Friday, September 05, 2008

2 approaches to strategic management

Two common approaches to strategic management.

1. Opportunity based. Study the business environment. Identify gaps or opportunities. Acquire resources and capabilities needed to accomplish the tasks. Execute.

2. Capability based. Study the internal capabilities. Identify internal strength. Find opportunities in the external business environment that requires the strengths. Execute.

In both the above approaches, the company must think about sustainability and defensive strategies in the face of existing and new competitors.

No comments: