Itis argued that an organization that neglects the needs of itsstakeholders and conducts itself without a formal ethical is doomedto fail. Strategic management is a comprehensive aspect of the topmanagement role of forging a long-term future aimed at aligning theorganization to its environment with an objective of gaining acompetitive edge. The environment refers to both factors inside oroutside the organization that has a potential to affect theoperations and organization health of an organization. RiordanManufacturing Company is in the process of drafting a strategic planthat would help it adapt to the new business and economicenvironment. All aspects of the business are considered, and the mainfocus would be ethics and social responsibility in strategicmanagement.
Anorganization stakeholder would include customers, suppliers,employees, management, government, community and the environment.Understanding the needs of each and every stakeholder of anorganization help in making sound and approved the decision.Neglecting the needs of other, no matter how insignificant they mayseem, would have an adverse effect on the performance of RiordanManufacturing Company. Social responsibility will enable the companyto have a strong strategic goal for all the needs of stakeholders.
Onthe other hand, ethics within an organization help create a conduciveenvironment for the association. Ethical consideration would helpRiordan create an ethical code of standard that collaborate all theaspects necessary to create a good image of the company.Consideration would also enhance the function of the customerrelationship management through an understanding of their standardethical expectation. Customers are the major stakeholders, and theyshould be treated with high ethical standards, respect, and dignity.Strategic management should constantly review ethical measures tomeet the required standards (Galbreath, 2009).
Havinga strategy in place does not guarantee the success of anorganization. As such, management should have various methods thatseek to evaluate the effectiveness of the strategy in place anddetermine whether it is working for their organization. For instance,Riordan Manufacturing Company may have an ambitious strategy in placebut could not be working with their organization. Why? Some factormay be the stumbling block. How, then, do organizations measure theeffectiveness of a strategy?
Theeffectiveness of a strategy can first be determined by looking at itslink with the company goals and objective and how it plans to achievethem.in the Riordan Manufacturing Company have set objectives it aimsat achieving. For example, it aims at "being the company offocus in the industry in research and design (R&D)" However,if the company does not commit its resources to be ahead intechnology and R&D, then I would be a doomed strategy. If thestrategy in place uses resources optimally for the purpose for whichit was intended and subsequently delivers the result, then we can saythat the strategy is effective. Riordan or any other organizationshould develop measurable strategies including a reasonable targetthat is expected to be achieved. A method to measure these variablesshould be developed during the planning stages. Establishing basevalues that act as the basis upon which he effectiveness of astrategy should be measured to determine its success. The resultshould be delivered in time and should include achievable targets tomake sense. Lastly, continuous evaluation of a strategy should followto ensure that the long-term goals of the strategy are achievable andmake the appropriate decision (re-strategize) (Gupta &Govindarajan, 2004).
Galbreath,J. (2009). Building corporate social responsibility into strategy.Europeanbusiness review,21(2),109-127.
Gupta,A. K., & Govindarajan, V. (2004). Business unit strategy,managerial characteristics, and business unit effectiveness atstrategy implementation. Academyof Management journal,27(1),25-41.