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Understanding Strategic Management

Strategic Management:
An Internal and External Analysis of Higrade Computers PLC

Introduction
Johnson (2002, p15) highlights that strategic management goes beyond the routine, short-term, operation-specific concerns of an organisation. It deals with complexity arising out of ambiguous and non-routine situations with organisation wide implications. It involves understanding the strategic position of the company, its strategic choices and how they turn strategy into action.

Bennet (1996), points out that strategic management will involve in part, analysing the environment, resources and expectations for future implications. This Johnson (2002) refers to as the company’s strategic position i.e. knowing both its internal and external environment to be aware of effects on organisation and its activities, knowing its resources and core competencies to exploit any opportunities and knowing the expectations and purposes of groups within the organisation and what they aspire for future development of the organisation.

Lynch (1997), identifies that an organisations strategic position can be analysed through drawing evaluations on its Strengths and Weaknesses depicting the strategic capability (Internal - resources and competencies) and its Opportunities and Threats which come from the external environment. Johnson (2002) points out that the external environment can also be assessed through use of various other models including Porters 5 Forces model and PEST. This progresses to the SWOT analysis which is a combination of internal and external environment. This paper will use these models to analysis the strategic position of the selected company on its strategic management focus. From the SWOT matrix the most important elements will be discussed in depth. Then we try to understand how these elements work together matching internal strengths to external opportunities to create core competencies that meet customer needs. In addition, converting internal...