Introduction
Many of you will have read the Lewis Carrol's Alice in Wonderland and may well recall the noted quote: 'If you don't know where you are going, then any road will get you there'. You must know the harbour to which you wish to go if you are to catch the right wind to take you there.
Consider this
Imagine yourself as a port manager competing against a host of other ports, many of which have services and facilities similar to those you provide.
What would you say distinguishes your port from the rest?
What would you offer potential customers, investors and other users of the port community that others do not?
or
Your company is shopping around for a good shipping investment, and you have to choose one from among a group of shipowners with similar types of ships offering the same types of service along the same route. Apart from financial viability, why would you choose one shipowner over another?
An organisation's approach to strategic management distinguishes it from other organisations. Implicit in strategic management is gaining competitive advantage and the idea that strategies and policies are intended to provide performance of the highest standard. This chapter provides a broad overview of the foundations of planning and strategic management. It is our aim to help you become familiar with the commonly used terms so that you have a more complete picture of what is going on in your organisation and your role in that process.
In earlier chapters we discussed the external environment of organisations and social responsibility and ethics. As you work your way through this chapter, think about how strategy and social responsibility and ethics interrelate.
Many students will study strategic management again towards the end of your course as a 'capstone' subject. However, it is vital that you gain an understanding of the strategic management process at this stage of your studies since planning is one of the basic functions of management. We consider the topic area to be critical enough to dedicate an entire subject to it.
Remember that the purpose of this chapter is to give you a broad outline of the main concepts.
Before going on
In order to get a 'feel' for the subject you will find it useful to read the Chapters 6 and 7 of your textbook before you go any further.
As you work through this chapter refer to the relevant sections of the text as necessary. Chapter 7 covers strategic management. An understanding of the strategic management process at this stage will assist you greatly for related topics in this subject and for the subject Strategic Management.