Strategic leadership in a changing world Essay Example | Topics and Well Written Essays - 2000 words

Strategic leadership in a changing world - Essay Example In this regard, while the classical approach to strategic management remains a highly relevant issue, it is through aligning the goals and vision of the business with the changes in the competition, market, and global society that the company is able to truly thrive in its industry. In this light, I wish to divide my discussion into four basic parts. The first part will be devoted for a short review on the unchanging relevance of formulating business strategy. To further deepen the discussion, I intend to infuse Michael Porter’s lectures on competitive advantage and its role in ensuring a strong positioning in the industry. The second part will widen the definitions of business strategy by introducing the concepts of internal and external stakeholders; of current, competitive, and emerging markets; and of cultural and socio-political environments. The last part will then focus on the individual understanding of the two authors on the need for an innovative and creative workfor ce. This part, specifically, will bolster on: (1) the role of inspiring and highly-motivating leaders; and (2) the concept of effective communication as the fuel for big changes in the company. ... Through this definition, we are able to highlight the two crucial concepts in strategic management. The first banks on the process of analyzing the company’s values, mission, and vision; of leaders creating strategic decisions on its overarching business goals based on an in-depth understanding of its internal structure and a holistic view of the industry where it participates in; and of specific business units taking actions as summarized in the company’s business strategy (Gregory et. al, 2005). On the other hand, the second concept deals with the need to outperform the competition. Michael Porter echoes this position as he discusses strategic management as primarily aimed at radically differentiating one’s company from its competitors in a manner that is sustainable and ‘copy-proof’ (Porter, n.d.). To Jorgensen (2008), however, Michael Porter’s main perspective on strategic management as creating differentiated positioning must not be divor ced from the ideas of understanding the dynamics of the industry and the development of a lasting competitive advantage. In this regard, it can be claimed that Porter’s work entitled Competitive Strategy (1980) has provided significant teachings on the rationale behind knowing one’s industry well. In this work, not only did Porter integrate the concepts of micro- and macro-economics in the management of businesses, he was also able to introduce the forces that shape the nature of one’s industry. Popularly named The Five Forces, Porter was able to not only highlight the status of competition, as well as the strengths of buyers and suppliers in assessing the viability of securing a strong position in the industry, he was also able to reinforce the emerging significance of barriers to entry and threats of