This video will illustrate what are the drivers and motivators of strategic

management?

But first we need to know why strategic management needs a driver or a

motivator. It is because of a stiff competition, it is strong competition from
rivals or opponents in the market.

So lets begin
First one is The Dynamic Nature of the Market and the Business.
We all know that *One thing constant in this world is change itself.

The dynamic nature of the market and the business is part due of the
following circumstances and realities:
1. Is The ever changing market condition.
In present we are experiencing the global pandemic that cause in
the change of every market condition.as a result, the consumer may
change their purchasing power and cause to the second one which
is
2. The changing taste of the market.next is
3. Sociopolitical changes.that involving a combination of social and
political factors then,
4. The impact of global developments to the local market.and the
last one is
5. The changes in the conduct of business.

The second driver or motivator is The Triggering Events

It Refers to the situations or scenarios that may have caused or resulted to the
actions or initiatives of the top management of the firm to consider certain strategic options
to make the firm competitive or to achieve certain strategic objectives.there are 2 form of
triggering events the first one is

1. Internal triggering events- those are situations and scenarios intervening

or disturbing the business organization on account of factors internal or
inherent to the firm itself and one that the company can exercise certain level
of control.
a. New CEO/ President
b. Performance Gap
c. Change in ownership
d. Management team shake up
e. Corporate reorganization/ restructuring
f. New products or services.

The other form is the

2. External triggering events- those factors external to the firm or matters
where the business organization itself may not like or want to happen but
there is nothing much it can do.
 a. Overall economic environment
b. Government
c. The sociopolitical environment
d. Legal environment
e. Technological environment
f. Global/ regional environment
g. Market factors
h. Occurrence of calamities and other natural phenomena.

The third one is the Theory of the Firm

Types of Market Structure:
1. Monopoly- It is a market structure characterized by the existence of single
seller of a product which dominates the market.
2. Oligopoly- this type of market has more than one producer or seller of a
product, which may be either homogeneous or differentiated.
3. Monopolistic competition- it exists when many sellers offer similar
products that are not perfect substitutes for one another.
4. Perfect competition- it is a market structure characterized by many
producers or sellers and a homogeneous product.

Then The Product Life Cycle

Also refer to as service life cycle or market or industry life cycle.
Also referred to as the S- curve- it is a living proof that just like humans, there is
beginning and end for everything and the same is true for every product or service in this
world.

5th one is the Experience Curve

It suggests that as the business organization stay much longer in the business or
the industry, the business organization accumulates a body of knowledge and experience
that enables the firm to do its business better.

Economies of Scale
It postulates that there is a decline in the per unit cost of production as the
volume of production is increased.

Best Operating Level

In the field of production management and engineering science, it is a point of
machine use that redounds to the best mix.
Optimum level- of operating machines or using resources that can result to the
lowest possible cost of production of a product or service.