Bìznes Inform (Apr 2023)
The Theoretical Foundations of the Enterprise Strategic Management System
Abstract
The concepts, theories, and practices of strategic management have become very important in the modern management literature. This has become evident due to the complex, ambiguous, and dynamic nature of modern corporate management, which has been a concern for scholars in this field. The main purpose of this article is to review strategic management with an emphasis on its conceptions, theory, and connection with the resource-based philosophy of a firm’s competitive advantage. The authors analyzed the relevant literature establishing the relationship between the theory of strategic management and the competitive advantage of a firm on the grounds of the resource-based philosophy. It is specified that the resource-based model is one of the main theories of strategic management, which helps to explain the effectiveness of an organization. The main strategies for entering the external market are considered, namely: SWOT analysis; Porter’s Five Forces model; the Balanced Scorecard; Blue Ocean strategy; Agile strategy; PESTEL analysis. Each of the considered strategies for a firm’s entry into the external market has its own disadvantages and undoubted advantages, which should be considered, first of all, in the context of the product features. In the course of the study the key components of strategic management and the stages of strategic analysis are identified. Studying the competitive advantage of an organization from this school of thought allows organizations to measure the value of their internal resources and capabilities, in particular, to achieve competitive advantage. It is argued for that that the purpose of a system analysis of the external environment consists in identifying the future opportunities that a company can safely rely on, as well as to in detecting threats that may arise and which need to be prevented or reduced, also in determining the position of the enterprise opposite to competitors in the field of input factors and production. It is also proved that the advantages possessed by an enterprise should play a decisive role in choosing a strategy.
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