There are many strategies employees can engage in to perform at optimum levels in the workplace. For instance, some top performers make a concerted effort to comprehend the strategic decisions their companies make as a tactic to outperform others. In fact, in her book, Strategic Management in Action, Mary Coulter (2010) explains that corporate leaders specifically implement strategic management plans as a conscious maneuver to motivate top performers. This is done to help the firm achieve greater outcomes (Coulter, 2010). Furthermore, executives have come to embrace strategic planning as an ongoing process, which was at one time, only an occasional event.
This shift in how a firm functions, illustrates the complexities involved in the field of strategic organizational management. Because strategies were originally developed by leaders as a military tactic to attain victory against an opponent, they were set up as objectives to outmaneuver and defeat an enemy. In this context, developing strategies were identified as a planned event with certain goals expected as the outcome. However, in today’s corporate climate, strategies are developed, adopted, and implemented on a more frequent basis so that leaders can keep up with competitors, changing trends, and the market fluctuations in their industries. In short, a company’s survival today is contingent on their ability to observe, assess, and evolve their strategies to remain profitable and competitive.
As many corporate executives contend, managing a business in the modern global marketplace is more complicated because of these constant changes that occur. In their book, The External Environment of Business: Political, Economic, Social, and Regulatory, Pagano and Verdin (1997) assert that even the most effective managers run into substantial challenges due to the wide variety of components that are beyond their control. For example, some of the significant elements that tend to affect the external environment of a business are the regulatory, technological, economic, social, and political factors. These components have an effect on products produced, as well as their costs and profit margins. In addition, the oil industry, automation, deregulation, environmental protection policies, equal opportunity legislation and changes in social mores have also influenced the external environment with leaders working diligently to keep up (Pagano & Verdin, 1997). Not only have innovative technological advances like tablets and smartphones changed the kinds of products being manufactured, but these inventive devices have also helped shape the way business is conducted.
In the ebook, The Strategy Behind an External Analysis (2014), my research work revealed that strategic management plans which include an environmental scan, is an effective tactic that puts managers in top positions. This is because they devise plans that support the company’s full sense of commitments, decisions, and actions. In fact, tactical management planning has become an instrumental component for running a business because it is an effective way to help a company achieve strategic competitiveness, which in turn can earn them higher than normal returns (Berry, 2014).
To conduct a thorough external analysis, however, there are specific elements that must be identified. In fact, Coulter suggests (2010) that many companies will use Michael Porter’s Five Force Model to develop their strategic plans which include the following components as essential for the environmental analysis process: (1) the economic data that identifies current trends and the overall economy of the industry; (2) demographics that determine population size and characteristics; (3) the cultural attitudes that affect values and behavior; (4) the legal aspects that determine regulations, policies, political influences; and (5) the technological aspect which identifies the scientific innovations (Coulter, 2010). By incorporating these five components to help provide a thorough analysis, managers in the developmental stages of their strategic planning, are in a better position to help their firms achieve higher performance outcomes.
Leaders establish the vision for the future and set the strategy for getting there. – John P. Kotter
Congratulations to all the winners of our audiobook giveaway and a special thanks to everyone that participated last month in Media Magic’s first Thanks Giveaway Sweepstakes. We really appreciate your interest and support in our accelerated learning tools. For more information on Media Magic’s digital publications, or to purchase any of our Business Life titles, please visit amazon.com’s new feature called “Author Central” to view:
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Berry, M. A. (2014). Organizational management: The strategy behind an external analysis. Las Vegas: Kindle Direct Publishing.
Coulter, M. (2010). Strategic management in action (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
Pagano, A., & Verdin, J. (1997). The external environment of business: Political, economic, social and regulatory (2nd ed.). Chicago, IL: Stipes Pub. LLC.