Benefits of Strategic Management Essays

ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to

Frederick W. Taylor worked across the United States in the first 15 years of the 20th century looking to solve production problems (Owens & Valesky, 2011, p. 67). He was an engineer in steel manufacturing and studied developed what what is now known as the four principles of scientific management. These principles spell out what both managers and workers are to do. Two important principles include having the management set goals, plan, and supervise workers, and the workers perform the work, and that organizations should establish the standard where management “sets the objectives and the workers cooperate in achieving them” (p. 67). Taylor’s principles are still used today by some organizational leaders who fight the movement that management should work as a team with the workers (pp. 67-68). Taylor’s principles have led to things such as strict discipline, the idea that workers must focus on their task with little or no interaction with colleagues, and the idea of incentive

In the late 19th century, when a period of social activism and economic reform, historically known as the Progressive Era (Maligned), coincided with the capitalistic expansion at an unprecedented rate, a series of ideas on eradicating systematic soldiering and increasing the overall productivity quiet sprouted at steel industry, later growing into the theories of scientific management in the next two decades. Scientific management, also known as Taylorism, was one of the earliest attempts to apply scientific methods to optimize of management and achieve economic efficiency. Its founder, Frederick Winslow Taylor, was also the prominent figure in the Efficiency Movement in the U.S. The principles of scientific management have shaped American industry and on management science in three major ways since the 1880s. On the corporate level, scientific management had streamlined manufacturing process; on the individual level, it instilled many fundamental management ideas into the American industry; as the leading thought during the Progressive Era, it laid the foundation for various disciplines, many of which serve as guidelines even for modern-day industries.

Chandler (1977) believes strategy is about using the necessary recourses so the organizations are able to carry out their long-term goals and aims. Which relates to Johnson (1987, pp. 4-5) who states, “Strategic decisions occur at many levels of managerial activity and will be concerned with the long-term direction”.

The year 1911 saw Frederick Winslow Taylor publish a book titled ‘The principles of scientific management’ in which he aimed to prove that the scientific method could be used in producing profits for an organization through the improvement of an employee’s efficiency. During that decade, management practice was focused on initiative and incentives which gave autonomy to the workman. He thus argued that one half of the problem was up to management, and both the worker and manager needed to cooperate in order to produce the greatest prosperity.

(6) What is the five-year forecast for global annual growth in the athletic footwear industry? In which regions of the world is growth expected to be highest?

Scientific Management Theory by Frederick W. Taylor – Throughout the industrial world employees are the large part of the organisation and Fundamental interests of employees are necessarily aggressive. So as a manager it is necessary to arrange mutual relations with employees so their interests become identical. In case of any single individual the greatest prosperity can exist only when that individual has reached his highest state of efficiency and that is, when he is turning out his largest daily output (Frederick Winslow Taylor, 2007).

Managers throughout history have been interested in studying ways to increase productivity. For example, Frederick Taylor began the movement of scientific management in the 1880’s. Scientific management looked to improve productivity through means of scientific analysis of worker’s tasks and work processes rather than the old “rule of thumb” (Taylor, 1914). Taylor believed that he could maximize worker efficiency and productivity through focusing on workers specific hand motions and patterns. After this period, beginning in about the 1930’s, managers looked to take productivity to yet another level by studying worker physiology and motivation. This new movement came to be known as the human relations movement.

Wegmans strategy is to focus on people, community. According to Wendy Webster, general manager of Wegmans’ Columbia store, “taking care of your people and your community are the key elements of Wegman’s approach to doing business” ("Howard County Chamber Of Commerce", 2012). Wegmans believes that good employees working together to reach a common goal can accomplish anything that they set out to do. The goal of Wegmans is to be the very best at serving the needs of their customers. The company also believes that the way to achieve that goal is to fulfill the needs of our own people, or employees. Wegmans

In 1912, Frederick W. Taylor, an American mechanical engineer, viewed organizations as very mechanical with measurable functions and he applied a scientific approach to studying efficiency and productivity in the work process. In his published work, “Scientific Management”, he

The strategic management process is sometimes improperly perceived as a unidirectional flow of objectives, strategies and decision parameters from management to the employees. In fact, the process should be highly interactive since it is designed to stimulate input from creative, skilled and knowledgeable people working at every level of the business.

Able Corporation is a successful US manufacturing company located in Tennessee that builds power tools, lawn mowers, lawn furniture, microwaves, and ranges. All products are manufactured locally and sold through large retailers like Sears, Best Buy, and Wal-Mart. They have sale papers inserted in every Wednesday and Sunday paper. Although they have a thriving business in the US and Canada, Able is trying to break into the global marketplace.

All the above mentioned descriptions emphasize on basic idea from where we can extract the result Leadership is the art of getting things done by inspiration, influence or motivating its followers while Management mainly depends on the analysis and ground realities.

‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully. Strategy formation may take various forms such as implicit, explicit or emergent. Implicit strategy is a strategy formed by intuitions of an individual. As per implicit strategists, strategic management is about reading the environment

Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. (2001). Strategic Management: Competitiveness and Globalization, 4th edition. Australia: South-Western College Publishing