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An introduction to Strategic Management
Strategic Management is all about identification and
description of the strategies that managers can carry to
achieve better performance and a competitive advantage for
their organization. An organization is said to have competitive
advantage in case its profitability is higher than the average
profitability for all companies in its industry.
Strategic management can also be defined as a bundle
of decisions and acts which a manager undertakes and which
decides the result of the firm’s performance. The manager
must have a thorough knowledge and analysis of the general
and competitive organizational environment to take right
decisions.
The managers should conduct a SWOT Analysis
(Strengths, Weaknesses, Opportunities, and Threats) in order
to make the best possible utilization of strengths, minimize the
organizational weaknesses, make use of arising opportunities
from the business environment. They should not ignore the
threats either.
Strategic management is nothing but planning for
both predictable as well as unfeasible contingencies. It is
applicable to both small and large organizations as even the
smallest organization faces competition and, by formulating
and implementing appropriate strategies, they can attain
sustainable competitive advantage. It is a way in which a
strategist sets the objectives and proceeds about attaining
them. It deals with making and implementing decisions about
future direction of an organization. It helps us to identify the
direction in which an organization is moving.
(www.managementstudyguide.com/strategic-management.htm. Adaptado)