DSpace at Khazar University

In the name of God
Title: Explanatory Project of Strategic Management
Introduction
Urgency of the study. A sense of strategy is an important component in the
management of a successful business. By a sense of strategy we mean that the top
management teams have a shared understanding of where the firm is trying to go. Some
view of where and how the firm is trying to compete gives confidence to managers from
the top downwards. It assists managers in making resource decisions, and it can instill a
sense of purpose. But because the future is uncertain it is impossible to rationally
analyze the firm’s situation in a way which produces a single “correct” strategy for the
business. However, faced with uncertainty and complexity, some sense of direction is
better than no sense of direction. We can take heart from the fact that a “right answer” is
not attainable. A-well-thought-through and well-argued strategy will not necessarily be
the “optimal” strategy for the business, and there may be several viable alternatives,
each with their advantages and disadvantages. Nevertheless, a shared and agreed view
of where we are trying to take the firm is an essential ingredient for the successful
management of today’s activities. Armed with this shared understanding, managing on a
day-to-day basis becomes more straightforward. If we know where we are trying to
head, difficult operational and resource decisions can be made with more confidence,
but setting the strategic direction for a business is the most complex task facing any top
management team. The complexity arises for a variety of reasons that are peculiar to
strategy making, as follows:
- Strategy is about an unknown future;
-there are many paths that a firm could follow; and
- Firm operate in dynamic competitive environments.
Because strategy making involves people, however, the complexity is
compounded:
- Each executive involved has his or her own views and motives, which may or
may not be explicit
- In deciding strategy, individuals are constrained by their past experiences,
taken-for-granted assumptions, biases and prejudices.
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