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5.2 Strategic management

In sailing circles the Whitbread Round the World Race is known as a gruelling test of skill, agility and tenacity. A nine-month competition pits experience against innovation in a global race for the prized Volvo trophy. It is a contest of strategy and endurance, setting a skipper's wits and leadership against the howling winds - a battle where teamwork reigns. It is a race of heroes and heroines that tests the strengths - and reveals the weaknesses - of individuals and equipment.

Much like 21st century strategic management.

Since World War II strategic management has become more important in business. The emphasis in the 1940s and 1950s was on budgeting , which was replaced by a move towards long-range planning during the 1960s.

It was during the 1970s that the term 'strategic planning' became popular and firms began to place greater emphasis on looking outside their own organisations. This was the result of, among other things, increased competition, increased government intervention in business and the emergence of the global economy. By effectively positioning an organisation's products and services relative to those of its competitors, the organisation is better able to compete, and this assists preparation for change in the internal and external environments.

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