Summary

One of the most dramatic changes now taking place in the business world is the movement from general and quantitative business analysis towards strategic leadership. This concept, which rests on empirical observation and business sense as the basis for planning, is beginning to replace traditional models, creating the foundation for a new, more effective management philosophy. This book clearly describes the components of strategic management and explains the specific management capabilities likely to be required by managers and executives in the near future. The framework presented here has already proven itself within businesses in three Scandanavian countries. This concise presentation explains the importance of corporate mission as a source of motivation in organizations and looks at the numerical and process-oriented aspects which make up an effective strategic plan, such as analyses of portfolios and business units, vitalization of the principle customer base, segmentation and differentiation, and diversification. Based on experience in several industries, it analyses typical real-life strategic situations, such as deregulation, acquisitions, growth industries, and declining industries.