<p>Strategic management has long been viewed as the concept and process that link an organization</p><p>and its environment together (Leibold, Probst & Gibbert, 2002). It consists of the</p><p>analysis, decisions and actions an organization undertakes in order to create and sustain</p><p>competitive advantages (Dess, Lumpkin & Taylor, 2005).</p><p>Within the history of strategic management research there has been an unbalance between</p><p>the internal and the external perspective. During the 1980s Michael Porter, one of the most</p><p>prominent strategic management researchers, and his Five Forces model focused strictly on</p><p>the external competitive environment (Mintzberg, Ahlstrand & Lampel, 1998). Further, in</p><p>the 1990s the focus shifted from external to internal along with Jay Barney’s development</p><p>of the resource based theory in 1991 (Barney, 1991). The issue of excluding one or the</p><p>other perspective has now started to be acknowledged and researchers today are striving</p><p>for developing models integrating both perspectives. However, theoretical models existing</p><p>today that combine the two perspectives are complex and hard to apply in practice for</p><p>managers within the business world.</p><p>In order to address the complexity of the strategic management concept we have chosen to</p><p>develop a model with the purpose to connect and relate the external and internal perspectives</p><p>by conducting an in-depth analysis of a chosen company. The model also strives to be</p><p>easily communicated, applicable and understandable for managers and employees on different</p><p>levels within the organization. This leads us to the purpose of this thesis: “to develop</p><p>a simplified model that combines the external and internal perspective of strategic management</p><p>and apply this to a chosen company”.</p><p>The research was conducted through a case study based on the authors’ participation in a</p><p>PBM (Project Based Module) - project. The model was tested on the company in question</p><p>by analyzing the company’s internal and external environment with the means of analysis</p><p>tools such as PEST-analysis, strategic group analysis, threshold analysis and the SWOTanalysis.</p><p>To conclude it is important to balance an organization’s internal efforts with the external</p><p>market conditions and avoid excluding one or the other from the strategic management</p><p>process. Combining the two perspectives results in identifying the current capabilities and</p><p>competences and the direction of how to use these in order to meet market demands and</p><p>gain competitive advantage.</p>
| Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-1495 |
| Date | January 2008 |
| Creators | Axén Wrigfors, Caroline, Eliasson, Karin |
| Publisher | Jönköping University, JIBS, Business Administration, Jönköping University, JIBS, Business Administration |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, text |
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