Strategic thought and its practice Essay Example | Topics and Well Written Essays - 2000 words

Strategic thought and its practice - Essay Example Examples of this include a shift from retail trading into chain store, from single product into diversification or from supplier to manufacturer. A new strategic thought could also be a response to the changes or expansion in the market of the given business. Where there is change or expansion of market, the business should ensure that its new strategy that will enable it respond to the demands, needs and preferences of this market. Changes within an organization not only revolve around its business strategies but also its governance. Changes taking place within the leadership or governance of an organization either make it more or less effective in achieving its business goals and implementing its business strategies. Young (2010, p154) concurs with this by stating that the emergent patterns of governance affect the effectiveness of a business regime and this is important for solving problems in its business environment. This implies that if the changes in the organization are makin g its more effective in implementing business strategies, the leaders of the organization are in a position to develop complex business strategies meant to achieve a higher competitive advantage for the business. For example, such a business could formulate a strategy for penetrating into international markets, expanding the product base for its local markets or formulate new and more productive work strategies. Industry conditions Industry conditions describe the nature of the business environment an organization operates in. It includes the characteristics of its customers, number of competitors and power of the organization verses that of its competitors. Ohmae (1982, pp 47)... The researcher states that the success of an organization depends on the level upon which it achieves its main goal and various sub-goals. This requires that an organization formulate strategies for attaining its goal and sub-goals. Strategy simply put, refers to an action plan specifically designed to achieve a certain goal. Petraf explains that a strategy provides a comprehensive way of pursuing economic ends by providing a long-term scope and direction through which an organization configures its scarce resources in the challenging environment. This is to say that a strategy sets a direction for focusing efforts. This way, a strategy enables an organization to achieve a business advantage by meeting the needs of its market or various markets and to fulfil the expectations of stakeholders. It should be noted that an organisation cannot depend on one strategy all its lifetime. Rather, there are conditions that stimulate or necessitate change in strategic thought over time and the ne ed for strategy implementation in order to achieve the new goals of the business, and to facilitate the realisation of the organization’s mission. This means that conditions of strategic thought and practice are of great interest to the management of every organization, state, and group of workers. Strategic thought and its practice is of great importance for any business that is aiming to thrive and profit from it its current and diverse socio, economic and political environments.