Mohammed Rezaul Kibria ID No. 131326222 Ch: 8, Q: 4 What is Strategy Management? Strategic management consists of the anal sis!

decisions! and actions an organization underta"es in order to create and sustain com#etiti$e ad$antages. %his definition ca#tures t&o main elements that go to the heart of the field of strategic management. First, the strategic management of an organization entails three ongoing #rocesses' anal sis! decisions! and actions. %hat is! strategic management is concerned &ith the anal sis of strategic goals ($ision! mission! and strategic ob)ecti$es* along &ith the anal sis of the internal and e+ternal en$ironment of the organization. Ne+t! leaders must ma"e strategic s#ea"ing! address t&o basic ,uestions' decisions. %hese decisions! broadl

-.hat industries should &e com#ete in/ -0o& should &e com#ete in those industries/ %hese ,uestions also often international o#erations. in$ol$e an organization1s domestic as &ell as its

2nd last are the actions that must be ta"en. Decisions are of little use! of course! unless the are acted on. 3irms must ta"e the necessar actions to im#lement their strategies. %his re,uires leaders to allocate the necessar resources and to design the organization to bring the intended strategies to realit . %his ongoing! e$ol$ing #rocess re,uires a great deal of interaction among these three #rocesses. Second, the essence of strategic management is the stud of &h some firms out#erform others. %hus! managers need to determine ho& a firm is to com#ete so that it can obtain ad$antages that are sustainable o$er a length #eriod. %hat means focusing on t&o fundamental ,uestions' -0o& should &e com#ete in order to create com#etiti$e ad$antages in the mar"et#lace/ -0o& can &e create com#etiti$e ad$antages in the mar"et#lace that are not onl uni,ue and $aluable but also difficult for com#etitors to co# or substitute/ Strateg is all about being different from e$er one else. Sustainable com#etiti$e ad$antage is #ossible onl through #erforming different acti$ities from ri$als or #erforming similar acti$ities in different &a s. 2 com#an &ith a good strateg must ma"e clear choices about &hat it &ants to accom#lish. %r ing to do e$er thing that ri$als do e$entuall leads to mutuall destructi$e #rice com#etition! not long-term ad$antage.