Strategic Management Essay Example | Topics and Well Written Essays - 2250 words - 5

Strategic Management - Essay Example The story of the ‘Subway’ is an indication of just what organizations need to do in an increasingly globalized environment. Winning customer confidence and remaining true to organization’s policies and priorities lies at the heart of just what has to be done. To achieve this, an organization has to have a strategy that delivers capabilities which enable the firm to cope with challenges from within the organization itself as well as outside of it. In the case of Subway, this is what enabled the company, small as it was, to be able to stick it out in a market dominated by global players such as the McDonald’s and Burger King. However, once opportunities in the domestic market shrink, it may no longer be tenable to continue pumping resources in such a market. Expansion outside the domestic market becomes the only option for growth. Having a strategic capability ensures that the company’s competitive edge can be sustained into the long run. In the current globalized environment, firms need to grow in order to survive in the market. This growth is difficult to attain due to intense competition. Therefore, organizations need to develop clear strategies that earn them competitive advantages. Otherwise, they will not survive the competition. Organizations need to understand their resources and use them creatively to attain competitive advantages that ensure they brave the competition. It, therefore, calls on the management to come up with sound priorities and strategies which can be achieved in light of resource constraints.