This course focused on a series of topics that are relevant to strategic management. As mentioned before, strategic management is about the decisions an organization must make, based on the interaction between the environment and the firm’s resources, in order to gain or maintain competitive advantage.
Strategic management is, at its core, about how managers can transform environmental factors along with internal organizational resources to make decisions. These decisions should be based on goals and plans of action for reaching them. The overarching goal is to guide the organization into the future in a dominant competitive position.
Strategy draws on many disciplines. As discussed in the Strategy Background post, two of the main influences come from sociology and economics.
Today I will focus on the economic foundations of strategy. This post will be a broad overview of how economics has shaped the study of strategy. Additional posts will discuss theories in much more detail.
Strategy as a field is relatively new.
It emerged during the 1970s and the early 1980s out of a requirement to have a business policy capstone class. One of the key indicators of the legitimacy of an area of study as a field are specialty journals. One of the first strategy-focused journals, Strategic Management Journal, started in 1981. (more…)