Components Of Strategic Management Model
The components of Strategic Management model are given below:
The Mission of the company is the unique purpose that sets it apart from other companies of its type and identifies the scope of its operations. IN short the company mission describes company’s product, market and technological areas of emphasis in a way that reflects the values and priorities of the strategic decision makers.
The Company analyses the quantity and quality of the company’s financial, human and physical resources. It also assesses the strengths and weaknesses of the company’s management and organizational structure. Finally it contrasts the company’s past success and traditional concerns with the company’s capabilities in an attempt to identify the company’s future capabilities.
A firm’s external environment consists of all conditions and forces that effect its strategic options and define its competitive situation. The strategic management model shows the external environment as three interactive segments: remote, industry and operating environments.
Strategic Analysis and Choice
Simultaneous assessment of the external environment and the company profile enables a firm to identify a range of possibly interactive opportunities. The opportunities are possible avenues for investment.
Long Term Objectives
The results that an organization seeks over a multiyear period are its long term objectives in the areas of profitability, return on investment, competitive position, technological leadership, productivity, employee relations, public responsibility and employee development.
Action Plan translates generic and grand strategies into action by incorporating four elements. First they identify specific action to be undertaken in the next year or less as part of the business’s effort to build competitive advantage. Second they establish a clear time frame for completion of each action. Third action plans to create accountability by identifying who is responsible for each action. Fourth each action has one or more specific immediate objectives that the action should achieve.
Strategic Control and Continuous Improvement
Strategic Control is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises and making necessary adjustments. In Continuous Improvement the Companies can implement Six Sigma by using a consultant or train their middle management staff on Six Sigma.
Finally to conclude that it would be very sensible to mention that the topic of strategic management is too vast like an ocean to comprise in a short article, this is a framework on which strategic management processes are build on.