European Project Management Journal, Volume 7, Issue 1, December 2017 THE IMPACT OF STRATEGIC MANAGEMENT AND STRATEGIC THINKING APPROACHES ON BUSINESS PERFORMANCE OF COMPANIES OPERATING IN THE RETAIL INDUSTRY Miloš Lon čar IoT Solutions, Global Black Belt, Microsoft Corporation Abstract:The research paper investigated the impact of strategic management and thinking on increased business performance of retail industry businesses. It reviewed the case of Tesco Plc in retail industry and evaluated how effectively management of the business can think strategically to interconnect strategic planning of the business with business operations. The research critically identifies the importance of strategic management and thinking in the form of strategic planning to effectively formulate, deploy and plan available business resources and to enhance the business performance of the organization. The current research paper indicated that senior management of businesses in retail industry contribute effectively by aligning business strategy of the organization with its strategic thinking to develop a path of success with effective utilization of available business resources. Strategic management and thinking provides a greater opportunity to the businesses to setup their business goals, arrange desired resources, plan and coordinate business operations to succeed. Keywords: Strategic management, strategic thinking, strategic planning, aligning business strategy 1. INTRODUCTION management and strategic in coordination 1.1. Introduction with strategic planning is shown in the figure given below to provide the better description The current research critically investigates the of strategic management for an organization. impact of strategic management and strategic thinking on the business performance of retail The research paper critically identifies the industry businesses by reviewing the case of importance of strategic management and Tesco Plc in the retail industry. The research strategic thinking for companies operating in identifies strategic management and strategic retail industry by reviewing the case of Tesco thinking as the process of developing a chain of Stores operating throughout the UK. strategic plan to bring business aims into Managing and thinking strategically are fruition. The main objective of strategic considered to be highly important for management is to think and manage business managers working within the organizations in operations and processes strategically without performing their major responsibilities. In engaging into strategic planning blindly for most of the organizations, strategic issues the sake of creating strategic planning for the regardless of their importance for the organization. Strategic management is based organization are based on consuming about 20 on the efforts that the management of an percent of the overall resources of the organization takes by carefully reviewing and organization. The research describes that realizing the fruits of strategic thinking for the senior management of companies operating in success of their organization operating in a different industries in particular and in retail specific industry. The strategic management industry in general need to be highly focused for an organization is possible through on the strategic issues including where it is strategic thinking to formulate, deploy and heading and what it is planning to achieve in plan the business strategy. The strategic the future (Karel, Adam &Radomir, 2013). Corresponding author. Email: [email protected] 85 ISSN 2560-4961(online) © 2017 YUPMA www.epmj.org M. Lon čar Figure 1: Strategic Management and Strategic Thinking (Karel, Adam &Radomir, 2013) The research is focused to evaluate the of companies in retail industry and other importance of strategic management and businesses to grow well and achieve their strategic thinking for the companies to ensure business goals by adopting strategic successful achievement of their business management and strategic thinking in their objectives. It investigates strategic business strategy development process. In the management as a part of important business long-run, it provides competitive advantage to strategy for the organization to develop a path businesses giving importance of strategic to successful business operations by carefully management and thinking in developing their arranging resources. The study conducted on business processes and operating (Karel, the retail industry offers a great opportunity to Adam &Radomir, 2013). businesses to think and manage their business operations strategically to facilitate their 1.2. Background of the Study management in decision making process. The research investigates how successful retail The research critically investigates the process industry companies have established their of strategic thinking and management and business strategies successfully and achieved their contribution in the areas of creating their desired objectives by working according innovation, effective operational management to their strategic planning. It provides and planning and developing business guidelines to the managers and executives strategies to succeed in great competition. working in retail industry organizations to Large numbers of companies are learning practice strategic management planning about strategic management and thinking by within the structure of their businesses. It evaluating their past experiences and guides business managers of retail businesses succeeding in developing effective future to be proactive in their business decisions by strategies. The research indicates that without recognizing the importance of the strategic strategic management and thinking, no management and strategic thinking as the organization could succeed in developing internal business activity (Spillan and innovative business practices and thoughtfully Ziemnowicz, 2003). The research indicates considering the importance of creating that strategic management and thinking in the valuable services for their customers. It areas of strategic & financial management investigates the success of Tesco Plc as the makes considerable influence on the business well-known retail sector organization that performance and growth of companies offers vast range of products and services to operating in the retail industry. It examines their customers in the retail industry. The the substantial influence that managers can management of Tesco focused on developing achieve by adopting effective business effective business strategy through strategic strategies in line with their business goals and thinking and management to achieve their objectives. Therefore, the research will be business goals of expanding their business in useful for managers and business executives different countries and nationalities and 86 European Project Management Journal, Volume 7, Issue 1, December 2017 getting competitive edge over their their competitors. For example, Toyota competitors (Khan & Huda, 2016). Motors adopted Lean manufacturing processes to succeed in developing Hybrid The research indicates that the process of cars meeting desired needs and expectations strategic planning is based on answering how of their customers. Similarly, various retails and when the business will be able to capture and auto manufacturing industries have also their desired market share by streamlining adopted unique and innovative business their business operations strategically through practices to improve their business strategic management and thinking. The productivity, enhance employee performance strategic management and thinking plays a by developing internal culture of the business very crucial role for companies like Tesco Plc and motivating employees to enhance to understand what and why of their business innovation within the workplace environment. development and planning process. Strategic Due to strategic management and strategic management and thinking is always based on thinking, the work processes of companies the processes of creativity and innovation that have improved and the competition level the management of an organization can adopt stiffed up increasing challenges for new to examine the voice and expectations of their companies to enter into different markets. customers, their employees and industry best Now companies adopting strategic thinking practices. It describes the process in and management approaches can succeed in developing business strategy for the winning the loyalty and trust of their organization by describing roles and customers to develop new products and responsibilities of managers and their staff services and introduce them to their loyal and members, understanding the needs of their new segments through their marketing customers and making sure all the strategic departments. objectives are linked to clearly defined strategic imperatives (Rudd et al., 2008). 1.3. Research Aims & Objectives The main objective of strategic management The current research is based on following & strategic thinking for a company is to create aims and objectives in the field of strategic an effective business strategy for the company and financial management: to achieve their business objectives through • To examine the potential influence of coherent, unifying and integrative framework strategic management on the business for decision making process. It provides performance and growth of necessary direction to the businesses on companies operating in the retail effective