Tag: Advantages

Advantages

What are a Advantages? A condition or circumstance that puts one in a favorable or superior position. The opportunity to gain something; benefit or profit. A favorable or desirable feature. A score marking a point interim between deuce and winning the game.
 
Any trait, feature or aspect that gives an individual, entity or any other thing a more favorable opportunity for success. “The advantages of Mary’s plan, compare to Bob’s plan, were that it required less money and manpower, and would complete 5 days sooner.” “He had an advantage over the other job candidates due to his personal relationship with the CEO.” Opposite of disadvantage.
  • The Advantages and Disadvantages of Glocalization in International Business!

    The Advantages and Disadvantages of Glocalization in International Business!

    What is the Advantages and Disadvantages of Glocalization in International Business?

    Globalization pulls the countries out, from their detachment into the competitive world. A journey towards new collaborations and unity, it has changed the world into a global village. Both distance and isolation have been terrifically reduced. You have to Learn, the Advantages and Disadvantages of Glocalization in International Business, but learn first, What is Glocalization?

    Globalization integrates trade, technology, investments, and the mobile factors of production like labor and capital. All types of goods ranging from Coca-Cola, Sprite, Louis Philippe shirts, Marie Claire bags, Police sunglasses, to Adidas and Nike shoes are all available in every market globally, all credit to globalization.

    Globalization has been quite a debatable subject. While some are of the opinion that it has a lot of ill-effects upon the society, there exist others who feel exactly the opposite. Some opine that it has made life extremely easier and comfortable. It has however affected the consumers and businesses differently. For a better picture, let us take a look at some of the advantages and disadvantages of globalization.

    Advantages of Globalization

    Employment

    Considered as one of the most crucial advantages, globalization has led to the generation of numerous employment opportunities. Companies are moving towards the developing countries to acquire labor force. This obviously caters to employment and income generation to the people in the host country. Also, the migration of people, which has become easier has led to better jobs opportunities.

    Education

    A very critical advantage that has aided the population is the spread of education. With numerous educational institutions around the globe, one can move out from the home country for better opportunities elsewhere. Thus, integrating with different cultures, meeting and learning from various people through the medium of education is all due to globalization. Developing countries or labor-intensive countries have benefited the most.

    Product Quality

    The onset of international trade has given rise to intense competition in the markets. No longer does one find the limited number of commodities available. A particular commodity may fetch hundreds of options with different prices. The product quality has been enhanced so as to retain the customers. Today the customers may compromise with the price range but not with the quality of the product. Low or poor quality can adversely affect consumer satisfaction.

    Cheaper Prices

    Globalization has brought in fierce competition in the markets. Since there are varied products to select from, the producer can sustain only when the product is competitively priced. There is every possibility that a customer may switch over to another producer if the product is priced exorbitantly. ‘Customer is the King’, and hence can dictate the terms to a very large extent. Therefore, affordable pricing has benefited the consumer in a great way.

    Free Movement of Capital

    Capital, the backbone of every economy, is of prime importance for the proper functioning of the economy. Today, transferring money through banks is possible just by the click of a button, all due to the electronic transfer that has made life very comfortable. Many huge firms are investing in the developing countries by setting up industrial units outside their home country. This leads to Foreign Direct Investment, which helps in promoting economic growth in the host country.

    Communication

    Information technology has played a vital role in bringing the countries closer in terms of communication. Every single information is easily accessible from almost every corner of the world. Circulation of information is no longer a tedious task and can happen in seconds. The Internet has significantly affected the global economy, thereby providing direct access to information and products.

    Transportation

    Considered as the wheel of every business organization, connectivity to various parts of the world is no more a serious problem. Today with various modes of transportation available, one can conveniently deliver the products to a customer located in any part of the world. Besides, other infrastructural facilities like, distribution, supply chain, and logistics have become extremely efficient and fast.

    International Trade

    Purchase and sale of commodities are not the only two transactions involved in international trade. Today, international trade has broadened its horizon with the help of business process outsourcing. Sometimes in order to concentrate on a particular segment of the business, it is a practice to outsource certain services. Some countries practice free trade with minimal restrictions on EXIM (export-import) policies. This has proved beneficial to businesses.

    GDP Increase

    Gross Domestic Product, commonly known as GDP, is the money value of the final goods and services produced within the domestic territory of the country during an accounting year. As the market has widened, the scope and demand for a product have increased. Producers familiarize their products and services according to the requirements of various economies thereby tapping the untapped markets. Thus, the final outcome in terms of financial gain enhances the GDP of the country. If statistics are any indication, the GDP of the developing countries has increased twice as much as before.

    Disadvantages of Globalization

    Health Issues

    Globalization has given rise to more health risks and presents new threats and challenges for epidemics. A very customary example is the dawn of HIV/AIDS. Having its origin in the wilderness of Africa, the virus has spread like wildfire throughout the globe in no time. Food items are also transported to various countries, and this is a matter of concern, especially in case of perishable items. The safety regulations and the standards of food preparation are different in different countries, which may pose a great risk to potential health hazards.

    Loss of Culture

    Conventionally, people of a particular country follow its culture and traditions from time immemorial. With a large number of people moving into and out of a country, the culture takes a backseat. People may adapt to the culture of the resident country. They tend to follow the foreign culture more, forgetting their own roots. This can give rise to cultural conflicts.

    Uneven Wealth Distribution

    It is said that the rich are getting richer while the poor are getting poorer. In the real sense, globalization has not been able to reduce poverty. Instead, it has led to the accumulation of wealth and power in the hands of a few developed economies. Therefore the gap between the elite and the underprivileged seems to be a never-ending road, eventually leading to inequality.

    Environment Degradation

    The industrial revolution has changed the outlook of the economy. Industries are using natural resources by means of mining, drilling, etc. which puts a burden on the environment. Natural resources are depleting and are on the verge of becoming extinct. Deforestation is practiced owing to the non-availability of land, thereby drastically reducing the forest cover. This, in turn, creates an imbalance in the environment leading to climate change and occurrence of natural calamities.

    Disparity

    Though globalization has opened new avenues like wider markets and employment, there still exists a disparity in the development of the economies. Structural unemployment owes to the disparity created. Developed countries are moving their factories to foreign countries where labor is cheaply available. The host country generates fewer revenues, and a major share of the profits fall into the hands of the foreign company. They make humongous profits thereby creating a huge income gap between the developed and the developing countries.

    Cut-throat Competition

    Opening the doors of international trade has given birth to intense competition. This has affected the local markets dramatically. In recent times the standard of living has improved. People are therefore ready to shell out extra money for a product that may be available at a lower price. This is because of the modern marketing techniques like advertising and branding. The local players thereby suffer huge losses as they lack the potential to advertise or export their products on a large scale. Therefore the domestic markets shrink.

    Conflicts

    Every economy wants to be at the top spot and be the leader. The fast-paced economies, that is the developed countries are vying to be the supreme power. It has given rise to terrorism and other forms of violence. Such acts not only cause loss of human life but also huge economic losses.

    Monopoly

    Monopoly is a situation wherein only one seller has a say in a particular product or products. It is possible that when a product is a leader in its field, the company may begin to exploit the consumers. As there exist no close competitors, the leader takes full advantage of the sale of its product, which may later lead to illegal and unethical practices being followed. Monopoly is disastrous as it widens the gap between the developed and developing countries.

    In the current scenario, the key to international success is global marketing. Global marketing is the competency of an economy to market its product in almost every country. It is of utmost importance if the product has to make a mark and sustain globally. A car manufacturer in one country will manufacture its product in a different way than a car manufacturer in another country. But if both the manufacturers want to sell their car in a third country then it must have a global appeal. Global marketing has made known to the customer the existence and benefits of a product in the market giving the product an identity. At the same time, it has failed to keep in mind the wants and needs of every consumer, which are unlimited and several.

    Simply Advantages and Disadvantages of Glocalization

    First of all, glocalization makes sense when a firm faces high pressure for local responsiveness and where there are significant opportunities for leveraging valuable skills within a multinational’s global network of operations. Through glocalization, international products are adapted to the local taste of the population and thereby local communities are introduced to different aspects of foreign cultures. This helps multinational companies to grow and gain the trust of the people of particular regions.

    So, glocalization helps in connecting with the consumers of that region on an emotional level and also leverage its global position. This is the most important aspect that leads to the success of the company. Another positive aspect of glocalization is that multinational companies bring in foreign revenue and offer employment opportunities for locals. Disadvantages of this strategy can be that companies are unable to realize location economies or failure to transfer core competencies to foreign markets. Another disadvantage is that it is really difficult to implement a glocal strategy due to organizational problems. This means that glocalization doesn’t always benefit multinational companies because individuals and groups in each region or country can choose to accept or reject the products offerings or the company’s presence.

    What is the Advantages and Disadvantages of Glocalization in International Business - ilearnlot

    Reference

    1. Advantages and Disadvantages of Glocalization – //www.buzzle.com/articles/advantages-and-disadvantages-of-globalization.html
    2. Simply Advantages and Disadvantages of Glocalization – //www.mbaknol.com/international-business/glocalization-definition-advantages-and-disadvantages/
    3. Photo Credit URL – //images.fastcompany.net/image/upload/w_1280,f_auto,q_auto,fl_lossy/fc/3014641-poster-p-4-reasons-handshakes-go-horribly-wrong.jpg

  • Difference of Advantages and Disadvantages of Diversity Management

    Difference of Advantages and Disadvantages of Diversity Management

    What is Difference of Advantages and Disadvantages of Diversity Management?

    What is a Diversity Management? In recent years, diversity is increasingly perceived as an important issue in the context of business management. This is due to the increasing differences in the population, globalization process, increasing of international business and cross borders business dealing activities. In the business community, companies have also tend to pay more focus on diversity and look for ways to reap the opportunities offered by diversity as they acknowledge that diversity has the potential of yielding greater productivity and competitive advantages. Apparently, managing and valuing diversity is a key component of effective people management, which not only can improve workplace productivity, but also contribute significantly to the strategic objectives of human resource management.

    Advantages of Diversity Management in Workplace

    Diversity can be a sort of strategy which enables organization to gain competitive advantage in the market competitive landscape. Managing cultural diversity is one of the key factors differentiating a particular company at factors such as (1) efficient work practices or procedures, (2) technological innovation or change, (3) product or services related innovation and lastly, (4) client or consumers related services. What is Need? The Do and Don’t in Diversity Management!

    However, there are more contributions of managing diversity to the strategic objectives of a company.

    • Improved and enhanced competencies in terms of customer services. As a matter of fact, diverse workforce will often means diverse expertise, talent, experience and capabilities in the employees. If a manager understands the intricacies and complexity of how to manage diversity effective, he will be able to put the right person into the correct position, by minimizing his weaknesses while enhancing the particular employee’s strength. From this perspective, a diverse workforce enables a manager to choose the correct candidate for a particular position in the organization.
    • Able to compile and improve the strength of customer intelligence. As we employ diverse workforce, we can indirectly tap into the knowledge and experience of these workforce. In the era of information, we understand that marketing intelligence or customer intelligence has becoming more and more important. Diversity in workforce in this picture can help a company to compile and collect more relevant and effective data on the market place.
    • Ability to operate effectively as well as efficiently in a global context. As a well known fact, the entire world is a colorful depiction of diversity. Thus, to go global, a diverse workforce is some sort a basis requirement. We simply need the local experts to assist us in managing business units at foreign countries or simply to expand market share in the other countries. Thus, it is not hard for us to understand that a diverse workforce will enable a company to operate more effectively and efficiently.
    • Able to produce more satisfied workforce, and thus leading to more productive workforce. If a company can manage diversity in a proper way, then the individual employee will no longer need to clone or purposely changed himself to adaption of the corporate culture. This can often leads to a more satisfied workforce. A more satisfied workforce, will in turn, leads to more productive workforce.
    • Effective managing of diversity enables reduction in industrial disputes. Of course, proper management of diversity can also ensure less industrial dispute or court case arises from employees’ issues.
    • Diverse workforce can lead to increased creativity and innovation. Diversity can produce synergy and creativity and innovative as well. A group of different people is better than a results produced by a single person. The combined efforts are always much outstanding.
    • Having better chance to attract higher quality employees from a larger pool of employees. As a company prepare or has already adopted the mindset of having diversity is beneficial. Then the company automatically access to a diverse pool of human talents. Which means that the company can choose the employees from a larger pool of workforce. As now the choices are enlarged, then we can have access to better talents around the world. Or in other words, we can access to the world class talents around the globe.

    Disadvantages of Diversity Management in Workplace

    Poorly integrated heterogeneous groups can be as damaging to the organization as overly integrated homogeneous groups. Apparently, managing diversity is an art. While although the contribution to a company strategic management picture is bright, the execution is nothing easy. Besides, unfortunately, there are also evidences that diversity can bring disadvantages to companies as well.

    For example, it is found that teams with diverse employees usually take longer to perform effectively. Besides, diversity also brings numerous communication problems as well as “faultiness” in informal group dynamics. At some serious cases, diversity can also be a source of conflict. That can cause issues such as reluctant to share information among workforce. Employee morale deterioration problems, and higher turnover due to degradation of job satisfaction.

    Not only that, it is also mention that there can be various drawbacks due to implementation of diversity management program in the short term. Case Study of “Starbucks Entry to China” with Marketing Strategy.

    For example, if handled insensitively, a diversity management program may invade employee privacy. Also, implementation of the diversity management program may be expensive in the short term. Apart from that, during the implementation process, deep seated prejudices within employees may be brought into the open, causing short-term tension. Particularly for a poorly handled program, conflicts and ill-feeling may be the end results for managers to handle.

    Difference of Advantages and Disadvantages of Diversity Management - ilearnlot

  • Make Money Online Easy Advantages Disadvantages

    Make Money Online Easy Advantages Disadvantages

    #1 Make Money Online easy; The world has Online and everybody wants to make money online, easy way, quick & fast way; its many advantages, and disadvantages to becoming more money earner; just as any other aspect of the world does; but, one particular area where it shows decide advantages is in the area of making money. One particular advantage is that it does not require much effort on the part of the person trying to make money; all they need is a computer and an internet connection. Another advantage is that the online world is open to everyone, regardless of their skill set. Become an Instagram Millionaire but How? Successful Characteristics of Entrepreneur.

    Here is the article to explain, the #1 best way to Make Money Online Easy How? with Advantages and Disadvantages.

    List of #1 best way Possible Options for making Money online the following advantage and disadvantages below are;

    Cryptocurrency Mining:

    Cryptocurrency is what knows as an encrypted, decentralized digital currency. It uses in a process known as mining; which is the transferal of currency between two or more people, all of which are notes in a public ledger. A public ledger is something open to public viewing, where everyone can see the transactions that make; the names of the various people involved encrypt; of course, to give some measure of privacy to those people involved. Cryptocurrency is the best way #1 Make Money Online.

    Cryptocurrency Advantages:

    Possibly the biggest advantage to using cryptocurrency is that it is difficult to perpetrate fraud while using it; at least in the same way as when real money is in the discussion. Another advantage lies in the quickness which is inherent in using cryptocurrency; rather than needing to rely on third parties whenever things need to be done (as happens with so many purchases in the real world); cryptocurrency can use to finish any deals on their own.

    Cryptocurrency Disadvantages:

    Of course, cryptocurrencies come with many disadvantages, some because they are relatively innovations, and some because they exist generally. The main disadvantage is that cryptocurrencies, as a new technology, are difficult to use; most people do not understand them as yet, and therefore do not skill in proper usage. Because it is a new system, cryptocurrency has caused a lot of disruption both; because few people know how to properly use it and because the system itself is new.

    Academic Writing Companies:

    Custom essay writing companies are becoming more and more known as the internet grows and makes its way into more and more of everyday life. These sites range from small to absolutely huge, but they all offer the same thing: the chance to have papers written (or edited) for people in academia and business so that the work is done without them needing to do it. Academic writing companies; You also make and create articles for us online.

    Academic Writing Companies Advantages:

    There are several advantages to being part of and owning a custom essay writing company; the main one is that this area of business is seeing a lot of expansion due to the increased digitalization of society. Another advantage is the ever-growing educational field – with so many people taking courses, and therefore potentially needing help from academic writing services in various ways. Finally, in this day and age, there is an ever-growing pool of potential employees.

    Academic Writing Companies Disadvantages:

    The major disadvantage to running academic writing services is that their position is somewhat tenuous. Many academic institutions see the services offered by academic writing services as cheating and plagiarism and will take action based on those beliefs. This means that anybody who uses the service runs the risk of losing their educational opportunities, something; which can have a knock-on effect on the clients and the demand for the business as a whole, causing it to decrease dramatically.

    Content Production Services:

    Content production services are external services that produce content for businesses that specifically focus on marketing and digital content production. These services normally take the form of short items of ‘copy’ that individual writers can take on as and when they see fit. Some services offer to keep specific writers doing work for specific businesses; if they like what was written; while others allow the writers access to the business profiles themselves, allowing them to choose for themselves.

    Content Production Services Advantages:

    Running a content production service has the advantage of being at the forefront of content production; particularly as more and more businesses are growing wise to the need for Internet and digital marketing in all its forms. The main advantage in this is that for the moment at least, the business can only increase as more people use it; either because the business in question cannot do such work themselves, or because they do not want to retain staff specifically for marketing purposes.

    Content Production Services Disadvantages:

    However, the disadvantage of owning content production companies is that the very nature of these services; and, how the need for them has grown exponentially over the recent past, is the very thing that may curtail the need for the service. Content production services are only of use so long as people are going to be looking outside their place of business for as long as they don’t have people within it who have the appropriate skills.

    Freelance Coding:

    Freelance coding is something offered by freelancers to whoever might need any coding work done; particularly, if they do not normally retain a programmer of any kind. Coding can be done in any of the various languages which are available to all programmers. Freelance coding is something that can involve any kind of project, from small to large. Similarly, it can involve the work of a day, or work done over a much longer period.

    Freelance Coding Advantages:

    Owning a freelance coding business has one major advantage – it means that you can choose to work on a variety of different coding projects according to your interests; as well as what you are essentially good at. Being able to tailor your calendar gives you a lot of control over your schedule and the projects; you take on, is something that would allow you to control your own business to a large extent; and, also help to build your skills in the manner you wanted.

    Freelance Coding Disadvantages:

    A disadvantage to being a freelance coder or owning that kind of company is that it can be quite difficult to get started in the business in the first place. People who need coding done are more likely to go for the experience, leaving someone who has just started in a bind. Another problem is that as the digital world has grown; so has the number of people who have grown up with the new systems, leaving more people able to handle the coding and formatting that might come up in a business day, leading to less demand for freelance coders. Be The Change You Want to See in The World. How to easy make money online?

    Advantage and Disadvantages of Make Money Online
    #1 Make Money Online How? Advantages and Disadvantages.
  • The Steps with Advantages and Disadvantages of Strategic Management

    The Steps with Advantages and Disadvantages of Strategic Management

    The Steps with Advantages and Disadvantages of Strategic Management; Strategy: The word “strategy” derives from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving). A strategy is an action that managers take to attain one or more of the organization’s goals. The strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”.

    Here explains you’ll read and learn; The Steps with Advantages and Disadvantages of Strategic Management.

    A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational environment to meet the present objectives. While planning a strategy it is essential to consider that decisions do not take in a Vaccum and that any action taken by a firm is likely to be met by a reaction from those affected, competitors, customers, employees or suppliers.

    The strategy can also define as knowledge of the goals, the uncertainty of events and the need to take into consideration the likely or actual behavior of others. The strategy is the blueprint of decisions in an organization that shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines the business the company is to carry on, the type of economic and human organization it wants to be, and the contribution it plans to make to its shareholders, customers, and society at large.

    Steps of Strategic Management:

    The strategic management plan has various facets that are being discussed here. The strategies are applied to have proper planning and appropriate allocation of funds for the accomplishment of the goals of the company.

    Step 1: Formulation;

    The formulation of the strategies essentially involves the environment within which every company has to survive. Here various important decisions make to figure out how the company will reach out to the competition. Here the external environmental analysis is done. The political, economic, legal and social aspects are assessed during the formulation of the strategies.

    1. Industry Environment:

    The strategic decision-maker checks for the competitor environment. They try to assess the resources available to the rivals and also their bargaining power with the customers. It is also important to understand the trend of the suppliers; check if there are any latest threats of the new entrants in the industry.

    2. Internal Environment:

    Though most of the companies do not take care of the internal environment this is amongst the most important while implementing strategic management fundamentals. You should have a clear SWOT analysis of your employees, processes, and resources.

    Step 2: Implementation;

    This is the next important step in strategic management – here the management has to decide as to how the resources will be utilized to reach out to the goals formulated by the company. The implementation phase also checks how the resources of the organization have been structured.

    Advantages of Strategic Management Process:

    The process of strategic management is a comprehensive collection of different types of continuous activities and also the processes which use in the organization. Strategic management is a way to transform the existing static plan in a proper systematic process. Strategic management can have some immediate changes in the organization. The following mentioned are few advantages of strategic management;

    1. Making a better future;

    There is always a difference between reactive and proactive actions. When a company practices strategic management – the company will always be on the defensive side and not on the offensive end. You need to come out victorious in the competitive situation and not be a victim of the situation. It is not possible to foresee every situation but if you know that there are chances of certain situations then it is always better to keep your weapons ready to fight the situation.

    2. Identifying the directions;

    Strategic management essentially and clearly defines the goals and mission of the company. The main purpose of this management is to define realistic objectives and goals – this has to be in line with the vision of the company. Strategic management provides a base for the organization based on which progress can measure and base on the same, the employees can compensate.

    3. Better business decisions;

    It is important to understand the difference between a great idea and a good idea. If you do have a proper and clear vision of your company – then having a mission and methods to achieve the mission always seems to be a very good idea. It turns into a great idea when you decide what is the type of project that you want to invest your money; how do you plan to invest your time and also utilize the time of your employees. Once you are clear with your ideas about the project and the time each of your employees and you will have to allocate, you will need to focus your attention on the financial and human resources.

    4. The longevity of the business;

    The times are changing fast and dynamic changes are happening every day. The industries worldwide are changing at a fast pace and hence survival is difficult for those companies which do not have a strong and perfect base in the industry. The strategic management ensures that the company has a thorough stand in the related industry and the experts also make sure that the company is not just surviving on luck and better chances or opportunity.

    When you look at various studies you would know that the industries which are not following the strategic management will survive for not more than five years. This suggests that companies should have a powerful focus on the longevity of the business. This suggests that without strategic management, a company can’t survive in the long run.

    5. Increasing market share and profitability;

    With the help of strategic management, it is possible to increase the market share and also the profitability of the company in the market. If you have a very focused plan and strategic thinking then all the industries can explore better customer segments, products and services and also to understand the market conditions of the industry in which you are operating in. Strategic management skills will help you to approach the right target market. The experts will guide for better sales and marketing approaches. You can also have a better network of distribution and also help you to take business decisions which at the end of the day results in profit.

    6. Avoiding competitive convergence;

    Most of the companies have become so used to focusing on the competitors that they have started imitating their good practices. It has become so much competition that it is becoming difficult to part the companies or identify them differently. With the help of strategic management this magic is possible; try and learn all the best practices of a company and become a unique identity that will keep you apart from your competitors.

    7. Financial advantages;

    The firms which follow the process of strategic management prove to have more profits over some time as compared to the companies that do not opt for strategic management decisions. Those firms which involve in using strategic management use the right method of planning; these companies have excellent control over their future. They have a proper budget for their future projects; hence these businesses continue for a long time in the industry.

    8. Non-financial advantages;

    Besides the financial benefits, the companies using strategic management also provides various non-financial benefits. The experts informed that the firms which practice strategic management are always ready to defeat the external threats. They have a better understanding of the strengths and weaknesses of the competitor and hence they can withstand the competition. This paves way for better performance and rewards for the company over some time. The main feature of this management system is that it has the capacity for problem prevention and problem-solving skills. It also helps in bringing about discipline in the firm for all types of internal and external processes.

    Disadvantages of Strategic Management Process:

    The process of strategic management includes a set of long-term goals and objectives of the company; using this method helps the company is facing competition in a better manner and also increase its capabilities. These are some of the benefits but every coin has two sides – the same is the case with strategic management. Here are some of the limitations of strategic management;

    1. Complex process;

    The strategic management includes various types of continuous process which checks all type of major critical components. This includes the internal and external environments, long term and short term goals, strategic control of the company’s resources and last but not least it also has to check the organizational structure. This is a lengthy process because a change in one component can affect all the factors.

    Hence one must understand the issues with all the concerned factors. This generally takes time and in the end, the growth of the company affects. Being a complex process it calls for lots of patience and time from the management to implement the strategic management. To have proper strategic management, there should be strong leadership and properly structured resources.

    2. Time taking process;

    To implement strategic management, the top management must spend proper quality time to get the process right. The managers have to spend a lot of time researching, preparing and informing the employees about this new management. This type of long term and time-consuming training and orientation would hamper the regular activities of the company. The day to day operations are negatively impacted and in the long term, it could affect the business adversely.

    E.g. many issues require daily attention but this is not taken care of because they are busy researching the details about strategic management. In case, the proper resolution of the problems is not done on time then there could be a great amount of attrition increase. Besides this, the performance of the employees will also go down; because, they are not getting the required resolution of their problems. This type of situation may lead the management to divert all their critical resources towards employee performance and motivation; while doing this your strategic management process will be sidelined.

    3. Tough implementation;

    When we speak the word strategic management then it seems to be a huge and large word. But it is also a fact that the implementation of this management system is difficult as compared to other management techniques. The implementation process calls for perfect communication among the employees and employers. Strategic management has to be implemented in such a way that the employees have to remain fully attentive; there should be active participation among the employees and besides this, the employees have to be accountable for their work.

    This accountability means not only for the top management but for all employees across the hierarchy. The experts mentioned that implementation is difficult because they have to continuously strive to make the employees aware of the process and benefits of this system. E.g. if a manager was involved in forming the strategic process and he/she has not been involved in the implementation process then the manager will never be accountable for any processes in the company.

    4. Proper planning;

    When we say management systems then it calls for perfect planning. You just cannot write things on paper and leave them. This calls for proper practical planning. This is not possible by just one person but it is a team effort. When these types of processes are to implement then you need to sideline various regular decision-making activities that would adversely affect the business in the long run.

    Short Review: 

    In recent years, most of the firms have understood the importance of strategic management – it plays a key role in the upbringing and downfall of any company. In a nutshell, we can conclude that the purpose of strategic management is possible if a company can provide dedicated resources; and, staff to formulate and implement the entire system. If strategic management is implemented in the company thoroughly then there is no doubt that the company will survive all types of odds; and, competition and remain in the market for a long period.

    This is required in the present situation for all companies. It just calls for proper planning and the right people to implement them in the company. You need to keep a regular check on all external and internal factors affecting your industry; besides this check all your financial resources whether they are enough to expand your business. If you could keep in mind these things the implementation will become very easy and quick for any organization irrespective of their sizes.

    The Steps with Advantages and Disadvantages of Strategic Management
    The Steps with Advantages and Disadvantages of Strategic Management

  • What are Benefits of Strategic Management?

    What are Benefits of Strategic Management?

    What are the Benefits of Strategic Management? Strategic management essentially means the implementation and formulation of various strategies to achieve the goals of the company. This is the detailed initiative that is taken by the top management; these strategic decisions are taken based on available resources; they also take into consideration the effects of the external and internal environment on their decisions.

    Here explains read and learn; Benefits of Strategic Management with its advantages and disadvantages: 

    There are many benefits of strategic management and they include identification, prioritization, and exploration of opportunities. For instance, newer products, newer markets, and newer forays into business lines are only possible if firms indulge in strategic planning. Next, strategic management allows firms to take an objective view of the activities being done by it; and, do a cost-benefit analysis as to whether the firm is profitable.

    Just to differentiate, by this, we do not mean the financial benefits alone (which would be discussed below); but, also the assessment of profitability that has to do with evaluating whether the business is strategically aligned to its goals and priorities.

    The key point to note here is that strategic management allows a firm to orient itself to its market and consumers; and, ensure that it is actualizing the right strategy.

    1] Financial Benefits;

    It has been shown in many studies that firms that engage in strategic management are more profitable; and, successful than those that do not have the benefit of strategic planning and strategic management.

    When firms engage in forwarding looking planning and careful evaluation of their priorities, they have control over the future; which is necessary for the fast-changing business landscape of the 21st century.

    It has been estimated that more than 100,000 businesses fail in the US every year and most of these failures are to do with a lack of strategic focus and strategic direction. Further, high performing firms tend to make more informed decisions; because they have considered both the short-term and long-term consequences and hence, have oriented their strategies accordingly. In contrast, firms that do not engage themselves in meaningful strategic planning are often bogged down by internal problems and lack of focus that leads to failure.

    2] Non-Financial Benefits:

    The section above discussed some of the tangible benefits of strategic management. Apart from these benefits, firms that engage in strategic management are more aware of external threats; an improved understanding of competitor strengths and weaknesses and increased employee productivity. They also have a lesser resistance to change and a clear understanding of the link between performance and rewards.

    The key aspect of strategic management is that the problem solving and problem preventing capabilities of the firms enhance through strategic management. Strategic management is essential as it helps firms to rationalize change and actualize change; and, communicate the need to change better to their employees. Finally, strategic management helps in bringing order and discipline to the activities of the firm in both internal processes and external activities.

    3] Closing Thoughts;

    In recent years, virtually all firms have realized the importance of strategic management. However, the key difference between those who succeed and those who fail is how strategic management is done and strategic planning is carried out makes the difference between success and failure. Of course, there are still firms that do not engage in strategic planning or where the planners do not receive support from management. As well as, These firms ought to realize the benefits of strategic management and ensure their longer-term viability and success in the marketplace.

    The Advantages of Strategic Management;

    The following advantages below are;

    1] Discharges Board Responsibility;

    The first reason that most organizations state for having a strategic management process is that it discharges the responsibility of the Board of Directors.

    2] Forces An Objective Assessment;

    Strategic management provides a discipline that enables the board; and, senior management to take a step back from the day-to-day business to think about the future of the organization. Without this discipline, the organization can become solely consumed with working through the next issue or problem without consideration of the larger picture.

    3] Provides a Framework For Decision-Making;

    The strategy provides a framework within which all staff can make day-to-day operational decisions; and, understand that those decisions are all moving the organization in a single direction. It is not possible (nor realistic or appropriate) for the board to know all the decisions the executive director will have to make, nor is it possible (nor realistic or practical) for the executive director to know all the decisions the staff will make.

    The strategy provides a vision of the future, confirms the purpose and values of an organization, sets objectives, clarifies threats and opportunities, determines methods to leverage strengths, and mitigate weaknesses (at a minimum). As such, it sets a framework and clear boundaries within which decisions can be made. Also, the cumulative effect of these decisions (which can add up to thousands over the year) can have a significant impact on the success of the organization. Providing a framework within which the executive director and staff can make these decisions helps them better focus their efforts on those things that will best support the organization’s success.

    4] Supports Understanding & Buy-In;

    Allowing the board and staff participation in the strategic discussion enables them to better understand the direction; why that direction was chosen, and the associated benefits. For some people simply knowing is enough; for many people, to gain their full support requires them to understand.

    5] Enables Measurement of Progress;

    A strategic management process forces an organization to set objectives and measures of success. Also, the set of measures of success requires that the organization first determine; what is critical to its ongoing success and then force the establishment of objectives and keeps; these critical measures in front of the board and senior management.

    6] Provides an Organizational Perspective;

    Addressing operational issues rarely looks at the whole organization and the interrelatedness of its varying components. Strategic management takes an organizational perspective and looks at all the components and the interrelationship between those components to develop a strategy that is optimal for the whole organization and not a single component.

    The Disadvantages of Strategic Management;

    The following disadvantages below are;

    1] The Future Doesn’t Unfold As Anticipated;

    One of the major criticisms of strategic management is that it requires the organization to anticipate the future environment to develop plans, and as we all know, predicting the future is not an easy undertaking. The belief is that if the future does not unfold as anticipated then it may invalidate the strategy taken. Recent research conducted in the private sector has demonstrated that organizations that use the planning process achieve better performance than those organizations that don’t plan; regardless of whether they achieved their intended objective. Also, there are a variety of approaches to strategic planning that are not as dependent upon the prediction of the future.

    2] It Can Be Expensive;

    There is no doubt that in the not-for-profit sector there are many organizations that cannot afford to hire an external consultant to help them develop their strategy. As well as, Today many volunteers can help smaller organizations; and, also funding agencies that will support the cost of hiring external consultants in developing a strategy. Regardless, it is important to ensure that the implementation of a strategic management process is consistent with the needs of the organization; and, that appropriate controls are implemented to allow the cost/benefit discussion to be undertaken, before the implementation of a strategic management process.

    3] Long Term Benefit vs. Immediate Results;

    Strategic management processes design to provide an organization with long-term benefits. If you are looking at the strategic management process to address an immediate crisis within your organization, it won’t. It always makes sense to address the immediate crises before allocating resources (time, money, people, opportunity, cost) to the strategic management process.

    4] Impedes Flexibility;

    When you undertake a strategic management process; it will result in the organization saying “no” to some of the opportunities that may be available. This inability to choose all of the opportunities presented to an organization is sometimes frustrating. Also, some organizations develop a strategic management process that becomes excessively formal. Processes that become this “established” lack innovation and creativity and can stifle the ability of the organization to develop creative strategies. In this scenario, the strategic management process has become the very tool that now inhibits the organization’s ability to change and adapt.

    A third way that flexibility can be impeded is through a well-executed alignment and integration of the strategy within the organization. An organization that is well-aligned with its strategy has addressed its structure, board, staffing, and performance and reward systems. This alignment ensures that the whole organization is pulling in the right direction, but can inhibit the organization’s adaptability. Again, there are a variety of newer approaches to strategy development used in the private sector (they haven’t been widely accepted in the not-for-profit sector yet); that build strategy and address the issues of organizational adaptability.

    What are Benefits of Strategic Management?
    Benefits of Strategic Management.

  • Advantage and Disadvantages of Mission Statement

    Advantage and Disadvantages of Mission Statement

    Difference of Advantage and Disadvantages of Mission Statement

    What is Definition of Mission Statement? A sentence describing a company’s function, markets and competitive advantages; a short written statement of your business goals and philosophies. Difference of Advantages and Disadvantages of Diversity Management.

    A mission-statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission-statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

    If you don’t have a mission-statement, create one by writing down in one sentence what the purpose of your business is. Ask two or three of the key people in your company to do the same thing. Then discuss the statements and come up with one sentence everyone agrees with. Once you have finalized your mission-statement, communicate it to everyone in the company.

    It’s more important to communicate the mission-statement to employees than to customers. Your mission-statement doesn’t have to be clever or catchy just accurate.

    If you already have a mission-statement, you will need to periodically review and possibly revise it to make sure it accurately reflects your goals as your company and the business and economic climates evolve. To do this, simply ask yourself if the statement still correctly describes what you’re doing.

    If your review results in a revision of the statement, be sure everyone in the company is aware of the change. Make a big deal out of it. After all, a change in your mission probably means your company is growing-and that’s a big deal.

    Once you have designed a niche for your business, you’re ready to create a mission-statement. A key tool that can be as important as your business plan, a mission-statement captures, in a few succinct sentences, the essence of your business’s goals and the philosophies underlying them. Equally important, the mission-statement signals what your business is all about to your customers, employees, suppliers and the community.

    The mission-statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community. Components of a Strategy Statement.

    Advantages of Mission-Statement

    Provides direction: Mission-statements are a way to direct a business into the right path, it plays a part in helping the business make better decisions which can be beneficial to them. Without the mission-statement providing direction, businesses may struggle when it comes to making decisions and planning for the future, this is why providing direction could be considered one of the most advantageous points of a mission-statement.

    Clear purpose: Having a clear purpose can remove any potential ambiguities that can surround the existence of a business. People who are interested in the progression of the business, such as stakeholders, will want to know that the business is making the right choices and progressing more towards achieving their goals, which will help to remove any doubt the stakeholders may have in the business.

    The benefit of having a simple and clear mission-statement is that it can be beneficial in many different ways. A mission-statement can help to play as a motivational tool within an organization. It can allow employees to all work towards one common goal that benefits both the organization and themselves. This can help with factors such as employee satisfaction and productivity. It is important that employees feel a sense of purpose. By giving them this sense of purpose it will allow them to focus more on their daily tasks. Help them to realize the goals of the organization and their role.

    Disadvantages of Mission-Statement

    Although it is mostly beneficial for a business to craft a good mission-statement. There are some situations where a mission-statement can be considered pointless or not useful to a business.

    Unrealistic: In most cases, mission statements turn out to be unrealistic and far too optimistic. An unrealistic mission statement can also affect the performance and morale of the employees within the workplace. This is because an unrealistic mission statement would reduce the likelihood of employees being able to meet this standard which could demotivate employees in the long term. Unrealistic mission statements also serve no purpose and can consider a waste of management’s time. Another issue which could arise from an unrealistic mission statement is that poor decisions could made in an attempt to achieve this goal. Which has the potential to harm the business and seen as a waste of both time and resources.

    Waste of time and resources: Mission-statements require planning, this takes time. Effort for those who are responsible for creating the mission statement. If the mission-statement is not achieve, then the process of creating. The mission-statement could seen as a waste of time for all of the people involve. A lot of thought and time is spent in designing a good mission-statement. And to have all of that time wasted is not what businesses can afford to doing. The wasted time could have spent on much more important tasks within the organization such as decision-making for the business.

    Advantage and Disadvantages of Mission Statement