In today’s world, Strategic Management is becoming more intensified. Businesses can no longer depend on reducing prices and improving the quality of their products. (Mandych, Mykytas, Ustik, Zaika, & Zaika, 2021, pg.22). The world around us is becoming more internet-driven, and we are relying on how fast things are accomplished. Businesses have to respond faster with their decisions. Management is becoming more challenged to produce results and conclusions rapidly.
Businesses that have a better approach tend to have the upper hand. Strategic Management must analyze the business’s external environments to seize all advantages that can help them determine their threats and opportunities. These strategies can make or break a business. This approach is where the business will determine the company’s visions and directions. The system will help determine the goals and objectives they will follow, allowing them to maintain that competitive edge. The process assessments involve planning, monitoring, and analysis. These processes are ongoing. Investigation analysis ensures that the business environment is supported by monitoring the strengths and weaknesses along with the objectives. The business must execute its strategies and control them by adjusting them when needed. This is maintained by developing strategic strategies that align with the external environment’s opportunities and threats with their internal strengths and weaknesses. This analysis relates to Porter’s Five Forces Model by allowing the company to have the upper hand to increase their competitive advantages with successful thought-out strategies. This analysis relates to Porter’s Five Forces Model by enabling the company to have the upper hand to improve its competitive advantages with a successful thought-out plan.
In 1979, Porter transformed the field of strategies with the Five Forces Model (Ryall, 2013, pg.83). The relationship between Strategic Management and Porter’s Five Forces Model is that the model allows for aiding managers in evaluating threats that could hurt the business. This guidance will enable companies to plan and neutralize the problem before they occur (Rice,2022, pg.130). The model allows businesses to structure their organization that will enable them to protect their future returns and perform above standard returns. The model can provide businesses with some insight into profit-seeking opportunities, which they could potentially overlook if they failed to have a process before events happen. The surrounding environment is going to be vital in delivering results. Strategic planning is crucial before implantation. Strategies have been used for many things throughout history. The processes used can help determine how successful or unsuccessful the company is or becomes.
