Free Custom «Strategic Management (2)» Essay Paper

Question 1Whittington's classical approach serves to put emphasis on the aspect of applying rational principles, which are elemental bound by analytical perspectives. Whittington further adds that strategy ought to be based on formal and explicit approaches of which the main objective is to implement unambiguous actions leading to profit maximization (Analoui & Karami 2003, p.52). Looking at the manner in which FedEx has risen up the ladder through its many years of operating in a constantly changing business environment, there is a significant evidence of strategic management by its management team. Having been founded in April 1973 by Frederick Smith rapid business growth in its respective industry only began in 1977 after relaxation of cargo regulation rules (Blythe, Hall & Inman n.d, p.1). Through strategic analysis of its customers and competitors in the industry FedEx has been capable of keeping up with newer market strategies from 1973 to 2000.Whittington's evolutionary approach states that, "evolutionarists believe that high profitability and efficiency are essential for survival but stress the unpredictability of the environment, which makes irrelevant much of what is traditionally regarded as strategic analysis" (Analoui & Karami 2003, p.52). FedEx managed to take advantage of the changing business relations between the western and eastern nations by launching its operations in the eastern geographical locality. FedEx thus sought official authority in 1995 to become United State's sole based carrier of cargo to the populous China (Blythe, Hall & Inman n.d, p.1). This transition into the global market was rather an environmental aspect which FedEx sought to take advantage of the changing relationships between western capitalists and eastern conservatives leading to the production of business potential.

 

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Question 2Advocates of the classical approach support Whittington's ideologies by postulating the fact the classical approach serves to promote the concept of economic theory through which it supports the sentiment that profit maximization is a critical aspect in the normal business environment. In this setup the strategist's task is to elementally position the organization's business objectives in a manner, which promotes achievement of desired results (Gilligan & Wilson 2009, p.48). FedEx appropriately put to application of the classical approach through the adoption of an economic perspective in order to sufficiently improve its profit maximization strategy. This it succeeded by carrying out an aggressive marketing of its services to prospective customers. In addition, in FedEx management sought cost reduction mechanisms involving the introduction of an information system to improve access to services by customers and connectivity (Blythe, Hall, & Inman n.d, p.2). In addition, Gilligan and Wilson state that, "rigorous intellectual analysis represents an essential input to the process, and is designed to contribute to the organization achieving a degree of control over the internal and external environment" (Gilligan & Wilson 2009, p.48).The evolutionary approach derives its operational perspective from the fact that in as much as strategies can be formulated, they do not have a significant impact on the environment in which an organization operates under. According to Gilligan and Wilson, "...the idea of a single strategy route is inappropriate. Instead, they argue, they planner needs to recognize the options open to the organization and keep these options open for as long as possible. FedEx sought to implement several strategies in order to grow its business potential to what it is in the present times. FedEx had five strategies which include improving service levels, lowering its unit costs, establishing international leadership in the industry domain in terms of profits, bringing services closer to customers, and promoting its people-service-profit philosophical perspectives (Blythe, Hall & Inman n.d, p.2).

The evolutionary approach is the most suitable taking into account the business environment perspectives affecting the operations at FedEx. According to Analoui and Karami, "the strategy therefore stresses the importance and to an extent the uniqueness of social systems within diverse attitudes to and conceptualizations about strategic issues occur (Analoui & Karami 2003, p.52). Since the inception of FedEx, many airlines have established similar services leading to the development of significant competition, which calls for numerous strategic formulation mechanisms targeting environment aspects. It is important to note that for an organization operating in a competitive market place there is need for it to launch several small initiatives until they find or see what works for them in that environment (Gilligan & Karami 2009, p.48 ).