The Principle Of Simply In Strategy Management

The definitions and contents of the strategic management aremainly discussed in the first chapter. The view of the professor M.EPorter from the business college of the Harvard University in USA isquoted as saying "the key of management in company is how to decidethe competitive superiority of the company ". In addition, it is putforward that the aim of the company's existence is reducing thetransaction cost in terms of the economics. The common point of thestrategic management in the excellent foreign company is searched for,the means which can improve the Chinese company's competitivestrength is hunted for by trying to use the method of the comparisonand the logical reasoning, or using the real case in company ,orcomparing between the companies ,especially using the company'sfinancial report as the source of material .The three kinds of general strategies of the M.E Porter arediscussed in the second chapter. The trait of the three strategiesis compared in detail. but the three general strategies of M.E Porteris not fit for the Cisco ,it is hard to find a suitable theory to explainthe Cisco's success. So I raise my own idea , I think it is the fourthgeneral strategy , it is the brief principle of the strategicmanagement .The third chapter is about that the four conclusions is drawn bycomparing the running of the first seventh telecom equipmentmanufacturers in recent two years . first, the company which has widescope of business might not have high income .while the company whichhas narrow scope of business may have high income moreover more profit ;second , the company which has narrow scope of business has moreability of resisting risk , "when the winter is approaching", wecan face it unhurriedly. Third, once its superior businesses have someproblems ,the company which has wide scope of business will lose aloss ,even the whole company will face the existent matter .fourth ,even if the best company in the world also can not always be in theleading position in which it engages all the businesses. The fourth chapter is about the simplifying of the value chain.Simplified value chain may make the company be absorbed in the fieldit is good at ,and make energy be used in the place where can producethe biggest increase in value. And put those business which has littleincrease in value or the business which it is not good at out of thecompany, it can reduce the width of the management largely,and reducethe complexity of management ,improve the strain capacity and reactionvelocity of the company . The fifth chapter is about the simplifying of the industrychain .it is different from the value chain . the simplifying of theindustry chain is finished by different companies . Seen from the angleof industry chain, some company can not monopolize a certain industry ,because it is not only a competitive society but also a cooperativesociety, it cannot be gotten both. Adam said that the division is thesource of efficiency in company .in fact , the division between thecompanies also can produce the high efficiency .The company which cansurvive is not the big and all-round but the specialized one whosescale is moderate. The simplifying of the industry chain is necessary,if it is analyzed from the relationship between the monopolization ,win-win , division and clients. The sixth chapter is mainly about the simplifying of theobservable factors in company. Such as: the simplifying of the qualityof the brand , the simplifying of the style of the brand , thesimplifying of the products , the simplifying of the service , thesimplifying of the equipment and the strategic co-partners and so on .The huge simplified benefit can be gotten only by the way of theinnovation , getting rid of the conventional thought and finding thesimplified ways. The company must devote to the field which it is goodat , and make the work which must be done be finished better , so thecompetitive superiority can be formed .the company which has abilityto simplify must be a excellent one . The seventh chapter is mainly about the simplifying of theunobservable factors. compared with the simplifying of the observablefactors , it is more difficult .For example, the simplifying of therules and regulations, inner levels and culture etc, the simplifyingof the rules and regulations ,culture , inner levels and humanresources are in favor of the integrity between the company'sdivisional and centralized power .the rules and regulations shouldbe brief, the rank structure should be flat , the morale of theemployees and the efficiency of management can be raised by shrinkingpower differences and reducing the differences between the employeesand rank differences in managing human resources. Meanwhile, thecohesion of the company can be raised by reducing the culture conflictamong employees . The eighth chapter is mainly about the analysis of GE insimplifying of strategic management, as one of the 500 largestAmerican companies in the world , it has the advantage that domesticcompany can not have . It shows the leading ability in lighting fieldand others , it has something to do with the simplifying of thebusiness . but the GE is not as good as the best company whose businessis simple such as Microsoft and Cisco , in my opinion, it is differencebetween the diversity and simplifying . The ninth chapter is about the summary of above all . I think thesimplifying is reducing , devoting , it is accordant and in accordancewith humanity. The company can devote to one thing only by reducingcomplexity, the company is accordant on condition that it is dedicated ,such company is good one, the good company can satisfy thehumanity .the simplifying can reduce the complexity of the company,...