Strategic Models

Topics: Strategic planning, Strategic management, Management Pages: 5 (1483 words) Published: April 12, 2013
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management. First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a lengthy period of time. Strategic Management is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to identify the direction in which an organization is moving The strategic planning, the first step towards strategic management, determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program. There are a variety of perspectives, models and approaches used in strategic planning. The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization, expertise of planners, etc. It seems that the two phrases “strategic planning” and “business planning” are used interchangeably, much more than ever. I believe it’s better to see the phrases as different as to generalize them as the same. Strategic planning is best viewed as clarifying the overall purpose and priorities of the organization. There are many different ways to do strategic planning, and the contents of the plan vary, depending on the purpose of the planning. However, the focus of the planning should primarily be organization-wide. Business planning is best viewed as planning for a specific product or service. The customers and clients for a particular product or service might be very different than for another product or service. You wouldn’t advertise or sell race cars the same way you’d advertise or sell minivans. Each needs a different business plan Strategic planning is not all of planning process, but it can be a major component. In his 1979 book, George Steiner developed the conceptual model of the structure and process of systematic corporate planning. The model consists of the following elements: * A plan to plan. This plan is contained in a detailed manual. It sets forth a statement of top management commitment to planning, a set of term definitions to head off communication problems, a statement of required information and documentation, a detailed time schedule, and so on. * The four components of the situation audit. At the top of the stacked boxes are "expectations of major outside interests" and "expectations of major inside interests". They are fundamental premises in any strategic planning system. The last two boxes, "the data bass" and "evaluation of environment" include information that is essential in helping managers doing the planning to identify alternative courses of action and to evaluate them properly. * A corporate plan: master strategies and programs strategies. It consists mission, purpose, objectives, policies. * Medium-range plans. These focus primarily on major functions or programs - marketing, production, employee levels, research and development, facilities and the like. * Short-range plans. Short-range plans can vary a wide spectrum. Their grade gradually...
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