Strategic and Project Management Interplay

1.0 Introduction:

Strategic management is the branch of management that is concerned with setting of managerial actions and decision in terms of meeting long-term of goals and strategies of organisation. On the other hand, project management is process that is concerned with planning, executing, analysing, monitoring, controlling and closing a project. Both the strategic management and project management are interlinked with each other. This study is going to discuss important theories of strategic management and project management process. It will also evaluate and analyse the theories, concept and techniques of project management and strategic management process, additionally this study will apply relevant theories and concept into the selected UK based public and private sector organisations such as Metro bank and Tesco Plc respectively. Finally, this study will make the suitable conclusion in which it will summarise the overall concept and important aspect of the entire discussion.

1.1 Explanation of theories of project management and strategic management:

PESTEL analysis of Metro bank:

Explanation:

PESTEL analysis will assist Metro bank to analyse impact of different macro environmental factors such as political, economic, social, environmental, technological and legal aspect on its entire business operation. Political framework in host country will have potential impact on decision making and overall business operation of Metro bank. Level of stability and fairness of political framework is important for smooth operation of Metro bank, in which a stable and fair government will highly supportive to the development and expansion of this bank. On the other hand, chances of military invasion are associated with enhancing market challenges for Metro bank as they can interfere with desired profit margin of this bank. In addition to this, the corruption level in political and governmental system will affect the fairness and relevance of financial policies that are developed by government for bank sector. If there is high government interference and bureaucracy in the host country then it will bring difficulties for Metro bank to operate its business freely. In addition to this, the policies as well as regulation set by the government such as trade regulation, anti-trust laws, pricing regulation and wage regulation will impact on entire operation management process of Metro bank. Economic factors of host country that would impact the overall operation of Metro bank are current economic growth of country, current GDP growth, exchange in host country, overall infrastructure for banking sector in host country and income level of people. In addition to this, there are other economic factors that pose important impact on overall decision-making process of Metro bank such as employment rate, inflation rate, interest rate, repo rate, reverse rate, labour cost. Taxation and trade regulation in host country. Social factors are important macro environmental factors that can make potential changes in overall operation of Metro bank. These factors are social perception of people, perspective of consumers toward banking service and products, income level of people, living standard of people, per capita income of people, cultural and social trends regarding using banking products and services and attitude and behavioural transformation of people towards banking sector. Technology improves the overall way through which banking sector evolved and modernised. Technological advancement in host country is important for Metro bank for providing marketers with opportunities to use new application program and software to make entire service delivery process faster than the previous period. Additionally, the host country needs to have strong technological infrastructure that will assist Metro bank as well as the bank sectors to use highly potential network connection that would ensure the better installation of different websites, apps and software with an intention of modernising the overall banking operation.

Strictness of environmental regulation in host country will, impact on overall decision-making and operation management process of Metro bank. If the government of host country is strict towards maintaining environmental laws to maintain environmental sustainability, it will pose overburden of expense on Metro bank. For example, government of developed nations are now active in imposing environmental taxation on banks to collect a portion of bank’s revenue that is utilised in maintaining environmental sustainability.

SWOT analysis:

RBV model:

RBV or Resources Based View is most preferred and important tool in marketing that assists companies to use effective strategic in terms of recognising as well as utilising organisational resources in better manner (Cabrera-Moya and Reyes, 2020). In case of Metro bank, this model will assist the marketers to develop highly useful and relevant market strategies based on the available resources in organisation. Through using this model, marketers of Metro bank will be able to analyse the current status, availability and degree of utilisation of entire organisational resources that is important for them to take such strategies as well as market decisions that will be relevant to the current resource condition. For example, as Metro bank currently faces issues in managing high number of customer due to lower number of staffs, marketers need to develop such management strategy that will enhance the manpower of this bank by recruiting suitable candidates.

In terms of applying BRV model in useful manner, marketers of Metro bank need to implement the VRIN model that will assist them to analyse and evaluate the available resources in systematic manner. The VRIN model is described as follows

VRIN method of Metro Bank:

VRIN analysis assists firm to evaluate its internal resources with an intention to improve competitive advantages in internal market (Tamzini et al. 2016). This is highly preferred tool in marketing that was developed by Barney, J. B. (1991). Marketers of Metro bank can use VRIN tool in terms of analysing the overall status of its resources (both tangible and intangible).

Valuable:

Resources that can add value to the competitiveness of firms by enhancing strength of firm to combat its threat are known as valuable resources (Diharto and Budiyanto, 2017.). Metro bank can use its highly organised marketing policies, pricing strategies and operation management process as valuable intangible resources that will assist the bank to use smart tactics to deal with the above-mentioned threats and weakness smoothly.

Rare:

Resources are rare when they are obtained by one or very few companies. Rare resources can bring high competitive advantages to Metro bank, that is also important to enhance its brand awareness in international market. Marketers of this bank can consider the highly technology-based automated banking service as its rare resources. The reason behind considering the service of Metro bank as rare is that in most of the pubic sectors bank in UK and in international market there are still manual processes and poor online banking services. In addition to this, Metro bank needs to maintain the uniqueness of its resources to assure that similar resources cannot be obtained by other companies in the market. For example, Marketers of Metro bank can enhance the uniqueness of its marketing strategies, business tactics and customer service that can be possessed by only one or no other companies in market

Imitability:

VRIN model also focuses on the third important aspects in this model, the imitability of resources in market (Diharto and Budiyanto, 2017). Metro bank needs to use such strategies and resources that can’t be easily imitated by other companies. In this aspects, marketers of Metro bank need to assure that they are going to use such resources as well as strategies that are hard as well as costly for other companies to be imitated or substituted. For example, Metro bank emphasizes on automated banking service including use of online apps and software that assist customers to make transaction, get account information and make easy money transfer to any account from their home. In addition to this, technical team of Metro bank is going to launch new bank application software that will provide online credit and debit card management facility through which customer do not need to make physical visit to ATM, rather they can easily transact their money through using online ATM facility. These processes are highly unique as well as hard to be imitated by the other banks in market.

Non-substitutable:

This is the fourth aspect of VRIN model which emphasizes on the fact that, to enhance competitive advantages in international market, a company needs to use such resources that are strictly non-substitutable. Metro bank needs to use ideal resources in terms of assuring that there is no substitute of these resources. Here, Metro bank can improve it several workforce’s strength by providing them highly modern and technology-based training, which will enhance proficiency level as well as professional skill of each staff. In addition to this, Metro bank can also make modernisation of its entire operation management and project management process that will assist this company to grab desired goals.

Strategy Map Model:

This model is highly preferred by today’s managers and businessmen, as it assists organisation to communicate with its long-term goals in an edible format (Morschett et al. 2015). Strategy mapping is most important part of balance score card, which assists managers to communicate with the strategic plan in systematic manner and accomplish long-terms organizational goals. Strategy map assist the managers to communicate with each step associated with strategic management process such as finance perspectives, customer relation perspectives, internal perspectives including innovation, customer management and operation excellence and growth and learning perspectives (Certo et al. 2016). A strategy map offers a company with the following benefits:

It integrates all the organizational goals as well as aims in a single platform, so that mangers can easily execute all the goals combinedly It assists the organizational to have a clear, highly systematic and visual representation of all the strategic goals that is helpful for higher officials to watch the overall process through which the desired goals are going to be achieved (Trigeorgis and Reuer, 2017). A strategy map is also helpful for staffs as it assists them to have clear perception about the goals This map is highly effective in assisting higher officials of an organization to determine beach important aspects of the strategic management process such as financial aspects, internal management process, growth perspectives, customer dealing process and learning perspectives (Ethiraj et al. 2016). This map assures the organizational to find out the element that are needed t meet the set strategies The strategy map is alps helpful in assaulting huger mangers of an organization to find out the overall advantages and limitation of each strategic management stage. Therefore, mangers are able to make effecters and relevant changes and modification in that strategies to ensure the overall strategic management process will be accomplished in systemic manner.

Value Chain analysis Model:

This model of strategic management is concerned with analysing and executing two types if activities in an organization as primary and supporting activities (Hitt et al. 2016). Based on this Value chain model the primary and supporting activities of an organization are as follows:

Primary activities:

Inbound logistics

Organizational operations

Outbound logistics

Supporting activities:

Firm’ s overall infrastructure

HR management process

Technical management process

This strategy management theory assists an organisation to analyse and execute the primary and supporting activities to ensure that the overall operation in each unit or department is going well. As mentioned by Ethiraj et al. (2016), value chain analysis process assists higher officials to maintain perfect balance between the inbound and outbound logistics that assist company to improve overall production. Additionally, through analysing the overall services, marketing, operation, inbound and outbound logistics of a company, mangers can understand that what strategies need to be taken by this company to grab strong competitive position in international market. In addition to this, through analysing supporting activities such as firm’s infrastructure, HR management and technical management of an organisation, higher officials can understand that what modification needed to be done in these units to assist the company to meet its desired outcomes.

1.2 Evaluation of theories and concept of project management and strategic management:

Evaluation of theories and concept of strategic management:

Strategic management is the process of setting long-term strategic goals for organization in terms of grabbing high level of competitive advantage. As mentioned by Ansoff et al. (2018), strategic management is process of formulation and implementation of long-term organisational strategies to meet desired target. There are generally five steps are associated with accomplishing a strategic management process such as set a vision of organisation, gather as well as analyse the information about company needs and target, formulate effective as well as relevant strategy, implement all strategies in systematic manner and finally control and evaluate the overall process. On the contrary Wheelen et al. ( 2017) argued that, while it comes to run a strategic management process, today’s managers first go for using highly modernised techniques such as Activity based Costing (ABC), target Costing, Total Quality Management (TQM) and Benchmarking rather than going through the traditional five-step process. While it comes to develop useful long-term policies and procedures in an organisation, today’s managers mostly prefer using Program Evaluation techniques. This process assists manager to evaluate the project from the start to the end. As mentioned by Hitt and Duane (2017), Program Evaluation is highly preferred strategic management technique that assists managers to evaluate that what procedures as well as activities are required to accomplish the overall project successfully. In addition to this the technique is useful in determining overall times that is needed to complete the project and meet organisational gaols. On the contrary Meyer et al. (2017) argued that, although Program Evaluation is useful in evaluating needs and issues of project, this process is somehow lengthy and costly that not only can pose financial burden on company but also make unnecessary delays in meeting organisational goals. In this context, Break-Even Analysis is effective in case of setting effective strategic and management planning. As mentioned by Morschett et al. (2015), Break-even analysis is highly preferred strategic management tool that assist managers to determine the number of products and services sold by the company to make desired profit. In marketing breakeven point is the moment in which cost of company and the profit gained through selling meet together. On the contrary Certo et al. (2016) argued that it is not possible for managers to determine the relevant strategic and management planning only by evaluating the measure of breakeven point, rather the managers need to consider many other important factors such as external and internal environment, stakeholder’s interest and overall resource that are required to operation the project. Financial control techniques are another strategic management tool that is used by modern businessmen to develop useful strategies for meeting desired organisational goals. This technique concerned with budget allocation, accounting, audit and financial analysis to maintain overall cost of entire business under control. On the contrary Trigeorgis and Reuer (2017), argued that, financial control techniques is conventional process that needs modification and innovation to assist organisational managers to deal with changing environment while working on any strategic project. While it comes to evaluate the theories and concept of strategic management process it is important to analyse the overall advantages and limitation of each theories that can be used in this process. Value Chain Analysis is effective strategic management tool that will assist Metro Bank to evaluate the primary and supporting activities of organisation. This process is effective for manager to evaluate current organizational status such as its financial position, operational status, competitiveness in international market and balance among different organisational departments. On the contrary Hanson et al. (2016), argued that Value Chain Analysis only focuses on primary and supporting activities of an organisation but it does not assist firm to find out the risks and limitation of the strategies that are taken by managers. From overall evaluation it can be stated that, there are many techniques and theories of strategic management. Therefore, organisational officials need to determine the actual needs of organisation to meet the long terms strategies, based on which the can take useful strategy and techniques.

Evaluation of theories and concept of project management:

Project management is process of planning, monitoring, evaluating, analysing and controlling a project. As mentioned by Adiga (2019), many techniques can be used by a project manager to meet project goals such as agile method, lean method, Gantt chart, Critical Path Method (CPM) and waterfall techniques. Lean method is one of the highly preferred method in current project management scenario, in which project manager can make effective modification in overall process by using limited resources. Lean method is effectives in case of both small and large firms, in which the project manager can determine the errors of flaws at any stages of project management. On the contrary Banihashemi et al. (2017) argued that although lean method is effective project management tool improve the overall operation if project team by cutting additional expenditure, it is unable to find out root cause of the flaws or risk that suddenly occurs in project management process. Agile method is also another useful project management tools that assist project manager to improve the overall standard of organisational operation on particular project. A on the contrary Heagney (2016) argued that generally, agile method is used in operation management process in which mangers need to install new software and other technical devices to optimise the overall operation. There are different theories of project management such as Theory X and Theory Y, which is highly useful for project management process as the assist a project manager to choose the right leadership styles in terms of enhancing overall productivity of entire workforce. As mentioned by Kerzner (2017), both the theory highlights the importance of two major leadership styles such as authoritarian and participative. On the contrary critics of the theory have argued that, these theories only highlight the two leadership styles out of which authoritarian leadership styles is generally not prefer by today’s organisational leaders as it can create conflict and unhealthy relation between mangers and staffs. On supporting this viewpoint Marchewka (2016) mentioned that, a project manager needs to be highly flexible to adapt to different leadership process rather than sticking to only two specific leadership style. Contingency management theory is useful in managing any project that assist project manager to become highly flexible in different organisational situation. As mentioned by Kerzner (2019), Contingency management theory helps organisational manager to adapt themselves in any type of leadership styles. On the other hand, Scientific management theory is another useful theory that can be used by project, manger to keep team members motivated and engaged to their task.

1.3 Application of theories, concept and techniques of project management and strategic management in real world examples:

Case study:

a. Metro Bank:

Metro bank is a public sector bank that operates its business in United Kingdom (UK). This bank has a rapid economic growth which makes its enlisted in London Stock Exchange list. Recently the bank faces conflict among staffs due to huge workload on as the number of customers has increased at faster than that of the company staffs. Therefore, the bank has developed a strategy to change its cubicle workplace to open plan office with an intention to enhance its customer service. Following are project and strategic management theories as well as techniques that Metro bank can use to meet the target of improving overall customer service.

Project management

Here the Metro bank can use Agile and lean methodology which will assist the project manager to improve overall activities of team member of the project. Through Agile method, project manager can optimize the overall operation process of the bank by reducing the inventory and waste. In addition to this agile method will also assist project manager of Metro bank to, maximise output by using inputs in systematic manner. On the other hand, lean method can also be applicable for project management process of Metro bank in which the project manager will be assisted to improve each stage of project management process by using minimum resources. Here project manager can use Theory Y and Contingency management theory that are going to be highly useful in assisting project manager to be enough flexible to any organisational situation and maintain healthy as well as strong bonding with all team members that is crucial to meet common strategic goals of this bank.

Strategic management:

In case of s trategic management process, the manager of Metro bank can use Balance Score card theory and Strategy Map Model. Balances Score Card theory will assist the manager to communicate with stages of strategic management process to make effective modification in these stages. On the other hand, Strategy map will assist mangers of this company to evaluate entire strategy management process to determine the associated risks and needs of the project.

Tesco Plc:

Tesco Plc is a private sector organization that operates its business in UK. It is one of the famous supermarket chains that is known for its high-quality service and products. Currently Tesco Plc faces challenges in transforming all its manual operation into automated service to provide better online service to customers. The challenges is about lack of potential software and hardware, lack of technical staffs and insufficient financial resources. In this context, Tesco Plc has taken a strategy to optimize its automated online operation through installing new technologies. In this context mangers of Tesco is can use the following project management and strategic management theories and techniques:

Project management:

The project manager of Tesco is going to use Lean methodology which will assist manager to install new software and application program to optimize the usefulness of automated service. The manager can use Lewin’s Theory of Change management and Contingency management theory to enhance the overall productivity of entire workforce.

Strategic management:

In case of strategic management process, managers of Tesco can use Value Chain analysis and Strategy Map model. Value Chain Analysis will assist manger to analyses the internal environment of this company. On the other hand, Strategy map will visualize the entire strategy management process in front of mangers of Tesco that will assist the manager to determine the needs of the project.

1.4 Conclusion:

From overall discussion it can be concluded that, strategic management and project management process are interrelated to each other. For achieving strategic goals of organisational a company needs to develop effete project management strategy. Strategic management process assists an organisation to develop and implement effective strategies to meet long term company goals. Project management process assists organisation to use these strategies in systematic manner to achieve long-term goals and enhance overall competitive advantages of organisation in international market.

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