Question

Contemporary strategic management ensures that a firm’s Vision and Mission defines the strategic direction of the firm. Explain the challenges faced by the firm’s operating in today’s global competitive landscape in ensuring its Vision and Mission remains relevant in an ever-changing and uncertain environment? 400 words

Answer 1

We need to understand meaning of " Contemporary Strategic Management " . Contemporary Strategic Management , mainly represents a traditional approach to strategic thinking as well as more clear view on current (new) development . Contemporary business environment impacted due to following factor :

1 Globalization and functioning over the boarder Market

2) Growing competition of Asian Countries ( mainly China )

3) Growing concern relates to Raw Material and Ecology

4) Crawling financial crisis of 2008

More analysis and impact on Global Economy along with future recourse :

Huge dynamic of environment changes will create growing rivalry between market

Competitive enterprise needs to show the flexibility to adopt to changing environment condition . One of the most important factor is the adequate use of knowledge and resources .

At present scenario , market is very stormy and unpredictable . , we need to identify different treats and chances .

Following factor continuously disturbing contemporary strategic Management :

1)Total Economic pressure - like complexity of economic condition

2) Competitive pressure - standarization vsIndividualization

3) Innovative pressure - knowledge based economy ,key success factor is Innovation

4) Social Pressure - Ethics , Social business responsibility

Going forward while determining Vision and mission by Management , need to consider all above challenges and threat and redesign the process , redesign the thinking view . Need to understand all threat factor in details and find out other solution to over come present issue . Management needs to look into following factor while developing future strategy :

1) People as an Asset

2) Risk diversion benefits from geographically diversified business portfolio that provides a natural hedge against the volatility of local Growth , country risk and currency risk .

3) Strategic Confidence the ability to access new market , new customer and new partner.