01.

Balanced Scorecard:

The Balanced Scorecard is a strategic management model. Drs. Robert Kaplan and David Norton created
it in 1990. Such as:-
Objectives: High-level organizational aims
Measures: Helping to complete the objective
Initiatives: Action program to achieve the objective

This is just one example of the many diagrams. It provides high-level details into measures and
initiatives. Balance Scorecard or this strategic management model shows the status of each objective,
measure, and initiative. Here green indicates planned, whereas yellow and red indicate the degrees of
trouble.

02. Strategy Map:

A strategy map is another strategic management model. It is a visual tool which design to clearly
communicate a strategic plan and accomplish high-level organizational goals. Strategy mapping is a main
part of the Balanced Scorecard, although it is one more strategic management model. And offers a
brilliant way to communicate the high-level data across of organization in a simply-edible format.
A strategy map offers a host of benefits:
 It unifies all goals into a single strategy.
 It provides an easy, simple, visual representation that is clearly referred back to.
 While accomplishing tasks and measures, it gives every employee a clear goal to keep in mind.
 It helps to identify your key goals.
 Strategy map helps you see how your objectives affect the others.
 It allows you to better understand which elements of your strategy need work.

03. Value Chain Analysis:

Value Chain Analysis has two types of activities. One primary activities and another supportive activities.
Such as:-
1.Primary Activities
 Inbound Logistic
 Operation
 Outbound Logistic
 Marketing
 Service
2. Suppportive Activities
  Firm’s infrastructure
 Human resource management
 Technological development
 Procurement of resources, finance, inventory etc.

04. SWOT Analysis/SWOT Matrix:

A SWOT matrix is our third strategic management model. SWOT is an acronym for strength, weakness,
opportunity, and threat. Strength and weakness are measured as the internal issues. Whereas
opportunity and threat are measured as the external issues.
Below is an example SWOT matrix from the Queensland, Australia, government:

SOWT Analysis Model

Through a SWOT matrix helps an organization detect where they’re doing fine and in what zones they
can develop.

05. PEST/PESTEL Model:

The PEST is an acronym for “political, economic, sociocultural, and technological” like SWOT analysis.
Each of these aspects is used to look at a business environment, and define what could touch a health of
an organization. The PEST of strategic management model is often used in conjunction with the external
factors of a SWOT analysis.
 PEST Analysis Model
With the PEST model adds a few extra letters as like PESTEL (or PESTLE) considers “environmental” and
“legal” factors. STEEPLED is additional variation, which stands for “sociocultural, technological
economic, environmental, political, legal, education, and demographics.”

06. Gap Planning:

Gap planning is also called as a “the Strategic-Planning Gap”, “Need Assessment,” or “Need-Gap
Analysis” in strategic management model. It is applied to compare where an organization exists, where
it expects to be, and how to solve the gap between. It is mainly used to pinpoint precise internal
shortages.
In gap planning examination, investigators may also hear about a “shift chart” or “change agenda”.
These are akin to gap planning, as they both take into concern the difference between where the
organization has existed and where it expects to be along numerous axes. From there, its planning
procedure is about how to ‘close the gap.’
There is mentioned an example of gap planning of strategic management model the difference between
the desired and projected sales of a mock company:
07. Red-Blue Ocean Strategy:
Red-Blue Ocean Strategy is a strategic management model. It originated in a book “Blue Ocean Strategy”
in 2004 and written by W. Chan Kim and Renée Mauborgne, professors at INSEAD (European Institute of
Business Administration).
Behind the concept of Blue Ocean Strategy is the developing “uncontested market space” (Blue Ocean)
instead of a market space. It is either saturated or developed (Red Ocean). If the organization is able to
build a blue ocean, it can mean a gigantic value enhancement for its business, its employees, and its
buyers.
Below shows a humble evaluation chart from the Blue Ocean Strategy webpage. It will help to
understand if anybody works in a blue ocean or a red ocean:

08. Porter’s Five Forces Model:

Michael Porter’s Five Forces Model is an older strategic management model in 1979. The Porter’s 5
forces model are:
1. The threat of entry
2. The threat of substitute products or services
3. The bargaining power of customers
4. The bargaining power of suppliers
5. The competitive rivalry among existing firms
The number of pressure on each of these porter’s 5 forces can help to determine how future outlets will
influence the upcoming of business.
09. Thompson and Strickland’s 7 Factors Model:
In Porter’s Five Forces Model arises some drawbacks to overcome these, Thompson and Strickland
identified the seven factors in the strategic management model. Such as:-
1. Industry’s dominant economic features
2. Main sources of competitive pressure and the strengths of the competitive forces
3. Driving forces
4. Market position of the rival companies
5. Competitor’s strategic moves
6. Industry’s key success factors
7. Industry’s overall attractiveness and profitability prospects

10. VRIO Framework:

The VRIO framework of strategic management model is an acronym for “value, rarity, imitability,
organization.” This model relates more to the vision statement than overall strategy.
There are mentioned the complements of the VRIO framework. Such as:-
1. Value: Are you able to exploit an opportunity or neutralize an outside threat using a particular
resource?
2. Rarity: Is there a great deal of competition in your market, or do only a few companies control
the resource referred to above?
3. Imitability: Is your organization’s product or service easily imitated, or would it be difficult for
another organization to do so?
4. Organization: Is your company organized enough to be able to exploit your product or resource?
Once you answer these four questions, you’ll be able to formulate a more precise vision statement to
help carry you through all the additional strategic elements in your plan.

11. Andrew’s Model:

Kenneth Andrews formulated a strategic management model in 1965 that called Andrew’s Model. This
model comprises the choice of a strategy but ignores control and implementation. In 1971, Kenneth
Andrews developed a more complete model that encompassed implementation, but it still ignores a
strategic evaluation and control.
12. Glueck’s Model:
William F. Glueck formulated several strategic management models based on the decision-making
procedure. The phases of this model are given below. For instance:-
1. Strategic management elements
2. Analysis and diagnosis
3. Choice
4. Implementation
5. Evaluation

13. The Schendel and Hofer Model:

Dan Schendel and Charles Hofer formulated a strategic management model, joining both control and
planning functions. It has several steps. Such as:-
1. Goal creation
2. Environmental study
3. Strategy design
4. Evaluation of strategy
5. Implementation of strategy
6. Strategic control
According to Dan Schendel and Charles Hofer, the formulation share of strategic management model
consists of as a minimum three sub-processes. Such as:-
1. Environmental analysis
2. Resources analysis
3. Value analysis
Resource analysis and value analyses are not particularly shown but are well-thought-out to be involved
under other things.

14. Korey’s Model:

The founder and President Canadian School of Management; and also modern theorist Jerzy Korey-
Krzeczowski have recommended an integrated strategic management model. Jerzy Korey-Krzeczowski’s
model has three phases. Such as:-
1. Preliminary phase
2. Strategic planning phase
3. Strategic management phase.
Additional, Jerzy Korey-Krzeczowski tells, here has at least four continuous sub-processes. Such as:-
1. Planning study
2. Review
3. Control
4. Feasibility study
The planning is continuing procedure, consequently, all these sub-procedures are united. They are
interrelated with each other; making the fully active strategic management model.

15. Schematic Model:

This strategic management model was established by Mark Kroll, Charles Pringle and Peter Wright
(1994). It has five steps. Such as:-
 1. Analyzing the environmental opportunity and threat
2. The internal strengths and weaknesses of an organization
3. Establishing the organizational mission and vision
4. Strategy construction
5. Strategy Implementation
6. Strategic Control.
The Schematic model begins with the analyzing of environmental opportunity and threat. The
organization is exaggerated by environmental factors, but the organization can also have an influence
upon its environment.

Competency Management
The competency management is comprised with three features. Such as:-
1. Competence or Competency
2. Core Competence or Core Competency
3. Distinctive Competence or Distinctive Competency
The strategic-management process consists of three stages: strategy formulation, strategy
implementation, and strategy evaluation.

Strategy formulation is the process of establishing the organization’s mission, objectives, and choosing
among alternative strategies. Sometimes strategy formulation is called ‘strategic planning’.
Strategy-formulation issues include deciding what new businesses to enter, what businesses to
abandon, how to allocate resources, whether to expand operations or diversify, whether to enter
international markets, whether to merge or form a joint venture, and how to avoid a hostile takeover.
Because no organization has unlimited resources, strategists must decide which alternative
strategies will benefit the firm most. Strategy-formulation decisions commit an organization to specific
products, markets, resources, and technologies over an extended period of time. Strategies determine
long-term competitive advantages. For better or worse, strategic decisions have major multifunctional
consequences and enduring effects on an organization. Top managers have the best perspective to
understand fully the ramifications of strategy-formulation decisions; they have the authority to commit
the resources necessary for implementation.
Strategy implementation is the action stage of strategic management. It refers to decisions that are made
to install new strategy or reinforce existing strategy. The basic strategy – implementation activities are
establishing annual objectives, devising policies, and allocated resources. Strategy implementation also
includes the making of decisions with regard to matching strategy and organizational structure;
developing budgets, and motivational systems.
Strategy implementation includes developing a strategy-supportive culture, creating an effective
organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing
information systems, and linking employee compensation to organizational performance.
Implementing strategy means mobilizing employees and managers to put formulated strategies into
action. Often considered to be the most difficult stage in strategic management, strategy implementation
requires personal discipline, commitment, and sacrifice. Successful strategy implementation hinges upon
managers’ ability to motivate employees, which is more an art than a science. Strategies formulated but
not implemented serve no useful purpose.
Interpersonal skills are especially critical for successful strategy implementation. Strategy-
implementation activities affect all employees and managers in an organization.
Every division and department must decide on answers to questions, such as “What must we do
to implement our part of the organization’s strategy?” and “How best can we get the job done?” The
challenge of implementation is to stimulate managers and employees throughout an organization to work
with pride and enthusiasm toward achieving stated objectives.
Strategy evaluation is the final stage in strategic management. Managers desperately need to know when
particular strategies are not working well; strategy evaluation is the primary means for obtaining this
information. All strategies are subject to future modification because external and internal factors are
constantly changing. Three fundamental strategy-evaluation activities are (1) reviewing external and
internal factors that are the bases for current strategies, (2) measuring performance, and (3) taking
corrective actions. Strategy evaluation is needed because success today is no guarantee of success
tomorrow! Success always creates new and different problems; complacent organizations experience
demise.

Strategy formulation, implementation, and evaluation activities occur at three hierarchical levels in a large
organization: corporate, divisional or strategic business unit, and functional. By fostering communication
and interaction among managers and employees across hierarchical levels, strategic management helps
a firm function as a competitive team. Most small businesses and some large businesses do not have
divisions or strategic business units; they have only the corporate and functional levels. Nevertheless,
managers and employees at these two levels should be actively involved in strategic-management
activities.