Discussion Post 1
The first chapter of the book “Strategic Management: Creating Competitive Advantages” explains the definition of strategic management as well as four key elements of it. It also explains the importance of social and environmental sustainability and how it can improve a corporation’s innovation strategy. According to the book, there are two perspectives of leadership: external control perspective, and romantic view. The difference is that the organization’s success is determined based of different forces. External control perspective is determined on external forces such as economic downturns while on the other hand romantic view has the leader that is the key force to the organization, for example Steve Jobs. The first stage of strategic management process is analysis in which are determined strategic goals, mission, vision, strategic objectives, internal and external environment. The next stage is making decisions such as what industries should the company target or how to compete with other organization. The last stage is actions and implementations of strategy where the necessary resources are allocated as well as brining designed strategies to reality.
Effective and appropriate corporate governance is the requirement of strategic management and it is the relationship between various participants in determining the direction. Shareholders, management, and the board of directors (BOD) are the primary participants. Board of directors are the elected representatives of the owners and they ensure to create an effective and engaged board, address shareholder activism, provide proper managerial rewards, and establish external control. Stakeholder groups are employees, suppliers, creditors, customers, government and community. They have two views which are zero sum and symbiosis. Zero sum is the view of stakeholder management where stakeholders compete for attention and resources. On the other side, symbiosis is where stakeholders are dependent upon each other for success and well being.
The example of employee empowerment within an organization that I came across was the Walt Disney Company. This company is largest and most successful media and entertainment corporations in the world. Disney is famous for hiring the best in the field and letting them do their best. But sometimes, even in other companies, managers hire a great person that stands out and sometimes it results in poor performance in which case the company suffers. Also, many companies nowadays talk about empowering their employees when in fact many employees feel very un-empowered. One of the main objectives at Disney is to exceed expectations as Walt inspired and empowered people to give more than what is asked from them. Even today, the employees at Disney always do what is necessary to meet the expectations of guests. For example, if a child buys an ice cream and drops it a few seconds later, the employee is empowered to give another ice cream to the child without a charge. In this case, it employee empowerment doesn’t mean that they should give free away things for free, but it simply means that the company allows employees to take care of their customers such as the company takes care of their employees. That’s why there is a positive outcome for both customers and employees- customers are happy and keep coming back while employees are happy with their workplace which attract more people to apply. (Trahan, 2008)
Dess, G., McNamara, G., Eisner, A., & Lee, S. H. (2021). Strategic Management: Creating Competitive Advantages (10th edition). McGraw-Hill Higher Education
Trahan, K. (2008, October 7). Business lessons from Walt Disney. Retrieved from https://www.reliableplant.com/Read/13804/business-lessons-from-walt-disney