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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1894 |
Essay's paper body
Long term strategies involve preparing for and preempting the future. Marketing strategist Derek Abell (1993), has suggested that understanding this dual nature of strategic management is the least understood part of the process. He claims that balancing the temporal aspects of strategic planning requires the use of dual strategies simultaneously...
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This is the highest level corporate activity that sets the terms and goals for a company that it should follow for prosperity.
[edit] General approaches
In general terms, there are two main approaches, which are opposite but complement each other in some ways, to strategic management:
The Industrial Organization Approach
based on economic theory ? deals with issues like competitive rivalry, resource allocation, economies of scale
assumptions ? rationality, self discipline behaviour, profit maximization
The Sociological Approach
deals primarily with human interactions
assumptions ? bounded rationality, satisfying behaviour, profit sub-optimality...
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