Strategic Management Report: Key Concepts and Models

This report provides a comprehensive overview of strategic management, defining its nature, process, and key concepts. It explores the evolution of strategic management from military origins to its application in various industries, emphasizing its role in bridging the gap between policies and tactics to achieve organizational goals. The report details the strategic management process, including environmental analysis, strategy formulation, implementation, and evaluation, and examines strategic management models such as Andrew's, Glueck's, and Schendel and Hofer's models. It critically analyzes each model, discussing their strengths and weaknesses in addressing cost, competition, and customer satisfaction. The report also covers the importance of strategic planning in meeting market challenges, maximizing consumer support, and using various tools to lower costs and increase revenue. The models are evaluated in terms of their contribution to decision-making, goal formulation, environmental analysis, strategy formulation, and evaluation. The report concludes by highlighting the dynamic nature of the business environment and the need for continuous adaptation in strategic management.

INTRODUCTION TO
STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Strategic management.....................................................................................................................1
Nature:....................................................................................................................................1
Process:...................................................................................................................................1
Key concept:...........................................................................................................................2
Strategic management models and concepts..........................................................................3
Conceptual and theoretical basis of strategic management....................................................7
Application of Strategic management models.................................................................................7
Evaluation and critical analysis.......................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Chang, S. and et.al. (2017), defined strategic management as the preparation and
execution of goals by the top-level management. The concept was formed for military initially
but later evolved into distant industries. It was taken from military to bridge the gap between
policies and tactics _____. Its main purpose is to help the organization accomplish its goals
through the preparation of different strategies, their implementation, and evaluation. It is also
synonymous to the word “Strategic Planning”. Strategic management helps the management to
build a plan, implement it and track its success in formal way. It is a process, or set of processes
which are used to formulate a strategy for the business. It focuses on wide areas including
integration of management, accounting, research and development, production, information. The
author comments that strategic management is concept, which is too wide to be defined under
certain paragraphs of definition. Strategic management involves in itself plan, poly, perspective,
position and pattern _____. Strategy is not static in nature, it leaves a loop for feedback during
execution so that is can be corrected in the next level of planning.
Strategic management
Nature:
On the contrary statement, Chang and et.al. (2017), argued that the strategic management
may be effective but has many negative aspects. Strategic planning is a long process and takes a
lot of time, the analysis, preparation and communication of the strategy eats up a lot of time of
the management. This strategy is also considered very complex to build which needs skilled
management personnels as it involves analysis of the environment, strategy formulation and
other processes of highly complex nature. Strategy making is hard, without skilled management,
it cannot be prepared. Once strategy prepared by the management, it is to be implemented.
Implementation of the strategy is difficult process and most of the strategies fail on this stage as
the organisation is unable to implement the planned strategy in a proper way. Thus planning
formulates goals for long-term purpose, its a process of implementation and resource allocation
for the same in the execution for achievement of the goal set.
Process:
strategic management or planning constitutes a number of steps and components of study
and execution and evaluation. This process is a step by step model of achievement of
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organisational goals or objectives through a strategy. This process includes environment study,
formulation of strategy, implementation of strategy, evaluation.
Key concept:
Formulation of the strategy starts with analysation or study of the environment and later
focuses on the setting up of a series of goals for the organisation to achieve. This process
involves a lot of time, study, information and planning part. The goals are in series and
sometimes they form a loop. A formal strategy includes a wide tactical approach in the
formulation of the policies. This step refers to the formulation of strategy for thriving the
organisational objective. This stage of process of strategic management takes into account the
goal, business needs and also the analysis of business environment.
A thorough study of the environment is done. This analysis refers to collection and giving
information about the strategic planning. Under this the internal and external factors of the
environment are analysed to make the strategies which may be able to deal with both. The
environment is dynamic and management needs to make continuous changes in the strategies to
deal with it (Dodd III and et.al. 2013). The management also analyses to find out the needs of the
business and the direction and strategic hands which can help the business to grow further.
Implementation of the strategy is done after the strategy has been fully formulated. Chang
and et.al. (2017) calls it the action stage of the process. Onto this stage the strategy first comes
into action. If the structure of the organisation does not suit the strategy for its implementation
then the structure must be re-model before the implementation of the strategy. After that, the
raising of the funds is done so that proper implementation can be done. Under this process also
allocation of resources is to be done by the management for effective strategy implementation.
Human resources are included and assigned with the tasks or duties for working according to the
formulated strategy. The process of decision making is developed by the management under this
process. The strategy once implemented needs to be evaluated on a regular basis for the
successful outcome. The continuous evaluation and control helps the strategy to execute
successfully. For evaluation of strategies standards are set which are compared with the original
figures.
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Strategic management models and concepts
Dowdy, Basu and Andrews, (2013) stated that, A strategic planning should be adopted by
the organisations so as to meet the daily challenges in business. The main focus should be on
cost, competition and customers. The organisations tend to maximise their consumer support and
they try to satisfy the maximum numbers of the buyers. Managerial heads of the firm uses
several tools and techniques as to lower down the costs made on the production or manufacturing
of the product. The costs might be incurred on manufacturing process like purchasing raw
material, factory expenses, labour expenses, wages and salary to the employees etc. if the cost
can be controlled the organisation can hike its revenue and spend the valuable fund on beneficial
tasks. Competition in market is increasing day by day as many industries tend to retain their
consumers and make essential efforts in satisfying their needs. There are some models that can
be critically reviewed are as follows:
Andrew's model
Kenneth Richmond Andrews has introduced the concept of business strategy and the
theory of strategy. This model describes that what strategy should be chosen and adopted by the
organisation in case of controlling costs, expenses generating profit etc. This is very easy and
simplest model or method of acknowledging which strategy should be helpful for the
organisation but this in not fruitful in sowing the methods of how they can be implemented. The
author later introduced the models that teaches how to implement the strategies but again it
ignored how to make control over the strategies and how to evaluate them. A planning includes
all the methods of how to control and direct the organisational operations. The duties of
managers at the organisations are responsible for the assessment of all the work.
Glueck's Model
The author William F. Glueck established various models as to develop the decision-
making process in an organisation. Decision making is done by the top-level managers with the
satisfaction of other managers of the entity. There are several phases of this models that are:
Strategic Management Elements: This model helps in determining the mission, vision,
goals of the organisation. The decisions are to be made in accordance to achieve the targets in
less time duration. There should be allotment of proper teams who took essential decisions and
applied it in the daily operations performed by the entity. There can be honesty towards work of
the employees as they can be very much focused to achieve the goals. If there is no consistency
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in following the tasks by the employees than there cannot be a proper decision making which can
help the company to attend the challenges.
Analysis and Diagnosis: This model helps in discovering the treats and opportunities in
the market. The estimation can be made by the organisational heads about the increment in the
sales and production. The increase in demand can be beneficial in generating the good amount of
revenue and the entity can make reserves for the future operations. Competitors of any business
can harm the consumer support and the substitutes can provoke buyers to switch the brands. It
can be unfavourable in losing the demands from the market.
Choice: The choices can be made by the organisation about which strategy must be
followed by them. If the directors of the organisation wish to expand the production and also
make investments in the promotion of the product. This will be beneficial in retaining the
demand constantly in the market but can be unhelpful with the funds and capital of the
organisation. It can be expensive and it can be lose of time They have to make more investments
in advertising the products but there cannot be generation of the profit as compared with the
production made by them. If the business thinks to increase the prices of its goods than they have
to compromise with the demands of such products..
Implementation: The implementation of plan should be done by the organisational
bodies There must be proper planning before implementing any strategy. The business should
look for the merits and demerits of such plans and policies that it can be beneficial or not. Before
introducing any strategy, firm should acknowledge that there is existence of adequate amount of
resources like raw material, labour, employees and optimum reserves that can be helpful at the
time of crisis.
Evaluation: This model helps in knowing that the strategy followed by the organisation
is beneficial in attaining or achieving the goals of the business or not. If there is no proper
implementation of plans than the firm cannot make changes in the strategies applied by them.
The Schendel and Hofer Model:
The strategic model given by the authors Dan Schendel and Carles Hofer which explains
the planning and control of such techniques that needs to be followed by the organisations. They
focuses on the planning made against the strategies, there must be proper implication of all the
plans. This model is consists of various steps:
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Goal formulation: The organisation should make proper planning about achieving the at
goals. The targets set by entity should be attainable and there should be introduction of
professional team who can execute the strategies. Employees of firms need to be enthusiastic and
they should bring newer ideas that will be beneficial.
Environmental analysis: Organisations should analyse the external and internal
environment and should make essentials strategies as to overcome with the conflicts imposed by
the various parties. There must be appointment of skilled and talented workers or employees in
the organisation as they can serve the business with the best of their performances. The proper
efforts made by the workers makes easy for the entity to gain the targets goals. The external
environment may includes the competitors or stakeholders of the business. Stakeholders includes
all the buyers, shareholders and investors of the organisation. Demand of a product can be
influenced by the exterior environment and can results harmful impact on the goodwill generated
by the organisation. There are several substitutes of the products which can changes in the
consumer preferences and they can switch brands and choose the product belongs to the cheap
prices.
Strategy Formulation: The formulation of any strategy should take less time duration it must be
very quick and reliable as it can be beneficial in achieving the targets of the organisation. The
strategies should be formulated by the talented and skilled managers of the organisation and the
planning are to be vary effective and based on the previous several experiments. If the
techniques are not examined previously can be unfavourable for the organisations in order to
meet the targets on time.
Strategy evaluation: Evaluation of the strategies that should be more adequate and reliable and
it can be gain by the help of assessment process which can facilitate or provide the information
about executives and manager performances wit the help of programs, activities, projects and
assignments to attain the organisational goals, targets and objectives. There must be proper
communication between the professionals of the organisation and they should be very conscious
about sharing the informations in about their performing projects. If there is lack of information
than there will be no proper execution of the plans.
Strategy implementation: Implementation of strategy is very essential for the organisations.
There should be planning within the limited time duration and the plans are to be very adequate
an helpful in achieving the business objectives. Firms must acquire proper knowledge about the
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how to implement the strategies. If the lack of time in launching the strategies than there will be
no achievement of goals on time.
Strategic control: Control over the strategic plans made by the organisations with the help of
several managements in controlling the tasks. If there is lack of acquisition over the techniques
that are going to be implied by the managers of the organisation than there may be
implementation of not reliable plans and that will result in losing the precious time of the entity.
There will lose of time, efforts and money of the business.
The Thompson and Strickland Model
This model is the ongoing or continues process as it is helpful for the organisation in
achieving daily or regular tasks. The professionals of organisation should be quick in decision
making and it should be fruitful in gaining the business objectives. This model is based on the
process of 5 tasks:
1. Development of the concepts and vision were the organisational needs to be headed.
2. Mission to be converted into achieving the specific performance objectives.
3. Building the strategies so the targeted performances can be achieved.
4. Efficiency and effectiveness in chosen strategy which is to be implemented and executed
properly.
5. Review the performance and take necessary initiative to control the situations were the
organisation can face the loss.
Korey's model
The Korey's model is the ongoing and continuous process which is for the planning and
controlling of the organisation. This model not only facilitates for the long term planning but also
for the medium and short term plans. This model differs from the other models as it as several
different concepts and process of making strategic plans. It focuses on three major phases:
Preliminary analysis phase: This model firstly helps in analysing the situation of were
they are less performing and which areas to be modified and covered to achieve the objectives of
organisation. If the obstacle is identified firstly than there will be implementation of proper plans
and strategies. The managers of the organisation should be focused on their areas of non
performance and take necessary steps to overcome of the situations.
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Strategic planning phase: There should be proper planning regarding the situations and
the model helps in making the perfect strategic plans and that will be beneficial I n overcoming
the conflicts or obstacle in fighting the competitive market. The must be preparation of essential
plans to and if the company lacks in making the appropriate plans than there will be reduction in
their performances and they will lose a large numbers of consumers.
Strategic management phase: The management of the planned strategy is very
necessary and there should be proper execution of the plans. The strategy should be fruitful and
it can be beneficial in achieving the organisational objectives. If the plans cannot be managed
adequately than there will wastage of time, money efforts made by the workers of the
organisation.
Conceptual and theoretical basis of strategic management
A strategy can be planned and made by various process. The strategy should be
formulated with the help of conducting a research at several places. There must be analysis and
integration of such researches and than the professionals of the entity can take the necessary
decisions. After the proper decision making the company should implement the strategies as to
meet the annual plans of te organisation. To achieve the target of the organisation the managers
should take a look over the available resources and make a proper utilisation of them. There must
be execution of the resources and proper management of internal and external environment. A
timely measurement of performances of all the workers as well as of the business. If the
performance is not adequate or up to the requirements of the organisation than the corrective and
effective decision to be taken.
Application of Strategic management models
The strategies from various authors can be taken by the various organisations. This
models helps them in making a corrective decision as well as helps them in generating better
goodwill in the market. Subway is the restaurant channel operating in various countries so they
have to face many cultural, political and economical barriers in dealing with consumers. This
business has gain the goodwill and best image by its popular and highly appreciated sandwiches
in market. Consumer get attracted towards the various types of sandwiches and food articles
offered by them. The managers of this MNC has made corrective decisions by following the
strategies models. They have made many promotional strategies and generated interest in the
minds of buyers.
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Evaluation and critical analysis
Andrew's model: This model provides the information about the strategies and
techniques to be follow by the organisations in respect of developing their sales in market,
increasing production, fixing prices over the products and retention of their buyers. There should
be development of the techniques to follow such strategies. Without proper knowledge about the
strategies an entity will not be able to acquire such strategies and have good public response.
There must be proper guidance about how to use techniques so that there can be implementation
of necessary strategies and the company can earn more from the market.
Glueck's model: Glueck may have introduced the models like leadership and policy
planning to achieve the organisational goals but he did not mention the importance medium and
short- term planning strategies. Companies can have the good long term strategic planning for
the big projects but for the small and alternative projects there are not such strategies or
techniques.
The Schendel and Hofer Model: This models helps in making strategies and have a
good control and planning for such strategies but it fails in providing information about how it
can be implemented and how the organisation can take advantages of this strategies for the long
term period.
The Thompson and Strickland Model: This model helps in taking necessary steps
towards evaluating the performances of the staff members, situation analysis, strategy making,
achievement of objectives and planning the mission, changes with the new innovative
revolutionary ideas. If there is no proper execution on the strategic plans made by the
organisation than the consistency in the performance can never be achieved and they have to face
the obstacles.
Korey's model: This model helps in making the strategies as to manage the work
environment within the organisation but it fails in providing information about how it can be
managed for the life long running or the firm.
CONCLUSION
Conclusion can be made as per the above discussion that there must be adoption of
proper strategies by the various organisations and they should relay upon the planning made by
them. With the help of various models the business can be fruitful in gaining the proper
knowledge and steps to follow and implied the strategies made by several authors. The strategic
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planning can be helpful in taking adequate steps in against with taking appropriate steps to make
changes in production, selling, and promotion of particular products.
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