1. GENERAL DISCUSSION

Why are models so commonly used in strategic management?

Nowadays, all organisations must have a strategy to manage their business. Strategic management is a “set of decisions and actions which lead to the development of an effective strategy or strategies to help achieve corporate objectives.”[1] Strategic management is also about “understanding the position of an organisation, strategic choices for the future and turning strategy into action”[2] In order to help senior managers to understand the position of the organisation, theorists have created models. Such models incorporate factors such as what has happened in the past, the success or failure of existing companies and the business environment. Models allow decisions to be taken by an internal or external analysis of a company in its current situation. Some models help companies face competitors while others allow them to gain a competitive advantage. Thus, with models senior managers can analyze their internal and external environment and manage the future of the firm better. This leads us to ask two main questions: How might models help senior managers to deal with the challenges facing them, and can the use of models actually improve decision making?

How might models help senior managers to deal with the challenges facing them?

Before starting this part, the role of a manager has to be explained. In a company, the manager is a significant person who has to take all the important decisions for the firm. He decides the future of the company, and organises, manages or plans all the actions of the company.
In addition to all these responsibilities, today, managers have more and more challenges facing them. Three of these challenges are more significant than the others.

The most important work for a manager is to allow the company to make profits. Today, with the development of globalisation, managers have to deal with new markets, quick changes and also with the reduction