Strategic management model refers to the pattern or mode of strategic management. According to the strategic management model, a number of steps are taken to achieve the objectives of a company. Different strategic management models are chosen by various companies according to their conveniences.
About Strategic Management Model
Strategic management model is also known as strategic planning model. A strategic planning model is selected for the purpose of formulating and implementing the strategic management plan of a particular organization.
Nevertheless, it has been proved that no strategic planning model is perfect. Every company designs its own strategic planning model frequently by choosing a model and transforming it as the company advances into formulating its strategic management plan procedures.
A number of strategic planning model options are available for the companies from which they can choose.
The steps involved in this strategic planning model were the following:
- Situation Analysis
- Formulation of Strategies
The situation analysis is basically a blend of PEST Analysis (Political, Economic, Social and Technological Analysis) and SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats Analysis). Internal analysis is an important component of situation analysis, which studies the condition within the company taking into account the following factors:
Image of the company
Culture of the company
Structure of the company
Location on the experience curve
Availability of natural resources
Trade secrets and patents
A strategic planning model is applied in functional domains like the following:
Research and development
Forms of Strategic Management Models
The different types of strategic management models can be categorized into the following types:
Basic strategic planning model
Alignment strategic planning model
Goal-based or issue-based strategic planning model
Self-organizing or organic strategic planning model
Scenario strategic planning model