Strategic management is the process of creating objectives for an organization based on its stakeholders and available resources. It involves analyzing the competitive market and developing plans. There are several frameworks that can be used for strategic management, including analyzing competitive advantages over rivals, using portfolio theory to allocate resources for maximum returns given a certain level of risk, developing core competencies to provide unique value, and leveraging the experience curve to lower costs as output increases.

2. What is Strategic
Management?
It is the process of creating and
implementing the main
objective off an organization on
the basis of an organization’s
stakeholder. The process starts
by knowing the available
resources and analyze the
competitive market and then
creating plans by knowing all.

3. Frameworks for
Strategic Management
1. Competitive Advantage
An organization may achieve either
lower cost of production or product
differentiation as an advantage against
its rivals. It is important to look at
the market position of the brand and
company and also to pinpoint all
the competitive advantages the
company has over its competitors.

4. 2. Corporate Strategy and
Portfolio Theory
The Modern Portfolio Theory provides a
framework for allocating assets so that,
for a given level of risk, the expected
return is maximized. Portfolio Theory
allows corporations to perform a cost-
benefit analysis on the deployment of
resources and view the merit of
individual resource placement to the
company in its totality.
The growth share matrix, developed by
the Boston Consulting Group, helps
corporations analyze the value of their
individual business units by plotting the
business on an axis. The two parameters

5. of judgment are market share – a
measure of a business unit’s competitive
position in regards to its peers –
and industry growth rate – a measure of
the prospects of the particular industry
in which the unit operates.
3. Core Competence
Businesses should seek to develop
expertise in areas of relative excellence
and eliminate or outsource the
remainder of its business activities. By
being able to do this, an organization can
provide a unique and unparalleled
product, service, or perspective to the
market and consumers.

6. 4. Experience Curve
The experience curve expresses the
proposition that whenever the output
produced doubles, the value added costs
decline by a consistent percentage.