The New Strategic Management

THE NEW STRATEGIC MANAGEMENT
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(21 January 2011)
Table of Content TOC \o "1-3" \h \z \u 
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Abstract  PAGEREF _Toc283383066 \h
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Introduction  PAGEREF _Toc283383067 \h
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Strategic Management  PAGEREF _Toc283383068 \h
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The Porter’s Five Forces  PAGEREF _Toc283383069 \h
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The Threat of Entry of New Competitors/ Barriers to Entry  PAGEREF _Toc283383070 \h
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The Threat of Substitutes  PAGEREF _Toc283383071 \h
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The Intensity of Rivalry  PAGEREF _Toc283383072 \h
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Buyers’ Power  PAGEREF _Toc283383073 \h
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Suppliers’ Power  PAGEREF _Toc283383074 \h
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Five Porter Forces Critique  PAGEREF _Toc283383075 \h
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Analysis  PAGEREF _Toc283383076 \h
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Strengths of the Model  PAGEREF _Toc283383077 \h
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Weaknesses of the Model  PAGEREF _Toc283383078 \h
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Conclusion  PAGEREF _Toc283383079 \h
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List of Reference  PAGEREF _Toc283383080 \h
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The New Strategic Management
Abstract
Decision making is a very important process in every firm; with the most effective and efficient decisions made in a firm then the growth and sustainability of the business are guaranteed. Strategic management models have helped managers to make those decisions and solve dilemmas and problems in the firm. This paper tackles the issues of strategic management in a firm through the use of models. It specifically tackles the Porters Five Forces developed by Michael E. Porter in 1979. They include threat of entry of new competitors, the intensity of competitive rivalry, the threats of substitutes, the buyers bargaining power, and the supplier bargaining power (Porter, 1980a). Other models such as SWOT and PEST used to assist managers in making decision are also identified.
The critique of the Five Porters Forces is discussed with the weaknesses and strengths being discussed in length and the assumptions that underlie the development and implementation of the model. The managers are advised to apply a combination of models since there is no perfect model developed. This allows the managers have the required information required in making decisions.
Introduction
Strategic management involves the managers of a firm or business making the right decisions at the right time so that the business may have a competitive advantage over its rivals. The manager must be able to analyze very many factors in order...