The current economic recession created a complex business world today that is quite different from ten years ago. Many businesses are gone, and consumers are price-sensitive and hesitate due to price fluctuation. High unemployment, new business houses changed the business scenario. Multinational and corporate giants highlighted the importance of business ethics and financial transactions.
Significant research provides the foundation for strategic management. The recent contributions reveal how to use strategies to do business globally as well as locally. Today strategic management helps firms to use the strategic tools, techniques, and concepts developed by leading researchers. Two essential concepts in the strategic management field: industrial-organization economics and its resource-based view are widely used today. However, such an approach is incomplete; research and practical experience indicate that both theories play a significant role in understanding the linkage between strategic management and organizational success.
Strategic management helps to understand how actual organizations, most of which compete internationally and in their home markets, use the strategic process to increase their ability to compete and achieve higher performance. Strategic management helps learners understand the different strategies that organizations use to achieve their vision and mission.