Strategic management engages continuous planning, monitoring, analysis and assessment of systematic factors associated with the external and internal environments.
The number one purpose of strategy is alignment; all employees of an organization are to make good choices in support of the company’s strategy and trusting that each individual is pursuing a common way to gain the best competitive advantage ultimately achieving high profitability.
The three concepts about current management thinking and techniques that I believe are valuable from a strategic management perspective are SWOT, Porter’s Five Forces and the Value Chain for determining competitive advantage.
These three techniques are the most important because of the ability to analyse both the external and internal environments within the respective industry in which a company competes. The outcome of the assessment provides an overall direction for the organization which then allows for strategy formulation and implementing initiatives for improvement in the form of policies and procedures resulting in sustainable competitive advantage.