Abstract
SMEs must carry out an analysis of the micro and macro environment that is necessary to counteract threats. Then internal and external factors must be identified to evaluate opportunities, threats, strengths, and weaknesses to establish a correlation between causes and effects, to determine the current situation of the enterprise, and to find areas of improvement. The information analysis is performed using tools applied and tailored to the development of this model, such as PESTEL and Porter's five forces, CAM (competitiveness analysis matrix), EFE and EFI analysis matrix, SWOT analysis, strategic maps, and the balanced scorecard.
TopA Brief Of Strategy In Firms
Change in the world is happening at a faster pace and as Kotler (1999) stated, enterprises must be aware of globalization, technology, and economic deregulation. Organizations need leaders to guide them to achieve their objectives. Then, strategic management becomes a must, so managers can make the right decisions based on analyzing the environment, markets, new technologies, social trends, consumer preferences, trade, and political agreements. As a result, firms are more competitive and adapt to changes quicker than their competitors (Kotler, & Keller 2006).
Key Terms in this Chapter
CVR Ingeniería del Conocimiento: It is a Colombian enterprise, subject of this study, founded in 2011, which provides solutions for the agriculture and livestock industry by applying knowledge management.
Organizational Management: The process to structure, plan, and direct corporate resources to achieve the organization’s objectives.
Strategic Map: A visual representation of the objectives of an organization.
SMEs: For the service industry in Colombia, SMEs are those enterprises with an annual income of 483.034 Tax Value Units or less.
SWOT Analysis: A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats.
Latin America: A region in the Americas composed by countries where Romance languages are predominant.
Balance Scorecard: A strategic management tool used to identify and improve organizational strategy.
Economic Trends: The overall tendency of a country’s economy.