Abstract
The paper intends to present a detailed evaluation of traditional strategic thinking models and extended strategic thinking models. The paper also presents a comparative analysis of both models and further discusses how Fluor is using strategic thinking models and developing strategic advantages over its competitors. Strategic or competitive advantages help Fluor in differentiating its products and services from the competitors in same industry. The paper will provide detailed description of use of extended strategic thinking models to fully utilize resources and assets.
Fluor Conventional Strategic Planning and Strategic Intent Thinking
Thesis Statement: this paper discusses analyzing limitations associated with traditional strategic thinking models and also provides detailed comparison and evaluation of traditional and extended strategic thinking models. The paper further elaborates Flour strategic thinking to achieve competitive advantages and benefits.
Introduction
Companies are operating in intense competition and largely depend upon right strategic choice. Globalization has given likelihood to the companies to tap immense opportunities existing in international markets. Over the period of time we can observe a shift in strategic approach of the organizations. Accumulated knowledge, learning, increasing competition force companies to take more refine and accurate strategic thinking approach. Strategic choices made by organizations impact their performance; a wrong choice made by organization can lead towards failure of product. It is imperative for organizations to continuously refine their strategic thinking processes to remain in competition.
Description of Theories/Core Concepts
Strategic thinking and decision making can be divided in four parts: part one focused on identification of opportunities, part two focused on evaluation of opportunities, part three is about making right decision and part four is about implementation. There are various tradition strategic models are available to make right decision but they have certain limitations. Traditional models are not able to provide strategic choices that will develop competitive advantages. They are unable to response to rapidly changing economic environment, uncertainties along with customer’s increasing expectations and developing unique advantages over rivals.
Extended strategic thinking models have incorporated some additional attributes to deal with limitations of traditional models. There are various factors that changed strategic thinking process over the time. Advance technology, more experienced manpower, learning from past, full utilization of available resources in effective manner now play important role in making right strategic decision. The companies are focusing on making strategic choices that are viable from strategic intent and planning point of view (Robert, 2000).
Both traditional as well as extended models are mainly focused on above mentioned four parts. the difference is in approach. The strategic thinking process can be described in following manner:
Various attributes are added in extended strategic thinking models. In traditional models options were available in to economic, policies and marketing. Now a detailed evaluation of all resources including assets, products, marketing and services took place. The approach is changed from taking strategic decisions to developing strategic advantages to win the race (Porter, 1985).
Analysis/Explanation/Discussion
In present competitive global market all companies want to develop some unique attributes or features to gain advantage over its competitors. Unique attributes help them in differentiating their product or services from other option available in the market. These unique competitive advantages can not imitate by competitors. In global scenario it very much required to differentiate your offerings from your competitors. Customers love to buy those product or services that are not offered anywhere else (Egan, 1995).
Fluor differentiates its offering by providing innovative solutions to customers. To understand their customer requirements they evaluate value chain of their customers. Value chain analysis helps them in identifying best possible solutions to their problems. Company also uses latest technology available and experienced human resources. Fluor also serves to urgent needs of customers in very less time from its local offices, set up across the globe. Company also made some strategic joint ventures and acquisitions to acquire special knowledge and skills.
Conclusion
Extending the Conversation
How company can gain maximum benefits by using combination of strategic advantages and comparative advantages?
How company can develop strategic advantages and what are their benefits?
References
Egan, C. (1995). Creating Organizational Advantage. Oxford: Butterworth Heinemann.
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Robert. (2000). The Power Of Strategic Thinking. New York: McGraw-Hill Education.
