Monitoring globalization is an
important strategic management activities. Nowadays, most corporations take
advantage of the opportunity to obtain customers globally and the global
markets change rapidly and converge in tastes, trends and prices. A company
need to compete with more companies around the world in term of welcoming
investment and capital, advancement in telecommunication, sustained growth in
revenue and many other challenging global factors.

 

 

 

 

 It is important to consider globalization
challenges in strategic management process because the boundaries of countries
is no longer can define the limits of the company’s imagination. The
perspective of others has become a matter of survival for businesses. A company
need to know how to use information gathered for the company’s competitive
advantage and look for the best strategy that has the most promise for the
largest number of markets.  Managers need
to apply strategic management process in the management to gain understanding
of competitors, markets, prices, suppliers, distributors, governments,
creditors, shareholders and customer worldwide.

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Innovation

 

It is a challenge for a
company to create innovation when employees are not empowered and motivated to
be innovate. Without innovation such as technologically inferior products, weak
information system and low working capital, the strategic management process
will not able to be implemented successfully in a company. When innovation is
centralized to only one functional group such as Research and Development
(R&D), innovation will not grow.

 

In is important to motivate
all departments in a company to search for innovation in their area of
expertise. In order to be termed innovations new products and services need to
be strong enough to progress through rigorous commercialization processes and
into the marketplace with help from strategic management.  Implementation of innovative behavior in each
employees can increase in sales revenue in new areas, decrease cost and risks
in the company and develop new technology to the company. Innovation also can

 

Sustainability

 

Sustainability refers to the
extent that a company’s operations and actions protect, mend and preserve
rather than harm or destroy the natural environment (R. David, 2013). Issues in
environment pollution is unethical, irresponsible and may relate to many
illegal cases. Businesses should not exploit the natural environment and
natural environment issues need immediate attention by all managers. Strategic
management process will help management to be socially responsible and
proactively conserve and preserve the natural environment.

 

 

 

Strategic management process
will help company to gain competitive advantage by being a good stewards to the
natural environment. All employees, government and society resent a company
that harm rather than protect the natural environment. Nowadays, consumer has
high interest in businesses that contribute to preservation of nature’s
ecological balance and healthy environment. The act of preserving the natural
environment is always appreciated by all people and raise the company’s
reputation. A bad sustainability record can jeopardize the company’s existence
in the market.

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