Strategic Management , Corporate Structure, and Executive Leadership

Strategic Management
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Strategic Management
Question 1
There has been a number of factors that influence strategic management following the changing dynamics of businesses and the business environment in the contemporary era. Globalization, social responsibility aspects, and environmental sustainability issues are some of the major influences on the overall concept of strategic management.
According to Wheelen et al. (2017), globalization from a business perspective can be understood as the expansion and integration of markets and corporations beyond the international boundaries. The expansion and integration have revolutionized strategic processes in various ways, either by directly influencing the management or influencing the support structures of the corporation. The interconnected nature of the financial systems, a key aspect of globalization has led to the adoption of financial systems that are compatible with the global governance of finances. It has also led to the emergence of other institutions to facilitate transactions at a global scale. The World Wide Web, also a key component of globalization has added a different domain to the businesses, the e-commerce, and has revolutionized the supply chain as the corporation can be placed anywhere around the globe. The rapid changes in technological advancement have led to an increased economic interdependence and the diffusion of knowledge (Höllerer et al., 2017), necessitating the adoption of new strategic management approaches and mindsets to incorporate the globalization aspect.
Social responsibility has introduced the ethical perspective to the strategic management of a corporation as it is concerned with the duties that the organization has on the overall wellbeing of the community where it operates (Wheelen et al., 2017). The introduction of this fairly new concept into the corporate domain has led to the incorporation of the social concern by organizations into their core strategies and has also led to an increased consciousness of the duties that the corporation has on the entire society. The incorporation of the social aspect onto the strategic management has led to the adoption of varied social responsibility strategies by different corporations. The realization that organizations’ responsibilities extend further than the economic responsibility has led to tweaking of general and specific objectives, missions, and most importantly, the strategic goals to address the social aspects ethically.
Aside from the social and economic responsibility towards the community, environmental responsibility is the other important duty that the organizations have today. In the recent past, strategies that are environmentally conscious that aim at cutting on carbon footprint, tackling climate change, energy preservation among others have been a major focus for organizations that are cognizant of sustainability. This is also fueled by the fact that sustainably responsible organizations not only have a competitive advantage but also saves on costs (Wheelen et al., 2017). Environmental sustainability has now become a significant component of strategic management, embedded in both internal and external objectives and has become a ...