Question

What are the new directions in strategic thinking?

Answer 1

Strategic thinking is the sum of the ability to work across functions, to drive result, good leadership and understanding of core finance. We can also define it as the generation and implication of of business insights to achieve the business competitiveness advantage.

New Directions of Strategic Thinking;-

The trends and directions of strategic thinking of present time is quite different from the early ones. The new directions of strategic thinking are-

1. Gains from cost- cutting- A company should try to reduce its expenses so that it can improve its profits. For this it should work on its cost program and try to build the appropriate cost systems. Also the company should try to sort the good cost from bad cost. A good and planned cost cutting structure helps the company to lower its cost structure and also ensure the company that it is ready for growth.

2. Access new source of profitability- For continuous growth, a company must try to create new sources of profitability and opportunities. For donig this, the company should concentrate on the market changes and customers' needs. It can generates new sources by speed up its design cycle, shorten sales cycle, make a strategic map for the market, try innovative ideas etc.

3. Emphasis on sources of competitive advantage- For this a company must create a balanced relationship between competitive priorities and competitive advantage. Operational and marketing strategies are helpful in emphasizing competitive priorities and also in the quality, cost, flexibility and delivery to achieve, develop and maintain competitive advantage. Company can also achieve the competitive advantage by improving its supply chain system.

4. Emphasis on learning- In the present scenario, learning plays a very crucial part in the organisation. Through learning a company can expand its capacity and ability to create the result it truely desires. Learning is a never ending process. It is a continuous preocess of sharing and gaining information. It completely based on the importance of policies and procedure of the organisation.

5. Need for new organisational forms- To be in a market, a comapny always ready to generate a new organisational forms. It depends on the organisation network,organisation's high performance, self generated teams and collaborative community. It may also lead to employee's involvement, commitment and self management.