MGM465-0801A-05 Business Strategy - Phase 1 Individual Project 2 Essay

MGM465-0801A-05 Business Strategy - Phase 1 Individual Project 2 - Essay Example t question to consider is how to reconcile Ables need for building market share (long-term strategic business objective) with Waldens drive for year-to year quarterly increases in sales and pretax profit (short-term, corporate objective). Both of these are important to have, and they are not mutually exclusive. The company can hold both objectives in high priority provided that they all agree with each other to do so. However, Walden is demonstrating a lack of strategic management. Walden needs to consider strategic management as they move forward. According to Coulter, it is beneficial because â€Å"it gives a role to everyone in an organization to manage strategically, it helps the organization perform well, it helps the organization to effectively cope with the uncertainties in the external and internal environment, and it helps to coordinate various functions and activities† (2005). Strategic management is vital for the long-term success of any organization, and through implementing it, it is believed that the two blending organizations can come to a compromise and each get a great deal of what they are used to and what they want. The second challenge to consider is that Waldens success metrics of head count control, inventory management, inventory turnover, and day’s sales outstanding can be inhibitors to growth vitally needed by Able. It is possible to moderate these functional objectives and make them work for Able. This simply involves removing or raising the ceiling which currently inhibits this growth. For example, head count can still be controlled in larger numbers, inventory can still be managed when there is a lot more inventory to account for, and outstanding daily sales can still be recorded when the dollar figures are higher. Controlling objectives does not necessarily mean containing them. Able can still grow using the same basic framework of Walden’s success metrics, so long as Walden does not squash the growth being sought by Able