Evolution and Phases of Strategic Management

Evolution of strategic management
Name
Course
Instructor
Date
Abstract
Strategic management has a direct impact on the long-run performance of a corporation and is affected by managerial actions and decisions. Industry analyses in one of the aspects that affects strategic management allowing the management to make decisions through planning. The four phases of strategic management delve into the typical evolution of strategic management in an organization from basic financial planning to strategic management. The phases occur as the external environment changes and corporation becomes more complex. Besides focusing on internal and external factors, Porter’s competitive strategies highlight on the competitive factors that affect a corporation. Additionally, focusing on sustainable competitive advantage allows a firm to perform better than rivals within a competitive industry. Overall, the value- chain approach should be put into perspective, as the approach allows corporations to identify core strengths and minimize the impact of core strengths, while also encouraging the management to improve on a corporation’s competitiveness. Table of Contents
Abstract 2 Introduction 4 Analysis 4 Phases of strategic management 4 PESTL 5 Porter’s competitive strategies 6 Sustainable competitive advantage 7 Conclusion 8 Recommendations 9 References 10
Introduction
Strategic management relates to the managerial decisions, guidelines and actions that influence a corporation’s long run performance (Wheelen & Hunger, 2012). External and internal analyses are important aspects of strategic management as are strategy formulation implementation, evaluation and control. Managers used to rely on day to day planning before evolution of strategic management, with use of budgets and control system being relied upon for future use from the 1930’s. Long- range planning was the precursor to strategic planning and strategic management, whereby planning has increasingly played a prominent role in decision making in corporations (Rabin & Miller, 2000). It is pertinent to understand the evolution of strategic management which is related to complex interaction of functional areas over time. This paper delves into how strategy management typically evolves in corporations, specifically touching on phases of strategic management, PESTL analysis, Porter’s competitive strategies, sustainable competitive advantage and highlights on recommendations.
Analysis
Phases of strategic management
Evolution of strategic management in a corporation seems to follow four sequential phases from basic financial planning, forecast-based planning, externally oriented strategic planning and strategic management. A corporation first utilizes budgets to gain better operational control, and then there is effective planning to predict future growth and increase responsiveness. Equally, strategic planning seeks to increase responsiveness with strategic management then building upon competitive advantages that would ensure success of a corporation. Corporations are more likely t...