An Assignment on Strategic Management:Overview

Submitted To
Md. Abul Kashem
Professor
Department of MIS
University of Dhaka

Submitted By
Mohammed Younus Munna
ID: 029-13-077
Section: A, Batch: 13th

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Contents
Introduction ............................................................................................................................................ 1
Reasons Why Organization Needs Strategic Management Model ......................................................... 1
Components of Strategic Management Model....................................................................................... 2
Some key Components in Implementing Strategic Management Model Successfully in Organizations 4
Method of Using Strategic Management Model of World’s Some Top Companies ............................... 6
Top Bangladeshi Companies That Use Strategic Management Model ................................................... 7
Conclusion ............................................................................................................................................... 8

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Introduction
A strategic management model is a framework or a systematic approach that organizations
use to formulate, implement, and evaluate their strategies. It provides a structured process for
decision-making and guides organizations in aligning their resources, capabilities, and actions
with their long-term goals and objectives. The strategic management model typically
encompasses various interconnected processes, including environmental analysis, goal
setting, strategy formulation, strategy implementation, and strategy evaluation.

The model helps organizations identify and understand their external environment, including
market trends, competitive landscape, and regulatory factors. It also involves assessing
internal strengths, weaknesses, and resources to develop strategies that capitalize on
opportunities and mitigate threats.

Reasons Why Organization Needs Strategic Management Model

✓ Coordination of Efforts: A strategic management model ensures that all
departments, teams, and individuals within the organization are aligned and working
towards common goals. It helps coordinate activities and resources to achieve
strategic objectives.
✓ Focus and Direction: A strategic management model provides a clear direction and
focus for the organization. It helps define the organization's vision and mission, which
guide decision-making and resource allocation. Without a strategic management
model, organizations may lack a clear sense of purpose and direction, resulting in ad
hoc decision-making and scattered efforts.
✓ Adaptation to Change: The business environment is dynamic and constantly
evolving. A strategic management model enables organizations to monitor and
analyze changes in the external environment and make informed decisions
accordingly. Without a strategic management model, organizations may struggle to
adapt to change, lose market competitiveness, or miss out on new opportunities.
✓ Risk Management: Strategic management models include processes for analyzing
and managing risks. They enable organizations to identify potential risks and develop
strategies to mitigate them. By considering risks upfront and integrating risk
management into the strategic decision-making process, organizations can proactively

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 address challenges and uncertainties, enhancing their ability to navigate turbulent
environments.
✓ Performance Measurement and Accountability: A strategic management model
establishes performance metrics and evaluation mechanisms to measure progress and
success. It enables organizations to track their performance against strategic goals,
identify areas of improvement, and take corrective actions. It also fosters a culture of
accountability and transparency, ensuring that individuals and teams are responsible
for their contributions to the organization's strategic outcomes.

In summary, a strategic management model provides a framework for organizations to

navigate the complexities of the business landscape, make informed decisions, allocate
resources effectively, adapt to change, manage risks, and achieve long-term objectives. It is a
vital tool for organizations to achieve clarity, alignment, and competitiveness in today's
dynamic and challenging business environment.

A strategic management model typically consists of several key components that work
together to guide the strategic management process.

Components of Strategic Management Model

1. Vision and Mission
➢ Vision Statement: Define the organization's long-term aspirations and desired
future state. The vision statement provides a clear and inspiring picture of
where the organization aims to be in the future.
➢ Mission Statement: Articulate the organization's purpose, core values, and the
primary stakeholders it aims to serve. The mission statement outlines the
fundamental reason for the organization's existence.

2. Environmental Analysis
➢ External Analysis: Assess the external environment to identify opportunities
and threats. This involves analyzing factors such as market trends, industry
dynamics, competitor analysis, technological advancements, regulatory
changes, and socio-cultural influences.
➢ Internal Analysis: Evaluate the organization's internal strengths and
weaknesses. This includes assessing resources, capabilities, core

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 competencies, organizational culture, and other internal factors that can impact
strategic decisions.

3. Goal Setting: Establish specific, measurable, attainable, relevant, and time-bound

(SMART) goals that align with the organization's vision and mission. Strategic goals
outline the desired outcomes the organization seeks to achieve over a defined period.

4. Strategy Formulation
➢ Strategic Options: Generate alternative strategic options based on the analysis
of the external environment and internal capabilities. These options can
include market expansion, product diversification, strategic partnerships, cost
leadership, differentiation, etc.
➢ Evaluation and Selection: Evaluate each strategic option's feasibility, potential
risks, expected outcomes, and alignment with the organization's goals and
competitive advantage. Select the most suitable strategies to pursue.

5. Strategy Implementation
➢ Resource Allocation: Allocate resources effectively, considering financial,
human, and technological requirements to support the implementation of
strategies.
➢ Action Planning: Develop detailed action plans that outline the specific steps,
timelines, resource allocation, and responsibilities required to execute the
chosen strategies effectively.
➢ Communication and Coordination: Ensure clear communication of the strategy
throughout the organization and establish coordination mechanisms to align
efforts and ensure understanding and commitment.

6. Organizational Alignment
➢ Organizational Structure: Align the organizational structure with the chosen
strategies to facilitate effective decision making, coordination and
communication.
➢ Processes and Systems: Review and align key processes, systems, and
procedures to support the implementation of strategies effectively.
➢ Organizational Culture: Foster a supportive and collaborative culture that
encourages employee engagement, innovation, and a shared commitment to
strategic goals.

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 7. Strategy Evaluation and Control
➢ Performance Metrics: Establish performance metrics and key performance
indicators (KPIs) to measure progress and success towards strategic goals.
➢ Monitoring and Review: Regularly monitor and evaluate the implementation
of strategies against predefined metrics. Conduct periodic reviews to assess
the effectiveness of strategies and identify necessary adjustments.
➢ Feedback and Learning: Implement a feedback loop to capture lessons
learned, promote continuous learning, and improve future strategic decisions.

These components work in an iterative and interconnected manner, ensuring a systematic

approach to strategic management. They help organizations align their actions with their
vision, adapt to changes in the external environment, and achieve their long-term objectives.

Some key Components in Implementing Strategic Management Model

Successfully in Organizations
• Leadership Commitment: Ensure that top leadership, including executives and key
stakeholders, is fully committed to the strategic management process. They should
champion the model, communicate its importance, and actively participate in its
implementation.
• Staffing: Effective staffing involves selecting and placing the right people in the right
roles to support strategy execution. This includes recruiting individuals with the
required skills and competencies, ensuring a good fit between employees and the
strategic objectives, and providing training and development opportunities to enhance
their capabilities. Staffing helps ensure that the organization has the necessary human
resources to execute the strategy effectively.
• Organizational Structure: The organizational structure plays a crucial role in
strategy execution. It involves defining reporting relationships, decision-making
authority, and establishing departments, teams, and functions within the organization.
A well-designed structure aligns with the strategic objectives, promotes effective
communication and coordination, and ensures clarity in roles and responsibilities. It
enables efficient collaboration and coordination of efforts towards strategy execution.

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 • Bench-marking: Bench-marking involves comparing the organization's performance
and processes with industry best practices or competitors to identify areas for
improvement. It helps in setting performance targets, learning from successful
organizations, and adopting strategies and practices that have proven effective
elsewhere. Bench-marking provides insights and benchmarks to measure progress and
drive improvements in strategy execution.
• Clear Communication: Clearly communicate the strategic management model and
its objectives to all employees. Ensure that everyone understands the model's purpose,
benefits, and how it aligns with the organization's vision and mission.
• Resource Allocation: Allocate adequate resources, including financial, human, and
technological resources, to support the implementation of the strategic management
model. This includes providing training and development opportunities to build the
necessary skills and capabilities within the organization.
• Stakeholder Engagement: Engage key stakeholders, both internal and external,
throughout the implementation process. Seek their input, gather feedback, and involve
them in decision-making to enhance ownership and commitment.
• Process Design: Design and document the processes and procedures that will be used
to implement each component of the strategic management model. Ensure that the
processes are clear, well-defined, and aligned with organizational goals.
• Implementation Plan: Develop a detailed implementation plan that outlines the
sequence of activities, timelines, responsibilities, and milestones. Break down the
implementation into manageable phases and set realistic targets to ensure a smooth
transition.
• Performance Metrics: Establish key performance indicators (KPIs) and metrics to
measure progress and success. These metrics should align with the organization's
strategic goals and provide meaningful insights into the effectiveness of the model's
implementation.
• Monitoring and Evaluation: Implement a system for monitoring and evaluating the
implementation of the strategic management model. Regularly assess progress,
identify bottlenecks or challenges, and make necessary adjustments to keep the
implementation on track.
• Continuous Learning and Improvement: Foster a culture of continuous learning
and improvement. Encourage open communication, feedback sharing, and reflection

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 on experiences. Use lessons learned to refine and enhance the strategic management
model over time.
• Integration and Alignment: Integrate the strategic management model into day-to-
day operations and decision-making processes. Ensure that it becomes embedded in
the organizational culture and is consistently applied throughout the organization.
Review and Adaptation: Regularly review the effectiveness of the strategic
management model and make necessary adaptations. As the business environment
evolves, update the model to ensure its relevance and alignment with changing
circumstances.

Remember that successful implementation of a strategic management model is an ongoing

process. It requires dedication, flexibility, and a willingness to adapt to changing conditions.
By following these steps and maintaining a commitment to continuous improvement,
organizations can increase their chances of implementing the strategic management model
successfully and achieving their long-term goals.

Method of Using Strategic Management Model of World’s Some Top Companies

i. Google (Alphabet Inc.): Google's strategic management model is centered on data-
driven decision-making and continuous innovation. The company's approach involves
analyzing vast amounts of user data to identify patterns, understand user behavior, and
enhance its products and services.
Google's "20% time" policy allows employees to dedicate a portion of their workweek
to pursue innovative projects, fostering a culture of creativity and experimentation.
The company's strategic management also involves strategic partnerships and
acquisitions to expand its product offerings and market reach.
ii. Apple Inc.: Apple's strategic management model focuses on innovation, design, and
customer experience. The company's approach involves conducting in-depth market
research, identifying emerging trends, and developing cutting-edge products that
anticipate customer needs.

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 Apple's strategic management also emphasizes vertical integration, controlling both
hardware and software aspects to create a seamless ecosystem of products and
services.
iii. Amazon: Amazon's strategic management model is characterized by customer
obsession and relentless focus on long-term growth. The company aims to provide
customers with a wide range of products, convenient services, and seamless
experiences.
Amazon employs a data-driven approach to drive its decision-making processes,
leveraging advanced analytics and machine learning to optimize operations,
personalize recommendations, and improve supply chain efficiency.
iv. Walmart: Walmart's strategic management model revolves around low-cost
leadership and operational efficiency. The company's approach involves leveraging its
scale and supply chain capabilities to offer affordable prices to customers.
Walmart's strategic management also focuses on expansion through organic growth
and acquisitions, allowing the company to enter new markets and diversify its product
offerings.
v. Microsoft: Microsoft's strategic management model focuses on software
development, cloud computing, and digital transformation. The company's approach
involves developing and integrating a suite of products and services that cater to
enterprise needs.
Microsoft's strategic management also includes a strong emphasis on strategic
alliances and partnerships with other technology companies, fostering collaboration
and expanding its market presence.

It's important to note that these descriptions provide a general overview of the strategic
management approaches of these companies, and their specific methodologies may vary over
time as they adapt to evolving market conditions and business strategies.

Top Bangladeshi Companies That Use Strategic Management Model

➢ Grameenphone: Grameenphone, the largest telecommunications operator in
Bangladesh, utilizes a strategic management model to maintain its market leadership
and drive innovation.

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 The company focuses on market analysis and customer insights to understand
changing trends and needs in the telecommunications industry.

➢ BRAC Bank: BRAC Bank, one of the leading private commercial banks in
Bangladesh, employs a strategic management model to drive its growth and deliver
value to its stakeholders.
The bank emphasizes customer segmentation and market positioning to cater to
different customer segments effectively. BRAC Bank's strategic management model
includes a focus on digital transformation, leveraging technology to enhance customer
experience, streamline operations, and expand its service offerings.

➢ Beximco Pharmaceuticals: Beximco Pharmaceuticals, a leading pharmaceutical

company in Bangladesh, applies a strategic management model to drive its expansion
and maintain its competitive edge. The company conducts comprehensive market
research to identify growth opportunities and understand customer needs. Beximco
Pharmaceuticals' strategic management model includes product portfolio
diversification, research and development initiatives, strategic partnerships, and
international market expansion.

➢ Square Group: Square Group, a prominent conglomerate in Bangladesh, employs a

strategic management model to guide its diverse business units, which operate in
sectors such as pharmaceuticals, textiles, agro, and retail.
The company's strategic management model focuses on market analysis, innovation,
and continuous improvement. Square Group's strategic management approach
includes investment in research and development, exploring new business
opportunities, and strategic acquisitions to expand its market presence.

Conclusion
In conclusion, a strategic management model provides a structured and systematic approach
for organizations to navigate the complexities of their external and internal environments,
make informed decisions, allocate resources effectively, adapt to change, manage risks, and
achieve long-term objectives. It encompasses processes such as environmental analysis, goal
setting, strategy formulation, strategy implementation, and strategy evaluation.

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The strategic management model helps organizations establish a clear direction and focus,
align efforts towards common goals, and adapt to changing market dynamics. It enables
organizations to capitalize on opportunities, mitigate threats, and sustain a competitive
advantage. The model promotes effective resource allocation, encourages innovation and
learning, and fosters a culture of continuous improvement. Successful implementation of a
strategic management model requires leadership commitment, clear communication, resource
allocation, stakeholder engagement, and a focus on execution. Organizations must monitor
progress, measure performance, and make necessary adjustments along the way. By
leveraging a strategic management model, organizations can enhance their strategic decision-
making capabilities, drive growth, and achieve long-term success in a dynamic and
competitive business environment.

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