INNOVATION MANAGEMENT STRATEGY

Innovation management strategy

Innovation management strategy

Q.1 What is a strategy and how are strategic decesions made within an organizations

Strategy is to establish a position in the rejection of certain types of activities and coordination of selected activities. It is to create a unique and advantageous position, involving a range of activities. It involves the refusal of some activities. Strategy is determined by decisions about what the company does and does not intend to do. It is widely seen as the preserve of business leader even if a team an approach is possible. The purpose of the strategy is not only towards profit point, but to ensure the sustainability of the company. Strategy thus depends on the definition of competitive advantage from resource development and manufacturing capabilities, which provide a sustainable advantage in this changing world. The decisions made by organizations can be classified into three categories:

• Strategic decisions:

They are made by leaders and urge all the organization over the long term (eg establishment of production units in China). Their questioning requires considerable time and resources.

• Tactical decisions:

They are made by senior executives to implement decisions by strategic leaders. They only contribute a part of the organization over the medium term (Eg the transfer of production tools Lillers plant to the plant in Beijing). Their recovery issue is possible for a reasonable cost.

They are made by employees to implement the decisions tactics of executives. They only contribute a small portion of staff and short-term (Eg location of the cut before folding). Their questioning is easy and inexpensive. (Senberg, 1986)

Strategic decesions made within an organizations

Strategic decisions within the organizations are made on the following classification which includes:

Reflecting the views of the management of what should be similar to the organization and what it should do.

Designing to assist organizations in ensuring interaction with the environment. (Organization constantly adapt to changing conditions)

Taking into account the organization's own resources and helping in ensuring a perfect match between business activities and available resources. This includes a picture of a large change in the system of work organization.

Strategic decisions are extremely complex, involving various degrees of uncertainty. They imply that the organization must make assumptions about future events based on reliable information.

Requires a comprehensive approach to managing the organization. Successful strategic decisions involve the work of managers outside their functional areas, as well as consultation with other managers, who may have different views on the future activities of the organization; In the long run, they imply a long-term prospects and long-term value.

Involved in the estimates and expectations of key stakeholder of the company within the organization. Many of the authors assure that the strategy of the organization is a reflection of attitudes and opinions of influential domestic members of the company.

Strategic decisions have a serious impact on resources and operations. They have an impact on the resource base of the organization and cause a wave of organizational decisions of lower level. (Howard, 2006)

Strategy, in essence, is to determine how the firm is involved in the ...