What is Strategic Management?
Strategic management is the process of preparation for change, in order for the company to be successful in the future.
According a research from Bloomberg, 80% of the startup companies are closing their activity in the first 18 months. According another research from the National Statistics Institute in Bulgaria – only 8,1% of the startup companies continue their activity 5 years after their establishment. The small number of successful technology startup companies is grounded on many reasons, but one of the basic reasons is connected with the wrong strategic choices the companies are taking. This is based generally on the fact that most of the teams of technological entrepreneurs are created only by technology-educated members and the lack of knowledge in the field of strategic management and economics leads to different strategic and operational mistakes, which otherwise could be avoided. But even when using the existing tools and processes, part of the classical strategic management, there is still high possibility for undertaking of such mistakes due to the fact that many of the classifications, processes, tools and models are designed for the needs of developed companies and don’t meet the specifics and needs of the technology new ventures. This lack of suitable resources also justifies the emerging of innovative theoretical and practical tools and methods, designed for startup companies, currently created in the scientific fields.
What is Strategic Analysis?
Strategic analysis is the first step of strategic management process, which is aiming gathering of strategic data and information for a successful strategic modeling in the next step of the process.
Strategic analysis, if performed correctly, will help for developing the right strategy. The process of usage of the tools is connected with the basic directions and focus of work of the technology new ventures. Choosing the right strategy is a key factor for success of a startup technology company.