Answer to Question 1
Strategic management requires that the demands imposed by external and internal forces be balanced with the overall functioning of the organization.
Strategic management requires using resources in a manner that meets goals and satisfies organizational values.
It requires the writing of a vision statement, slogan, mission statement, and strategic plan to guide decision making.
Answer to Question 2
Chaos Theory holds that the complex and unpredictable dynamics of systems result in organizational events that are not always neat and orderly. This fact tends to disrupt the linearity of the systems model and over time will cause the system to change and/or adapt. Managers should work with, rather than against, the nonlinearity of the process. As the system becomes more complex, more structure will be necessary to maintain stability.
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