Strategic Management

Strategic Management

[University Name]

Introduction

The term Strategic Management is a combination or a process by any organization which analyze, takes the decision and then takes action.

The strategic management process is consisted of two components. The first component is where the organization analyze the goals, objectives, vision and mission of the company. At the same time the company is analyzing the internal and external environment also. The next phase is when the top management has to take decision after every aspect of business has been analyzed. Once the decision has been taken and action phase come in which all the strategies and paper work is brought in to action. As far the importance of corporate strategy is concerned, strategy plays a vital role in company's success or failure. Strategy is linked with performance because if proper strategies are designed and implemented in proper way the result will come out in form of good performance or in other case the result will be poor performance (www.oeconomica.uab.ro). The managers of the organization needs to have a sharp eye on the industry. The managers and the top management need to clearly do SWOT analysis and PEST analysis to make sure they achieve their goals.

Discussion

DaimlerChrysler is one of the biggest business companies in Germany. If we analyze the reasons of corporate strategy failure of DaimlerChrysler, it all started from September 1997 in Denmark where a panel of experts of international motoring was set to award the title of Car of the year. This is an international award annually given by European Motoring Press. The test drive of the small Mercedes which was a new addition to the family of Mercedes cars failed to put any impact. This was one of the most initial mistakes made because the technical lacking or testing of the car before launching the new model was not done properly. Otherwise it is impossible that Daimler-Benz that the car didn't passed the test and was launched for the contest. The journalists in Denmark started raising voices.

The next mistake made was in Tokyo in an International Motor Show. The objective of the company was to introduce the new model in the market. The introduction of the new model was hot topic and was of importance for international media. A test was conducted in Sweden to see how the new model cope up with the Swedish roads. The test also included test of swerving around obstacles. A motor journalist named Robert Collin and his 3 colleagues were minor injured from test in Denmark. The accident was highlighted in the German financial paper. Soon the matter was spread all over the media and news agencies just like fire. Harrison here points out on the importance of forming a proper press team of organization. The press team would communicate in most appropriate way updating that what has happened and what does the organization is doing in reply to it (Harrison, 1995, p. 93). Here Daimler-Benz did another mistake in their strategy from my perspective. Soon after the ...