How to Explain a Strategic Management Model
A strategic management model, also called a strategic planning model, represents patterns made by strategic management. Strategic management accounting focuses on setting objectives and determining the steps needed to achieve those goals. Strategic management models are categorized into five basic types: basic strategic planning, issue-based planning, self-organizing planning, alignment strategic planning and scenario strategic planning. These models are created by following six basic steps: stating the mission, objectives, situation analysis, formulation of strategies, application and control.
Other People Are Reading
Instructions
-
-
1
Understand the company's mission statement. A strategic management model is used to explain a specified objective and all the steps needed to accomplish it. This model begins with the company's mission statement, which is the basic purpose of the company. It typically states the company's position on how business is conducted.
-
2
Read the objectives. The next step in understanding a strategic management model is reading the objectives set forth in the model. These objectives are typically long-term goals that the company has set. They are specific goals the company wants to accomplish which correlate with the company's mission statement. The model also states general statements regarding specific details that must be met in order for the company to meet these objectives.
-
-
3
Understand the strategies the company will use. The approaches and strategies the company will take are outlined on this model. These approaches focus on achieving the goals outlined. When these strategies are determined, the company examines internal and external environments relating to the goals of the organization.
-
4
Identify each department's responsibility in the model. This is called formulation of strategy. On the strategic management model, each department is given specific responsibilities. Each responsibility works toward achieving the goals of the company. Each function and activity of the strategic plan is outlined in this step.
-
5
Applying the functions. This step of understanding this model requires the company to actually begin working toward the goal. Each department takes part in fulfilling the requirements set forth on the model.
-
6
Control progress. As the process is under way, the model reflects that changes should be made if needed. If one department is falling behind, some of the work could be shifted. If another area isn't working as planned, the strategic plan may need to be altered.
-
1
References
- Photo Credit Three colleagues working at a computer. image by Vladimir Melnik from Fotolia.com
