Strategic Management For The Fast Growing Organizations In It Industry Case Solution & Answer

Strategic Management For The Fast Growing Organizations In It Industry Case Solution


Strategic management has been a very crucial component of various businesses. It refers to the development and implementation of the long term goals and objectives related to the firms’ strategies. The strategic management processes are employed to make sure of  the efficiency and effectiveness in the business operations. (GISMA Business School, 2019) The strategy needs to be properly communicated to the staff members at all levels throughout the organization, so that they have a better understanding of the purpose and the direction of the company.

The strategic management helps the businesses grow by resolving their complex issues. Due to the strategic management; the company’s employees become more alert and focused towards achieving the goals and the objectives, as the upper management tries to resolve the employee’s concerns through strategic management techniques (Lewis, 2015). Moreover, the strategic management increases the company’s profitability by reducing the fixed expenditures and it also reduces the company’s cost of capital. Strategic management increases the return on investment as the long term decisions are taken by the senior management with due diligence, as it involves the company’s biggest stake.

The information technology, i.e. the IT industry is subjected to different variations over the time. It is because the shifting trends and consumption patterns change with the passage of time, which makes it essential for the IT firms to come up with differentiated and unique technologies, for customers’ diverging needs. The distinction between the stumblers and stars by (Crozier, 1985), clearly shows that the growth patterns in the IT industry are subject to variations. The IT industry mostly represents the higher growth firms with shifting growth patterns, which evolve with the passage of time. The key objective of the study is to analyze the role of strategic management in fast growing organizations of the IT industry. In order to address the role of the strategic management in high growth IT firms; the literature review is analyzed to determine how IT firms manage their diversified and high growth patterns using the strategic management.

Literature Review

(Robert Demir, 2016), conducted a study on the strategic management of the high growth firms. The study was based on 39 articles, which were analyzed to determine the drivers of the high growth businesses. After a proper systematic review of the literature; the authors came up with five drivers of high growth, which included: strategic management, human resource management, innovation, human capital and capabilities. The study also concluded that the drivers behind the firms’ high growth pattern include: organizational strategy and the differentiation strategy.

(Jeffrey C.Shuman, 48-53), took a sample of 220 high growth firms, listed as the fastest growing firms in the United States, to study the role of strategic management in their growth. The researchers found that the high growth firms in the United States had 770% growth in the sales revenue and 523% growth in employees, over the period of 1978-1982. The sales growth and profitability were taken as dependent variable and independent variables including: strategic planning, planning process, management philosophy and the planning organization. The results of the study showed that strategy management plays a vital role in the sales and profitability growth of the fastest growing firms. The study found that the executives at high growth firms did have  vast experiences of starting 3 or more business ventures……………………….

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