Strategic Management Models: Application in Business Management Report

This report delves into the realm of strategic management, exploring three key theoretical models: Porter's Generic Strategies, Ansoff Matrix, and the Balanced Scorecard. It begins by defining strategic management and its importance in organizational success, particularly in the context of a company situated in Malta. The report then dissects each model, explaining its application within business management. Porter's model is examined for its differentiation, cost leadership, and focus strategies. The Ansoff Matrix is presented as a tool for identifying growth opportunities through market penetration, product development, market development, and diversification. The Balanced Scorecard is discussed as a framework for translating vision and mission into actionable strategies, including financial, customer, business process, and learning and growth perspectives. Real-world examples, such as Malta Post and Mediterranean Aviation Company, are used to illustrate the practical application of these models. The report concludes by analyzing how these models can be leveraged to enhance a business's competitive advantage, emphasizing the importance of aligning strategies with objectives and offering superior value to customers. The report also includes references to books and journals supporting the presented concepts.

Strategic
Management

Table of Contents
Title - “Strategic Management Theoretical Models”......................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic management model and its application in business management...........................1
TASK 2............................................................................................................................................3
Example of organisation and application of these models.....................................................3
TASK 3............................................................................................................................................4
Analyse what the model could offer a business looking to increase its competitive advantage.4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

Title - “Strategic Management Theoretical Models”
INTRODUCTION
Strategic management refers to the continuous preparing, observing, examine and
assessment of all which is important for company in order to meet its objectives. It assists
organisation to become more organised (Baumgartner and Rauter, 2017). It is situated in Malta.
The purpose of this report is to describe the three strategic theoretical model and their
application in business management. Examples related to each models and analysis for
increasing their competitive advantage.
TASK 1
Strategic management model and its application in business management
Strategic management model is utilised to plan as well as execute the business strategies.
The three key strategic management theoretical models which is applied in company present in
Malta are mentioned below:
Porter's Generic strategies:
Michael porter who introduce this generic model; is utilised to ascertain the
organisational strategy. Busy bee can choose this strategy so as to can beat competition. Four
strategies are: Cost leadership: This is used to become the low cost producer into their industry. With
the help of this Busy bee can provide their products at low cost in compare to other
competitors. Differentiation: It is used for improvement of product or services which offers unique
concepts which are valued by clients and consumers perceive that better from competitors
(Khalili Shavarini and et.al, 2013). Busy Bee apply this strategy as unique product
attributes attract more customers. Cost Focus: The strategy of cost focus is similar to cost leadership and it concentrates on
particular niche market. Busy Bee can apply this strategy often gain consumer loyalty at
higher level.
 Differentiation focus: This is just opposite to cost leadership strategy. In this, company
focus to be unique in their industry. With the help of this Busy bee may provide
innovative and standard quality products rather than simply selling low cost items.
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From the above model, it is analysis that differentiation strategy is suitable for Busy bee
as it help them to target broad market with product uniqueness which allow them to grow in
competitive market.
Ansoff models:
Ansoff Matrix is a strategic planning tool that provides a framework to help executives. It
assists to identify growth opportunity (Langston and Lauge-Kristensen, 2013). Ansoff matrix
used by Busy Bee to analyse the market situation and makes strategies for growth. It includes 4
growth strategy. Market penetration : Busy Bee may use this for increasing the number of sales of exiting
products in existing market. Product development: By using this, Busy bee can introduce new products into an
existing market. Market development: In this matrix, Busy Bee can identify new entry mode to enter into
a new market by using existing products.
 Diversification: Busy bee may focuses on entering a new market with the introduction of
new products.
For the Busy Bee business management use product development strategy as with the
help of this it can launch new products in existing market. Through this, organisation can attain
higher competitive advantages in their existing market place.
Balanced scorecard:
It is considered as a strategic management frame work that is formed by Dr. David
Norton and Robert Kaplan. Its objectives is to convert the company 's vision as well as mission
into operational actions (González, Calderón and González, 2012). This help Busy bee to
translates their strategy into 4 perspectives which are: Financial perspective: In this, an organisation can measures its economic value added,
operating income and return on capital employed. Customer perspective: In this, Busy Bee may measure their consumer satisfaction,
retention as well as its market share in target segment. Business process perspective: In this Busy Bee measures its cost as well as quality, this
is generally for the process of business such as order fulfilment, procurement and
manufacturing.
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 Learning and growth perspective: In this, Busy Bee can measures their employee
retention, satisfaction and so on.
Busy Bee focus on the customer perspective approach as it help them to evaluate
satisfaction, retention and market share of consumer so that they can full fill their requirements.
It can be a beneficial approach for the firm that assist them in attaining higher competitive
advantages.
TASK 2
Example of organisation and application of these models
Malta post is a company which provides postal services in Malta. Balance score card is
applied in this company with the help of following steps:
 Setting up mission, vision as well as strategic objectives
 Performing the analysis of stakeholder in order to measure the consumers and
shareholders expectation (Biazzo and Garengo, 2012).
 An inventory is made for critical success factors.
 Convert strategic goals into personal objectives.
 KPI is set up to measure the objectives.
 Ascertain values for goals which are to be accomplished.
 Converts the objectives into the business operational activities.
This model is useful for Malta post as it assists them to facilitates information regarding selected
strategy, handle feedbacks as well as process for learning and ascertaining the figure for target.
Mediterranean Aviation Company is providing an aviation service whose headquarters
is in Safi Aviation park, Malta. Porter's generic model is applied in this firm by choosing one
strategy out of four. This company select the cost leadership strategy so, it target a broad market
and offer low price to their customers (Harding, 2017). With the help of this it can keep their cost
low as much as possible (Rothaermel, 2015). After applying this effectively, it can substantially
invest their capital and cost will be low in case of labour and materials.
One production Ltd. Is also considered as the One group which is a Maltese mass media
as well as telecommunication company. It headquarters is in Marsa, Malta. It uses the Ansoff
model for the growth of their business. It can be done through market penetration, market
development, product development and diversification. The business which operates in
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expansion market can grow by penetration of market. As it is a mature business, so it may select
stable market for growth by product and market development based on their internal strength
(Van den Berg and Pietersma, 2015). If all these are not adequate potential then it can prefer
diversification in order to attain future growth.
TASK 3
Analyse what the model could offer a business looking to increase its competitive advantage
By analysing the porter's generic model it is seen that Busy Bee can increase its
competitive advantage by offering greater value to customers through low price and effective
benefits as well as services which justifies their high prices (Ungson and Wong, 2014).
After analysing Ansoff model, it is examined that Busy Bee can enhance their
competitive advantage by choosing one matrix out of four. For example: if it is selected product
development then they have to launch a new products after analysing existing market by doing
so company may enhance their competitive advantages.
Through Balanced scorecard, Busy Bee can enhance their competitive advantage by
improving their strategies and linking those strategy with its objectives.
These models are related to growth of company, if Busy Bee will apply such models in
their working then they will achieve competitive advantage by offering better services and
satisfying customers (Rosenberg Hansen and Ferlie, 2016).
CONCLUSION
From the above report, it is concluded that Ansoff model, balanced-scorecard and porter's
generic are three key strategic management model and its is applied in business management to
measure performance and growth. Examples are mentioned for all models and it is used to
increase the competitive advantages.
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REFERENCES
Books and Journals
Baumgartner, R. J., and Rauter, R. 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production. 140.
81-92.
Langston, C., and Lauge-Kristensen, R. 2013. Strategic management of built facilities.
Routledge.
Rothaermel, F. T. 2015. Strategic management. McGraw-Hill Education,.
Ungson, G. R., and Wong, Y. Y. 2014. Global strategic management. Routledge.
Khalili Shavarini, S. and et.al., 2013. Operations strategy and business strategy alignment model
(case of Iranian industries).International Journal of Operations & Production
Management. 33(9). pp.1108-1130.
González, J. M. H., Calderón, M. Á. and González, J. L. G., 2012. The alignment of managers’
mental models with the balanced scorecard strategy map. Total Quality Management &
Business Excellence. 23(5-6). pp.613-628.
Biazzo, S. and Garengo, P., 2012. Performance Measurement with the Balanced Scorecard.
Springer.
Harding, S., 2017. MBA management models. Routledge.
Van den Berg, G. and Pietersma, P., 2015. Key management models: the 75+ models every
manager needs to know. FT Press.
Rosenberg Hansen, J. and Ferlie, E., 2016. Applying strategic management theories in public
sector organizations: Developing a Typology. Public Management Review. 18(1). pp.1-
19.
Online
Balance Scorecard model. 2018. [Online]. Available through
<https://www.toolshero.com/strategy/balanced-scorecard/>
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