Describe the two most dominant schools of strategic management.
What will be an ideal response?
The two most dominant schools are arguably the positioning school and the resource-based school.
The positioning school views business strategy and the corresponding role of managers as identifying and striving to occupy the most attractive competitive positions in the marketplace. It is an outside-in perspective that emphasizes the importance of external analysis and alignment of the firm's activities to pursue a desirable position against external forces.
The resource-based school starts with the resources within the firm and the uniqueness of those resources, and it views the choices for exploitation of those resources as the firm's strategy. It is, by contrast, an inside-out perspective. Both perspectives provide invaluable insights for managers and reveal different, but largely complementary, facets of business strategies.
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