Needless to say, it is something every company executive must keep in mind in running their business.
Quite frankly though, this is a bit of a no-brainer for me; I have been raised from birth to be responsible in all aspects of life, so strategic management isn’t something I am incapable of. While it is true that different people may have varying degrees of success in this regard, this will still help any business no matter what field. Case in point: all big name companies that we have known, regardless of whether they were forced to declare bankruptcy, were able to pull this off somehow else they would never have gotten off the ground.
Most of us, even non-business majors, no doubt already know this. This being the case, it becomes even more important to learn this skill which will spell the difference between success and failure in our careers. In particular, three steps are most important in my opinion – scanning both the external (knowing one’s surroundings) and internal (knowing oneself) environments, as well as the competition (knowing the enemy), which will be the focus of this paper. As I heard somewhere before, only by knowing both oneself and the enemy (or in this case, competition) can success be guaranteed.
According to Elisabeth Chapus et al (2010), environmental scanning, both internal and external, is meant to aid managers in making decisions and to respond adequately to weak signals coming from the environment. Coming up with plans usually entails taking into account the current situation, and strategic management is no exception. However, unlike normal planning that focuses mainly on thinking of the future, strategic management emphasizes good decision-making in order to achieve a desirable future (Craig Dobbins, 2010). To this end, managers must be able to make educated guesses about the future based on what they see now, achieving a fit in terms of how the company can