CONTEMPORARY STRATEGIC MANAGEMENT

Contemporary Strategic Management



Table of Contents

Contemporary Strategic Management3

Introduction (IBM)3

Background3

Organisational Culture6

The Competitive Environment of IBM7

Corporate Leadership12

Corporate Culture15

Knowledge Management18

Application and impacts21

Impact22

Management theory28

Present company strategy29

Corporate Strategy29

Conclusion31

Recommendation32

Reference35

Contemporary Strategic Management

Introduction (IBM)

In talent-driven companies, especially professional service firms, the organization such as IBM has to come before the strategy. Because people matter most, a company cannot effectively implement a strategy that its stars will not or cannot follow - or they will leave. But the downfall of many professional service firms is that they become so encumbered with organizational issues that they ignore their strategy. Or strategic decisions emerge as too little, too late.

Background

A highly effective organization such as IBM is the key to achieving mission success. As strategic initiatives are implemented, the executive team must ensure that the organization such as IBM is ready for the change—how it will achieve its mission. Adapting to change may require organizational transformation, new organizational designs, more efficient processes, better human resource management, or renewed emphasis on learning and strategic communications (Tsiakkiros, 2002).

Its remarkable how often business strategy, the purpose of which is to direct action toward a desired outcome, leads to just the opposite: stasis and confusion. Strategy should bring clarity to an organization; it should be a signpost for showing people where you, as their leader, are taking them and what they need to do to get there. But the tools executives traditionally use to communicate strategy spreadsheets and PowerPoint decks are woefully inadequate for the task (Tsiakkiros, 2002).

(External factors) Pestal Analysis

The PEST analysis is a useful tool for understanding the big picture of the environment, in which you are operating, and the opportunities and threats that lie within it. By understanding the environment of organization, company can take advantage of the opportunities and minimize the threats (Thompson, 2002).

Specifically the PEST or PESTLE analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization. The PEST Analysis is often used as a generic 'orientation' tool, finding out where an organization such as IBM or product is in the context of what is happening out side that will at some point effect what is happening inside an organization.

A PEST analysis is a business measurement tool, looking at factors external to the organization. It is often used within a strategic SWOT analysis (Strengths, Weaknesses, Opportunities and threats analysis) (Robinson, 1997).

PESTLE is an acronym for Political, Economic, Social, and Technological, factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also be used to review a strategy or position, direction of a company, a marketing proposition, or idea. There are many variants on this model including PESTLE analysis and STEEPLE analysis.

Completing a PEST analysis can be a simple or complex process. It all depends how thorough you need to be.  It is a good subject for workshop sessions, as undertaking this activity with ...