- Business and Employment»
- Business Management & Leadership
Strategic Management: The Organizational Review of Market Forces
The importance of strategic management has something to do with the turbulent environment affecting the market demand of the organization
It ensures the organizational review of the strategic directions on the basis of the competitive and turbulent environment and market demands. I
The turbulent environment presents the unstable condition in the business and enterprise in the corporate world that may have the tendency of the organization not to survive unless it promotes the competitive advantage with the other competitors. These are the reasons that may affect the competitive advantage;
1. The competitors are proactive entrants with aggressive marketing promotion program that the clients and customers are very satisfied with the products and services.
2. The competitors have sound financial management with capital-intensive market strategy that can afford to innovate and improve the systems of production.
3. The economic variables such as global recession, stock exchange fraud and downturn points in the market, bankruptcy of corporations and financial institutions, high unemployment rate and other economic intervening factors that may affect the purchasing power and the market demand of the region
4. The government problems of political corruptions, instability of political parties, civil disorders such as revolution, civil wars and insurgency , protective regulatory measures of the local enterprise, red tape and economic sabotage may affect sustainability of the business including the competitors in the market.
5. The presence of advance innovative technology that may require the organization to follow the fast phase of technology transition that needs to acquire new technologies for the facilities and equipment to produce advance and quality products and services in the global market.
6. The socio-cultural system such fads, craze and fashion of the young generation, gradual shift of behavioral taste of the old generation to respond the changing environment of the societal life from these emerging technologies in the global market.
These are the turbulent environmental variables in considering the organizational review to survive the complex problems in creating business, enterprise with the main goal and interest to earn a huge profit for the organization. Primarily, the organizational review has to focus now the emerging technological needs of the organization to enhance the market competitiveness. It is now very critical in the external environment variables such as the e-commerce, informational technologies and emerging business technologies. It should include the political and regulatory measures to comply the business permits , quality standards and safety measures ,and environmental compliance to ensure to the stability of the organization. However, the organizational review must also focus the socio-cultural needs of the customers and clients to capture the market demand of the region.