The great success of Tesco provides many valuable lessons to scholars and practitioners. One area deserve serious attentions is about the successful strategic development of Tesco in the recent years, that enable the company to grow fast — achieving a track records of continuously growth in revenue and earnings despite financial crises period from year to around the world. Indeed, any investor that had invested in Tesco will be rewarded significantly.
It concludes with a review of the process of strategy formulation. A strategy is a declaration of intent: Strategy is the means to create value.
Agood strategy is one that works, one that guides purposeful action to deliver the required result.
Strategy has been defined in other ways by the many writers on this subject, for example: Strategy is the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.
Chandler, Strategy is a set of fundamental or critical choices about the ends and means of a business. Child, Strategy is concerned with the long-term direction and scope of an organization. It is also crucially concerned with how the organization positions itself with regard to the environment and in particular to its competitors… It is concerned with establishing competitive advantage, ideally sustainable over time, not by technical manoeuvring, but by taking an overall long-term perspective.
Faulkner and Johnson, Strategy is the direction and scope of an organization over the longer term ideally, which matches its resources to its changing environment, and in particular, to its markets, customers and clients to meet stakeholder expectations.
Johnson and Scholes, Business strategy is concerned with the match between the Strategic management johnson scholes capabilities of the company and its external environment.
Kay, A strategy, whether it is an HR strategy or any other kind of management strategy, must have two key elements: Richardson and Thompson, The emphasis in strategy is on focused actions that differentiate the firm from its competitors. Competitive advantage The concept of competitive advantage was formulated by Michael Porter Competitive advantage, Porter asserts, arises out of a firm creating value for its customers.
To achieve it, firms select markets in which they can excel and present a moving target to their competitors by continually improving their position.
Porter emphasized the importance of: He then developed his well-known framework of three generic strategies that organizations can use to gain competitive advantage. A distinction has been made by Barney between the competitive advantage that a firm presently enjoys but others will be able to copy, and sustained competitive advantage, which competitors cannot imitate.
This leads to the important concept of distinctive capabilities. Distinctive capabilities As Kay comments: Kay extends this definition by emphasizing that there is a difference between distinctive capabilities and reproducible capabilities. Distinctive capabilities are those characteristics that cannot be replicated by competitors, or can only be imitated with great difficulty.
Reproducible capabilities are those that can be bought or created by any company with reasonable management skills, diligence and financial resources. Most technical capabilities are reproducible. Distinctive capabilities or core competences describe what the organization is specially or uniquely capable of doing.
They are what the company does particularly well in comparison with its competitors. Key capabilities can exist in such areas as technology, innovation, marketing, delivering quality, and making good use of human and financial resources. If a company is aware of what its distinctive capabilities are, it can concentrate on using and developing them without diverting effort into less-rewarding activities.
It can be argued that the most distinctive capability of all is that represented by the knowledge, skills, expertise and commitment of the employees of the organization. This belief provides the basis for the philosophy of strategic human resource management.
Four criteria have been proposed by Barney for deciding whether a resource can be regarded as a distinctive capability or competency: The concept of distinctive capability forms the foundation of the resourcebased approach to strategy as described later in this chapter.
Strategic fit The concept of strategic fit states that to maximize competitive advantage a firm must match its capabilities and resources to the opportunities available in the external environment. As Hofer and Schendel conclude: The effective development and implementation of strategy depends on the strategic capability of the organization, which will include the ability not only to formulate strategic goals but also to develop and implement strategic plans through the processes of strategic management and strategic planning.In every organization, recruitment and selection of qualified candidates is crucial to efficient and strategic Human Resource management.
As. Key Points. Used in this way, Johnson and Scholes' Cultural Web helps you analyze your current culture, and identify what needs to stay, go or be added to if you're to achieve your strategic goals.
This article provides a brief overview of three models which can assist accountants, not only in the determination of business strategy, but also in the appraisal of business performance. MAPPING AND RE-MAPPING ORGANISATIONAL CULTURE: A LOCAL GOVERNMENT EXAMPLE ∗ by Gerry Johnson Introduction There is a tendency for organisations' strategies to persist because they are configured within that.
Strategic Planning is among the most widely used and perhaps among the most abused management terminology in modern day business.
If one were to ask the CEO of any large organization why Strategic Planning is needed, the responses would be varied. Strategic Planning Should Not Be Underestimated - There is also a need for the organization to look for internal leadership, and ensure that the organization focuses on human and process management.