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Espino, Mae Ann F.

April 29, 2019


FIN422 (strategic financial management)

The Trends and Challenges of Strategic Management

Traditionally, strategic management has been the playground for only senior
management and leadership positions. Over the years, with dissolving boundaries and
disappearing hierarchies in increasingly flat organizational structures strategic
management and leadership have undergone a huge change. With people analytics
appearing as one major trend in 2018, more organizations are now paying attention to
employee experience in this year of 2019. Trends of strategic management particularly
in complexity of business growth lead to collaboration, Digitization to manage
information overload, Digital skill enhancement among leaders, empowering employees,
making Qualitative data and Innovation and creativity. In terms of complexity of
business, in the current scenario where so many things are interlinked increasing
interdependence, number of stakeholders and information sources. With leaders being
unable to handle a mix of all these on their own coupled with political and economic
changes; they seek collaboration with the best minds in their organization. In terms of
Digitization to manage information overload, Leaders in today’s organizations are
boggled by the mind numbing amount of information. Hence, a key trend is complete
digitization of the office space with in-built analytics software which culls data results
and presents them in the format usable by leaders. This is an important move towards
making better and timelier decisions. In terms of Digital skill enhancement among
leaders, it is necessary for leaders to enhance their digital skills. With analytics
becoming an integral part of businesses it is only necessary for leaders who wish to
hold their spots to enhance their own skill sets, just like that of their employees. In terms
of empowering employees, leaders are providing project based strategic responsibilities
to an increasing number of employees. This is a strategic move to develop and hone
leaders for tomorrow. In terms of making Qualitative data, it’s important in 2019
because more leaders are now paying attention to qualitative data. Since customer and
employee experience is now a priority, leaders are employing qualitative data analyses
to enforce positive changes. And lastly in terms of Innovation and creativity,
encouraging strategic collaborations across teams and different business units in their
company to provide a boost to creativity and come out with innovative solutions to
complex business problems.

For the challenges of strategic management, Strategic management includes


strategic planning, implementation and review/control of the strategy of an organization.
All most all the modern organizations engage in strategic management to ensure that
they achieve the desired level of performance. But in the modern business context
strategic management faces many challenges such as, Orientation for globalization,
emerging e-commerce and internet culture, Cut throat competition, Diversification,
Active pressure groups and Motive for Corporate Social Responsibility (CSR) and
ethics.

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