The Cycles of Developing Strategic Management Fundamentals

Abstract

The article studies the issues of the necessity to use thefundamentals of the strategic management theory whenimplementing the strategic management decisions in anyparticular company. Such problems are highly relevant inLithuanian economy, when the transfer to the marketeconomy has already finished, the privatization is in itslast stage while the ideas of entrepreneurship are booming.When the economy is progressing, the risk arises that thecompany’s strategy would be based only on the intuitionand personal experience of its manager. Consequently, thedemand for the successful strategic management professionalswho have high theoretical background eventuallyincreases.The methodology of this research is based on thecomplex analysis of the development of strategic managementpractice, which includes the analysis of casestudies, comprehensive literature review and the methodsof logics. By analyzing the development of the strategicmanagement practice, we have tried to show the developmentof the strategic management as the endless cycle,while also distinguishing the formation of the strategicmanagement theory, its relationship to the practice. Suchmethod of analysis has helped to relate the goals of thestrategic management practice of the companies to thechanging volatile environment in Lithuania.