategic processes in general; the theories and models that are essential in implementing the strategic processes; and give recommendations that are relevant to implementation of these processes to improve the functioning and performance of a business organization (Hamel, 1998).

Wal-Mart Corporation, the organization of reference in this paper, is ...