Final answer:
Strategic management explores why some firms outperform others by studying management styles, market competition, and focusing on core competencies. Strengths-based management and monopoly are key concepts, alongside the advantages of honing core competencies.
Step-by-step explanation:
The essence of strategic management is the study of why some firms outperform others. Strategic management involves understanding the various approaches and strategies that can lead to business success, including strengths-based management, market competition, and focusing on core competencies. For example, Donald Clifton's strengths-based management emphasizes the importance of leveraging individual strengths for organizational growth, though there are debates about its effect on performance.
Furthermore, the concept of monopoly and its impact on profits delineates the importance of the competitive environment in strategic management, highlighting why some executives may prefer markets with less competition. Finally, the principle of concentrating on a few products, known as a business's core competency, is often linked to greater success compared to firms that diversify excessively.