Certo and Peter's Strategic Management Model

What is Certo and Peter's Strategic Management Model?

Certo and Peter's Strategic Management Model is a framework for understanding and analyzing the strategic management process in organizations. It was developed by Sam Certo and J. Paul Peter, and it consists of four main stages:

1. Strategy formulation: In this stage, the organization defines its mission, goals, and objectives, and develops a plan for achieving them. This may involve analyzing the organization's internal and external environment, identifying its strengths and weaknesses, and defining its competitive advantage.
2. Strategy implementation: In this stage, the organization puts the strategy into action by allocating resources, assigning responsibilities, and implementing the necessary policies and procedures.
3. Strategy evaluation and control: In this stage, the organization monitors and measures the effectiveness of the strategy and takes corrective action if necessary. This may involve assessing the organization's performance against its goals and objectives and comparing it to the performance of its competitors.
4. Strategy modification: In this stage, the organization adjusts the strategy based on the results of the evaluation and control process. This may involve revising the strategy, changing the allocation of resources, or adapting to changing circumstances.

Certo and Peter's Strategic Management Model provides a systematic approach to understanding and managing the strategic management process in organizations. It emphasizes the importance of ongoing evaluation and control and the need for flexibility and adaptability in the face of changing circumstances.

See Also

Certo and Peter's Strategic Management Model is a framework designed to guide organizations through the process of strategic planning and execution. While specific details of their model can vary based on the publication or interpretation, at its core, it generally emphasizes a systematic approach to strategic management, involving the analysis, formulation, implementation, and evaluation of strategies. This model is known for integrating classic management concepts with a pragmatic approach to strategic decision-making.

• Strategic Analysis: Explaining the process of analyzing an organization's internal and external environments to identify strengths, weaknesses, opportunities, and threats (SWOT analysis).
• Mission Statement and Vision Statement: Discussing the importance of defining clear mission and vision statements as they provide direction for the organization's strategic planning process.
• Goals and Objectives Setting: Covering how organizations establish specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives that align with their strategic vision.
• Strategy Formulation: Explaining the development of strategies based on the analysis of the organization's internal and external environments to achieve its mission and objectives.
• Strategy Implementation: Detailing the processes and actions taken to put formulated strategies into action, including resource allocation, organizational structure adjustments, and management of change.
• Evaluation and Control: Discussing mechanisms for monitoring the implementation of strategies, assessing performance, and making necessary adjustments to strategies, goals, or objectives based on performance feedback.
• Competitive Strategy: Exploring strategies organizations use to gain a competitive edge in the market, such as cost leadership, differentiation, and focus strategies.
• Corporate Strategy: Covering the decisions and actions related to the scope and direction of the organization as a whole, including diversification, acquisition, and divestiture strategies.
• Business Ethics and Corporate Social Responsibility (CSR): Discussing how ethical considerations and social responsibilities can influence strategic decision-making and impact the organization's reputation and success.
• International Strategy: Explaining how organizations adapt their strategies to compete in international markets, including considerations for globalization, localization, and international market entry strategies.
• Innovation and Entrepreneurship: Covering the role of innovation in strategy formulation and how entrepreneurial approaches can lead to new opportunities and competitive advantages.
• Strategic Leadership: Discussing the role of leaders in guiding the strategic direction of the organization, fostering a strategic culture, and leading change.

• Wheelen and Hunger's Strategic Management Model