Strategic Management Model -
: Evaluates strengths and weaknesses, often using tools like the VRIO framework to identify resources that provide a competitive edge.
: Matching internal strengths with external opportunities. Blue Ocean Strategy : Seeking out uncontested market spaces.
: Examines the industry landscape and macro-environment (political, economic, social, technological) using frameworks like Porter’s Five Forces or PESTLE analysis . 3. Strategy Formulation strategic management model
The Strategic Management Model: A Framework for Long-Term Success
The process begins with defining why the organization exists and where it wants to go. : Evaluates strengths and weaknesses, often using tools
: Explains the organization's fundamental purpose, target market, and primary offerings.
The most widely accepted models, such as the Basic Strategic Management Model , generally consist of four or five interconnected stages that form a continuous feedback loop. 1. Goal Setting (Vision & Mission) In this stage
: Specific, measurable goals (often using SMART criteria ) that translate the mission into actionable targets. 2. Environmental Scanning (Analysis)
Organizations must understand both their internal capabilities and external influences before crafting a strategy.
In this stage, leaders synthesize their research to develop a plan of action. This involves identifying a "strategic choice" or the best path forward to achieve its goals. Common tools used here include:
