The study of strategic management is essential for any organization that wishes to remain competitive in its respective industry. Strategic management models provide a framework for analyzing and developing strategies to help organizations reach their goals. This article will look at the top 10 strategic management models you should know to understand better how the strategy works in today’s business world. Each model provides unique insights into developing effective strategies for different contexts.
Top 10 strategic management models
Before we look into these models, it is important to know that if you want to start your journey in strategic management, it is best to consider enrolling in a Strategic Management course. Doing so will help you understand the importance of models and how they are used in strategy practice.
Let’s look at the top 10 strategic management models you should know:
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PESTEL analysis
The PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) framework provides an overview of the macro-environment in that any business operates. It is invaluable for understanding the external environment in which an organization must operate.
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Balanced Scorecard
The framework helps organizations develop a clear action plan with tangible outcomes by measuring financial and non-financial performance indicators such as customer satisfaction or employee engagement.
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Porter’s Five Forces
The Porter’s Five Forces model provides a way to assess an organization’s competitive environment and identify possible strategies to gain a competitive advantage over its rivals.
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SWOT Analysis
A SWOT analysis helps an organization to analyze its Strengths, Weaknesses, Opportunities, and Threats to develop strategies that leverage the advantageous conditions and mitigate any potential risks.
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McKinsey 7S Framework
The McKinsey 7S framework looks at the seven key elements of a successful organization: Strategy, Structure, Systems, Skills, Style, Staff, and Shared Values. It is used to identify how well-aligned these elements are within an organization for maximum effectiveness.
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Resource-Based View (RBV)
The Resource-Based View (RBV) model focuses on resources to gain a competitive advantage by utilizing the organization’s existing resources, such as finance or talent.
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Blue Ocean Strategy
The Blue Ocean Strategy uses a unique approach to identify new markets, products, and services uncontested and unrivaled by competitors. It is based on ‘creating’ rather than ‘competing.’
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Ansoff Matrix
The Ansoff Matrix is useful for assessing the risks associated with different growth strategies, such as market penetration, product development, or diversification.
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Deming Cycle (PDCA)
The Deming Cycle (also known as the PDCA cycle) ensures continuous organizational improvement. It consists of four steps: Plan, Do, Check, and Act.
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Agile Management Methodology
The agile management methodology provides organizations an adaptive, iterative, and continuous process for developing new strategies in response to an ever-changing environment.
Therefore, understanding the top 10 strategic management models is essential for any organization embarking on a journey of operational excellence. By taking the time to understand each model and its application, organizations can develop effective strategies tailored to their respective industry. Furthermore, a strategic management process can be used to gain a competitive edge over rivals.
Conclusion
These top 10 strategic management models are essential for any organization to gain an edge in its industry. These models can help organizations devise strategies that leverage existing resources and identify new opportunities. Understanding the importance of these models and how they can be applied is essential to develop effective strategies tailored to different contexts.
