Chapter 1 - Strategic Management: Creating Competitive Advantages

LO1.1 The definition of strategic management and its four key attributes.

Strategic Management: the analyses, decisions, and actions an organisation undertakes in order to create and sustain competitive advantages. The Four Key Attributes of Strategic Management 1. Directs the organisation toward overall goals and objectives. 2. Includes multiple stakeholders in decision making. 3. Needs to incorporate short-term and long-term perspectives. 4. Recognises trade-offs between efficiency and effectiveness.

LO1.2 The strategic management process and its three interrelated and principal activities.

three ongoing processes—analyses, decisions, and actions—that are central to strategic management. In practice, these three processes—often referred to as strategy analysis, strategy formulation, and strategy implementation—are highly interdependent and do not take place one after the other in a sequential fashion in most companies.