Concepts, Models and Schools of Strategic Management

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Concepts, Models and Schools of Strategic management One of the duties of the managers of a company is to engage in strategic decision making. Strategic management is a broad subject on its own that borrows from other social science disciplines. According to AllBusiness (2011), strategic management involves all the activities undertaken by management to better place the company in the industry it operates in. It is important for every manager to realize that his firm does not exist alone in the business environment. Its environment has parties like competitors and customers, both internal and external; suppliers and government authorities that must be analyzed and addressed appropriately. Laying down the best strategy will involve assessing the needs of the market and the firm’s capabilities, formulating its mission and vision and communicating the goals and objectives set down to the employees. Once all this is done, managers have to assess the tasks to be done and allocate resources in a manner that will avoid wastage. The aim of strategic management is to enable a business to take advantage of opportunities and to act quickly in response to challenges in its environment. This in turn helps to meet the needs of the market effectively. It has a role of ensuring that a company profitably stays in business. In fact, companies that run at a loss continuously are those that fail to strategize (David, H. & Thomas, and L. W. 2011). Strategic management is a combination of several interwoven concepts that assist managers in decision making. These concepts are: SWOT analysis, PEST analysis, Porters Five Forces, value chain analysis, levels of strategy, competitive advantage, and strategic planning (Quick MBA 2010). SWOT analysis enta... ... middle of paper ... ...f strategic management. Viewed on Mon 22 Aug 2011. Retrieved from: http://www.hrfolks.com/Articles/Strategic% 20HRM/Essentials%20of%20Strategic% 20Management.pdf NetMBA. 2011. Strategic Planning Process. Viewed on Tue 23 Aug. Retrieved from: http://www.netmb.com/strategy/process/ Nick, P. 2004. MBA Dissertation: Mintzberg’s Ten Schools. Viewed on Mon 22 Aug 2011 Retrieved from: http://www.nickpelling.com/dissertation/chapter4.pdf QuickMBA. 2010. Strategic Management. Viewed on Mon 22 Aug 2011. Retrieved from: http://www.quickmba.com/strategy/ Tutor2u. 2011. Competitive Advantage. Viewed on Tue 23 Aug. Retrieved from http://tutor2u.net/business/strategy/competitive_advantage.html Vadim, K. 2011. The Three Levels of Strategic Management. Viewed on Tue 23 Aug. Retrieved from: http://www.1000ventures.com/business_guide/strategy_hierachical_levels.html

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