Importance of strategic management for organisations

Course: MSc Business with International Management

Introduction

The main aim of the essay is to implement multiple strategic management tools to enhance the operational management of both public sector and private sector companies. The essay will primarily focus on identifying the strategic management tools and the significance of such tools to effectively enhance the strategic success of the two chosen companies, the UST Global, a private sector company and the British Council, a public sector company. A critical discussion will be formulated based on the traditional approaches to implement the strategies effectively. The main context of applying strategic management tools is highlighted (Hitt, Ireland, and Hoskisson, 2019). Finally, the essay will discuss the potential barriers and the adopted strategies to eliminate such barriers.

Strategic Management - Academic essay

Learning outcome 1. Define and evaluate selected key theories and concepts associated with the main characteristics, models and processes of Strategic Management

Learning outcome 2. Critically appraise selected key theories and techniques associated organization, organizational structures and management processes in relation to Strategic Management

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Part 1:

(a) Importance of strategic management for organisations in the public and the private sector in achieving strategic success

The process of strategic management refers to the process of planning, reviewing, finding, analysing, and assessing information that aligns with the aims and objectives of an organisation. Organisations will constantly strive for success. Organisations can evaluate new strategies after analysing the best possible strategies that will help make better modifications (Hunger, 2020). With the effective implementation of strategic management, public and private organisations monitor their success or failure rate in the recent business world.

There are several types of strategic management tools that organisations can effectively implement to measure their performance. Among the various performance measurement tools, one is a balanced scorecard. The tool of a balanced scorecard considers four primary perspectives from customers, internal business process, financial, and learning and growth. The balanced scorecard is an effective strategic management tool that can help an organisation in multiple aspects. Apart from the balanced scorecard, the Strategy map and triple bottom line measure an organisation's effectiveness or success (Fedoryshyna et al., 2021). The triple bottom line model represents the social, economic, and environmental aspects. The Gap Analysis compares the actual and the predicted performance in future years.

Before diving into the strategic management tools, the basic stages that comprise the strategic management. Some primary stages portray how an organisation, both public and private, can incorporate strategic management into its operations (Johnson et al., 2020). First of all, organisations have to incorporate the need for strategic management within their operations after adopting a few stages. Organisations need to develop effective objectives they want to fulfil in the future. After defining an organisation's vision, mission, and goals, it becomes easier to select the path to better prosperity. Then the organisation should go for the data collection so that it can present an effective insight into where a company is lagging and what they need to improve in this context. If the gathered insight can portray a positive response to the company's main goal, then there is no need to rectify the operations. If they still need to, they should use strategic management tools to analyse the present situation (Benzaghta et al., 2021). The situation analysis will enable the organisation to eliminate competition and risks effectively. Identification of the problem will be done through the situation analysis. Adopting strategic management tools at this stage will help the organisation formulate and implement the right strategies. The first thing a company needs to do is increase its efficiency, productivity and profitability (Fuertes et al., 2020). For that, it should adopt the best possible measures to risk mitigation, cost minimisation, and profit maximisation. The managerial skills need to be improved to make the business more profitable and successful. The public or private sector companies must implement strategies to cut down competition. Implementing the most effective strategies will continue the process (Bryson and George, 2020). For success, the company needs to take up regular monitoring.

There are other models, such as PESTLE analysis, SWOT analysis, Porter's Five Forces analysis, Strategic groups, Value Chain analysis, etc. These Strategic models describe the business organisation's internal, external, and competitive nature. The PESTLE analysis describes the external business environment along with its rate of impact on the business companies (Gavurova et al., 2020). The SWOT analysis takes into account the internal business world, including its strength, opportunities, weakness and threats. Based on the SWOT analysis, a company takes important decisions regarding business operations. Porter's Five Forces discuss the market competitiveness scenario. The recent components that can effectively indicate the market competition rate are depicted by this model. The Value Chain model describes the organisation's logistics and supply chain operations. The VRIO analysis is also considered one of the significant tools in strategic management.

The process of strategic management indicates the basic strategies of an organisation, be it a private limited company or a public company. An organisation's management team can consider these Strategic management tools as the guiding principles that will show them the right path to depart and take the right strategies to improve business operational effectiveness in the future. Before choosing the best applicable method, the company must evaluate the existing culture and the competition factors. One of the major significance of strategic management is to create a link between the different divisions of the company and then strive for excellence (Pasaribu, Bulan, and Pratama, 2021). Public limited and private sector companies can ensure their most profitable business regions. The management tools work to implement and realise the primary aims, goals, and objectives. Organisations can get a broader spectrum of what should be and should not be done. Managing employees in the right direction towards the company's success seems possible only by adopting management tools and techniques. Whenever an organisation plans for its assets and liabilities evaluation, they are bound to face multiple problems (Grewatsch, Kennedy, and Bansal, 2023). Adopting management tools will effectively help eliminate such hazards in the middle of the operations of organisations. The organisation's primary objectives can be achieved by adopting the above-mentioned strategic management tools such as PESTLE, SWOT, Porter's Five Forces, and Value Chain Analysis. The companies can implement the required measures to use their assets and time effectively.

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(b) Critical evaluation of the traditional emergent approaches to developing and implementing the strategy

Traditional and emergent strategic process

According to the method of evaluation of the traditional and emergent approaches for developing and implementing strategy in terms of strategic process analysis, the emergent strategy will help to evaluate and address the shortcomings of the planning for the business based on the public sector as well as the private sector (Canton, 2019). The overall analysis will be focused on the list of strategic alignment planning, a description of strategic planning approaches in terms of business where it offers emergent strategies. Emergent strategy is an action model developed by Henry Mintzberg for analysis of the business strategy where it develops the business balances for changing the goal and circumstances. These strategies emerge after a business carries out a set of actions and repeatedly develops patterns in its overall habits. But there are slight differences in emergent strategy and strategic planning (Huang et al., 2021). The use of data to set goals for both benefits and challenges in strategic planning does not resonate with the changes in the business operations or performance in terms of the benefit of a mix of planned methods and strategic alignments (Simeone, 2020). For analysis of the major elements of the emergent strategy, three major principles are mostly focused on -

Learning: According to the analysis of the learning methods from the Private sector as an example of UST Global businesses, the company focuses on the digitally savvy workforce and tries to align its home ground with the change of significant technology (Redfern, 2022). Technology has been changing at an optional exponential rate for a couple of years where all the social factors like education, communication and transportation and entertainment have completely transformed themselves for the alignment of the technological changes. Sometimes in the workforce, to mitigate the major challenges and for the successful implementation of the assimilation of the latest technology, L&D functions have been chosen to work with functions (Annushkina, 2020). It was a backdrop of the kind of marketing changes that UST Global leaders provide in terms of digital, and It services and implementation; as a technology driving for more sustainable transformation, UST Global necessarily built its skills and requirements in terms of demand (UST, 2016). UST's global focus on the user experience, and robust content, brings disruption through diversity (Ito, 2023). Building power systems and changing the outlook and the ecosystem. Besides that, the British Council offers diverse training and development programs for groups of teachers, programs and the whole educational system. It includes teaching for success for the government ministries and educational agencies for assessing and improving the quality and quality teaching and learning based on the country to make the change in national policy and requirements.

Adoption: As an adoption process USTGlobal majorly focuses on business agility in decision-making and fostering any business solution. In terms of customer satisfaction with the global business and decision making and data analytics, customers were evaluating the major service providers with the product offerings, which can accelerate the environment to enable the circumstances for creating collaboration and analysis of the insights and could be able to merge 3rd party data for own model production (Yorks et al., 2022). UST majorly generates help for creating solutions while utilising the potential data and platform. Data science and business analytics is the main part here. At the same time, the British Council aims to create common platforms which can associate partnership, collaboration and experts and networking to bring the skills gap for creating employable skills among the workforce. Regarding language and employability in the country, it adapts a holistic approach to evaluating the major expertise in contributing the skills and agenda for better information (Warner et al., 2019).

Collaboration: As a collaboration of the UST Global and Laapwork Partnership, it allows to support more customers in its global transformation journey where it will evaluate them to build, maintain and scale up the test automation, where it can decrease the risk and improve the time and value. Leveraging technological advancement and industry knowledge, UST assists the world's finest enterprises in succeeding (Kretschmer et al., 2022). In contrast, the British Council has several national and international organisations annually. National governments in the UK and worldwide, non-government organisations and foundations are mostly determined as a collaborative measurement.

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Analysis of strategic tools in terms of the discuss the traditional and emergent strategic Processes

SWOT analysis based on Public sector and Private sector

PEST analysis

Balance scorecard

Key stages of strategic formulation and strategic implementation

For UST Global, the strategic formulation and the strategic implementation can be evolved wIth several factors in terms of the public sector as well as the private sector. The strategic formulation of the phase for UST Global as a private sector company would assess the strengths, weaknesses and opportunities. It was able to set some prior objectives aligned with this company's mission and its work methods (UTS Global - An RPA & Software Testing Company, 2023). During the implementation of the UST Global, it allocated resources, action plans, and design and established the key performance based on design and the methods regarding tracking progress. Flexibility and adaptability are the major crucial factors due to the implementation of the dynamic nature of the IT industry. Regular performance evaluation against the major goals could enable adjustments if necessary. Focuses on profitability along with market share and positioning. Besides, the British Council, as a public sector, is based on a strategic formulation involving the defining method and strategic formulation involving the educational goals in terms of the mission (British Council, 2022). Political considerations and government policies mostly play a significant role. During the work done and the major procedure, it mostly determines with the progress tracking where it evolves with the impact of the success and metrics for exchanging cultural exchange rate and improving the cultural proficiency.

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Part 2

Identification of the Strategies of Private Sector UST Global and Public Sector, British Council

Public and private sector industries' strategic management operates separately (Fuertes et al., 2020). For example, The real-life example of a private sector known as UST Global, one of the leading organisations in the IT industry. In the present time, the environmental issue is the main issue that is needed to be addressed by every organisation that is operating in their respective industry. UST Global has also taken a new approach focusing on contributing to the environment for its sustainability. The company has planned to achieve zero emissions by 2040. With the help of the Triple bottom line theory, the company has focused on improving the sustainability approach of the company. These three main factors have focused on improving profit, contributing to the people they serve and taking care of the planet simultaneously (UST, 2016). The company has stated the principles of strategic management of the sustainability approach of the company considers approaches like; measuring and improving the sustainability performance, adopting a customer-centric approach and becoming a stakeholder advocate (Grewatsch, Kennedy, and Bansal, 2023).

On the other hand public sector, like the British Council, has shown more transparency in its sustainability approach and has aligned its strategy with the United Nation's Sustainable development policy. Apart from that, to operate the management policy strategically, the organisation believes in operating its operations with the help of collaboration with Government sectors as well as the partners of the company. The organisation believes in maintaining a long-term approach to building trust with the stakeholders and getting support from the government.

Outcome analysis Private Sector UST Global and Public Sector, British Council

The possible outline of the sustainability goal considered by the organisation is similar. Both of the organisation's goals are associated with the organisation's sustainable development goal. With the help of the. With the goals mentioned in the organisation, both organisations can achieve sustainability goals by ensuring reduced emissions and improving the company's sustainability approach. For example, the organisation UST Global has followed a sustainability approach that aims to achieve zero emissions by 2040, which has already been mentioned earlier (UST Sustainability Report 2022, 2040). On the other hand, the sustainability goal of the public organisation British Council is to achieve the sustainability goal with the help of reducing inequality and contributing towards the UN sustainable development goal as much as possible with the help of increased job creation and ensuring reduction of biases from every operation of the company.

Critical evaluation of the extent of strategies and approaches for success

UST Global relies on its customer-centric approaches and ability to agility. Their strategy of leveraging a skilled workforce where the innovation of IT solutions and positions can determine terms of the competitive market. Its partnership with its client, along with the ability based on the emerging technologies, can deal with the emerging technology to finalise the edge (UTS Global - An RPA & Software Testing Company, 2023). Besides it, in terms of the evaluation of market size, the limitation and the global expansion efforts can deal with the culture of continuous learning and the adaptability for sustaining success.

For the British Council, the success is majorly rooted in the global networking system and reputation and at the same time, it focuses on the culture and educational exchanges. It mainly strategies collaboration based on government and institutions' needs and initiatives. Besides, the dependency on the government application is majorly defined by the challenges during any budget issues and the adaptation of the digital platforms. Besides, the dependency is also based on quick decision-making along with some evolution of the process for maintaining the political alignment for quality (British Council, 2022). Overall, a balance between the core mission and embracing the innovation of success. Flexibility in the strategy and adaption to changing external factors can be evaluated with the necessary sustainable growth.

Discussion of the barriers to strategic success in terms of both Private Sector and Public Sector

Strategic leadership analysis
One of the major barriers that Private organisations like UST Global face while leading the team towards sustainable development goals is the Competing priorities of different stakeholders and the senior executive of the company, as many stakeholders of the company can prioritise individual benefits with the metrics like growth and profitability over the environment or human capital. This is a serious issue that the leaders in an organisation face while implementing any strategy (Castellanos and George, 2020). The organisation is located in more than 30 countries. As a result, managing the diverse and dispersed workforce is one of the major leadership challenges which the organisation has faced in its sustainability approach.

The Leaders, the senior executives, and the managers of the company also face an almost similar issue while operating an organisation's business. Thus, effective communication becomes one of the major challenges that public and private organisations have faced while implementing their sustainability goals.

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Project Alignment to Strategy
Both of the projects of the mentioned organisations and their project focuses on improving the quality of living among the people of the United Kingdom and the world (Martinsuo and Anttila, 2022). The Gioal of the British Council focuses on contributing to all 17 SDGs. In contrast, the strategy of UST Global is focused on improving the environment and making a strategy that benefits both the organisation as well as the stakeholders of the company. In the case of project alignment, both companies have faced a similar type of situation which has affected both the employees, other stakeholders, and the manager of the company (Guzmán et al., 2020). As it has been mentioned earlier that both organisations provide their services all over the world; as a result, both of the managers of the organisation have to face an almost similar type of issue which has created an issue for the organisation while aligning the project goal with all the stakeholders' benefit due to their different interest, and culture as well as several other factors (Liubchenko, 2019). Mis-communication and differing interpretations are other issues associated with the project alignment strategy of both companies while adopting and managing the sustainability goal of the company.

Adoption of portfolio
Project portfolio management provides benefits for both of these companies in the strategic management of the company and the goal that the companies want to watch in their business. Adoption of a particular portfolio for the management of the various project that both of the organisations have taken to manage the business of the company and improve sustainability in the business operation of the company is the visibility from both strategic as well as tactical approach of the company (Zhu, Koutra, and Heimann, 2022). For British Council, this project becomes more important as it helps the organisation gain insight into the probability of success from the previous project metrics.

Program and project management techniques analysis
The programme, as well as the project management techniques that the company uses for managing the business of the company, is one of the major approaches that act as the enablers of project management for these companies. The project or programme management tool used by the organisation can help both organisations follow a strategic approach which can help them achieve the sustainability goal that the organisation wants to achieve (Alzoubi, 2022). Tools like risk management tools, Change management tools, and agile software are used by both organisations, enabling them to achieve their strategic goals.

Using of PMO
Though using PMOs for strategic management can benefit the company, the PMOs can act as a barrier to dealing with the organisation's goal. The PMO often needs help with the implementation of the strategic goals of the company (Hadi, Liu, and Li, 2022). Resources management often acts as a real challenge that the PMO faces while managing the organisation's project with a strategic management approach (Silvius, 2021). PMO often needs to enforce and establish uniform processes which act as a major barrier in managing the organisation's project. Apart from that, these PMOs often need to work on project management, which can act as a major barrier to achieving the sustainable goal of both organisations.

Program & project leadership
Leadership is one of the major factors contributing to the success of organisational strategies and achieving the goal. As it has been mentioned earlier that different project members, as well as stakeholders of the organisation, have to be managed that have different goals, interests, and different cultural backgrounds. Strategic leadership can help the organisation to achieve the sustainability goals. For example, in a private organisation like UST Global, which is spread around the world and operates its business in the Technological field, transformational leadership is the type of leadership that the organisation follows while operating the business of the organisation (Henkel, Marion Jr, and Bourdeau, 2019.). This type of leadership will help the organisation's employees by supporting innovation. The British Council can also follow a similar leadership approach. As it will help the organisation to find out some innovative thoughts and recommendations from the employees to achieve the sustainability goals and mitigate the issue that the organisation can face during strategic management.

Stakeholder engagement

Managing the organisation's stakeholders is one of the major enablers of project management and the project's success. Management of the interest of every stakeholder of the company is a must for the success of a project. For successful project management, identification of the stakeholders is one of the most important steps that is needed to be ensured for managing the business effectively (Pedrini and Ferri, 2019). Apart from that, prioritising the stakeholders is also an important step which has to be managed for the success of the projects.

For the British Council, the major stakeholders that need to be prioritised are the students that learn the language more effectively from the company's facility. On the other hand, the major stakeholders of the UST Global company are the customers and the employees. These two must be ensured prioritising for prioritising the business goal of the organisation as well as the sustainability goal.

Conclusion
In this overall elaboration, the essay has been focused on the recognition of tools for strategic management and their importance for effectively enhancing the strategic achievement of the two organisations chosen, the private sector company UST Global and the public sector company British Council. The critical debate has been developed based on the conventional methods to implement the ideas. The primary setting for using tactical leadership tools is emphasised when the article has concluded by discussing any remaining obstacles and the measures taken to remove them.

FAQ: Strategic Management Theories, Concepts, and Processes.

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