Strategic Analysis
Strategic analysis can be defined as the process of doing research concerning the organization’s operational business environment for purposes of formulating a strategy. The ability of an organization to understand the environment where it operates and its interaction with that particular environment improves the effectiveness and efficiency of such an organization by increasing its capacity of in resource deployment (Downey, p. 1-16). The most popular strategic analytical methods include; Porter’s five forces model analysis and SWOT analysis.
For example, one of the most strategies by Microsoft Corp’s strategy is its tie-up with major hardware manufacturers such as Samsung, Dell, and other leading computer retailers. Through this approach, the giant OS and software provider ensures that computer would be sold and distributed to end-users (customers) with already pre-installed software from Microsoft. Again the software provider has invested both in Nokia and Dell in order to tighten the relations with those equally prominent companies. Other strategies used by Microsoft include the acquisition of Skype, and the brand reputation & loyalty that it enjoys across the globe.
Autonomous Action
As a tool for strategic management leadership, autonomous actions have their bases on radical innovations, those grounded on substantially different technologies and organizational capabilities, diverging from the present organization’s strategic trajectory. Since they can occur throughout the company while not fitting within the current strategy in use, their structural context does not offer adequate tools in support of the radical innovation. However, the structural context only redefines the actions in manners that make them coherent with the present strategy in use (Chapman, p. 40-47). In order to make that happen, it has reduced the variations for creating consistency. Even though autonomous strategic actions occur anywhere within the organization without the awareness of the top management, given the small chances of their success, the majority of the efforts of radical innovation do become invalidated even before they attract the attention of top management.
Nonetheless, this does not imply that radical innovations should be concealed from the awareness of senior managers, as some of them would, in fact, become influential innovators. A case in point is the successful strategy by Intel Company in its transition from the memory manufacturing strategy to the microprocessor strategy. The strategic change in microprocessors never began with the top level management but rather, with the middle-class management. It was the middle managers who accepted and also rejected some orders, developed the manufacturing technology and designed the products. Coming the time when top management was ready for the company’s deliberate strategic change, these microprocessors were already forming a significant share of Intel’s sales.
Strategic Shift
Today presents a fast-moving and dynamic, complex global business environment. Therefore, the ability to become innovative, faster deployment in profitable terms than the rest of the competitors has become a requisite for both success and growth. Companies that are rooted on new products, the focus on innovative strategies have emerged as a fundamental aspect of their culture. In essence, these companies devise new strategies and shift from the existing plans in the adoption of newer ones which are expected to yield better success and economic stability.
For instance, Apple Inc demonstrated significant strategic shift with the launch of iPhone SE. The introduction of iPhone SE was a product with greatest and latest technology at the best and affordable price. This latest shift in the company’s strategy appears to be targeting first-time buyers of smartphones, especially in the emerging markets. The key to their shift in strategy can be attributed to the fact that the older model was going out of style.
Work Cited
Downey, Jim. "Strategic Analysis Tools Topic Gateway Series. No. 34." (2007): 1-16
Chapman, Christopher S. Controlling Strategy: Management, Accounting and Performance Measurement. Oxford University Press, (2015): 40-47
