Question

Oliban is an Omani company offers beauty products of the highest quality of natural frankincense based on scientific research to deliver the best results. It is one of a leading innovation company in GCC in health & wellness. It produces products from Omani frankincense oil branded as oliban which is best grade of its kind.

A.      Because of the Coronavirus disease (Covet-19) Oliban management decided to set a new strategy. Explain in your words in no less than 200 words, the strategic management process phases the Oliban’s strategic team should follow.

B.      If Oliban management decided to give a consultant agency to set their strategy, discuss in your words in no less than 200 words, the advantage and disadvantage of this action?

Answer 1

A) STRATEGIC MANAGEMENT PROCESS:-

1. Mission and Goals:

The first step in the strategic management begins with senior managers evaluating their position related to the organization’s current mission and goals. The mission describes the organization’s aspirations and values and indicates the direction in which senior management is going.

2. Environmental Scanning:

Environmental scanning refers to a process of collecting and providing information for strategic purposes and helps in analyzing the internal and external factors that influence an organization. After executing the process, management should evaluate it on a continuous basis to improve it.

3. Strategy Formulation:

Strategy formulation is the process of deciding right course of action for achieving organizational objectives. After doing environment scanning process, managers formulate business, corporate and functional strategies.

4. Strategy Implementation:

Strategy implementation implies putting the organization’s strategy in to action and making it work as intended. Strategy implementation includes designing the organization’s structure, developing decision making process, distributing resources,and effectively managing human resources.

5. Strategy Evaluation:

Strategy evaluation which is the final step of strategy management process involves- appraising internal and external factors, measuring performance, and taking corrective actions. These steps are carried by the businesses, in chronological order, when creating a new strategic management plan.

B) CONSULTANT AGENCY

BENEFITS

1) Enjoy Help from a Specialist-

The consultant will have experience in their exact field and have past projects that may mirror your situation.

2) It Costs Less than Hiring a New Employee

Hiring an employee rather than a consultant can get costly with having to pay for benefits,technology, work space and more. Consultants are often hired to tackle a particular project within a specific time period. With this you'll have to pay that consultant less than if you were to hire a brand new full-time employee.

DISADVANTAGES:-

1) Get Prepared for Honest Feedback
The relationship between a manufacturing organization and consultant should be professional, friendly and collaborative. Sometimes some advice may seem like a criticism.
2) Budget impacts

Consultants come with a high price tag for a variety of reasons: skills, experience and short term availability. If you do not tightly manage their time, project budget can be blown if you extend their assignment past the budgeted amount.