Strategic Management is a tool used by managers to make plans and deal with problems. Strategic management is also about the reading of signs and portraits of the future and interpreting them in order to choose an appropriate direction for the future development of the organisation. However, this world has been changing everyday. How to manage change and get more benefits from change are more important to each organisation. Some organisations are successful when they face change and some of them are not.
Chinese businesses have improved during the past 26 years. These successes were not only because these businesses could manage change well, but also because China's central government provided suitable policies and a favourable economic environment which helped China to become the 3rd largest country in foreign trade (USD 722.1 billion) with exports accounting for over 30 percent of the country's GDP in the year 2004.
The successful Chinese experience could probably be applied by other countries, especially developing countries.
2. STRATEGIC MANAGEMENT.
2.1 WHAT IS STRATEGY?
It is certainly not an exact science. No organisation can apply strict rules, the 'best' strategy does not emerge from cookbook approaches, and there certainly are not formulae for calculating the strategy. A number of definitions of strategy have been offered. However, there is no absolute consensus on what the term means since every definition contains implications of how strategy should be created. The example definitions are showing below:
"Strategy is a rule for making decision under conditions of partial ignorance which is to help the managers reach the objectives, however policy is a contingent decision which is dependent on something that may or may not happen and which is to help the managers maintain or change the situations
Business strategy is the broad collection of decision rules and...