Strategic Management is the process by which the organization identifies its desired level of performance and developing/executing an action plan to achieve it. Many scholars have suggested different models in which the strategic management process can be carried out. In this tutorial we present a new model introduced by the author.
The model starts with the analyzing the current position of the organization where the internal organization can be analyzed using strengths and weaknesses (S,W) of a SWOT analysis and external environment of an organization can be analyzed using opportunities and the threats (O,T) of SWOT analysis. Upon deciding the current state of the organization organization can visualize the vision of the organization which visualize a future desired state of the organization. Once the vision is formed the mission statement has to be built upon which summarize the purpose of the existence of the company. When the mission statement is formed the goals of the organization has to be formed to be in line with the mission and visions. Goals as to be turned in to SMART of objectives.
Upon formulating objectives strategic options that can utilized to achieve stated objectives has to be generated. From the generated strategic options the best strategy has to be chosen and implemented. Once the implementation is started/done the controlling and reviewing has to be started where the current state of objectives, available strategic options, the choice of best option, implementation process and the external environment have to monitored. The strategic leadership has to provided to lead the process to the direction. (Each component of the model will be comprehensively discussed in future)
The main drawback of this model is that this can be used only in stable environments which is different from the reality. And also the challenges to the strategic management which was discussed earlier also brings disadvantages in adopting this model.