In general terms, there are two main approaches, which are opposite but complement each other in some ways, to strategic management: The Industrial Organizational Approachbased on economic theory — deals with issues like competitive rivalry, resource allocation, economies of scaleassumptions — rationality, self discipline behavior, profit maximizationThe Sociological Approachdeals primarily with human interactionsassumptions — bounded rationality, satisfying behavior, profit Read More
Strategic Planning
As you already know, the P-O-L-C framework starts with “planning.” You might also know that planning is related to, but not synonymous with, strategic management. Strategic management reflects what a firm is doing to achieve its mission and vision, as seen by its achievement of specific goals and objectives. A more formal definition tells us that the strategic management process “is the process by which a firm manages the formulation and implementation of its strategy.” The strategic Read More