Key Elements for the Strategic Success of Contemporary Organization

Key Elements for the Strategic Success of Contemporary Organization

1. Introduction

In the face of highly complex and rapidly changing environment, the contemporary organizations should collect and analyze all kinds of information from external or internal, grasp the change of the environment and development trend and optimize the internal allocation of resources so as to achieve the dynamic balance of internal and external resources (Barney 2001). Only in this way could they survive the fierce competition and achieve the profit target, or in other words, achieve the strategic success. At present, a big and popular topic in enterprise management is the problem of the strategic management. It should be noticed that the lack of corporate strategy or clear directions would bring negative effects on the orderly operation and sustainable development of the contemporary organizations.

2. Strategic Management

2.1 Definition

According to Grant et al. (2014), strategic management is the process of directing and strengthening an organization in its competition with other organizations. In this sense, strategic management, a process which contains multiple dimensions, should be considered as a central consideration for organizations. With a clear understanding of the theories of strategic management, it could be quite beneficial to analyze why organizations succeed or fail.

2.2 The Functions of Strategic Management

It is universally known that any organization has its own production capacity. An organization usually consists of various departments, for example, marketing, human resources, finance or production (Barringer 1999). It is the existence and mutual coordination of those institutions which ensures the effective operation of the organization. In fact, the main means of the coordination of various departments is the organization's development goals. The strategic objective of an organization is a driving force for itself (Freeman 1984).

In the field of strategic management, strategy refers to long-term and overall planning which was made for the long-term development, stability as well as the future development of an organization. The strategy could fully reveal the basic management idea of an organization, thus it could correctly guide the sales, production, and many other aspects of the business activities and business plans.

3. Corporate-level Strategy

Corporate-level strategy refers to the selection of businesses in which a company should compete. It also called the overall strategy. It is to find out the most profitable parts of the organization. And it should learn to answer the questions such as: how to run a business and how to allocate the resources from the angles of structure and financial.