Strategic Management in Pharmaceuticals Research Paper
Introduction
The modern world of business is today becoming more tough and competitive as
different companies strive to gain a competitive edge over others. In order for a
company to become successful and stay successful in a competitive world, it is
important for management to take a strategic risk. Following the traditional ways of
business and staying safe all the time may cost the company its success since the
company may be overcome by other businesses. One of the ways that management
can ensure the company becomes and remains successful is through strategic
management. Strategic management involves a collection of managerial actions and
decisions that determine the performance of a firm in the long-term.
Strategic management involves internal and external environmental scanning, strategy
formulation or planning, implementation of the strategy, evaluation and control
(Hunger & Wheelen, 2011). Therefore, strategic management uses the SWOT
analysis to monitor and evaluate external threats and opportunities in regards to the
company’s strengths and weaknesses to develop and implement new strategic
decisions for the organization. Organizations that use strategic management are more
successful than those that do not engage in strategic management (Hitt, et al. 2009).
Therefore, it is important for managers from all calibers of organizations to consider
strategic management in order to gain the competitive edge. This paper discusses the
situation in CVS and Wal-Mart chains of pharmaceuticals to determine the issues
affecting these companies and provide recommendations on ways to solve the issues.
