Strategic Management: Course work discussion

Strategic Management: Course work discussion
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Process limitations highlight on the weakness that hinder an organization’s capabilities, and they may also hinder performance management. The limitations impair analysis of complex strategic situations and impact negatively on performance potential assessment. Value chain analysis helps an organization to gain a competitive advantage over rivals either through cost or differentiation advantage (Hitt et al., 2008). Depending on what the organizations wants to achieve, this will help to either improve on costs competition or produce superior products. Thus value chain improves on identified opportunities to lower costs and link activities. Furthermore, value chain improves on the differentiation strategies through helping to identify customer focus and hence improve customer value (Hitt et al., 2008). Through understanding customer needs, organizations are able to create value for customers. Thus, customers are more likely to pay a premium price for a product or service, and this reduces wastage as the value chain adequately takes into account customer needs.
Traditional organizational structures facilitate easier coordination of activities, since there is a clear line of command where communication allows the employees to be accountable through directives (Cunningham & Harney, 2012). The structure relies on division of labor and enables employees to improve their skills and hence lowers training costs. Additionally, since it facilities specialization as there is increased productivity and efficiency in performing tasks. The main weakness is that the input of low cadre workers often goes unnoticed as there is more emphasis on obeying rules and regulations (Cunningham & Harney, 2012). Boundary less and learning organizations influence strategic capability, as organization rely less on rigid hierarchical structure. Hence, organizations ...