Strategic Management and Strategic Competitiveness

Strategic Management and Strategic Competitiveness
Name
Institution
In business, strategic management and strategic competitiveness are concepts used commonly. The first concept, strategic management, is basically the systematic approach that involves planning and execution of plans towards a company’s success. In restricted markets, large companies will struggle to gain market share as there is usually stiffer competition. Competitiveness is closely linked with strategic management. Understanding the relationship is vital to developing successful and long term strategies for a business.
Strategic management covers a wide range of time frames as well as objectives. Strategies can be based on short-term, medium-term or long-term goals. Goal development is the initial stage in strategic management as other processes such as monitoring operations and benchmarking results are incorporated towards the realization of a specific objective. Combination of the unique resources and capabilities a firm has makes it better than their competition and gives such a firm advantage over the other firms.
Competitiveness on the other hand is an essential goal for strategic management and aims at increasing an organization’s position in the marketplace. Medium and long-term strategies should always be focused on gaining advantage for the firm over the others in the marketplace. Short-term goals are usually internally focused and are less involving in strategizing. Having all accurate information is essential to spotting the gaps that gain advantage over the others.
Several corporations dedicate a lot of effort in strategic management and strategic competitiveness not only to gain advantage over the others but also to realize a higher profit margin. Most public corporations have a harder task in strategizing for management and competition as they have to realize a higher profit. Such corporations therefore employ sophisticated technologies as well as goals aimed at high performance and low cost strategies. Chevron Corporation is among the public companies that apply strategic management and competitiveness to gain market share and increase the margin of profit.
Chevron Corporation is a multinational energy corporation with its headquarters in California and active in more than 180 countries. It is engaged in oil, gas and geothermal energy. In addition it also deals in marketing and transportation of the products and generating power (CVX-12.31.12-10K DOC).
Chevron Corporation manages a wide range of activities that are directly or indirectly—that have significant effects on its operations. It manages investments in the subsidiaries and affiliated companies. Further, it provides administrative, management, technology and financial activities to support the U. S. and international subsidiaries (CVX-12.31.12-10K DOC par 2).
Globalization as an aspect of the modern world has impacted on the way the corporation works in a number of ways. Globalization is a concept that cannot be estranged with technology as technology traverses all fields on business development. A beneficial aspect of globalization is that the risk of loss for the company has been spread over a wide area. However, this may on the other hand be a d...