Human Resources Management – Strategic Management

What is more important in explaining the success and failure of companies: strategizing
or luck?
Any business functions by ensuring that all resources are utilized sustainably to attain
company goals. Organizational architecture is a significant influencer of how the process
knowledge and intellectual property are simultaneously applied together with the exploitation
of land, labor, management, and equipment to deliver the desired outputs (Hill et al., 2017).
The authors believe that the efficiency of the process is critical to attaining competitive
advantage. Therefore, businesses can succeed by applying strategies that enhance competitive
advantage. The strategic strategies help determine price and costs and optimize customer
satisfaction.
Moreover, businesses also succeed by riding on luck, linked to expectations as part of
strategic factors (Marzena Stor, 2022). The example highlighted in the previous paragraph
shows that resources are critical to enhancing opportunities for success (Hill et al., 2017). If a
company is fortunate to have excellent resources, the business has a higher chance of
succeeding. In such an instance, luck can be identified as an important entity to business
success (Marzena Stor, 2022). However, luck is not sufficient for leaders and the
management team to pursue success.
The management must demonstrate the willingness to pursue sustainable competitive
advantage. The resources available can be a start. Nonetheless, customer responsiveness,
marketing, innovation, high quality, high productivity, and applying relevant skills must be
considered when linking luck and strategy to gain a competitive advantage (Hill et al., 2017).
Success and failure of a company are outcomes of a combination of various factors; hence no
one angle can offer a satisfactory explanation. Additionally, considering superior quality,
efficiency, customer responsiveness, and innovation are essential building blocks to achieve
competitive advantage and possibly reap sustained competitive advantage.

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References

Hill, C. W. L., Schilling, M. A., & Jones, G. R. (2017). Strategic management: theory.
Cengage Learning.
Stor, M. (2022). Human Resources Management in Multinational Companies. Taylor &
Francis.