kim woods only

Strategic Management Theory

American Institution

Name

Course

Introduction

Some of the major aims of Strategic Management are to give a clear understanding of the strategic processes, strategic analysis and strategic decisions in and between different organizations. The content of this module combines issues in strategic management, strategic management and its concepts and framework. Categorically, the themes addressed in the module include: strategic options, analysis of external and internal environment, organizational structure, technology and innovation, the role of culture, nonprofit and social enterprise, international strategies and strategic change among others. These areas together with the case studies used have provided useful information to me on various business related practices. They have restructured my reasoning as an upcoming entrepreneur by giving me many reasons why I should invest in business firms. The knowledge I have acquired has helped me appreciate the role of Strategic Management in developing future managers and entrepreneurs.

.Impact of gained knowledge

Learning strategic management theories have had a positive effect in my life. The detailed analysis of the Nestle Company as a case study has provided me with a lot of information about how a firm can be managed. The detailed analysis showed that various challenges and the success that the company has undergone through overtime. I was also able to understand how it is structured and the way of coordination of its activities.. Through this module, I was typically exposed to various kinds of information that I didn't possess before. The knowledge includes that of the different theories that are under the strategic management approach (Foss, 1996). It has exposed me to several methods such as the knowledge-based view that states that a firm can be compared to a bundle of knowledge. It goes on to further highlight some key features of a company that is at the center of the business. Knowledge is a precious and accurate resource. It increased my knowledge level by informing that in a firm, knowledge is very crucial and can give it a competitive advantage over other companies. Comment by shirlyna sim: Why sudden appear of nestle company ?

The Strategic Management Theory enabled me to learn about another sub theory under it, and that is the resource based theory. The theory emphasizes that a company is the group of various resources and capabilities. The skills consist of the physical, financial assets and the assets that cannot be touched. These resources can be used by any firm to get a strategic advantage when they are strategic and, rare. The company can be grouped to utilize maximally the resources. Strategic Management Theory has added my knowledge about the theory of agency that states that there is a contract between the managers and shareholders and their agents. The agreement between the different categories works well in a situation where they both have agreed to share a common interest and risks. Comment by shirlyna sim: Is this really found in my lecture notes ??

Finally, the network theory (Calderelli, 2007) has opened my eye in understanding that a firm is like a node in a chain of various players such as suppliers, rivals and customers. Not forgetting the other institutions that link up to a firm. It is indeed understandable that a company is a real center of chain connections. With the knowledge obtained from the module, I have built a lot of confidence in matters that relate to the firms. The experience gives me an opportunity to focus more on the development of businesses since I am aware of the several roles that the company plays in the economy. From strategic management theory, my confidence has been boosted, and I see more reasons to start and operate firms for the benefit of the society.

The confidence I have comes from the fact that I can understand the various players in the economy hence will be able to relate well to the actors (Fama & Jensen 1983). The knowledge that I have acquired from this course has also enabled me to categorically bed optimistic that if I start a firm, it will be able to fight and maneuver through the muddy waters that are there in different market competition. The theories have also made me develop a lot of self-esteem because I will be in a position to make valid and reasonable decisions that can lead to the sustainability and the running of firms. Comment by shirlyna sim: I don’t quite understand this part … What does it means ??

Another aspect that strengthen my self-esteem is the ability to solve the various problems that can affect a business in a professional; way. It has been made possible by the fact that I am in a position to analyze the strengths and weaknesses of the various firms. My By examination of the firms, it will help me give appropriate advice to individuals on how to handle the different challenges that is affecting their companies. The lesson has proved of much importance in my life. It is among the best thing that I have ever gained and dreamt of gaining. I will endeavor to apply the learned concepts in the most practical way.

Studying this course has had a positive impact in my life. The positive effects have indeed stimulated a positive transformation in my behavior. It has given me more reasons to pursue more knowledge in the subject. The knowledge that is very useful in my daily life. The lessons have changed my individual attitudes. As a person, my attitude towards the workers and co-workers will have a positive effect on the way. My positive attitude will reform and influence how people around me in the organization work for the common good of the company Comment by shirlyna sim: It seems to be weird .. What does this have to do with strategic management or the stuff I have learnt from this course ??

. The theories have taught me the need to respect all the stakeholders that are connected to the operation of the firm. These individuals contribute substantially to the lifespan and the sustainability of the firm in question. The course has also changed my way of making decisions. In making sound decisions, it will be vital for me to follow the complex mathematical and scientific rules that the strategic management course have taught me. In doing so, the decisions will always be valid and serve the good general interest of the firm. Right decisions usually lead to the success of a particular firm. Finally, the course has changed my approach and thinking about strong management since it inspires me always to be keen on the market forces so as to ensure the success of the firm in question. Comment by shirlyna sim: What does this means ??

Topics that seem relevant to me

From the course, it is tricky to determine the issues that were relevant to me. It is so because all the themes had some significant impact in my life. However, I can try to highlight some theories that were very much important in my life. They include the following:

The Value net. It was of particular interest to me since it is a schematic map that is made to act on behalf of all the players and the intermediaries. It identifies four main categories that control the direction that a firm takes.

They are the competitors, the customers, the compliments and the supplies. It is formed from the Porter’s Five Force model but insist that competition and cooperation can live together (co-opetition). Co- operation means coming together to build a bigger business pie,while at the same time competing so as to divide it up. Another fundamental theory is the theory of the real option. It acts as another argument that took most of my attention because it offered the following some interesting proposals. It is in the real sense impossible to predict the kind of technologies that will be of great value shortly. Comment by shirlyna sim: Is this in my lecture notes ?

The decision on the investment in the R & D that relate to those technologies is based on information that cannot be fully trusted. The theory can act as a guide to the companies that is making investments decisions yet they are not sure about the future. Researchers believe that firms that invest following this principal of uncertainty are taking options that are likely to be exercised or not. The decision depends on the new changes in information can lead to a resultant shift in the value of the opportunity. Comment by shirlyna sim: I dun understand this part Comment by shirlyna sim: What theory ?

Linkages to other subjects?

Strategic management links well with other areas such as in accounting and product marketing. We managed to prepare some of the major books of account using information from various companies. I also managed to predict a company’s future and provide various solutions that can be used to increase the earnings of the company based on the figures that we had prepared from its balance sheet. (Naumann & Morgenstern 1994). Comment by shirlyna sim: ???

Strategic management has a great connection with various methods of marketing different companies. From here we I learnt about how to develop entry strategies for different firms into different markets. We were also exposed to the various mistakes that firms commit as they get into new markets. Comment by shirlyna sim: Why use “we” ?? If changed this sentence to : As firms get into new markets, it will be exposed to various mistake.( but this sentence also sound weird,) Leo, you are a expert, I think u know how to change this sentence?

Comments about my learning experience

The lessons were always full of fun. The concepts looked real and easy to apply. The use of real life example made the experience to be readily understandable. What I can testify is that it was one of the best learning experiences I have had.

Applicability of the knowledge

Strategic management theories offer several approaches that can be adopted by different firms in their management. They provide a company with various approaches of measuring its success and determining the challenges that it is going through. The institutional theory enables different firms to appreciate the role of environment to their operation and survival. Comment by shirlyna sim: Is this covered in my lecture notes ? or what does it mean ?

It also provides the firms with advice on technological investments through application of real option. In doing so, the firms will be able to avoid investing in inappropriate technologies. The companies can get an understanding of how to deal with their various stakeholders to ensure success of the business.

. Learning experience and my contribution to teaching and the learning of my classmates and teammates.

The learning experience involved the use of various teammates; I usually used to read beyond and concentrate much during the lectures to learn from the lectures. Finally, doing research on the analysis on the practicability of the information obtained. Group discussions were also used by me in the identification and solving of various problems that we were going through during the learning process. The external analysis that involved visiting various companies and trying to synthesize the applicability of the learned concepts. Comment by shirlyna sim: This sound abit werid .. I think need to paraphrase. Comment by shirlyna sim: This sentence also abit werid

Where is the conclusion ??

References

Foss, N. J. (1996) More Critical Comments on Knowledge-Based Theories of the Firm.  Organization Science

Fama, E. & Jensen, M. (1983) Separation of Ownership and Control. Journal of Law and Economics,

Neumann, J.& Morgenstern, O.(1944.) Theory of Games and Economic Behavior, Princeton University Press.

Caldarelli, G (2007) "Scale-Free Networks", Oxford University Press