CHAPTER 7

STRATEGIC
MANAGEMENT
MODELS
I. The Resurgence of Models
Management being fundamentally anchored on the idea
of the need to do planning, organizing, staffing, directing,
controlling and evaluating is somehow too broad a coverage as if
of these aspects of management function or tasks require the
application of elements and theories related to strategizing.
Because planning a task is a matter of anticipating or
putting down a series or sets of activities to be done sometime in
the future based on certain sets of assumptions, the task is
considered difficult as predicting the future is not a perfect science.
Built into the inherent difficulty In planning and predicting the
future or market scenarios are the elements nature of force
majeure which by its nature is unpredictable, and if so as in
certain cases, predictions or presumed scenarios are considered not
a solid and firm basis for guarantying a successful plan.
 II. Strategic Management Models

A number of authors have profounded a variety of models identifying

a series of tasks or activities that need to be done to put forward the idea of
strategic management. Among these models are those espoused by ,

• Whelen and Hunger (2004)

• Thompson and Strickland (1999)
• F.R. David (1998)
• Rayport and Jaworski (2004)
• Wright, Kroll and Parnell (1992)and etc.
III. The Wright, Kroll and Parnell Model
EXTERNAL ENVIRONMENTAL OPPORTUNITIES AND THREATS
Macro environment Industry environment

THE INTERNAL ENVIRONMENT

The firm’s resources, organizational mission and goals

STRATEGY FORMULATION
Corporate strategy formulation
Business unit strategy
Functional strategy formulation

STRATEGY IMPLEMENTATION
Organizational structure
Leadership, Power and Organizational culture

STRATEGIC CONTROL
Strategic Control Process and Performance

Figure 49. Strategic Management Model by Wright et al. (1996)

IV. Thompson and Strickland Model

TASK 1 TASK 2 TASK 3 TASK 4 TASK 5

Develop a Craft a Implement Monitor

Strategic Set Strategy and Evaluate,
Vision and objectives to Achieve Execute And Take
Mission objectives Strategy Corrective
Action

Recycle
Revise as Revise as Improve/ Improve/
as
needed needed Change Change
needed

Figure 50. The Five Tasks of Strategic Management –

Thompson and Strickland Model
V. F.R. David Model

Perform
external
audit

Generate, Establish
Develop Establish Measure &
evaluate, policies & Allocate
mission long-term evaluate
and select annual resources
statement objectives performance
strategies objectives

Perform
internal
audit

Figure 51. Comprehensive Strategic Management –

F.R. David Model
VI. Wheelen and Hunger Model

Environmental Strategy Strategy Evaluation and

scanning formulation implementation control

Figure 52. The Wheelen and Hunger Strategic Management Model

Environmental Evaluation
Strategy formulation Strategy implementation
scanning & control

External Mission
- Reason
Social for Objective
existence - What
Environmental results to
Strategies
accomplish
- Plan to
General forces by when
Achieve the
mission and Policies Process to
Task
objectives - Broad monitor
guide- Programs performance
Environment lines for - Activities and take
[industry analysis] decision- needed to corrective
making accomplish Budget action
Internal structure a plan - Cost of
Chain of command program
Programs
- Activities
Culture
needed to
accomplish
[Beliefs,
a plan
expectation,
values]
Performance
Resources [Assets, - Actual
skills, competencies, results
knowledge]

Figure 53. Strategic Management – Wheelen and Hunger Model

VII. Rayport and Jaworski Model

Mission

Goals

External Strategy formulation Internal

(industry -Corporate (company
analysis) -Business-unit analysis)
-Functional
-Operating

Implementation

Control and monitoring

Figure 54. Classical Framework of Strategic Management

(Rayport and Jaworski, 2004 – with modification
VIII. Pitts-Lei Model

Implementa Adjustment/
Analysis Formulation
tion Evaluation

External Internal Mission Policies

environment environment

Customers to
Goals, Organization
be served
Opportunities Strengths, Guidelines structure, (Cycle to
Competencies
and threats weaknesses for major Systems, earlier stage)
to be
activities Culture, etc.
developed

Figure 55. Strategic management Process by Pitts and Lei (2006)

IV. The Hybrid Model

MMonitoring/review – Board of directors level

MMonitoring/review – Operating officers level

Developi
Strategy
ng
Environ Setting evaluation
strategic Crafting Strategy
mental strategic ,
vision strategies execution
scanning objectives monitoring
and
, revision
mission

Two-way feedback – Operational level

Figure 56. The Six Tasks of Strategic Management (Orcollo, 2006)

X. Strategic Plan – The Output of the Strategic
Management Models
Vision-Mission Statement – A declaration of
what the firm is all about and what it wants to
become
Strategic objectives – Specific targets and
objectives the firm wants to achieve in
measurable terms
Strategies – Functional and operating plans
detailing tasks on what needs to be done and
how to achieve strategic objectives
Strategy Implementation/execution plan –
Details of ground or operating level tasks
identifying rsponsible parties including routine
and daily activities
Monitoring, evaluation, and taking
corrective actions – Monitoring compliance of
the strategy, evaluating performance and doing
corrective actions as needed.
XI. Short, Medium, and Long-Term Plan

Mission

Vision

Strategies designed to achieve

strategic objectives

Functional strategies/objectives
Admin/Finance Marketing Operations Research

Tactical/Operational activities

Figure 58. Operationalizing the Strategic Plan