Strategic Management

Firms or companies today face a broad array of risks, problems and issues, be they strategic, operational, financial, customer, vendor, competitor, to name a few. Moreover, concerns about increased international competition brought about by the rapid globalization phenomenon abound not only in the US but also in Europe with the further expansion of the European Union and in Asia and Latin America due to increased economic integration in these regions. Management experts, therefore, have argued time and again that firms or companies should respond to environmental changes, such as increased competition, by engaging in more systematic planning to anticipate and respond to changing and unforeseen events. The reason for this argument is because formal strategic planning has been seen to enhance a firm’s performance.

Strategic management process sets the long-run performance by undertaking environmental scanning, strategy implementation, and evaluation and control. The process of strategic management is a mixture of several ingredients. It is a science because it requires scientific research when formulating plans for the firm. On the other hand, it can be stated that it is an art considering that when plans are implemented it varies relative to the characteristics and style of managers. However, to be more effective in achieving the goals of the firm, other ingredients are necessary like an excellent judgment of the manager, flexibility of the plans, and even luck. The business strategy, therefore, is not merely a result of one factor but a mixture of interrelated factors and that when mixed well by management can bring the firm to greater growth.

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