Write a report of no more than 2,500 words on the following:

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Introduction

Strategic management

Over the years , there has been an increasing interest on strategic management since its inception , it has experienced immerse growth after being accepted as a field of study and well as a suitable field for business practice (Aaker , 2001 . All businesses specifically firms and organizations use strategic management in formulating and implementing their business strategies in to compete effectively , this is a very important management element for all organizations if they need to succeed and survive in the

business arena (Argote Ingram 2000

But even with its growing importance to all organizations , available literature suggests that very few studies so far have attempted to examine and establish its relevant development for these organizations therefore to help in narrowing this gap , this examine the two schools of thoughts out of the three in terms of their processes and relevance (Brown 1990

Knowledge-based school of thought

Introduction : One of the main characteristics of the knowledge-based school of thought is its use of `inside out ' method in giving sources of information concerning the firm 's competitive advantage . With regard to the foregoing statement , it therefore means that competitive advantage comes basically from the firm 's competence and the knowledge it possesses (Dyer Nobeoka 2000

In literature , there are two main classifications of the knowledge : the first classification is the knowledge in explicit and tacit as its two components of the firm , and secondly is the human and structural capital of the firm , however , for the firm to progress steadily the firms knowledge requires adequate management in addition to propel the firm towards high competitive performance advantage (Fleisher Bensoussan 2003

Firms require the most relevant sources of their competitive advantage in structural capital , tacit knowledge and imperfect imitability knowledge . Therefore if the firm 's knowledge is relevant and it has the best management , then it will attain high performance and competitive advantage (Gantz Wiley Research 2006 . Thu knowledge and management works hand in hand , therefore our earlier support of knowledge-based school of thought alone is very unequivocal basically the most relevant factors according to the knowledge-based school are the firm 's performance in its knowledge management tasks and its imperfect imitability of knowledge in ensuring high performance and competitive advantage (Ghemawat 1999

If the firm 's objective is in long-term progress , development and success then it should build the basic competitive advantage by ensuring that certain sources must exist with regard to competitive advantage (Grant 1997 . According to the knowledge based school of thought 's advocates , any firm can easily overcome obstacles of competitiveness if it has `relevant ' knowledge therefore , it is only through knowledge that competitive advantage of any firm finds its place the main advantage of knowledge with respect to competitive is its relative subject to the effects of the economies of scale and scope (Aaker 2001 . Therefore , once a firm acquires the relevant knowledge , it can use at various fronts with very little marginal costs (Hitt , Ireland Lee 2000

Knowledge is...