Strategic Management: Types of Strategy, Models, and Concepts

Strategic
Management

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Differences in kinds of strategy connected with the schools of strategy & strategic concepts.
................................................................................................................................................1
TASK 2............................................................................................................................................3
Application of different models and concepts, defining competitive drives and its impact on
competitive position of an organisation.................................................................................3
Task 3...............................................................................................................................................6
Extent to which an organisation is facing strategic drift........................................................6
Alignment to mission and vision of company with the demand of marketplace...................6
Company's strategic capabilities............................................................................................6
TASK 4............................................................................................................................................8
Possible strategies an organisation could follow to sustain its core business........................8
TASK 5............................................................................................................................................9
Evaluation of resource implications of recommendations an organisation need to address. .9
CONCLUSION..............................................................................................................................11
REFEREMCES..............................................................................................................................12

INTRODUCTION
Strategic Management is illustrated as identification and description of tactics which is
carried out by manager in order to enhance performance and to formulate tough bench mark for
others in the open market place. On the other hand, it is described as bundles of decisions and
acts that is taken by manager of the company in order to describe the outcomes of organization's
performance. Strategic management plays vital role in an organization. This guide the firm in
move in particular direction by which set goals and objectives can be attained easily. By
effectively adopting this company is no more reactive it turns out to be proactive in nature. The
existing report is written from the perspective of Philips. They are the Dutch multi-national
corporation and specifically they are largest manufacture of electronic items. Headquarter of
Philips is situated Amsterdam, Netherlands. This assignment covers distinguish types of strategy
and strategic concepts. Porter's five force model is used in order to drive competitive advantages.
SWOT analysis is performed so as to understand the strength, weaknesses, opportunity and
threat. Additionally, porter's generic model is also used in order to achieve the set goals and
objectives.
TASK 1
Differences in kinds of strategy connected with the schools of strategy & strategic concepts.
Strategy is formulated by top level authority in business organization to overcome any
kind of barriers faced by company. Strategies are designed by scanning the external environment
to accomplish desired aims and objectives in set time span (Augier and Teece, 2018). In the
working premises strong strategy aid business associates to achieve competitive advantages in
competitive market. Management of Philips modify their tactics as per the requirement so as to
meet the needs and requirements of targeted customers. Those organizations whose management
changes their strategies as the external demand they are only able to sustain and survive for
longer time period in cut throat competitive world. However, strategic management render
border perspective to the co-workers of a firm so as to better understand how their job fits the
whole firm's plan (Sullivan, Thomas and Rosano, 2018). There are numerous importance of
strategic management which are elaborated as under:
 Strategic Management aid the company to become proactive instead of reactive
 In an organisation strategic management are alignment with enterprise vision.
1

 Strategic management ensure long term survival of the business as well as assist in
coping up with dynamic environment (Chernev, 2018).
In intense competitive world the Mintzberg has developed various thoughts of school of strategy
which helps them in strategy formulation. There are distinguish types of strategy in relation to
the schools of strategy which are illustrated as under:
The design school: In this types of strategy in connection with the schools of strategy it
mainly concentrates on designing of new idea and conception of new idea.
The planning school: In this case, planning school focus more on designing or planning
complete strategy in rigorous way. The plan that is going to be executed in the firm is
documented from starting to end. However, in every place the formulated plan is referred in
order to take new and fresh decision. When changes in external environment take place the it
directly affects the complete plan.
The positioning school: In this specific kinds of strategy in relation to the schools of
strategy company’s management deicide that they want to potion the goods in the mind of the
customers and make decision respectively. In the open market once the market is scanned the
most appropriate strategy is modified so as to enhance positioning of the goods.
The entrepreneurial school: In this type of strategy complete focus is put on the CEO of
the organisation it is done mainly in small scale business. Here, employees believe their CEO
and work according to their instructions in order to make the business big and successful. The
main issue faced by entrepreneurial school is that it is single one and need leader who is strong
and can easily make changes as per the requirements (David and David, 2019).
The cognitive school: From the distinguish types of strategy in relation to the schools of
strategy cognitive school is another strategy in which person's information and perception is
studied deeply. By this product can be designed respectively as well as strategy can be mould
accordingly so that loyal consumers have enough data about them.
The power school: In this particular school the person who has more power in their
hands are accountable to take decisions. However, they can be stakeholders, customers and so
on. The issue associated to power of school raises when the concern people stop listening to the
feedbacks and concentrate more on enhancement of minor things.
In order to be in the leading position Philips take into account all the factors in order to
make effective strategy. It facilitate them to accomplish their desired organisational goals and
2