Question

Provide three detailed 21st century challenges in organizational strategic management?

How can these challenges resolve?

Answer 1

Here are the three challenges associated with organisation strategic management in the 21st century:

1)

The constant capitalisation of advanced technology & business orientation of globalisation: Business operations these days are going global and becoming technologically very advanced hence it becomes challenging to manage strategies in such an environment. New technologies and methods like social media, newer software & hardware systems etc are being adopted and is making business more accessible across the world.

Globalisation and technology will keep moving further in the coming decades and it is imperative that the organisation take into account these factors while forming a strategy. Exports and FDI (Foreign Direct Investment) are expected to grow rapidly hence a major portion of revenues and foreign markets will depend on resolving this challenge.

Steps to resolve this challenge:

• It is important for managers to encourage creativity and develop high adaptation to such changes
• With e-business penetrating every level it is important for managers to resolve this by accommodating e-commerce & other tech motives into business strategy
• To resolve this challenge management has to ensure that business has updated knowledge regarding subjects like International Human Resource Management, International Finance, International marketing etc.
• Extrapolation, prediction markets, futurology & simulations are some of the modern techniques which can be used to resolve such challenges.

2)

The challenge of Government & Business relationship management: Firms today have to ensure that relationship between local government & business is less complicated and constant communication is there with relevant departments. Government body regulates trade, enforce labour laws and bring constant changes in tax structures making it challenging for the business strategic management to plan revenues & operations scale.

Steps to resolve this challenge:

• The first step is to ensure that the organisation takes an active interest in Government at state, federal & even at the global level. The business needs to maintain a truthful and ethical relationship with the Government.
• Scenario-based strategic planning - the organisation must plan its operations considering both positive and negative laws and taxation policies. By preparing for different pictures in the future it can increase its potential to increase the quality of decisions, improve performance and face challenges in a better manner.
• Strategic management processes should involve latest techniques like SWOT analysis, BCG portfolio matrix to be able to predict such external changes & manage the relationship with government

3)

Embracing the social challenges and making constructive social change for society is another major challenge faced by strategic business planners. The business at the core of its operation needs to ensure that it conducts its practices in a socially responsible and ethical manner. In the 21st century, there is an existence of many pressure groups in the society that operates in areas like environmental activism, consumer protectionism etc.

Steps to resolve this challenge:

• It is important for a business to plan social change as an opportunity than crisis management strategy. Environmentally beneficial practices & focus on accessible and local employment can help a business earn public trust and increase credibility.
• Strategic planning should involve & ensure investment in CSR initiatives to manage the reputation of the firm and also improve competitive advantage.
• Plan for broader stakeholders - The business need to ensure it meets quality standards, have modern and effective customer feedback mechanism, grievance redressal, adherence to various laws should be given top priority.

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