MARKETING

Strategic Management



1. Introduction2

2. Discussion3

2.1 Strategic Management Process4

2.2 Strategic Formulation4

2.3 Strategic Implementation6

2.4 Porter's Five Forces Model7

2.4.1 Threat of New Entrants7

2.4.2 Threat of Substitutes8

2.4.3 Bargaining Power of Suppliers8

2.4.4 Bargaining Power of Consumers9

2.4.5 Rivalry among Existing Companies9

2.5 Competitive Advantage10

2.5.1 Cost Leadership10

2.5.2 Differentiation Strategy11

2.5.3 Focus Strategy11

3. Conclusion12

Strategic Management

Introduction

Strategic planning has served for many years as a guide and a valid guidance for compliance with organizational objectives within organizations, but the strategic planning process accepted by most general managers was less popular among middle managers and other employees, who only saw him as another exercise in filling out forms (Freeman, 2010, pp. 45-55). This perception has directly influenced results from strategic planning programs giving rise to participation for both principals and other employees of an emphasis on the implementation of strategic plans. Thus the need is to successfully use strategic management as a continuous process that supports the objectives and goals as well as the long-term plots within companies (Hill, & Jones, 2007, pp. 65-69).

On the other hand, and provided there is a vital aspect gluing mended to senior management, managers try to establish conditions to guide their companies in a way to achieve growth. According to Blasquez, "Business Growth is a process of adapt to the changes required by the environment or promoted by the manager's entrepreneurial spirit", for this author, director of the company can establish the organizational changes necessary for that that the dynamics oriented toward growth.

The aim of this paper is to present some theoretical aspects related in the case of Johnson & Johnson with the strategic direction, the concept and processes that go forth in the main issues related to the growing strategic concepts and perspectives, and finally establishes a reflection primary with respect to the relationship that can be reached in the field of business between the strategic direction and business growth.

2. Discussion

Strategic planning and strategic management are approaches that differ; Betancourt (2005) argues that strategic management is a concept overall covering the first. Ansoff states that an outcome of final strategic direction is the potential for future achievement objectives of the organization. The scope of strategic direction is greater than any of the other areas of operational management, as per the suggestions of Johnson and Scholes (2001). According to their views on strategic direction, these facts cannot be denied in contrast with the important areas of operational management. Some scholars suggest that the main purpose of the strategic direction is to formulate the strategy and action plans of the business, trying to anticipate foreseeable future events. Many prominent authors among others discuss the importance the use of the strategy as a management tool in the ever-changing world. Strategic planning is done long term and focuses on the organization as a whole, several authors among others, have emphasized the importance of strategic planning from the position handles an administrative function as an activity that affects all other functions and the organization as a whole.

Goodstein, Nolan and Pfeiffer citing Peters, expressed that "Strategic management ...