Strategic Management Analysis: Content, Process, and Models

This report provides a comprehensive overview of strategic management, exploring various perspectives from social science disciplines. It begins with an introduction to strategic management's importance in business and a literature review of content and process approaches, including interpretive, adaptive, and linear models. The report then delves into different schools of thought, such as the prescriptive, descriptive, and integrative approaches, along with organic and mechanistic viewpoints. Furthermore, it presents a comparative analysis of selected models, including corporate, business-level, and operational strategies, and their phases: strategic position, strategic choices, and strategy in action. Business examples are used throughout the report to illustrate the application of these concepts. The report emphasizes the complexities of strategy formulation, highlighting the design and learning schools of strategic management. The report concludes by summarizing the key concepts and their implications for effective business management.

Strategic
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW OF CONTENT AND PROCESS APPRAOCHES TO STRATEGY...1
COMPARATIVE ANALYSIS OF SELECTED MODELS...........................................................5
BUSINESS EXAMPLES................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In the present era, for a business to run in a successful manner, it is important to have
effectual strategy management in the organisation. Strategy in a business can be given as one of
the high points of managerial activity. Strategy is nothing but a plan by which an organization
gets the guidance and proper direction is gained by top management according to which to all
functions in the business are effectually carried out in the future. Strategy can be termed as a
pattern by which company comes in position to perform their tasks consistently over time
(Strategic Management, 2015). In the present report, different perspective of social science
disciplines that inform strategic management will be critically analysed. Under the social
science, a large range of disciplines are covered that include management and business studies,
education, psychology and sociology, etc. However, to discuss and describe all perspectives of
social science discipline is not possible. Therefore, in this study, strategic management
perspectives will be discussed in a generalized way.
LITERATURE REVIEW OF CONTENT AND PROCESS APPRAOCHES
TO STRATEGY
The strategic management has made a high contribution in various fields which are like
organisational behaviour, sociology and psychology as well as public administration along with
economics. In accordance with Ahlstrand, Lampel and Mintzberg, (2014) in comparison to
various disciplines like financial matters, science, law and so on, field of strategic management is
a new concept. It can be critically assessed that strategic management is having high authenticity
as well as significance in business with respect to the ideas, values, plans and information that
come under this concept. Since a long time, criticism is made on strategic management for not
accepting to have a brief and formal definition because of which it has not succeeded to have its
own remarkable speculations as well as to become a sub-field of different controls. However, in
addition to the above statements, Barney, (2013) says that strategic management is judged for
putting emphasis too vigorously on hypothesis that having reasonable application for chiefs is
missing here which is important to have an practical idea about the situations that business might
have to face and to make appropriate prediction. This is the reason; it can be said that the concept
is based upon a detached set of thoughts which is a highly satisfactory structure in which it is not
sure that the final results gained will be accurate or not.
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As per the views of Breuer, (2010) to take all things together is not the appropriate
administration for becoming a reasonable scholastic order. It can be critically evaluated that
researchers belonging to different fields have unlike and distinct thinking as well as perspective
regarding strategic management. According to them, strategy can be classified in the following
ways:
In accordance with the approach given by Chafee, that is, interpretive, adaptive and linear
schools in the year (1985), the interpretive model is the first one which says that social business
is nothing but the systematic and appropriate collection of social conventions. As per this model,
strategy can be termed as an activity which a firm runs through particular beliefs and values.
However, on the other hand, adaptive model is the one whose complete focus is on making
assessment of the environment on continuous basis. Along with that, the focus of this strategy is
on and also subsequent business adaptation as well. Apart from that, main emphasis of the linear
model is on doing effective planning so as to make operations run in a smooth and systematic
manner (Cox and et.al., 2012). The main consideration of this strategy is on directing, sequential
and methodological actions that prove to be highly helpful in assisting the business to take
proper and fruitful decisions by applying of which firm can develop and grow at a fast pace.
On the other hand, it can be critically assessed in the words of Mintzberg et al ten schools
of thoughts (1998), that in three classes, overall 10 thoughts can be classified. Among all these
thoughts, the three which come at first are of prescriptive nature which means they are not
flexible. Main concern of these thoughts is to decide the way in which procedures should be
formulated and implemented. In this way, the perfect key conduct is suggested to the
management with a belief that execution of the same will render positive results for the business.
These three thoughts play a significant role in concentrating on the conduct that strategist as a
single person performs (Antonio, 2013). However, after these three thoughts, the next six prove
to be very helpful to focus on the specific important parts of the development procedure.
Through these thoughts, the way in which techniques will be made are portrayed. Last but not
the least; the remaining one school can be considered as a combination of all the above schools
and thus, it can be said that it mainly seems to be integrative. It makes high efforts in grouping
the system making process. In other words, it can be termed as making the substance,
hierarchical structures and their connections altogether into different stages (Freeman, 2010).
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However, according to organic and mechanistic approach given by Fajourn, (2000) it can
be said that as per the organic perspective, time is a successive relentless. This theory treats the
time as reliable as well as constant in line with the stream of occasions. However, these
occasions or particular situations tell about non straight and interactional. Apart from that,
accentuation on the connections are also highlighted which play a vital role in development
which is actually integrative in nature. Whereas, the mechanistic approach considers time to be
watchful where the theory believes that stream of occasions must be direct, directional and static.
In addition to this, according to this approach, models are decently created, build and separated
(Gomes and et. al., 2014). Here, the main prominence is given on developing connections among
develops.
On the contrary, it can be critically analysed in the words of Faulkner and Campbell,
(2002) who has given cultural, evolutionary, logical incremental and rational school of thoughts.
The stage of rational planning in the level which highly support in identifying the gap between
numerical objective as well as outcomes gained that emerges because of the current strategies
that are used in the present status of business. Following the development of plan in a systematic
and proper manner, later it is implemented which according to this approach should be adaptive
in nature. Therefore, this stage proves to be highly effective in gaining flexible mindset
(Harvard, 2013). The evolutionary imperative perspective in this approach is the one that tells
about involving the evolutionary adjustment behavior that is in accordance with the survival
interest. Apart from that, the last constraint in this approach, that is, cultural, is all about adopting
the system which should be on the based on the cultural elements.
However, one more approach given by Hutzschenreuter and Kleindienst, (2006), that is,
micro, organic, rational, mechanistic, upper level, middle management perspectives says that the
main emphasis of micro viewpoint is concerned with the individual level. However, the point of
views give a large structure in terms of consolidating praxis, hones and professionals that creates
connection in between micro and macro phenomena. (Huber, 2011) However, on the other hand,
the organic viewpoint says about emphasizing on the way in which association grows after
making effectual use of needy models for some time for the purpose of defining variety and
determination inside and among associations. The rational-mechanistic point of view that can be
termed as a procedure methodology can be explained as a successive, discriminating as well
logical action whose main consideration is with the ID of inside qualities as well as weak areas
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of association. Along with that, it also emphasizes on the opportunities and threats that are
prevailing in the outside environment of organization. As per the upper-level point of view, it
can be said that the top supervisors are the people who are considered as key performers in the
firm that shapes the course of business (Vanessa, Xavier and Xavier, 2013). Further, in
accordance with the cognitive viewpoint, nearly identified with the best viewpoint looks at the
system in a way that is a mental procedure which shows the administrator's recognition as well
as evaluation on the key issue. However, last but not the least; middle management viewpoint
plays a crucial role in holding that centre administrators know the exact key issue on which the
business should consider in order to run without any hindrance (Pangarkar, 2011). It can be said
that their closeness to business is the strongest link that makes them enter performers in the
procedure approach.
In accordance with the advantages and disadvantages of different school of thoughts or
classifications made by several authors in the form of their claims, it can be said that the way in
which strategy should be formulated is very difficult. Overall, it can be said that majorly two
different perspectives of strategic management are there. These two perspectives include the
design and the learning school. However, in terms of the design school, all strengths,
weaknesses, threats and opportunities can be effectually matched. Therefore, it can be said that
this school refers to develop the SWOT analysis of business along with strategies by which
performance of business can be maintained and improved to a high extent through working on
the weaknesses (Witcher and Chau, 2010). Also, it helps in grabbing the existing opportunities in
market and taking benefit of the strengths as well as working on saving business from the threats.
Apart from that, there is one more approach, that is, Ansoff’s product matrix which plays
a vital role in providing support to understand relationship between new and existing products
along with their suitability with the organization. The learning school proves to be highly
influential in providing understanding about the way in which the strategy occurs which is
completely different from that of the design school. Basically, three strategies are there named
integrated, realized and emergent that come under the learning school (Galliers and Leidner,
2013). Integrated strategies are those which the organisation chooses in order to follow the same
in business. However, realized strategy can be considered as the one which is essentially carried
out by company in order to reach at the set targets. While, the emergent strategy is that which
helps the firm in meeting requirements prevailing in external business environment.
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COMPARATIVE ANALYSIS OF SELECTED MODELS
In a firm, there are three kinds of strategies that exist named corporate, business level as
well as operational. Among all, the corporate level strategy is one whose main focus is on the
general reason as well as in delay of an association. Along with that, it also emphasises on the
way in which esteem will be included to the distinctive of association. On the other hand,
business level strategy is a plan that tells about the manner in which to specific markets are made
satisfied (Ahlstrand, Lampel and Mintzberg, 2014). In addition to this, there is one more strategy
at operational level that considers the way in which components of an association convey the
business level in a sufficient manner. Also, the corporate level methods come under the same
which give details about the process, resources used as well as the individuals involved.
Figure 1: Corporate Strategy Model
In social science disciplines, the main included phases in strategic management are
strategic position of organization, strategic choices as strategy in action. All these levels can be
used by the firm to render effective performance in the future and gain set targets within
stipulated time period as well as in a sustainable manner. These are stated as below:
 Strategic Position: This phase can be termed as the level where main consideration is
given on distinguishing the effect on methodology that business is having as per its
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Strategy in
Action
Strategic
Choices
The
Strategic
Position

outside environment along with the key ability that include assets and skills both in line
with the desires and impact of all these elements on the stakeholders (Barney, 2013).
 Strategic Choice: Under the same, basic base on which the future system depends is
involved where understanding regarding both; the corporate and business level is there.
Apart from that, it also includes the choices in order to make or create system with
reference to the methods used along with the directions that would be taken for bringing
improvement in the business.
 Strategic Action: Strategic actions tell about the surety that systems are performing in a
way that are desired by the side of management and leading to render positive outcomes
(Breuer, 2010).
Number of models are there that can be used while formulating or exciting the strategies
in social science discipline. It can be assessed that for determining the strategic position,
different environments of business have to be taken into consideration like macro environment,
industry and the competitors. However, here, the macro environment of organization is all about
the external forces that can be determined by analysing PESTLE factors, that is, political,
economic, social, technological, legal and environmental (Cox and et.al., 2012). With the help of
this, plenty of information regarding external factors can be given to the business in an accurate
and reliable manner that will have a strong impact on the organisation. Apart from that, PESTLE
analysis also leads to identify the changing drivers by which firm gets affected. Further, under
the same, industry players are there that assist to identifying the similar firms that are leading to
create competition by the way of producing and offering similar services and products (Antonio,
2013).
From the perspective of strategic management, these are the organisations that create
high competition in the market and exerts competitive forces; determination of which can be
done by using Michael Porter’s five forces framework. Under this model, threat from the new
entrants and firms offering the substitute products and services is taken into consideration along
with bargaining power of suppliers as well as buyers that highly affect the functioning of an
organisation. Moreover, the model also includes intensity of rivalry the company is having from
its competitors (Freeman, 2010). With the help of this framework, proper insights are gained by
the firm with respect to the way in which strategies are analysed as well as profits are increased
through taking proper and systematic initiatives. In addition to this, for the purpose of
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determining structure of sector, industry life cycle can be determined in which different stages
are involved including development, growth, maturity and decline. Later, in order to prove the
strategic choices, it is essential for the firms to come in position that they can identify the extent
of sustainable competitive advantage (Gomes and et. al., 2014). Also, it is essential for them to
assess different strategies that would prove to be highly suitable for facing the hypercompetitive
conditions in an effective manner.
Further, Game Theory can also be used in social science discipline for the purpose of
understanding interrelationship among the competitive moves of company by which competitive
dynamics present in the market can be determined. Also, BCG Matrix (Boston Consulting
Group) prove to be highly effective for maintaining the portfolio balance, keeping attractiveness
in the business units as well as fitness in commerce. Last but not the least; GE- Matrix is also one
of the useful approach through which business units can be positioned in accordance with the
attractiveness and competitive strength of market in which the firm is operating (Harvard, 2013).
Finally, under the strategic management, last step is to develop strategic choices where most
suitable processes are identifying with the help of using politics of organisation, rational
instrumentalism, cultural processes and procedure of allocating resources.
BUSINESS EXAMPLES
Under this section, the consideration is given on few models of strategic management for
which the firm, Tesco as a business example has been taken. It is one of the leading
organisations in the retail industry of United Kingdom based in England that deals in grocery as
well as general merchandise. By applying PESTLE analysis on the retail sector of UK,
organization will come in position to meet the growing demand of population as under the same,
political, economic, social, technological, legal model also proves to be highly effective to make
the firm aware with intensity of rivalry existing in the market where it is operating along with
competitive attractiveness and interest of market (Strategic Management, 2015). By the same,
Tesco will be able to determine strengths existing in the market and thus, it will gain a
competitive edge over other rivalry firms like Sainsbury, Morrison, ASDA, etc.
Apart from that, there is one more model that would play a vital role in helping Tesco to
stay in the market with sustainability. This model is SWOT analysis by which Tesco can address
its weaknesses, make proper efforts to prevent from threats, grab and take advantage from the
opportunities as well as develop the future goals with the help of using strengths. In addition to
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this, there is one more matrix known as four celled matrix, that is, the BCG (Boston Consultancy
Group). It will help Tesco to determine its portfolio in terms of growth and market share in the
competitive market. Moreover, it also helps different businesses in a graphical way and based on
this graphic representation, the organization can determine their portfolio related to industry
growth and market share (Huber, 2011). Further, GE-Matrix is also there that can further help
Tesco to make assessment on the business portfolio according to which firm can execute
strategies that may prove to be highly effectual in prioritizing the investment that business should
made.
CONCLUSION
From the above report, it can be concluded that strategic management is essential for a
business to survive with sustainability in the long run as these are the strategies only which saves
the commerce from any kind of uncertain situations. It has been assessed from the report that
there are many theories and models that provide high assistance for all the social science
disciplines. However, it can be said that implementation of the strategy in an effectual manner
depends on the culture and skills that organisation follows. In the report TESCO as the business
has been chosen with reference to which different theories and models have been explained that
shown the strategic position, choices and action of company in the competitive market. Overall,
it can be said that strategic management plays a vital role in making social science discipline
business to do better in the future in comparison to what rival firms are performing at present to
sustain in for longer span of time in the competitive world.
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REFERENCES
Books and Journals
Ahlstrand, B., Lampel, J. and Mintzberg, H., 2014. Strategy safari. Free Press.
Antonio, G., 2013. Revisiting business strategy under discontinuity. Management Decision.
51(7).pp.1326 – 1358.
Barney, M., 2013. Leading value creation. Hampshire: Palgrave Macmillan.
Breuer, M., 2010. Socio-cognitive dynamics in strategic processes. Lohmar: Eul.
Cox, M. and et.al., 2012. Strategic management: is it an academic discipline?. Journal of
Business Strategies. 29(1).
Freeman, R., 2010. Strategic Management: A Stakeholder Approach. Cambridge University
Press.
Galliers, D. R. and Leidner, E. D., 2013. Strategic Information Management. Routledge
Publication.
Gomes, M. C. and et. al., 2014. Strategic sustainability management and export performance.
Management of Environmental Quality: An International Journal. 25(4). pp.431 – 445.
Harvard, B. S., 2013. Strategy: create and implement the best strategy for your business.
Harvard business press.
Huber, J. A., 2011. Effective strategy implementation: conceptualizing firms’ strategy
implementation capabilities and assessing their impact on firm performance. Springer.
Pangarkar, N., 2011. Location in Internationalization Strategy: Determinants and Consequences.
Journal of Management. 17(3). pp.37-68.
Tallant, J., 2011. The Importance of Strategic Planning in the Business Environment. GRIN
Verlag.
Vanessa, W., Xavier, W. and Xavier, L., 2013. Extending resource-based theory: considering
strategic, ordinary and junk resources. Management Decision. 51(7). pp.1359 – 1379.
Witcher, J. B., and Chau, S. V., 2010. Strategic Management: Principles and Practice. Cengage
Learning EMEA.
Online
Strategic Management. 2015. [http://www.researchomatic.com/Strategic-Management-
112256.html]. Available through: <http://www.researchomatic.com/Strategic-
Management-112256.html>. [Accessed on 18th April 2017].
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