Strategic Management Essay Example

Strategic Management Essay Example Strategic Management Essay Strategic Management Essay Introduction For a company to win in its concerns. strategic direction must be its chief docket. Pull offing transnational companies can be a feverish occupation and can stop up in confusion if non good structured. Strategic direction is based on a company’s top brass of direction. The top direction of the company is ever at the centre of determination doing procedure on behalf the existent proprietors of the company. This set up is in charge of mobilising resources and structuring the company to fit the external concern environments. Explicating policies. planning and scene of aims is the management’s concerns. Strategic direction besides deals with the accomplishment of the company’s vision through fast tracking the mission. plans and undertakings. In strategic direction. there is a calculated attempt by the direction to strike a scorecard that is balanced through measuring the general public presentation of the concern and the stairss toward the accomplishment of the business’ set nonsubjective. Strategy in any concern or company is in line with the outlooks of all the interest holders of the concern and must be based on the stakeholders’ aims. Most transnational companies that have managed to be chief participants in the planetary concern market have history of effectual strategic direction steps and scenes. Such companies include the Coca-Cola Company. the Toyota Company. and the Hyundai Company among other transnational companies. Strategic direction is the anchor of a successful transnational company or planetary concern. Witcher A ; Chau ( 2010 ) Background survey For any company or concern to be competitory in the market. there must be a high degree and a good coordinated scheme direction which is the cardinal facet of tactics and end scene. Strategic direction is ever critical in offering the way to the concern and its ultimate success. In concern disposal. strategic direction and strategic consistence between the concern and its environment demands to be struck. In assorted companies. strategic direction is ever undertaken by a direction squad which is largely comprised of a Board of Directors among other stakeholders. Amason ( 2010 ) Different companies employ different strategic direction attacks in seeking to remain competitory in the concern environment. The direction boards in different companies apply different procedures of rating and commanding the concerns and the assorted industries that are involved with the company. This is the instance in two taking car companies. the Toyota and Hyundai companies. In measuring their competitors’ schemes. the two companies use assorted scheme direction processes. Despite put to deathing different strategic direction signifiers. both companies consider basic factors in strategically pull offing their concerns. Such include the size of the organisation and the demand to accommodate to the alterations of the concern environment. In order to accomplish the aims of any company. there are assorted facets and constructs that need to be explored. A strategic direction which is more structured may be employed in consideration to the size of the company. operations. demands and the positions of the stakeholders. Strategic direction plays a really of import function in determining the manner a concern is run or the success and accomplishments of a company. Nevertheless. strategic direction is ever tied to the ends. vision. mission and the aims of the company. In pull offing a company. the direction board or squad do work towards the positions and outlooks of the proprietors of the company or concern. Hitt. Ireland A ; Hoskisson ( 2009 ) Toyota Motor Corporation The Toyota Motor Corporation is based at Toyota at Aichi in Japan. The transnational company is an car manufacturer with a big employee base of over 400000 employees with the largest fabrication capacity of cars and specifically the celebrated vehicle trade name Toyota’ . It footings of universe gross. the Toyota Company sits at the 11th place and had manufactured an estimated 200 million vehicles in July 2012. Founded in 1937 as a household company by Kiichiro Toyoda. the company has been acute to strategically pull off its concerns. The Toyota Company has had a pick of leading that has embraced the benchmark of quality. perfect patterns and corporate duty in the aftermath of stiff competition and technological promotion in the planetary market. Borowski ( 2010 ) . The schemes of the company have been profoundly rooted in rules that have continued to better the regard for people. their scheme model as been pitching towards waste cutting. positive attitude edifice and maximal use of the built-in endowments of the workers. The Toyota Company has managed to make an feeling of societal duty in the planetary market. The company has exploited a figure of schemes with a position of being the best company in footings of merchandise quality and service proviso vis-a-vis matching turning customers’ demands and technological promotion. The direction board of the Toyota Company has been vigil to clinch any chance in developing and turning the company’s worth. a scheme that has gone a notch higher to see the company explore options of developing intercrossed autos among other market schemes. The implicit in scheme of the Toyota Company is rooted in honoring virtue and placing mistakes in an effort to hone the merchandise and service bringing. Through this basic scheme. the Toyota Company has managed to impel its influence and accomplish an extended client base. Magee ( 2008 ) . Strategy and direction The success of the Toyota Company is attributed to its strategic direction expression that has made them to stay competitory in the car market while keeping the quality and efficiency of their merchandises. The doctrine of direction at Toyota Company has continued to germinate over a long period of clip. This direction doctrine has been built on the original value of the company which was centered on Lean fabrication and the construct of production in clip. These two constructs have been critical in the development and growing of the company. The Toyota Company strives to bring forth designs of autos that are entirely ideal and perfect. In its thin fabrication policy. the company aims at accomplishing a client ideal production which will finally conglomerate to client satisfaction. In this pursuit. the Toyota Company has been bring forthing different theoretical accounts of autos in order to run into the demands. gustatory sensation and different penchants of its clients. Hino ( 2006 ) . This has enabled the company to stay competitory and to hold a wider market country. The concern schemes and managerial values have been jointly convened into a individual construction referred to as the Toyota Way’ . a. The Toyota Way The Toyota Way’ was one of the schemes that the Toyota Company adopted in order to assist them remain in front in the car industry. It is a set of values guidelines of behaviors that all the employees at Toyota are expected to encompass. The scheme had two chief pillars ; Continuous betterment and Respect for People. Liker A ; Jeffrey ( 2011 ) . All the behavior guidelines and values of the Toyota Company are summarized into major rules of encompassing challenge. endeavoring to better their services and merchandises. regard to clients. teamwork and a go and see’ motto. This is a scheme that the company has employed to guarantee that the employees non divert from the chief aims of the company therefore heightening success in concern therefore working as a driving force towards an accomplishment. Liker ( 2003 ) . The scheme has besides aided the formation of individuality and has kept the spirit of quality and service which has helped the company to be outstanding among other car makers. Alongside the Toyota Way are four other constituents that complement the scheme. These constituents include direction determinations that are based on long term deliberations and a comprehensive job work outing procedure. Further. the facet of concentrating on the development of the people has added a batch of value to the organisation. Consequently. the Toyota Company has embraced the art of organisational acquisition through work outing the root jobs continuously in the organisation. Ono ( 1988 ) B. Worldwide establishment The Toyota Company has used a universe presence scheme that has made them be a common family name in footings of car development. Through intensive selling and strategic direction. the company has expanded enormously therefore set uping mills in a bulk countries in the universe that trade with piecing and fabrication of different types of vehicles. The Company has set subdivision mills in states like South Africa. Turkey. Japan. India. The United States of America. Brazil. France. the United Kingdom. and Columbia and has late established mills in Thailand. Mexico. Malaysia. Argentina. Pakistan. Vietnam. Russia. Egypt and Mexico. In this mode. the company has been able to run into the lifting demand for cars and have provides a big assortment of cars therefore giving the clients the big assortment to take from. This is a scheme that has ensured that the merchandises of Toyota Company are accessed by most people around the Earth. The scheme of world-wide constitution does do a company to be widely known and become easier to be identified with. c. Electric engineering Strategic direction is all about researching the possible options that can help a company to be elevated above its rivals. This means that every enforced scheme demands to be suited to efficaciously accomplish the mission. executable to guarantee that it is applicable and that the scheme is accepted by the stakeholders. The direction squad at Toyota Company has explored the application of electric engineering which is executable. acceptable and suited. In this regard. the Toyota Company has gone a long manner in let go ofing intercrossed electric vehicles into the car market. It has been the first company to present and sell intercrossed electric vehicles. therefore determining the face of the car industry. In 1997. the company introduced the Toyota Prius and started bring forthing vehicles that were smaller but keeping the epicurean touch. Such autos like Lexus and Camry were received into the car industry with exhilaration. a mark of an effectual strategic direction execution. Anderson A ; Judy Anderson ( 2010 ) . In 2012 October. the Toyota Prius became the loanblend auto that was best sold in the whole universe and this earned the Toyota Company about 2. 8 million units. This high sale was replicated in most parts of the universe. Later in 2012 October. the company was the first to fabricate a rider auto that was intercrossed and a motor vehicle loanblend that was one stopper in theoretical account. This theoretical account was availed to around 80 parts and states worldwide. The company has an purpose of accomplishing the launch of a 20 intercrossed vehicles theoretical accounts at the terminal the twelvemonth 2015. Hyundai Motor Company. The Hyundai Motor Company has been a chief participant in the motor industry merely like the Toyota Company. It is a transnational automotive company with it’s headquartering in South Korea in Seoul. Founded in 1967. Hyundai is ranked the Forth in footings of car fabricating holding sold about 3. 6 million vehicles in the twelvemonth 2010. Hyundai is the largest car company that is integrated with an employee base of around 75000 people working in the mills worldwide. Hyundai Company has applied strategic direction in its success narrative. The company has set up 6 development and research centres across the universe. The company has besides an established centre in California for planing cars specifically for the markets in the United States of America. Hyundai Company has applied assorted signifiers of scheme to stay every bit competitory. The Hyundai Company has been able to set up a system of quality direction which has gone away to assist the company achieve the position of a major participant in car industries and machineries globally. In this sense. the company has realized a top category service supplier position. Lansbury. Chung. Sok Suh. Kwon A ; Ho Kwon ( 2007 ) a. Merchandise development. Hyundai has strived to better the quality degrees of their merchandises through application of alone processs. The company has applied pilot production counterpart researching by centre applied scientists in an purpose to run into the coveted degrees of production. The pilot production is a scheme that Hyundai Company used to avoid jobs during the production of cars in mass. Through the big pilot workss. Hyundai Company is able to guarantee there is quality in the production of its theoretical accounts. The company is besides endeavoring towards accomplishing a perfect merchandise quality in order to be at the helm of net income devising. Henry ( 2008 ) b. Outsourcing Outsourcing has been portion of Hyundai’s scheme to keep the quality of merchandises they offer. This is a scheme that amalgamates assorted parts makers who manufacture specific car parts before the parts are assembled by Hyundai to organize complete cars. This scheme contravenes the Toyota policy whereby the fabrication of the cars is done wholesomely by the company. The Hyundai Company outsources companies which make parts. The outsourced parts are sub-assembled into some faculties which are farther assembled into concluding cars. This strategic direction facet has made the Hyundai Motors Company to salvage a batch in footings of net incomes. Through outsourcing. the company has been able to switch its concentration more on selling and merchandise development and non to worry about the production of parts. This facet of the Hyundai production theoretical account has been advantageous to the company as it accumulates more resources and channels them towards selling and bettering on its merchandises. c. Advanced doctrine and Quality inventions strategies The accomplishments made by the Hyundai Motors have been as a consequence of quality inventions. The company. through strategic direction variety meats. has weathered the challenges of hostile and competitory concern environment through application of invention. There has been an addition in client satisfaction which has proved that the Hyundai Company has the ability to marshal monolithic portions in the market. As a consequence of aggressive and intensive inventions. Hyundai has come up with vehicles which meet the customers’ demands. wants and comfort. This has been in line with the accomplishment of the company’s aim of run intoing client satisfaction and conveying ultimate elegance. enjoyment and making assurance in its clients. The manner and luxury that is aimed at by the Hyundai Company is thereby achieved. This scheme has ensured that Hyundai Company stands out in footings of category and design. doing its merchandises popular among people worldwide. Despite the turning ferocious competition in the cars industry. Hyundai Company has managed to remain at the top in footings of quality and market base as a consequence of its direction doctrine which is advanced. Its scheme has ensured that there is a clear cut for the hereafter of the Company non go forthing the clients behind. Hyundai’s doctrine has seen an increased favour among the clients due to its endeavoring to do merchandises of good quality and its chief end of puting accent on the satisfaction and efficiency of its merchandises to the clients. Hyundai has continued to be a planetary trade name name in cars. This has been boosted by the fact that the company has been making an feeling of equity and transparence in footings of the acceptable and expected concern moralss. d. Expansion of production Hyundai Company has employed the scheme of market enlargement as a manner to guarantee it achieves its chief aims. It has increased the portions of its export in the market internationally and domestically. During the economic recession in the twelvemonth 2009. Hyundai still managed to export 1. 3 million vehicles amidst a production capacity of 1. 6 million units. This scheme ensured that the company stayed at the top of car fabrication and assembly industries when other participants were variously affected by the recession. Its selling scheme and direction scheme strength is farther exhibited in the company’s success in increasing its market portions in the United States of America. This has gone a long manner in bettering on the quality of the company’s merchandises. Hyundai has besides extended its fight in prosecuting in abroad concerns since the late ninetiess. It has established its merchandises in Alabama. Montgomery among other countries. In North America. Hyundai’s works was ranked 2nd in the degree of productiveness. e. Electric vehicles Just like the Toyota Company. the Hyundai Motor Company has embraced the usage of electricity in the industry of vehicles. The company has introduced a intercrossed electric car to fit the increasing technological promotion. In 2008 November. the company introduced the first electric auto which was facilitated by the engineering of Li polymer battery. In using the electricity engineering. Hyundai Company aimed at accomplishing edification. manner and category in order to stay every bit competitory as possible. Chris. Masrur. A ; Gao ( 2011 ) . The scheme of using electricity engineering has ensured that the company has been at par with the other car manufacturers to guarantee that it does non lose its clasp on the top topographic point in the planetary concern. Society of Automotive Engineers ( 2000 ) . Decision. Strategic direction has been the centre of involvement for both the Toyota and Hyundai cars companies. Both have gone out of their manner to set up planetary markets and have embraced the usage of electricity in car development. Toyota Company manufactures its ain vehicles from abrasion while the Hyundai Company opts to outsource for parts makers in order to cut down the costs incurred. The function of strategic direction is apparent in the two cars companies as both do hold a squad or a board of directors that is ever tasked with the duty of explicating policies to assist the company turn to transcendent highs. The board reexamining possible schemes in the companies does work towards realizing the purposes and aims of the companies. The owners’ wants can neer be ignored in the strategic direction procedure. Mentions Allen C. Amason ( 2010 ) . Strategic Management: From Theory to Practice. New york: Taylor A ; Francis. Anthony Henry ( 2008 ) . Understanding Strategic Management. NY. Oxford University Press. Arkadi Borowski ( 2010 ) . Report on the Toyota Company. United kingdom: GRIN Verlag. Barry J. Witcher. Vinh Sum Chau ( 2010 ) . Strategic Management: Principles and Practice. United kingdom: Cengage Learning EMEA. Chris Mi. M. Abul Masrur. David Wenzhong Gao ( 2011 ) . Hybrid Electric Vehicles: Principles and Applications with Practical Perspectives. United kingdom: John Wiley and Sons. Curtis Darrel Anderson. Judy Anderson ( 2010 ) . Electric and Hybrid Cars: A History. United kingdom: McFarland. David Magee ( 2008 ) . How Toyota Became # 1: Leadership Lessons from the World’s Greatest Car Company. United kingdom: Penguin Group. Jeffrey Liker ( 2003 ) . The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. McGraw Hill Professional. Liker. Jeffrey ( 2011 ) . The Toyota Way: Management Principles and Field book ( eBook ) . New york: McGraw-Hill Professional. Michael A. Hitt. R. Duane Ireland. Robert E. Hoskisson ( 2009 ) . Strategic Management: Competitiveness and Globalization: Cases. Canada: Cengage Learning. Russell D. Lansbury. Chung-sok So. Chung-Sok Suh. Sung-ho Kwon. Seung-Ho Kwon ( 2007 ) . The Global Korean Motor Industry: The Hyundai Motor Company’s Global Strategy. Seoul. Taylor A ; Francis Satoshi Hino. ( 2006 ) . Inside the Mind of Toyota: Management Principles for Digesting Growth. Productivity Press. Society of Automotive Engineers ( 2000 ) . Hybrid electric vehicles. Society of Automotive Engineers. Nov 1. Taiichi Ono ( 1988 ) . Toyota Production System: Beyond Large-scale Production. Tokyo: Productivity Press.