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Strategic Management

Strategic management entails the creation and implementation of major goals for a company. By providing an overall direction to the corporation, strategic management develops policies that are designed to meet stated objectives. By combining strategic planning and strategic thinking, strategic management analysis, decides and acts on plans for corporate growth.

Strategic Management

The ideas behind strategic management emerged in the 1950s and 1960s, adopting the military term “strategy” for the business world. One of the leading innovators in the development of strategic management was Peter Drucker, author of numerous books on management. Drucker (1909-2005) was the first define business strategy with the question “what is our business?” The correct answer to the question was determined by the customer. Getting to the correct answer was the goal of strategic management.

One of the major features of strategic management is a SWOT Analysis. SWOT—strengths, weaknesses, opportunities, and threats—came out of the Harvard Business School and allows for a matching of a company with its environment. A second key tool is the experience curve, developed in 1966 by the Boston Consulting Group, which details how costs decline over time. A third tool is the growth-share matrix, also developed by the Boston Consulting Group, in which market share is graphically plotted along with industry growth rate.

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