Business and corporate strategy is a key factor in any company's survival in the competitive marketplace. The importance of strategy cannot be underestimated, and it is those companies which have clearly defined and implemented strategies which become leaders in their own industries. British Airways is a perfect example of having a bold, decisive and distinct strategy. Their Mission Statement is, quite clearly,To be the best and most successful company in the airline industry? (1986:10). Proclaiming high goals such as these helps to push the company towards this success which they aspire, provided it is supported by a well defined and befitting strategic plan of action. In this case, a much longer list of Goals, Objectives, Actions, Rewards and so forth have been outlined by British Airways in order to support this Mission Statement. .
Two companies, Cisco Systems and IKEA, with very different business orientation and management styles, have both come through to be extremely successful in their chosen field of business. Their management styles, although divergent and contrasting in nature, have resulted in two very successful global organisations. This idea ofstrategic management? is not confined to one style, but must be adapted and changed to suit each organisation, and in many cases, altered even within one company to suit it's customer's differing needs.
Strategic Management is the process used to formulate and implement strategies that will improve an organisation such that it fulfills its goals and objectives. There are many management styles to fulfil the vast range of objectives, desires and aims of today's multi-national companies. As part of a grand strategy plan, a company will fall into one of three main categories: Growth, Stability and Retrenchment.
Growth strategies are principally aimed to grow and expand and organisation in order to make it more profitable. This may include the acquisition of other companies, the movement of product lines into new countries or markets, or the streamlining of production in order to produce more at lower cost, thereby (hopefully) increasing the customer base.