TABLE OF CONTENT

1. INTRODUCTION.
2. WHAT IS STRATEGIC MANAGEMENT?
3. IMPORTANCE OF STRATEGIC MANAGEMENT.
4. STRATEGIC MANAGEMENT IN RELATION TO MSC
CRUISES.
5. CONCLUSION.
6. REFERENCES.

1. INTRODUCTION
This essay serves to explain the extent to which the strategic management process can
be of assistance to MSC in their future planning processes, it shall first set off with a
brief introduction about the strategic management process then a definition of what
strategic management is, its importance and lastly a detailed explanation of the
strategic management process in relation to Msc cruises future expansion and
prospects.
Strategic management is the process in which an organisation develops and
implements plans that espouse the goals and objectives of that organisation. Strategic
management process is continuous and evolves as the organizational goals and
objectives change. Organizations engage in strategic management to ensure that they
adapt to trends and external changes such as globalization. Several key concepts
characterize strategic management and the development of organizational goals.
2. WHAT IS STRATEGIC MANAGEMENT
According to (Maleka, 2014) Strategic Management can be defined as an ongoing
process, strategic management of an organisation entails three ongoing processes:
analysis, decisions, and actions. That is, strategic management is concerned with the
analysis of strategic goals (vision, mission, and strategic objectives) along with the
analysis of the internal and external environment of the organisation. In essence
strategic management consists of the analysis, decisions, and actions an organisation
undertakes in order to create and sustain competitive businesses world and respond to
the questions of where do you want your business to go (goals), how is your business
going to get there (strategy) and how will you know when you get there
(evaluation)advantages. In essence strategic management is centered. Furthermore,
Strategic management includes understanding the strategic position of an organisation,
making strategic choices for the future and managing strategy in action. Strategic
management therefore defined as the process by which organisation analyses the
internal and external Environments for the purpose of formulating strategies and
allocating resources to develop a competitive advantage in an industry that allows for
the successful achievement of organizational goals. Most importantly to be noted that
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strategic management is not about predicting the future, but about preparing for it and
knowing what exact steps the organisation will have to take to implement its strategic
plan and achieve a competitive advantage.
3. IMPORTANCE OF STRATEGIC MANAGEMENT
Strategic management helps top leadership to pursue long term revenue-generating
ideas. Strategic management specifically helps create an occupational environment that
allows senior management to constantly review the operating processes and making
the necessary changes where appropriate. The following are the main areas that
organizations find strategic management to be relevant to organizational goals;

Improvement in sales
Improvement in profitability
Productivity improvement
Improved understanding of Competitors strategies
Enhanced Awareness of Threats
Reduced Resistance to Change
Enhanced problem-prevention capabilities

4. STRATEGIC MANAGEMENT IN RELATION TO MSC CRUISES

Success in any form of business is always welcome. However, it is even more enjoyable
if it is attained having conquered some really huge obstacles, as it is then more
refreshing than most. This is the case for huge companies, as well as those in the
hospitality and other service industries, as competition is really stiff. To achieve success
in such circumstances requires the proper handling of all business operations. This is
where strategic business management practices come into play. Strategic planning
refers to an organizational management activity employed to formulate and enact
business priorities, focus energy and resources as well as the strengthening of
operations (Pearce, Robinson, & Subramanian, 1997).Essentially therefore, strategic
management planning provides the guarantee that company employees, managers
along with directors remain focused on a directional unity in the firm that creates a
common agreement relating to the targeted outcomes/results, while also assessing and
adjusting company operational direction. The disciplined nature of the activity helps
firms that effectively implement it to produce highly fundamental decisions and actions
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which not only transform the companys routine but also guide the organization on what
it is, who is served, its operational mandate as well as the reasons behind the things it
does. In short, the existence of the firm is wholly reinvented through proper planning.
This is what happened with MSC Cruises upon a stellar adoption and implementation of
strategic planning.
MSC Cruises stands to benefit immensely from their use of strategic planning in their
operations. While the said benefits are not necessarily operations-related, it is
nevertheless pertinent that such systems be installed in a business if they hope to enjoy
more than ordinary success. This is because in the current competitive environment,
ordinary is simply not good enough. The benefits of strategic management are far
reaching. To start with, optimized strategic planning plays a key role in defining the
vision, mission as well as future goals of a business entity (Miller & Cardinal, 1994).
Therefore, it is noteworthy to point out at this instance that the company tenets being
referred to here are more advanced than just the basic and ordinary pasting of company
vision, mission and goals of the entitys official documents. It is about the acceptance,
internalization and continued living by that which the company intends to be. This
means that every employee would just exist as a key component of the business
system that must thus work in tandem with the others to achieve the operational goals
earlier set. MSC Cruises and its employees are not at this level yet. Despite having a
clearly stated vision and mission, as well as their commitment to providing unbeatable
services both offshore and on board, MSC Cruises still needs to optimize its services so
as to lay the required foundations for a better and more alluring future for the company.
The significance of planning is often illustrated by the fact every business entity runs on
one form or another of an operational or financial plan. When firm strategy is
incorporated into the picture, however, the results of the planning objectives. This
means that by MSC Cruises stands to benefit in terms of heightened operational
efficiency, financial soundness as well as optimal management actions if it clearly
articulates its targets, objectives and expectations to its internal stakeholders in a
manner that ensures every individual is working to their optimal level (David, 2009). If
achieved, this would make MSC Cruises incomparable with their competition.

There exist other significant benefits of strategic management planning. For instance,
the strategy planning process greatly improves the extent and scope of activity
coordination within the business entity which in turn results into more efficient allocation
and subsequent use of company resources. In fact, of a greater benefit to the efforts by
MSC Cruises to embrace better communication as outlined by their agreement with WS
is the fact that strategic plans have a way of enhancing communications between
business managers of the different levels and functional areas. Though not the exact
reason why WS was brought on board, it ensures that all of the MSC Cruises staff
understand and do what has to be done long before the companys clientele and other
stakeholders are brought into the picture. While nothing is guaranteed in business, MSC
Cruises will see their position in the world of holiday cruises significantly boosted if they
embraced the full extent of strategic planning. The practice takes a bit more time than
ordinary planning, but just like any other business activity, the rewards are worth the
extra mile. As such, it would be foolhardy for the firm to explore all their business
options in a strategic way. This is especially true for a business of MSC Cruises
ambitions, one whose massive potential may only come undone if limited by the
shortcomings of their management personnel and or systems. Otherwise, the future is
bright.

5. CONLCUSION
Strategic management helps top leadership to pursue long term revenue-generating
ideas. Strategic management specifically helps create an occupational environment that
allows senior management to constantly review the operating processes and making
the necessary changes where appropriate.
Strategic management planning provides the guarantee that company employees,
managers along with directors remain focused on a directional unity in the firm that
creates a common agreement relating to the targeted outcomes/results, while also
assessing and adjusting company operational direction. The disciplined nature of the
activity helps firms that effectively implement it to produce highly fundamental decisions
and actions which not only transform the companys routine but also guide the
organization on what it is, who is served, its operational mandate as well as the reasons
behind the things it does.

6. REFERENCES
1. David, F. R. (2009). Strategic management: Concepts and cases. Pearson.
2. Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge
University Press.
3. Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management theory: An
integrated approach. Cengage Learning.
4. Miller, C. C., & Cardinal, L. B. (1994). Strategic planning and firm performance: A
synthesis of more than two decades of research. Academy of Management
Journal, 37(6), 1649-65.
5. Pearce, J. A., Robinson, R. B., & Subramanian, R. (1997). Strategic management:
Formulation, implementation, and control. Chicago, Illinois: Irwin.
6. Maleka, S. (2014) Strategy Management & Strategic Planning Process: South African
Perspective.