Paul, your observations are correct. When I first played the game, I assumed that movement was "simultaneous" - that is, every faction makes their strategic moves for the year, and then each battle is resolved. That would explain why you can't move troops around in response to an enemy attack - you've already made your moves, and you would have had to anticipate an enemy attack in order to meet it properly. My assumption was partially true, except that the player must make his moves first, and the AI factions move afterwards, knowing what the player did.
This may seem like an unfair advantage for the AI. In theory, it is - until you realize that the AI in this game (especially the strategic AI) is not very good, and needs every advantage it can get. In fact, it adds a bit of strategic depth to the campaign, since you need to anticipate your enemy's moves, such as where it will attack and what reinforcements it will bring in to counter your attacks. As others have said, use strategic agents, such as emissaries, spies, and religious agents, to inform you of the strength of your enemy.
Once you have a few basic battlefield tactics down, you will find that most battles are decided at the strategic level, rather than the tactical. The proper deployment of armies and agents at the strategic level will enable you to win victory after victory on the battlefield.
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