Thursday, November 26, 2009

The strategic management process and tools

The strategic management process has turn into more complicated and expensive. Rising of competitiveness in the market and many combine of dimension is growing with resolution facing manager. For this reason, the support strategic management with a large variety of tools and techniques has been improved (Barnat, 2005). According to Buhalis (2003), these tools can divided into four basic critical stage analysis questions are where are we now? Where do we want to go? How do we get there? And how do we know we got there?.
  • Where are we now? This analysis is telling the understanding of company target and goal that they wanted to process. The technique of “where are we now?” is for the organization generates specific of profitable satisfy customer needs which defines to use with the environment of internal and external situation. It is including financial, market environment and organization’ competitive. The SWOT analysis is also often guided as a main part of a situation analysis. There is referred to strength, weaknesses for company internal and company external for opportunities, and threats. It can lead to solve the solution problem. 
  • Where do we want to go?It is showing that the company mission presently going, Buhalis (2003). The organization is performing the long term development for “against competitors”.
  • How do we get there? There is the way of company have to realize which environment they are suitable to move on. So, they have to focus on the organization internal and external resources to achieve the company’s objective. By making flexible and changeable plan to able to use productivity (Buhalis, 2003). 
  • How do we know we got there?  The organization should understand the feedback and control process to be done better in the future. So, they have to evaluate development for the external environment, competitor moves and efficient respond. Therefore, the company needs to focus on steady demand by re-estimating the whole strategy step by step (Buhalis, 2003).

The case study of Carnival Corporation Cruises is now the first Cruise Line Company in the world with lowest competitive. They also expected to have the highest standard of high speed internet. So, when the customers and subordinates journey on board, they can access the high speed-internet same as fast as on the mainland. This means that the company focused on the internal and external environment by upgrading and providing the excellence service of internet speed for the crews and passengers satisfaction. The company decided to sign 10 years contract with the largest internet provider’s company, Harris. This company is providing the worldwide serviced for the marine community and data service.

In the other hand, the Crown Prince of Dubai is another one who realize about the historically of the main trading goods but it is not enough. So, he was initiated to create the high-tech. industry’s advance and offer the zero-Tax business environment for the world leading company. Since last year, they desired to use the “Cisco System” with 10 years contact by providing 100Mbit/s for the international company and 2Mbit/s for universal internet access and complete IP telephone. Now, Dubai was named “The Dubai Internet City- a real broadband Oasis”. This place is becoming the most attractive global business center in the world and opening to the world business- class environment for ICT Company to create and grow in the future.

The Continental Airline strategic management is to improve the number of customer service and against the competitors. During the period, the company is facing to the fuel price crisis. The company tried to constant the ticket price to maintain the loyal group customers and going to develop the online check-in and e-ticket which rely on a brisk IT department. Since 2002, the airline was changed the whole system to use “CRM” system. This system was reduced the company’s cost and create a cross-enterprise data warehouse such as reservations, customer profiles airline maintenance, employee and crew payroll, and customer care etc. The company policy is “work hard to fly right”. So, they take risk to lunch more routes to get more profitable and more valuable on the airline. Now, the company from the no.1 airline in the world turns into the most favorable airline with the high standard of service. In addition, soon the company will add the new technology for member customers who missed their connecting flight. As soon as they turn on their cell phone they will receive the SMS notification about the upcoming flight. So, the passenger can print the new boarding pass. All new focusing for the company on IT industry the airline staffs need to learn to be changed and followed the company step by step.
In conclusion, the strategic management is by processing the step of performing environment from top management in each company. The achievement of company is usually consequent with the ability of management level who applies to use on their task. Nevertheless, the carryon of understanding the process of strategic management can be the key to success for reaching the company goal.

References
Buhalis, D 2003, E-Tourism: Information Technology for Strategic Tourism Management, Pearson Education Limited,
Burnatt, R 2005, Tools for developing Organization Strategies. Retrieved November 26, 2009 from http://www.introduction-to-management.24xls.com/en238

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