MGT Notes

Reference : Strategic Management (5e) – Frank T. Rothaermel, Ch 1, Pg 6

A strategy can be defined as a sequence of steps taken (by an entity) towards achieving the result of gaining and sustaining competitive performance relative to other entities. As an example, startups strategize to acquire financial and human capital while existing firms strategize to achieve profitable growth.

In order to achieve the above result a strategic management process is to be followed. It consists of the following steps:

• State the competitive challenge by analyzing the entity’s internal and external environment
• Formulate a strategy to address the said challenges
• Put the strategy into action through sequence of steps (implementation).