Strategic Management : An Art And A Science

1868 WordsMay 12, 20168 Pages
Strategic management is considered an art and a science; one that involves the formulation, implementation and evaluation of decisions in an organisation, which are functionally related and are fundamental in the achievement of the business objectives of that organisation (Dix & Matthews, n.d); the term strategic management is replaced by strategic planning when it comes to the world of business. The main focus of this process is the amalgamation of the managerial department, production and marketing departments, the finance sector, research and development and the information systems so the organisation may achieve success. The process tries to identify; exploit and create opportunities for the future with strategic goals set to achieve and maintain competitive advantage. (Dix & Matthews, n.d). Competitive advantage involves anything that a firm is considerably better at especially than its contesting firms. When a firm can do something or owns something its rival firms have a desire for, then that firm has a competitive advantage (Dix & Matthews, n.d). The process of strategic management or strategic planning involves three phases; formulation, implementation, and evaluation. The first stage, formulation, is all about the development of a vision and mission, analysis of the business environment so as to identify SWOTs (strengths, weaknesses, opportunities and threats), establishing long-term objectives, generation of substitute strategies and selecting which strategies
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