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Posted By Admin @ Feb 23, 2022

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Example of Cheap courseworks writings

How to use SMA five force model in financial management?

Solution

Strategic Assessment Report

Introduction

The profitability of a firm is directly related to the quality of its business decisions. In the past, management has been criticised of focusing on internal operational issues rather than strategy formulation and maintenance. As a result of this criticism, many critics have sought to improve the content that supports decision-making. Simmonds first described SMA as “the provision and analysis of management data about an organisation, as well as its rivals, for use in creating and monitoring business strategy”.

To improve strategic decision-making and organisational performance, more and more organisations are turning to strategic management theory. Competitiveness depends, as previously stated, on the implementation of internal strategic financial statements in accordance with the business plan while also taking into consideration rapidly changing market conditions. Strategic management reaps numerous benefits from implementing this approach.

Body

Researchers believe that strategic management can assist CEOs in improving their company’s performance by helping them make better decisions. A literature review is conducted to better understand the theoretical basis of the investigation. To aid in managerial decision-making and control, financial and non-financial data are collected, stored and used in financial statements. Finances were not considered part of strategic management in the 1980s, according to some.

Discussion

Many changes have occurred in strategic management since Simmonds initially outlined it as “the provision and analysis of managerial data on [a company’s] competitors, for use in creating and monitoring corporate strategy.” According to CIMA, financial statements can be used to track both financial and non-financial information. “The provision and analysis of financial information on the organization’s product markets and rival cost structures over a period of years,” is how Bromwich describes strategy monitoring.

Strategic management was defined by Cadez and Guilding as “the process by which an organisation aims to achieve its long-term objectives by utilising its resources in a way that maximises its value to its stakeholders.” As recently as 2008, the answer was straightforward: According to the research, strategic management can be approached in two ways. Two schools of thought exist: one emphasises strategic tools, the other places a high value on financial data when making strategic decisions. You can select from a variety of strategies when it comes to implementing SMA. Following are the advantages

The evaluation of strategic management, assessment, and evaluation progress

The ability to make long-term choices.

Being aware of the competition is critical;

This section also contains the company’s financial statements.

Organizational structure and strategic management are formalised.

The formalisation of financial reporting and the functional connection between marketing departments and financial reporting have been found to be positively correlated. Formalizing a company’s procedures as it becomes more adept at integrating its two functional divisions is an inevitable outcome if this theory proves to be true. In the view of Opute et al., this positive association is based on taking into consideration the integration component (information exchange, unified effort and participation).

A mixed effect can be seen on organisational structure when it comes to strategic management. Strategic management methods would be used more frequently by organisations with fewer formal structures, according to Ojra’s hypothesis. Ojra was unable to produce any proof in her case. According to this research, there was no correlation between relying more on strategic management approaches and having fewer rigid organisations in general. According to a new study, businesses’ strategic management practises didn’t improve following formalisation.

Conclusions

Being relevant in today’s fast-paced industry means organisations must keep up with the competition. Businesses must do everything they can to keep their clients pleased and loyal in today’s highly globalised and technologically evolved environment. An organization’s success depends on its ability to implement effective strategic management approaches. Financial statements and strategic management procedures are critical to a company’s capacity to gain an advantage over its competitors and customers in the marketplace. In order to make better decisions, organisations must use strategic management practises that stay current on market trends, customer dynamics, and competition developments. Effective cost and planning procedures are essential to a company’s competitive advantage, as well as methods for monitoring and managing operations and evaluating overall results.

Recommendation

A company’s entire performance can be improved by utilising strategic management strategies to the fullest. SMA approaches must take into account the internal and external dynamics of an organisation if it is to reach high performance levels. There is no one-size-fits-all strategy for employing SMA methodologies, therefore managers must keep this in mind. Using theory-based reasoning, the study’s major goal is to raise awareness about the necessity of better understanding the contingency perspective of strategic management.

SMA approaches are critical to an organization’s performance according to the conclusions of this study. Consequently, judicious application of SMA strategies can help companies perform better overall. We need greater research into SMA use, complications and influence on performance in order to better explain these discrepancies throughout countries. SMA technique adoption had no impact on numerous performance metrics, according to an assessment of the existing evidence.