Strategic Management

Strategic Management

Introduction

Many years ago the auto industry of the world had three major competitors all over the world for commercial cars namely Honda, Toyota and Suzuki. All the three auto manufacturers were having a healthy competition and the customers all over the world were enjoying the best products from each producer. Recently Toyota has gone in to crisis and they are unable to maintain their good quality feature in their products. All over the world Toyota found a defect in their cars and asked the customers to return them back to the company so that either the defect is eliminated or the care is replaced. This news became the reason for the crisis that Toyota is facing today. The financial and economic analysts have given several reasons for the failure of Toyota to sustain its position in the market. Many analysts have concluded that it is the strategic mismanagement that has resulted in facing difficulty to overcome the crisis. Further the analysts also their view that the organizational culture, control and structure are the main elements id the strategic management that have made it difficult for the Toyota to figure out solutions for the problems. The report will give in depth analysis to find out the solutions by developing an effective strategic management through organizational culture, control and structure how the organizations can bring improvement in their business performance.

Discussion

According to Jeff (2008) the organizations in order to meet their objectives develops strategic management that is a process which includes identification, evaluation and implementing strategies. In case of any problem or weakness identified in the business or business process it is the responsibility of the management to evaluate the whole problem and then design strategies accordingly so that a problem is resolved efficiently. Once the problem has been identified the process of strategic analysis starts which is to overview the problem from financial perspective, organizations perspective and by the perspective of the customers. This enables organization to understand the problem better and in an effective manner. During the strategic analysis the managers also try to develop different strategies or suggest which strategy needs to be replaced or changed. Simply Strategic analysis provides a mean for the evaluation of the organization's needs and strategies. The second process of the strategic management is the developing of a plan or framework under which the organization needs to evaluate their performance. The development of plan is a very important step in identifying the market positioning of the organization or its products. It enables the organization to find where the organization is now, where the organization wants to go and how will it go there. The formal planning method will also enable the organization to become stable and diversified in the market by having control and coordination within the employees and hierarchy from top to bottom. The other process of strategic management is strategic development that is done on the basis of the experience, knowledge, adjustment with the changes in the environment and trial and ...