Effects of Strategic Management Digital Strategy

Question: Describe about the Effects of Strategic Management for Digital Strategy. Answer: Introduction The owners of an organization need to follow specific guidelines in order to initiate their business. This is one of the most critical part as if the start takes place in a wrong note then the losses can be high. The owners need to have a good knowledge about how to plan the moves so that the business works properly and strategically. This is where strategic management steps in. strategies help the organization to put in minimum resources and have a maximum profit without harming the subjects of the company(Hill, Jones, Schilling, 2014). Management helps to effectively manage the company on a daily basis for its success. In a word, strategic management helps an organization to grow by achieving definite goals that are set in the organization. The process of strategic management is mainly to set goal, both long-term and short-term, analyzing the needs as what needs to be done first to identify the strengths and the weaknesses of the company. The next step involves the forming of the strategy which is based on the complete analysis as to what resources will be needed to set up the strategy, then the strategy needs to be implemented in the organization and should proceed step by step so that there is no over-lapping which may involve financial loss(Morden, 2016). Finally, a control board needs to be set up so that the strategies can be regulated and monitored so that new plans can be devised again for the smooth functioning of the organization. Strategic Management Plan of Commonwealth Bank The help that strategic management provides to an organization can be understood with an example of one of the best financial companies of Australia. Commonwealth Bank is one of Australias top companies competing against National Australia Bank, ANZ and Westpac. The vision of the bank is to excel in customer service by providing the best financial services. It attracts customers because of sanctioning of personal loans in that particular day when the customer approaches them. The services provided by them is also vast including insurance services, Global wealth services and mortgage and credit card services to be precise(Commonwealth Bank Overview, 2016). The factors that led to the success of the bank is the technology that is constantly changing as per the needs of the customers. To have some actual time benefits the organization keeps on developing new things so that the interaction with the customers can be made comfortable and to increase the productivity level of the company. T he strength of the group due to which customers keep so much trust and faith is due to the opportunities that they get and capitalize on them instantly. Maintaining a flexible balance sheet, which helps the customers to relax also, adds as a plus point for the banks result. The customers trust that the bank can look after their money and give good beneficial returns on their money gives a boost in the strength of the bank. In terms of productivity, the bank constantly strives in simplifying their work output so that the concept of hassle free deals can be done with their clients to have a better outcome and it is critically important to maintain their long-term rapport with their clients. The clients also add a feather in the cap of the bank, as they are the reason for the success of the bank(Commonwealth Bank Overview, 2016). The bank in turn also repays them with an aim to hunt down talents and making the environment a good one to work in. The success of the bank has led it to be spearing ahead from its competitors because of the relationship that it maintains with their clients. Some of their strategic priorities are to increase their branch network and their hours of duty across sixty five of their branches that are always very busy, to arrange their structures and to develop their organizational structure so as to divide their banking and commercial clients(Commonwealth Bank Overview, 2016). The core competency consists of three factors, which are that it is not easy to copy the strategic plan by their competitors, the business product can be used innumerable number of times and the services that are being provided should satisfy the customers. The bank has ticked in all check boxes that are required in core competency. The products and the services provided by the bank is well accepted by the customers because it proves out to be beneficial for them in the long run. Some products are bought by the customers due to the immense brand value that the bank has and they simply know that the trust that they are putting in that company will never be broken by the bank. This has given the bank an upper hand than all its rivals in Australia. The core competency is very less so the company focuses to hold on to these so that they can have more clients under them. Conclusion Strategic management helps in creating an organized and structural program in an organization, which is very necessary for the proper functioning. It combines the resources that are being used in the organization and the careful execution of it. The success rate of the strategic planning depends on time. The effect cannot take place immediately (Morden, 2016). To implement a plan, the necessary changes that are done cannot take effect place overnight, thus the process is slow. To plan out the strategic projects in a better way a thorough search is required about what needs to be changed and how the new plan can bring about changes in the environment and the work culture without compromising on the profit maximization power of the company(Ward Peppard, 2016). In case of bank, it is all about gaining the customers trust, without that a bank cannot survive however good and cheap the policies or the products may be. The employees have to be ever ready with the strategic plans and needs to be proactive to not let go off the client, as it would hamper the brand image of the company. To have success, leadership plays an important part because in a banking sector if the company does not have a good leader then the company is doomed to fail. Bibliography Commonwealth Bank Overview. (2016, 12 21). Retrieved from commbank.com.au: www.commbank.com.au/about-us/our-company/overview.html Hill, C., Jones, G., Schilling, M. (2014). Strategic Management: theory: an integrated approach. Cengage Learning. Morden, T. (2016). Principles of Strategic Management. Routledge. Ward, J., Peppard, J. (2016). The Strategic Management of Information System: Building a Digital Strategy. John Wiley Sons.