The strategic management în telecommunications industry

INTRODUCTION

Strategic management is the detailed organizing of the sources from different categories within the following departments: financial, manufacturing, marketing, technological, labor. It's about using all the resources that can be used to reach the goals. The strategy refers to whenever decisions are made that determine the course of the evolution of a company or organization. Any company, with its specific origins, know-how and skills, with its previous choices, is a dynamic system of relationships and recurrent exchanges between its constituent parts.

The implementation of a well-established concept can result in a system that is characterized by stable and harmonious links between different parts, links that can be adjusted in accordance with economic reality. This system has can lead to success and is the engine of values and motivation shared by all its members. Such a system guarantees the development of an adequate strategy that leads unequivocally to the achievement of the proposed goals. A company that fails to create a strategic system capable of executing an appropriate market strategy will be condemned sooner or later to disappear. In fact, economic rivalry is always disputed between strategic systems with different properties, thus possessing various skills and capacities.

This paper, “The strategic management in telecommunications industries”, presents the current state of telecommunications as well as telecommunication management strategies, with reference to ERICSSON TELECOMMUNICATIONS ROMANIA. Thus the work was divided into three parts as follows:

The first part deals with the essence and content of strategic management and its dimensions, the link between planning the strategy and the strategic management and concluding with the attributions, competencies and responsibilities of strategic management.

The second chapter refers to the foundation and implementation of the organization's strategy.

Chapter three includes information on Strategic Telecommunication Management, the strategic vision of ERICSSON TELECOMMUNICATIONS ROMANIA, the management strategy being of a significant importance in conducting an organization, in order to achieve its goals.

In the chapter number four, I will present the focused strategy within Ericsson, it’s implementation and we will have the answer to the question if Ericsson can return to profitability with new strategy.

My work brings as novelty, the different way of action from Ericsson Telecommunication Romania towards its competitors, as a result of the fact that the new developments in the telecommunication market, technological factors and computer technologies appears at a highspeed and trigger new actions in this field.

The need to approach this topic results from the facts that economic events of recent years have influenced and continue to substantially influence the theory and practice of the management process. The current business environment is different and much more complex than in the previous years.

Currently all industries are experiencing the effects of essential demographic changes (migration of labor to developed countries, enlargement outsourcing, globalization, consolidation within different industries, growth competition), and environmental factors such as global warming and pollution, that's why we need an analysis in line with the changes that have taken place lately.

CHAPTER I. THE ESSENCE, CONTENT AND IMPORTANCY OF THE STRATEGIC MANAGEMENT

Management is an external manifestation of global economic reality. It is a very common term used in all areas of activity. All companies no matter the field in which they operate, are directly involved in management because is helping in guiding various approaches for a clear purpose. Management is the sum of all the activities of organizing and coordinating a business with the unique purpose of achieving its goals.

Management is frequently seen as a production proxy beside with equipment, physical and cash. The well-known Peter Drucker highlights the fact that the main role of management is both innovation and marketing. Leadership is the interconnection of corporate policy-making and organizational, planning, controlling, and targeting means of an organization to accomplish the goals of that method.

1.1 Strategic management: a concept with complex exegesis

The objective of the management is human activity, management being a process of directing and orientating human resources activity to accomplish some targets. "Management is a system of concepts and methods by which the leadership of a micro or macro entity: economic, cultural, scientific, political and social in order to achieve high and sustainable performance".