Chapter 1. Introduction to Strategic Value Management
Strategic management has produced an amazing number of theories and models in recent decades. However, so far it has not succeeded in producing a good integrative theory or model that can synthesize all the existing ones. This is especially serious considering that strategic management is the capstone, the integrator of all business disciplines: If strategic management is not integrated, then all business disciplines are in trouble. This intellectual failure produces large impacts on the real world, as practitioners lack a simple way to analyze environments and make decisions considering all required aspects.
This book presents the strategy-value model, which integrates all existing strategic management and business strategy theories and models. This integration intends to put an end to the high level of atomization of strategic management, because most existing theories and models can be reframed within the strategy-value model.
The strategy-value model links strategies with their ability to create stock value, showing how different theories and models proposed by strategic management have different impacts in terms of stock value creation.
Connecting all strategies into the strategy-value model creates a common language that is critical for managers who need to interact with different stakeholders.
The model produces a simplification ...