STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

Introduction

According to Narayan (2000, pp.9) strategic management is the process that involves free flow of information within the organization and outside the organization so that decisions can be easily made. Information historical, current or forecasted is used by investors and the management of the organization in order to make different kinds of strategies. The strategies either made for the short run or for a longer period of time enable the firm to achieve a competitive position in the market. SMECO is called a 'maverick' organization and its owner Ricardo Smeler has been able to use different schools of strategies in order to make the firm successful. The report will provide and analysis whether the decision of the firm to adopt transformation strategy in order to grow and increase the profit was correct or not and how does the transformation strategy has an impact on other strategies. It will analyse the decision of SMECO to transform with the other companies operating in the market.

Discussion

The current market situation shows that owners of the business organizations believe that in order to make an organization successful it are important for the businesses to adopt to the changes. The owners of the organization are aware of the fact that now old strategies will not work and they will have to apply new strategies in order to respond to the changing environment. SMECO is a company originated from Brazil and has product variety of 2000. It is selling 2000 different products as an answer to the customer demands and needs that are changing day by day. The product range of SMECO includes manufacturing of industrial pumps, cooling towers and etc. The service sector of the firm provide environmental and internet services.

According to Walker (2004, pp.3) strategy is designing of the ways through which the firms can achieve competitive advantage or comparative advantage. The owners adapted different strategies in order to improve the performance and growth of the organization. The company used information technology in order to improve the information system it outsourced many of the management processes. The management was not in the favour of outsourcing but Ricardo felt that this transformation will help the firm in controlling the leakage of information that could affect the competitive advantage of the firm. He also believed that in order to achieve competitive advantage the firm needs to adopt innovation strategies because without innovation it is very difficult for the firm to sustain competitive advantage. The organization also had many satellite firms with which SEMCO had developed a very strong relationship in order to have an effective communication so that the competitive advantage can sustain over a very long time period.

Ricardo had always believed that in a rapidly changing world like today SMECO need to develop strategies and structure of the business that is flexible and creative. He made SMECO a firm that can adopt all the strategies and easily transform any creative idea into reality. The growing importance of the information technology products and ...