Strategic direction of the management team is crucially important to the ultimate global success of an organization. A CEO, as the leader or visionary of the organization must have the correct strategy and vision to ensure the success of his or her organization. The CEO has to share his vision with the COO or President of the organization, who will implement the strategy and daily operations of the organization.
But for an organization to be successful, strategic decisions cannot only come from the top of the organization in a kingdom style approach of leadership – where the CEO acts like the emperor, giving orders to his subordinates, and the managers below him merely serves as the executors of all the decisions made by the CEO. Instead, strategic decisions should also come from within all layers of organization. A manager who is implementing a strategy directed from above may encounter certain difficulties or inefficiencies and discovers a better way to implement a strategy. In order to be successful, an organization should welcome this type of emergent strategies, which may be in a form of feedback or new ideas.
Executing an organization's global plan once the vision is established will always come with a challenge. In the 21st century, this challenge is even more intensified, because in the era of globalization, the competition is not just statewide and nationwide, but worldwide. Nations around the world and especially emerging nations have learned that capitalist market is the path to prosperity for its society and have adopted the western approach of intense competition where the strong and efficient will survive.
A management team within an organization ultimately makes decisions that are influenced by what Michael Porter describes as Porter's Five Forces: supplier power, buyer power, threat of new entrants, threat of substitutes, and degree of