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NAME :DANIEL NAMISANGO WALYEMIRA

STUDENT NUMBER :MBA 108

COURSE NUMBER :MB 504

COURSE TITLE :STRATEGIC MANAGEMENT

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CONTENTS

• An introduction
• The scope and purpose of strategic management
• Approaches to strategic management
• Formulating strategy
• The process of decision making and strategy
• Case study analysis on strategic management
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An Introduction

The processes, models, and functions of strategic management have been articulated by diverse
insights from the authors accessible by this research. Although there may be minimal registers of
semantic suspense’s and referential ambiguities that have notated the definition of strategic
management, according to this research,the incongruities and possible dichotomies existing
between the varying arguments are minimal. In cases where such instances may occur could be
attributed to the concentration of a particular academic voice into a specialized model, process,
or function of strategic management. Therefore, the available contentions by skeptics of totally
declaring the field of strategic management as not straight forward is of minimal effect in
comparison to the available theoretical frameworks in strategic management. For purposes of
background information on this subject, strategic management as a term and concept is not new
according to Denise 1 .it was first used in the 1970s, when strategic planners more or less thought
up strategic programs and then tried to sell them to decision makers. In the 1990s, the view of
strategic planning and strategic management was much different. Goodstein, Nolan, and
Pfeiffer’s definition of strategic planning took us away from the notion that strategic planning is
a staff job and focuses us more on a process that requires the senior leaders of an organization to
set its strategic direction has cited by Denise.

At this moment, it would sound so ambiguous and sketchy to immediately roll-out the varying
perspectives or definitions on strategic management without first discussing a clear scope and
purpose of strategic management based on the framework presented by credible and well-
validated authorship. This would be followed up by an analyzing the available theoretical
frameworks on strategic management. In unique cases, the concept(s) of strategy and
management may be treated in isolation and then integrated into a discussion that would derive a
holistic meaning of strategic management based on the context available. This discussion would be
followed by approaches to strategic management,formulating strategy, the process of decision making and
strategy, and finally by a case study analysis on strategic management.

The scope and purpose of strategic management

Strategic management can be clearly articulated using four models according Colin White which
include strategy making process, strategic environments and competitive advantage, strategic
dilemmas, strategic analysis and audit. In his book, Leslie treats a strategic management process
as both internal and external. He continues to expounded on this process to include
organizational performance, strategic formulation, internal analysis, corporate culture, strategic
alternatives and implementation leadership systems and structure, and strategic control

                                                            
1
 DENISE LINDSEY WELLS(n.d), “Strategic Management for Senior Leaders: A Handbook for 
Implementation”.Director, Executive Support Division,Department of the Navy Total Quality Leadership Office 
2611 Jefferson Davis Highway Suite 2000 Arlington, Virginia 22202‐4016,Available online 
at:https://govinfo.library.unt.edu/npr/initiati/mfr/managebk.pdf 
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Colin white discusses the strategy making process as part and parcel of the strategic management
process. According to the author, the strategic making process includes thinking and acting
strategically, adopting a global perspective, reading an uncertain future. In discussing an account
on strategic environments and competitive advantage, Colin breakdowns this aspect as first
identifying opportunity and risk, reading the competitive environment, analyzing resources,
capabilities and core competencies. The author looks strategic dilemmas in the light of
determining the size of an enterprise, integrating the strategists, when to compete and when to
cooperate, managing risk, participating in the global economy as the existing structural suspense
within a system.

The most predominant perspective on strategic management has been the formulative aspect so
far.In relation to this,Fred Nickols 2 cites contributions from Alfred D. Chandler 3 on the
relationship between an organization’s structure and its strategy, which he defines as “the
determination of the basic long-term goals and objectives of an enterprise, and the adoption of
courses of action and the allocation of resources for carrying out these goals.” The (Fred) further
alludes to another author 4 perspective on strategy as “the pattern of objectives, purposes or goals
and major policies and plans for achieving these goals stated in such a way as to define what
business the company is or is to be in and the kind of company it is or is to be.” Other notions
pertaining strategy that have been succinctly confined its definition include “nature” and
“direction according two associates.In their own words,the two authors expressed strategy as
“the framework which guides those choices that determine the nature and direction of an
organization.” 5

In the same conduit, In1994, professor Henry Mintzberg 6 took the entire strategic planning
establishment to task in his book.He indicates that strategy is a plan,a pattern, a position, a
perspective secret ploy, a maneuver intended to outwit a competitor.In the military, a strategy for
a battle refers to a general plan of attack or defense. Typically, this involves arrangements made
before actually engaging the enemy with an intention to disadvantage that enemy.

Sometimes the use of the term “tactics” is an operational equivalent of strategy which refers to
actions formulated and executed after the enemy has been engaged. In the operational sense
strategy is attributed to “tactical maneuvers” in a process.Some businesses have taken it up as an
approach for handling their competition.In organisations,strategy is a statement that outlines how
                                                            
2
FRED NICKOLS(2016)”Strategy, Strategic Management, Strategic Planning and Strategic Thinking”,Distance
Consulting, AVAILABLE ONLINE AT:https://www.nickols.us/strategy_etc.pdf 
3
Alfred D. Chandler, (1962) Jr.,author of Strategy and Structure. 
4
Robert N. Anthony (author of Planning and Control Systems,1965) position on strategy that was based on an
unpublished paper by Harvard colleague Kenneth R. Andrews 
5
BENJAMIN B. TREGOE(1980), “Top Management Strategy” 

6
An iconoclastic professor of management at McGill University,“The rise and fall of strategic
planning” 
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management plans to achieve its objectives.It includes the determination and evaluation of
alternative paths to an already established mission and objective and eventually choice of the
alternative to be adopted.

Colin white treats strategic management as“any management action taken to realize a strategy, in
particular to realize the vision which results from creative strategic thinking; it is action taken
within the framework of the strategy. According to the author this strategist should always work
towards the next step of strategic management. This implies it should be a continuous process of
improvement and value added process. In addition strategic management therefore translates
strategic intent into strategic action based on Colin.Therefore intent defines the strategic
direction which the organization is taking.

Strategic management requires good intentions and commitment by the stakeholders involved in
the process.The best plan is only a plan, that is, good intentions,unless it degenerates into work.
The distinction that marks a plan capable of producing results is the commitment of key people
to work on specific tasks. The test of a plan is whether management actually commits resources
to actions which will produce results in the future.Unless such a commitment is made,there are
only promises and hopes,but no plan. 7

APPROACHES TO STRATEGIC MANAGEMENT

Before we delve into the dynamics of strategic approaches its pertinent to indicate the fact that,
strategic approaches should be more proactive and pragmatic as evident in one authors words
that; “What we think, know, or believe in is, in the end of little consequence. The only
consequence . . . is what we do.” 8 .In his book,Denise treats the concept of strategic management
through the development of building strategic planning. The author recognizes the fact that,
although planning is the prelude of strategic management, it is insufficient if not followed by the
deployment and implementation of the plan and the evaluation of the plan in action.

Therefore the author illustrates the whole process of strategic management using the model as
indicated in the following diagram

                                                            
7
Drucker,1986,[citation by Denise Lindsey Wells] 
8
 Ibid DENISE LINDSEY WELLS.(citation from Haines, 1995) 
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Figure 2.0

Mintzberg uses the terms strategic management and strategic programming interchangeably. He
identifies three separate steps which include: codification, elaboration and conversion, which are
each part of the process of strategic management.Strategic management or programming is
therefore focused on various strategic activities which can be grouped under the three headings:

1. The identification by the enterprise of specific strategic intentions, identified as a result of

strategic thinking (codification)

2. Their formulation as proposed actions which will facilitate the achievement of those intentions
(elaboration)

3.The efficient and timely implementation of these actions (conversion).

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As a compliment to the above,Leslie 9 Illustrates the process of strategic management as having
four stages as well.These include:

1. Analysing the current status

2. Examining prospects for the future
3. Set the future course
4. Put strategy to work.
5. Strategic evaluation and control

The following diagram 3.0 illustrates a summarized package on the strategic management
process according to Leslie.

                                                            
9
 LESLIE W. RUE,PHYLLIS.G.HOLLAND(1986),”Strategic Management:Concepts and Experiences”,Published by Mc‐
Graw Hill, Singapore; 
LESLIE was a professor of Management,College of Business Administration,Georgia State University by the time of 
authorship. 
HOLLAND.was an associate professor of Management,College of Business Administration,Georgia State University 
by the time of authorship 
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identifies two types of strategic approaches which include:

• The planning approach.

• Resource based strategy

The planning vs process management approach.

This approach is based on the notion that once a set of objectives have been determined and the
business environment analyzed and forecasts made, a plan can be worked out by senior
management which is then passed down for implementation; this plan is then adhered to over the
planning time scale.

There are two camps on strategic planning and process camps.These include:the planning
approach entails information is gathered, sifted and analysed,forecasts are made, senior managers
reflect upon the work of the planning department and decide what is the best course for the
organization. This is a top-down approach to strategy according to the source.

The other camp has a less structured view of strategy as being more about the process of
management.The key strategic issue is to put in place a system of management that will facilitate
the capability of the organization to respond to an environment that is essentially unknowable,
unpredictable and, therefore, not amenable to a planning approach.

According to critics, the rationale of the planning approach applies to stable,and predictable
environment which is becoming increasingly scarce according to pragmatists in strategic
management. Most strategists hold the view that events make the plan redundant, creativity is
buried beneath the weight and protocols of planning and communication rules. Contrary this, the
process of management approach focuses on the speed of reaction and flexibility to enable the
organization to function best in an environment that is fast-changing and essentially
unpredictable. The essence of strategy, according to this view, is adaptability and
incrementalism.This approach has been criticized for failing to give an adequate sense of where
the organization is going and what its mission is. Available critics have contended against this
notion pertaining unstructured approach by asserting that; “. . . most people have forgotten that
planning is the primary function of management and should lead all of its other functions. The
crush of other management fads and theories has caused us to lose sight of the basics.” 10

                                                            
10
 Ibid Denise Lindsey Wells(citation from Haines, 1995(p.85) 
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Resource Based Strategy

This approach lays emphasis on the internal resources available to the company. The resource
based approach uses various terms for different types of resources according to Leslie. The form
of resources identified may include:

• Physical resources
• Human resources
• Financial resources and
• Intellectual capital.

Corporate strategy:

The corporate strategies are based on the multi-industrial set up or mega organisations.They are
established at the highest level of the organization.They normally involve long range time zone
horizons on the entire organization or business.

Business strategy

Business strategies focus on how to compete favorably in a particular business.e.g if we are to

compete successfully in the education business then we need to devise appropriate business
strategies that are specifically related to the education industry.

Functional strategy.

Functional strategies are primarily concerned with the functional areas of the business like,
operations, finance, human resource, marketing, public relations, and administration. Other
functional areas may be classified by geographical areas like
North,east,south,eastgate,Gauteng,Mpumalanga,,KZN,north west; or by production line e.g Car
assembly,wiring,painting,interior design, mounting engine parts,testing.The span of functional
strategies is a relatively short timeframe. This is because needs are rapidly changing at a high
rate.

Generic Strategic Alternatives

In this research, I have categorized strategic alternatives as a functional aspect of strategic

approaches. According to leslie strategic alternatives include,growth,stability,defensive and
hybrid a combination of the three approaches.

Growth strategies

A Growth strategy is applied when an organizations motive is for fast or rapid expansion.This
alternative strategy is most applicable in departments like the sales and marketing which require
rigorous growth rates.Organisation use targets as a requirement of achieving their performance
objectives in such departments.
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Concentration

A Concentration strategy is one that focuses on a single product or service or on a small number
of closely related product or services. This strategy is effective when including an addition of a
new product. Following a concentration strategy does not necessarily mean that an organization
must continue to do the same things in exactly the same ways.There are basically three
approaches to pursuing a concentration strategy.

Market Development

This approach targets an expansion into the market of the product.It could be geographically or
through diversification of the product.

Product Development

This approach targets the adjustment or alters the basic product and service or add a closely
related product or service that can be sold through the current marketing channels.

Stability strategies

In certain situations an organization may desire to pursue a stability or neutral strategy.This

occurs when the organization is satisfied with its current product performance level and would
want to maintain its status quo.A stability approach is not “doing-nothing” but rather a “doing-
the same-thing” approach. Growth under this stage is slower,non-aggressive,methodical.

Features of Stability strategy

• Based on “It works.dont fix it”.

• The company is performing at an acceptable level by management or private owner.
• Staying on the course to minimize risks by not changing.
• Managers are caught in routines.
• Management believes that the prospects for growth are low but company can maintain its
present position.
• When the company has exhausted its financial or managerial resources through rapid
growth and must regroup before a new round of growth can begin.

Defensive strategic approaches

• Turnaround.
• Divestiture.
• Liquidation.
• Filing for bankruptcy.
• Becoming a captive.
• Business Angels.
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Objectives of defensive strategies

i. This is an approach used when a company needs to reduce its operations.

ii. To reverse a negative trend.
iii. To overcome a crisis or a major problem.
iv. When a company is encountering financial problems.
v. The company forecasts difficult times ahead.e.g competition,regulatory changes,new
products.

Turnaround

A turnaround strategy is designed to reverse a negative trend and to get the organization back on
the track to profitability.Turn around strategies usually try to reduce operating costs,either by
cutting “excess fat”by:reducing the size of operations, eliminating employee compensation, The
crisis situations which confront all enterprises at some point in their life,often described as
turnaround situations. These situations, which threaten the very existence of the organization,
typically happen when strategic drift creates a wide gap between where an enterprise should be
and its actual situation. This is when the priorities of the enterprise become so obvious that the
strategic position is clarified for all.All have the same interest, the survival of the organization.
Any planning requires absolutely clear-cut priorities which help to spell out the
objectives.Planning enables a strategist to concentrate resources on the achievement of such
priorities.Witness the assistance planning provides in conditions of war, at least modern warfare
which demands a total mobilization of resources at every level of an economy(Colin white P.65)

Divestiture, Liquidation and captive companies

Divestiture occurs when an organization sells or divests itself of a business or part of a business.
Liquidation is approach where the entire company is either sold or dissolved. Liquidation is
different from divestiture in that it involves the whole company. Becoming captive of another
organization occurs when an independently owned company is contractually subjected to being
managed by another company.

Filing for bankruptcy

This approach involves an application bankruptcy in court by a company. This act protects the
company to protect itself from Creditors endorsement of executionary orders including labor
contracts.

Business angels or angel Investor

A business angel or an angel investor is a wealthy person who invests personal capital in start-up
companies. They invest in return for an equity stake i.e when they invest, they obtain a
percentage ownership of the start –up business. Angel investors expect their investment to give
them a good return.
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Combination/ Hybrid approaches

A combination strategy is used when an organization simultaneously employs different strategies

for different organization units/campaigns/departments/products and services etc.Hybrid
approaches are also ideal for different market segments

Business Level strategies

N.B: Corporate and business level strategies can used simultaneously depending on the
discretion of the management.

Overall cost leadership

Overall cost leadership is to be able to produce and deliver a product or service at a lower cost
than the competition. Cost leadership is usually attained through a combination of experience
and efficiency. This can be achieved by utilizing effective competitive intelligence methods.
Competitive intelligence is an R&D(Research and Development) tool for
defining,gathering,analyzing, actionable information about competitors,customers,products and
the marketplace to form a business strategy.

Differentiation of the product/service

Differentiation strategy involves doing something so that the product/service is perceived as

unique in the industry.The approaches to differentiating a product include
branding,quality,technological intergration,quality image,product features,customer service,and a
good dealer network.

FORMULATING STRATEGY

Formulating a strategy involves the process of strategic making. According to Collin white
“strategy making is simultaneously a learning process and a learned skill. If done well, it
promotes learning in every significant area of organizational activity. Where strategy is regarded
as important, it assists the staff of the organization to confront positively a series of changing
problems, both external and internal. “The author further breaks the process into 5 phases which
he regards as strategic perspectives. These include: Operational control, forward thinking,
heightened responsiveness to markets and competition, Integration within strategic framework,
Formulation of detailed strategic plan.In his presentation Collin classifies operational control as a
process that should encompasses tight financial control, scenario building, sensitivity or
contingency, and detailed analysis and forecasts. Pertaining the forward thinking category, the
strategic allocation of resources is necessary a thorough situational analysis of strategic
alternatives. The heightened responsiveness to markets and competition process requires
dynamic allocation of resources and functional plans coordination of such plans with a clear
articulation, realization, Integration of strategic objectives and their within strategic framework
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of all resources to create competitive advantage that is based on a formulation of a detailed
strategic plan.

All organizations have a corporate plan which covers the coming financial year and have mechanisms for
exerting budgetary control in line with the corporate plan. In this first phase the emphasis is very much on
key functional areas, notably, but not only, on finance. The aim is to secure the operational control
necessary to realize the corporate plan.

Colin looks into tight financial control measure as an essential part of formulating strategy and according
to the author, “… forecasting is a requirement for any effective project evaluation when the projects
involve investment in facilities which have a life well beyond one year..”.The model portrayed by the
author concentrates attention on how the markets will develop in the future.Moreso,he looks into the
achievement of a fit between the evolving opportunities and risks in the external environment and the
changing resource position in the enterprise.

It is difficult to know how long it takes for an enterprise to develop a capacity for strategy making which
is effective and relevant to the situation of that organization. It is not an easy thing to do. It requires time
for staff to learn and significant resources to support the effort. It is a process whose unfolding is difficult
to predict with precision. Sometimes the competency is developed well, but at other times badly.
Sometimes the competency is allowed to deteriorate after reaching a respectable level of effectiveness.
The ability to make a good strategy is like any core competence – valuable, rare and difficult to imitate. It
is highly specific to a particular time and industry. It needs to be continuously renewed. It is a
competency which is critical to every organization. This approach stresses how the capacity of strategy
making is developed over real time by any organization. The next section considers the theoretical and
empirical breakdown of the process of strategy making into different steps, which in this analysis exist in
notional, rather than real, time. The question is, are there steps which must be placed in a particular
sequence?

Colin discusses strategic planning as a process that should include scanning and monitoring. The
industrial or competitive environment is more immediate to the enterprise than the general
environment. According to the “…It is critical to read what other players might do, particularly
those who are in some sense competitors or complimentors for the enterprise…”

Basically the process of strategic formulation should first begin with the vision, mission
statements, objectives, and policy of an organization. This implies that this process is already
incomplete without such basics.

In my discussion henceforth is the formulation of the strategic process using the dynamics
mentioned above based on Leslie W.Rue:

Objectives

According to the author,an objective is a statement of what the business has to achieve in
specific terms(SMART)

Objectives specify the results that are expected of a mission.

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They objectives provide a basis for monitoring progress towards the mission(why?)

Without measurable objectives its difficult to realize how the business is progressing

The process of formulating objectives

The process of formulating objectives in an organization involves at least 4 stages.These are:

• Identifying the key result areas

• Determining the SMART model.
• Putting the Objectives in a written form

key result areas

key result areas are the critical and vital areas of an organization.These are also called Key
Performance areas(KPA).Key result areas are derive from the critical milestones of the vision
and missions of the organization.These are also translated into strategic plans of the organization.

To determine key result areas one should be able to answer the following question:

What areas should be monitored to determine wether is doing good, average, or poorly? Key
result areas should reflect the performance of the organization.For instance,an output per
machine would reflect as a key result area of a manufacturing department and a College
timetable indicating how many lessons are covered in each subject per week is a good KPA for
school.Similarly lesson plan indicating specific outcomes expected of students by a teacher is
also a good KPA.

Derivation of objectives using SMART model

The SMART model is composed of acronyms where letter “S” represents specific objectives;
“M” stands for measurable; letter “A” for achievable; “R” for realistic; and “T” representing
timeframe.

The SMARTmodel is commonly used in the area of strategy formulation as a means of

determining the cardinal features of that amount to effective objectives as discussed below”:

Specific.

When developing objectives, use words that are particular, precise, and clear.The design should
avoid ambiguities. This unit functions closely with the measurement feature for purposes of
clarity in strategy formulation.
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Measurable

An objective is the core unit of strategic management.It is a unit of measurement being used to
determine your achievement, attainment or specific realization of organizational goals. Therefore
its important that it is measurable as much as possible. That is to say,if it’s a sales department,
then it should specifically indicate how much sale targets in figures are expected and from how
many number of personnel involved in a given number of hours to realize the sales target.

Achievable and Realistic

I have intergrated the two aspects together because of the homogeneity of purpose demonstrated
by them.This domain determines wether planning is achievable and realistic as well. Basically
this is to mitigate the risk of fantasism in planning. There are organisations that may have dreams
that are not realistically translated into tangible planning and implementation projects. It
therefore maintains a balance between the fantasy and realism perspectives of strategic planning.

Timeframe

The timeframe aspect integrates a specific time required to fulfill the task in question.Time in
this case becomes one of the units of measurement required to fulfill a strategic management
process and planning.

THE PROCESS OF DECISION MAKING AND STRATEGY

Strategy decisions are by their nature complex, and involve many imponderables
(uncertainties).The selection of a course of action depends on the availability and interpretation
of Information processing, analysis, intuition, emotion, scientific analysis,situational
awareness,competence,resilience and many other factors.

Different individuals and groups emphasise different aspects and, in the sense that a strategy
decision is an advance into the unknown, there is no correct course of action; all that can be done
is to interpret the current situation, form expectations about the future, and act according to
personal views on risk and the likely course of events.

It is important to stress from the outset that strategy problems cannot be analysed and resolved
and then more or less forgotten about. In real life the day never comes when strategy decisions
are made and all problems are solved. This is because the environment within which the
company competes is constantly changing: products move through the life cycle; new companies
enter the market; consumer preferences change; government regulations change; major political
events alter markets both domestically and internationally. It is only relatively recently that
scientists have discovered the peculiar properties of complex interdependent non-linear
dynamical systems. The best-known examples are in weather forecasting, where the models are
so complex that changes in the inputs have unpredictable effects; in fact, the patterns over time
produced by such systems are highly sensitive to initial conditions.
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At first, this might seem to be a bit theoretical, but it is as well to bear in mind the possibility that
the business system itself is possibly not capable of being explained or predicted because of
dynamical effects.

In strategic management,there are also dynamic variables of decision making to minimize

uncertainties which include policy formulation and procedures with effective systems thinking
perspectives in decision making.

A policy

A policy is a broad general guide to action which constraints (limitations) or directs a goal
attainment.Policies provide boundaries within which the objectives of the organization or
business must be pursued.Policies serve to channel and guide the implementation of strategies.A
Policy could address the functional parts of the business and also address a task,duties,roles of
personnel in an organization.

Procedure

A procedure is a series of related step or tasks expressed in a chronological order to achieve a

specific purpose.Procedures are normally pre-cautionary measures of an un desired situatione.g
procedures of bomb threat,fire,or any other emergency demonstrate an urgent need for
procedures for safety.Procedures do not allow flexibility and deviation and they are usually an
extension or sub-functions of policies.

According to Oriana 11 the decision making model can be classified as Firstly, defining the
problem;Secondly,identifying the limiting factors; thirdly,development of potential
solutions;fourthly,analysis of alternatives,followed by,selecting the alternative,with
also,implementing the decision, and finally establishing control and evaluation as illustrated in
the diagram below:

                                                            
11
 Oriana‐Helena NEGULESCU1(n.d) “USING A DECISION‐MAKING PROCESS MODEL IN STRATEGIC MANAGEMENT” 
at http://www.managementgeneral.ro/pdf/1_2014_10.pdf 
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System Engineering and Thinking Perspectives for decision-making

The discipline of systems engineering in strategic management is still a recent development and
according to a research 12 conducted by the department of defence in the United States, “Systems
engineering consists of two significant disciplines: the technical knowledge domain in which the
systems engineer operates, and systems engineering management.”.

                                                            
12
 Department of defense(2001) “Systems Engineering Fundamentals”,Defense Acquisition University 
Press,FORT BELVOIR, VIRGINIA 22060‐5565,at https://ocw.mit.edu/courses/aeronautics‐and‐
astronautics/16‐885j‐aircraft‐systems‐engineering‐fall‐2005/readings/sefguide_01_01.pdf 
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The research by the Defense Acquisition University further discusses the three commonly used
definitions of systems engineering which include the following:

• A logical sequence of activities and decisions that transforms an operational need into a
description of system performance parameters and a preferred system configuration

• An interdisciplinary approach that encompasses the entire technical effort, and evolves into and
verifies an integrated and life cycle balanced set of system people, products, and process
solutions that satisfy customer needs. (EIA StandardIS-632, Systems Engineering, December
1994.)

• An interdisciplinary, collaborative approach that derives, evolves, and verifies a life-cycle

balanced system solution which satisfies customer expectations and meets public
acceptability.(IEEE P1220, Standard for Application and Management of the Systems
Engineering Process, [Final Draft], 26 September 1994.)

The research classifies the systems engineering process at an introductory as requiring analysis
of function and allocation, design synthesis, requirements, verification, and process outputs.At a
system analysis and control level,the research further identifies the work breakdown
structure,reviews and audits, configuration management, modeling and simulation,and metrics as
the critical variants.

Systems engineers are used to viewing systems through sets of models or views each of which
examines a situation from a number of points of view. This guide makes use of that concept and
describes a set of STPs along the lines of (Richmond, 1993) to be used in conjunction with both
developing an understanding of a system and organizing its representation. These perspectives
are:

1. Operational

2. Functional

3. Big picture

4. Structural

5. Generic

6. Continuum

7. Temporal

8. Quantitative

9. Scientific
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The first eight perspectives are descriptive, while the scientific perspective is prescriptive.
Consider each perspective in turn.

1. Operational perspective.

The operational perspective is the manner in which the system operates or will operate (in the
case of a new system). The system is viewed as a black box.The perspective shows the inputs
and outputs and their relationships. (Ins-and-Out)

2. Functional perspective.

The functional perspective describes the functions or activities performed by the system without
reference to which of the elements of the system perform those functions.(Department ie Human
Resource, finance etc)

3. Big picture perspective.

The big picture perspective provides a view of the forest rather than the trees. It views the system
within the context of its containing system – its environment, the closely coupled adjacent
systems with which it interacts and any loosely coupled more distant systems as shown in Figure
1 (Kasser, 2001).

Thus the perspective contains information about the external boundary of the system and the
assumptions behind the location of the boundary.

Business(tree)
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Environmental scanning:

(Forest, water bodies,soil nature, Other types of trees, other species like animals etc)

4. Structural perspective.

The structural perspective views the systems internal and any effects on the system due to its
internal structure.

5. Generic perspective.

The generic perspective looks for similarities between the system and other systems in the same
or other domains, in the present or in the past. This perspective leads to the Inheritance of
domain requirements from similar systems in Area.

Adoption of lessons learned from other projects and determination if those lessons are applicable
to current project.Innovative design approaches in the system domain using approaches from
other domains.

6. Continuum perspective.

The continuum perspective recognizes that:

Things are not necessarily „either-or‟, there may be states in between. This leads to concepts
such as „fail soft‟ in operation and the replacement of „either-or‟ questions such as “is systems
engineering an undergraduate or a postgraduate subject?” by questions in the form of “to what
degree is systems engineering a postgraduate subject?” or “what is the knowledge needed by a
systems engineering engineer and how much of it can be taught as an undergraduate subject?”
This is a very different perspective to the traditional „either-or‟ „one right way‟ perspective.

The „fail soft‟ perspective leads to an analysis of failure modes for the system and each of its
components. The analysis may influence the structural and functional perspectives in the design
of the system. The perspective also leads to a risk analysis of the probability and effect of
internal and externally induced failures and ways to mitigate the failures.

Internal failures are failures of components due to aging and normal wear and tear (Moubray,
2005), external failures are those inflicted from without, such as natural disasters, sabotage and
enemy action.

7. Temporal perspective.

The temporal perspective looks at how the system behaves over time.If the system exists, past
patterns of behaviour are examined and future patters are predicted using this perspective.
Insights from this perspective include:The consideration of Availability, maintenance, logistics,
obsolescence, etc.
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8. Quantitative perspective.

The quantitative perspective relates to the big picture and to the operational and functional
perspectives to develop the performance requirements. According to (Richmond, 1993), the
quantitative perspective however is not about the need to measure everything, “it is more the
recognition that numbers must be useful, not necessarily perfect and need not be absolute”.
Sometimes relative comparisons are more useful. This perspective is about quantification rather
than measurement, and helps to understand relationships and leads to the mathematical
relationships in (functional) models and simulations.

9. Scientific perspective.

Whereas the other descriptive perspectives are used to examine (and document) a system,
problem or situation, this prescriptive perspective covers the formulation and testing of
hypothetical candidate representations of the system to meet the need that will be constructed in
the design.
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CASE STUDY ANALYSIS ON STRATEGIC MANAGEMENT

In this section of my research is a close examination of a case study entitled, “Naval Air Station,
Barbers Point” which h was presented by the Denise Lindsey Wells in his book. 13

The author relates her experiences in the Department of the Navy Total Quality Leadership
Office.The Naval Air Station Barbers Point (NASBP) is classified as a project that had been
placed on the Base Realignment and Closure (BRAC) list. According to the available report,The
senior leadership of the command undertook strategic planning to help its people deal with
BRAC-related issues.They needed to include closure in their mission,reducing their size and
transitioning much of their remaining activity to Marine Corps Base Hawaii at Kaneohe Bay.

The background of the strategic process was due to a closure dated in July1999 where all the
operational units,personnel and station assets were being moved over to Kaneohe Bay, just
across the island. The senior leaders decided to give the draft plan to the mid-level managers the chief
petty officers (CPOs)to review and validate. The chiefs met in January 1995 in a facilitated, closed-door
session. The Command Master Chief, who is a member of the BTSC, acted as a downlink. This Chiefs’
Round Table made positive contributions to the completion and further deployment of the strategic plan.

Base Transition Steering Committee (BTSC) was formed as an Executive Steering Committee to oversee
completion and implementation of the plan. The mission, vision, and guiding principles below were
provided by the TQL Coordinator from the unpublished NAS Barbers Point strategic plan:

Mission

• Close NAS Barbers Point consistent with public law.

• Maintain quality service to the operating forces.
• Tailor support infrastructure.
• Continue quality of life support.

Vision

• A good neighbor
• Environmental steward
• Model for transition to a successfully integrated community

Guiding Principles

• To inspire an attitude of excellence we will:

• Encourage and embrace innovation and change.
• Work together with mutual respect, trust, and accountability for our actions.
• Keep people informed at all levels and maintain strong community relationships.
                                                            
13
 Ibid DENISE LINDSEY WELLS.(Director, Executive Support Division) 
23 | S t r a t e g i c   M a n a g e m e n t  
 

• Allow all personnel to provide input to the transition process while being sensitive to
their personal needs and professional growth.

Challenges of the strategic plan

• Work on the plan resumed after the unanswered questions about the BRAC were
resolved.
• Re-alignment and transition directive the Commander-in-Chief, Pacific Fleet, to revisit
and activate the plan picked up again in October 1995 after an operational suspense from
july.
• QMBs to further develop the goals were not very successful.
• The project didn’t get anywhere because the QMBs generally didn’t have time to meet.
They were so cross-functional that they almost got in the way of the daily routine.
• One of the principle mission areas is tailoring the infrastructure (the numbers of people
and facilities needed to support the fleet).
• The process owners developed their own POA&Ms for tailoring their
infrastructure.These were reviewed by the BTSC and merged into a common POA&Mfor
the base.
• The senior leaders decided to give the draft plan to the mid-level managers the chief petty
officers (CPOs)to review and validate. The chiefs met in January 1995 in a facilitated,
closed-door session. The Command Master Chief, who is a member of the BTSC, acted
as a downlink. This Chiefs Round Table made positive contributions to the completion
and further deployment of the strategic plan.
• The chiefs took the goals and came up with some great objectives and elements. They
really put more action into the plan.

RESPONSES

After the review, validation by the chiefs, buy-in to the plan was obtained. This resulted in team-
building within the mid-level management group and the chiefs were exposed to TQL processes.

A lot of resistance from the chiefs about taking formal TQL training. But they got some training
from the facilitator, and they used it, and it was effective.

Draft plan presentations

At the Chiefs Round Table, the draft plan was presented to the mid-level management group by
the Command Master Chief in an environment.

Now that the strategic plan has been completed, plans for communicating it both internally and
externally are being developed.The plan has been communicated to the workforce via the
department heads or division officers.
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Department heads will hold formal briefings on the plan for their people.

The plan will be covered in the commands General Military Training sessions.

The Public Affairs Office communication plan will be implemented to disseminate information
to station personnel, residents, the chain-of-command, and the community using face-to-face
presentations and print and electronic media.

The completed strategic plan is being shared with the base that NASBP is transitioning to at
Kaneohe Bay.
AN ANALYSIS F CASE STUDY

In this analysis I have discussed the case study based on the strategic model illustrated in figure
2.0 and systems thinking perspectives under decision making and strategy.Other aspects
dimension used in this analysis involve the approaches to strategic management as discussed
above.

Back to the case study, the establishment of strategic goals of the mission was a pre-planning
process that was conducted with the appropriate activities like goals,mission,and the draft plans
of the process.

As typical of an organization, resistance to the total quality training was evident from the chiefs
due to the existence of a status quo in the system that required to be refrozen with a new process
for the project.

A plan of Actions and Milestones (POA&M) strategy was laid out. The BRAC Office was
established as an instrument of coordinating the program. We see the use of systems thinking
principles in action as the BRAC merges the individual department POA&Ms and merged them
into the command one.Moreso,this merger was tailored to effect organizational assessment
which includes data collection, communication and analysis results in the pre-planning process.

The major challenges encountering the project was downsizing of its military strength and still
support the fleet.This was based strategy of elimination of redundant functions.Moreso the
question of how far the project could partner with local weapons magazine, supply center,and
maintenance to reduce number of personnel for the success of the project was a very critical
issue.

The strategies were implemented to reduce the impact on the civilian workforce of tailoring the
infrastructure and consequently a new partnership with the local supply center made it possible
to eliminate 18 (almost a third) of the civilian positions in the supply department. The workers
were placed in other jobs made available by attrition or offered early retirement with a bonus.

The implementation plan was a success based on the principle of communicating a plan as
illustrated in figure 2.0.This is exemplified by an initiative of the BTSC periodically reviews
25 | S t r a t e g i c   M a n a g e m e n t  
 
accomplishments. A good flow of interdepartmental communication was registered.The
Commanding Officer needs to ensure that people are aware that leadership backs the plan and
expects people to conduct business in accordance with the plan.

The key to success is the linkage between the strategic plan and the existing processes not having
two different organizations, or two ways of managing things, but linking them.The use of
principles on systems thinking perspectives according to (Kasser, 2001) was evident as
illustrated in figure 1.The big picture perspective which provides a view of the forest rather than
the trees views the system within the context of its containing system.Therefore,the teams ability
to manage adjacent systems with which it interacts contributed to the success of the project.

CONCLUSION

This research has organized the processes, models, and functions of strategic management in
form of the existing scope,purpose,approach,and formulating strategy.To compliment this are
strategic models by Leslie which include,analyzing the current status,examine prospects for
future,setting future course,putting strategy to work,and strategic control.The existing models
that help in decision making are derived from the field of systems engineering by credible
authors like (Richmond, 1993) whose work designated aspects on the Operational,Functional,Big
picture,Structural,Generic,Continuum,Temporal,Quantitative, and Scientific perspectives in
strategic management.

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26 | S t r a t e g i c   M a n a g e m e n t  
 
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