Effect of Strategic Management Strategies on Performance of the Manufacturing Firms in Mexico
Abstract
The study sought to examine the effect of strategic management strategies on the performance of the manufacturing firms in Mexico. The study was conducted in Cemex company. The target population was 274 employees, who included managers and support staff from Cemex company in Mexico. The study used the purposive sampling technique to get the sample. The interview guides were administered to the managers, while closed-ended questionnaires were used for the support staff. The results of the study indicated that strategic management strategies are positively and significantly related to performance. The study stated that strategy management enables the companies to have the capability to absorb the most effective workforce and increase the competitive advantage. The strategy management promotes efficient allocation of the resources within the functional units. The availability of strategic leadership enables the organization to allocate resources more effectively within various departments. The distribution of funds relies on the nature of complexity within the departments. The study indicated that the strategy formulation in the organization is that it facilitates environmental scanning. Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The significance of environmental scanning is that it helps the management to determine the future direction of the organization after being aware of the potential shifts in the market. The study concluded that strategic management is significant in assessing the performance of the manufacturing firms in Mexico. The study recommended companies look for that strategic management that is more practical and achievable.
Keywords: Strategic management strategies, performance, manufacturing firms, Cemex company, Mexico
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