The success of business entities

The success of a business is determined by elements such as the type of product, staff abilities, location, quality of goods and services, and technological improvements, to name a few. These characteristics, however, are the result of strategic management, which serves as the nerve center of them all. Strategic management, in basic terms, comprises identifying goals, developing a plan of action, and channeling resources appropriately to attain those goals (Alvesson and Willmott, 2011). The entire concept of strategic management is derived from military and neoliberal backgrounds, both of which influence how it is done and performed. Further, aspects drawn from neoliberalism and military have far-reaching effects on the strategy of management.

The essay is organized into three sections to expound on the argument(s). The first section serves to shine a light on the fact that military acts as the DNA for strategy employed in the business and management realm. In section two, the nitty-gritty of neoliberalism is portrayed as the other core unit of strategic management. The third section gives a sneak preview of the important aspects drawn from both military and neoliberalism and their implication on strategic management. The final section gives a concise summary of the argument and how it was supported in the sections.

Military and strategy

The word strategy comprises of two terms namely stratos and agein emanating from the military which means army and leads respectively (Carter et al 2008). Hence, the way things are carried out in any business entity has to portray the military in action. In strategy, it is thus expected that the top officials have a link with the military and also utilize ideas gathered from the field of the military. Wonderfully enough, it has been proven that managers have a history in the army. For instance, it was seen that most managers who steered the industrialization in the U.S. had undergone the military system of training in the Military academy (Carter et al 2008). Moreover, strategies utilized in Normandy Landings were used to manage and give shape to business in logistics and long-term planning as seen after the World War II. The militaristic strategic concept seemed appealing to managers of business due to its association with warfare. With the increase in the size of business organizations in parallel with tough competition, adoption of the military strategy appears as the best option and hope for the firms (Keller 2008:129-134).

In simple terms, strategic management of firms is a platform for exercising the strategies developed and have worked in the art of war against the enemies. It is, therefore, appropriate to state that military concepts have played a crucial role in defining management strategy. Neoliberal legacies as well have had a profound influence in giving shape to the idea of well-planned management. Looking back on the history and principal of neoliberalism enhances clear understanding of strategy.

Neoliberalism and strategy

Sewpaul defines neoliberalism as the amalgamation of political and socioeconomic discourse and choices of policy on the ground of values of a market that is not regulated (2015). In an unregulated market, people have the freedom to do business and trade with no restriction or control by the state government. The main assumption that forms the basis of neoliberalism approach is that the government can neither lender social welfare nor make economic growth for everyone. Instead, attempts by the government to fulfill either of the two is said to change the current situation from worse to worst.

The history of neoliberalism is can be dated back in the year 1979 when the elected Prime Minister of UK, Margaret Thatcher, worked towards reshaping the economy upon neoliberal agenda. In 1980, Ronald Regan also introduced neoliberalism during his bid for US presidency. Other prominent leaders such Milton Friedman, F. Hayek and Augusto Pinochet played a crucial role in transforming the nations along neoliberal lines (Whitehead and Crawshaw 2014:19-34). The overall intention of neoliberal ideas was to transform areas where power resided, the organization of market and business, individual efforts as well as the transform the prevailing economic policies. From the neoliberal approach, financialized strategies came up which impacted management significantly. According to Styhre 2014, the enormous profits realized by General Motors in 2004 is said to have been obtained from financial services. Similarly, a statement issued by Ford Motor Company indicated that most of their profits came from the financial operations (Styhre 2014: 51-52).

To sum up this concept, it is seen that a plan of management of economics of the state was applied in which the main aim was the power over the financial resources were laid in the hands of citizens. All implications resulting from using the strategy were entirely overlooked as the focus was on individualized wealth accumulation. Fortunately, the concept together with that of the military has had a great implication on strategic management.

Implication of military and neoliberalism concepts in strategic management

As mentioned in the previous paragraph(s), there have been effects felt from the use of the two concepts. Firstly, the militaristic strategy is not in any way sustainable for neither the community, employees nor the environment (Lachenauer’s 2004). Likewise, Carter et al in support hinted that the preponderance of metaphors of war in conjunction with the militaristic understanding of the concept of strategy, do not form a good base for creating a secure and sustainable business (2008). Secondly, the neoliberal strategy is narrowed towards generating profits on a short-term basis and distributing them to main shareholders. As a result, there are no efforts made towards reinvesting the finance obtained to facilitate long-term interests of the business (Styhre 2014: 11). Thirdly, neoliberalism leads to a situation where the collective responsibility expected to be given to others is not provided. For example, the implication tax avoidance strategies employed is that no input is made towards financing society and the infrastructure. Also, the employees risk losing their jobs as no job security is guaranteed due to use of flexible strategies for employment and zero hour contract form of employment. The management system based on neoliberal ideas escapes the responsibility for ensuring a safe environment for working and giving modest living wages.

Lastly, neoliberalism ideology creates massive inequality of people. A graphical representation of the level of income of U.S. households indicates that neoliberal period as marked by exceptionally high inequality growth (Dumenil and Levi 2015:74).

Conclusion

In brief, the essay was meant to show how strategic management was borrowed from military and neoliberalism concepts as well as the effects of the two in strategic management. Section one served to develop the argument and describe strategy from a military background.Section two indicated the relationship between neoliberal ideas and strategy. The third section indicated the impacts the two concepts have on strategic management. The material and references used to support the argument indicated that strategic management has indeed borrowed most ideas from the two concepts. Senior figures applied the concept in business and state management. The outcome was unexpected negative implications on the society and management as a whole. Therefore, it should be a learnt lesson that though ideas may seem good to be implemented, they out to be given a second thought.

References

Alvesson, M. and Willmott, H. (2011). Critical management studies. London: Oxford University Press, p.417.

Carter, C., Clegg, S. and Kornberger, M. (2008). A very short, fairly interesting and reasonably cheap book about studying strategy. Los Angeles: SAGE, p.8.

Duménil, G. and Lévy, D. (2015) ‘Neoliberal Managerial Capitalism’ International Journal of Political Economy 44: 71-85.

Keller, G. (2008) ‘The influence of military strategies on business planning International Journal of Business and Management 3(5): 129-134.

Sewpaul, V. (2015) ‘Neoliberalism’ International Encyclopaedia of the Social and Behavioural Sciences Second Edition volume 13: 462-468.

Stalk, G. and Lacehnauer, R. (2004) ‘Hard Ball: Five Killer Strategies for Trouncing the Competition’ Harvard Business Review, April: 62- 71

Styhre, A. (2014) Management and Neoliberalism. Routledge, London.

Whitehead, P. and Crawshaw, P. (2014) ‘A tale of two economies: the political and the moral in neoliberalism’ International Journal of Sociology and Social Policy 34(1/2): 19-34.