Management Can Be Defined As the Formulation and Implementation

Question: How management can be defined as the formulation and implementation? Answer: Introduction Strategic management can be defined as the formulation and implementation of the main goals and initiatives taken by the senior management of the company. Strategic management is important as it provides several advantages to the firm. The companies can assess the internal and external environment so that they can take care of the adverse situations and turn them into probable opportunities (Qian and Xing 2016). The aim of this report is to assess the two videos- What is Strategy and Business Model Innovation. Strategic management also adds to the reputation of the organization because of consistency that results from organizations success (Ackermann and Eden 2014). Strategy David Kryscynski helps everyone look at the basics of strategic management. According to Kryscynski (2015), strategy and tactic are different from one another. The terms are used frequently, where tactics mean the actions to reach a particular point and strategy is defined is a game plan that helps an organization achieve its mission. Kryscynski (2015) explains how Sun Tzu, a military strategist was recognized for his Art of War. He believed that strategy without tactics is the slowest route to victory (Jackson 2014). Therefore, there are four main questions that can be answered for applying the concepts of competitive advantage. Firstly, the firms need to figure out where they should compete. Secondly, the firms must assess what unique value they bring in. Thirdly, the firm need to assess the resources and capabilities should be utilized. Lastly, the firms need to determine ways to sustain their unique value. Kryscynski (2015) takes IKEA as an example where the choice of markets is offered to the customers. Kryscynski (2015) mentions about the strategies suggested by Henry Mintzberg: Intended emergent and realized strategy. Therefore, strategy is considered as something that is actually done and not just intend. Timing of implementing the strategy is important, as it can be a dud if staging time fails. For instance, the concepts and strategies can be applied to Starbucks. Starbucks is an American coffee company that offers the highest coffee quality (Starbucks.com 2017). Starbucks applies the concepts of competitive advantage. Answering the first key question, Starbucks determines the markets in which it needs to compete (Qian and Xing 2016). As it is a premium brand coffee chain, the brand continues to stay active in the urban geographical markets that have high demand. Secondly, Starbucks applies the concept of competitive advantage by offering unique value. Starbucks not just offers the best coffee to its customers, but they enhance customer experience by offering free internet, offers and promotions (Hinterhuber and Liozu 2014). Thirdly, Starbucks utilize several resources and capabilities such as venues, coffee machine, nice furniture for seating, decor and music (Qian and Xing 2016). Lastly, Starbucks focuses on understanding the factors that helps them to continue to win. St arbucks maintains outright prices and offers sustainability in every aspect that helps them sustain value. Starbucks offers recyclable cups and other corporate responsibility strategies to sustain its value in the marketplace (West, Ford and Ibrahim 2015). Business Model Innovation According to Youtube (2013), innovation comprises of rethinking the business model. Innovation increases customer value or lowers the cost thereby increasing competitive advantage. The author points put the three common misconceptions about innovation- firstly, innovation stems from ideas nobody has had before; secondly, innovation require big resources; lastly, innovation is always based on fascinating technologies. Successful innovators learn to recombine factors so that it can lead to innovation (Youtube 2013). A successful business model has four main aspects: Who is your target customer? What do you offer them? How do you create value proposition? How do you generate revenue? A successful innovator needs to change at least two of the above aspects (Youtube 2013). Innovation is considered as creative imitation and revolution of the industry. Innovation is not necessarily about new technology (Qian and Xing 2016). A firm can follow four main steps for innovation- initiation, ideat ion, integration and implementation (Youtube 2013). Firstly, in initiation, the current business scenario is analysed where the customers are targeted. Secondly, in ideation new models are developed and lessons are learned from others. Thirdly, in integration, the firms check consistency of business model. Lastly, the innovation model is implemented by taking care of the organizational behaviour, clear communication, key performance indicators and implementing only one business model at a time (Youtube 2013). For instance, Google, an American technology company is one of the greatest and profitable companies across the world. The organizational success has stemmed from innovation and extraordinary management practices. The group of employees is small but it brings people together for innovation. Google has innovated Google Cafes that encourage interactions between employees and other teams (Hinterhuber and Liozu 2014). Google has innovated Google Moderator that lets anyone ask question and create a new series for ideas. Google can further benefit from the concepts stated above. The current scenario can be analysed by the firm. The target market can be chosen as the advertiser so that they can put up their ads and attract customers (Hinterhuber and Liozu 2014). The tools like search engine optimization and search engine marketing can help the advertisers attract a wider base of customers. Therefore, the company can launch new products or tools by enhancing positive behaviour among its empl oyees. Google manages innovation strategy in a rapidly changing environment. They can challenge the conventional management thinking and lead to innovations (Gamble, Peteraf and Thompson 2015). Conclusion Conclusively, strategic management is important as it provides several advantages to the firm. Starbucks applies the concepts of competitive advantage. As it is a premium brand coffee chain, the brand continues to stay active in the urban geographical markets that have high demand. Starbucks maintains outright prices and offers sustainability in every aspect that helps them sustain value. Successful innovators learn to recombine factors so that it can lead to innovation. Google has innovated Google Cafes that encourage interactions between employees and other teams. Google has innovated Google Cafes that encourage interactions between employees and other teams. References Ackermann, F. and Eden, C., 2014.Making strategy. 1st ed. London: SAGE. Gamble, J., Peteraf, M. and Thompson, A., 2015.Essentials of strategic management. 1st ed. New York, NY: McGraw-Hill Education. Hinterhuber, A. and Liozu, S., 2014. Is innovation in pricing your next source of competitive advantage?.Business Horizons, 57(3), pp.413-423. Jackson, E., 2014.Sun Tzu's 31 Best Pieces Of Leadership Advice. [online] Forbes.com. Available at: https://www.forbes.com/sites/ericjackson/2014/05/23/sun-tzus-33-best-pieces-of-leadership-advice/#73a71695e5ef [Accessed 29 Apr. 2017]. Kryscynski, D., 2015.What is Strategy?. [online] YouTube. Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed 29 Apr. 2017]. Starbucks.com, 2017.Company Information. [online] Starbucks Coffee Company. Available at: https://www.starbucks.com/about-us/company-information [Accessed 29 Apr. 2017]. West, D., Ford, J. and Ibrahim, E., 2015.Strategic marketing. 1st ed. Oxford: Oxford University Press. Youtube, 2013.Business Model Innovation. [online] YouTube. Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed 29 Apr. 2017].